FINANCIAL RULES.

(See section 172.) Part I. Authorised Expenditure. 1. The purposes to which the municipal fund may be applied include all objects expressly declared obligatory or discretionary by laws or rules and in general everything necessary for or conducive to the safety, health, convenience or education of the residents of Madurai or to the amenities of the City and everything incidental to the administration and the fund shall be applicable thereto within the City subject to these rules and such further rules or special orders as the Government may prescribe or issue and shall be applicable thereto outside the City if the expenditure is authorised by this Act or specially sanctioned by the Government. 2. The objects of expenditure connected with the public safety include the following:- (a) Lighting of public street and the provision, purchase, exploitation and maintenance of gas, electric or other undertakings for lighting public and private streets, places and buildings; (b) Extinction of fires; (c) Control, supervision or removal of dangerous places, buildings, trades and practices ; (d) Regulation of traffic; (e) Prevention and removal of obstructions in streets or public places; (f) The giving of relief and the establishment and maintenance of relief works in time of famine or scarcity. 3. The objects of expenditure connected with the public health include the following:- (a) The construction and maintenance of hospitals and dispensaries and temporary places of reception within or without the City for the treatment of infectious diseases occurring in the City; building hospitals and dispensaries and places of reception for the sick in general; contributing towards hospitals, dispensaries or places of reception provided by the Government; contracting for the use of a hospital or part of a hospital, dispensary, or place of reception; combining with any other local authority or with the Government to provide a common hospital, dispensary or place of reception; sending indigent inhabitants of the City to institutions outside the City for treatment; the aiding of health officers, medical practitioners, medical subordinates, sanitary inspectors and analysts; the training of midwives and nurses and provision of nurses for attendance on patients suffering from infectious diseases at the houses of such persons; the provision of health visitors, midwives and dhais for attendance on maternity cases; vaccination and the training and supervision of vaccinators and the provision of lymph; the registration of births, deaths and marriages; the enumeration of the inhabitants of the City and other measures of a like nature; (b) The construction, establishment, maintenance, supervision and control of public markets and slaughter houses; of shops, stalls, and plinths, of latrines; of drains and drainage works; of sewage farms and all works for the removal or disposal of sewage; of water-works, drinking fountains, tanks and wells, of wash-houses or salavaithuraikal; of parks, squares and gardens; the reclamation of unhealthy localities and other sanitary measures of a like nature; (c) The cleansing and watering of streets and drains; scavenging; the removal of excessive or noxious vegetation; the abatement of all nuisances; (d) The regulation and control of offensive or dangerous trades, of unhealthy buildings or localities and of burial and burning grounds and crematoria; improvement of burial and burning grounds and crematoria and the provision of sites for and the closing of burial and burning grounds; the provision of new sites for offensive and dangerous trades and of special locations for factories, the acquisition of congested areas and the provision of new sites whether within or without the City to relieve congestion or to provide for the growth of population; improvement and reclamation of land, planning, surveying and control of town extensions whether within or without the City, redistribution of sites in such extensions; and all measures of a like nature. (e) The acquisition, construction, maintenance, enlargement, improvement, alteration, repairs, management and letting of dwelling houses for the use of the working classes as well as the middle classes and any building for the use or convenience of the inmates of such dwelling houses and the doing of any act or thing necessary or expedient to facilitate any such undertaking and the acquisition of land and buildings for any such purpose. (f) The prevention of adulteration of food or food products, maintenance of laboratories for food and water analysis and maintenance of research laboratories. 4. The objects of expenditure connected with the public convenience, amenities and education include- (a) The construction, maintenance, diversion and improvements of streets, bridges, causeways, culverts and the like; the regulation of buildings, the construction of model dwellings, and the encouragement of co-operative building societies by loans, grants of land or prizes; the removal of projections and encroachments; the naming of streets; the numbering of houses; the planting and preservation of trees in public streets and places; the maintenance of public monuments. (b) The construction, maintenance, alteration and adornment of public halls and theatres, the acquisition and maintenance of recreation grounds, playing fields and promenades; (c) Subject to all provisions of law the construction, maintenance, purchase or exploitation of transport services, railways not included, of telephone systems, grass farms, dairies, public bakeries and other agricultural, industrial or trading concerns of public utility, either within or without the City and whether or not in combination with other authorities or persons, and subscription to debenture loans of any such concern; (d) The employment of veterinary officers, the prevention of diseases of animals, the provision of places for the treatment of sick animals and the prevention of cruelty to animals; (e) The provision and maintenance of zoological and horticultural gardens; (f) The provision and maintenance of public libraries and reading rooms, museums, art galleries, gymnasia or any other institutions connected with the diffusion of mental or physical culture; (g) The construction of boat-houses and wharves; (h) The construction and maintenance of stadia for sports and recreation, club-houses, tourist-homes, model restaurants, cold storage rooms and underground safety cellars for film storage; (i) The provision and maintenance of public baths, bathing places, and swimming pools; (j) The provision of music for the people; (k) The provision and maintenance of colonies for the corporation establishment; (l) The provision and maintenance of public clocks and clock-towers or of a time-gun; (m) The construction and maintenance of school houses and mid-day meal centres in the City; (n) Primary, secondary and high school education; (o) Technical and industrial education; (p) The training of teachers; (q) The provision of standard weights, scales and measures, and of public weighing places; (r) The holding of exhibitions or fairs; The provision and maintenance of rest houses, choultries, alms houses, poor homes, homes or settlements for beggars, workhouses, infirmaries and children's homes, pounds and other works of public utility; (t) The organisation and maintenance of health associations and the provision and organisation of health propaganda work in slums and other areas; (u) The organisation and maintenance of maternity and child welfare centres and associations for the prevention of juvenile smoking and cruelty to children and training of health visitors; (v) The provision and maintenance of rescue homes. 5. The objects of expenditure incidental to the administration include- (a) The provision and maintenance of a principal municipal office and record rooms and of other offices with the cost of appurtenances, fitting and insurance; (b) Salaries, allowances, liveries, pensionary and provident contributions, gratuities and pensions, and the cost of hire of rest-houses for the commissioner and the municipal officers and servants; study allowances of professional officers and subordinates; sending servants to any hospital or institute including the Pasteur Institute for treatment; the purchase of provisions and other articles for sale to municipal subordinates. Explanation.-" Salary " for the purpose of this rule shall include any privilege, if any, granted by the corporation of receiving payments in kind in lieu of the whole or a portion of the salary by purchasing articles from the corporation at such prices as the corporation may fix from time to time. (c) Stationery, printing and all office and advertising expenses including the cost of reporting the discussions of the council; (d) Legal expenses; (e) Election expenses; (f) Auditor's fees; (g) The provision and maintenance of municipal workshops and factories for the manufacture of electrically driven vehicles, lorry stations and a fleet of motor vehicles for municipal purposes; (h) Municipal surveys, the preparation of maps of the City and of proposed extensions; (i) The preparation and maintenance of a record of rights in immovable property; (j) The acquisition of land for all or any of the purposes of this Act. 6. Subject to such rules as may be prescribed as regards the detailed specifications of services, works and institutions, it shall be the duty of the committee to make such provision as it thinks fit for carrying out the requirements of the City in respect of the following matters, namely:- A. Water-supply, drainage, sanitation and lighting. (i) Water-supply.-All items of work connected with the construction, establishment, maintenance, supervision and control of water works and protected water-supply except items of work relating to routine repairs and routine maintenance. Explanation.-In this rule the expressions "routine repairs" and "routine maintenance" mean such items of work as may be specified by the Government by order from time to time. (ii) Drainage.-Construction of drains (open and closed) including connection of house drains with public drains; construction of sewage farms and all works for the removal or disposal of sewage. (iii) Lighting.-Provision and maintenance of electric lights in all public streets. B. Health Protection. (iv) Water analysis. (v) Prevention of adulteration of food. (vi) Control, supervision or removal of dangerous places, buildings trades and practices. (vii) Preventive and remedial measures connected with any epidemic or endemic diseases or with malaria. (viii) Opening and maintenance of burial and burning grounds. C. Medical Relief. (ix) Opening and maintenance of infectious diseases hospitals. (x) Opening and maintenance of tuberculosis clinics. D. Public Amenities. (xi) Maintenance of park and zoological gardens. (xii) Provision and maintenance of public clocks and clock-towers or of a time-gun. (xiii) Construction and maintenance of poor-houses, industrial houses and special houses for disabled beggars. (xiv) Welfare of labour. E. Remunerative Enterprises. (xv) Establishment and maintenance of workshops. (xvi) Opening and maintenance of public markets and control of private markets. (xvii) Control of fairs and festivals. (xviii) Opening and maintenance of public landing places, halting places, bus and taxi stands and opening shelters in bus stops. (xix) Opening and maintenance of public slaughter-houses and control of private slaughter-houses. (xx) Establishment and maintenance of lorry stations. (xxi) Sports stadia including swimming pools, specified as such by the standing committee. (xxii) Framing of schemes relating to fisheries. (xxiii) Establishment and maintenance of cold storages. F. Communications. (xxiv) Construction, repair and maintenance of roads classified as "main roads", construction and reconstruction and maintenance of bridges on "main roads" and construction and reconstruction of bridges on "sub-roads" : Provided that only bus routes shall be classified as "main roads", all other roads being classified as "sub-roads". (xxv) Purchase and maintenance of steam and motor road rollers and lorries and the maintenance of a central Asphalt Plant. G. Education. (xxvi) Opening and maintenance of secondary schools. (xxvii) Provision of mid-day meals and clothing to poor children in schools. (xxviii) All matters connected with town-planning in the City. (xxix) Housing, including the clearance and improvement of slums. 7. The commissioner may, with the sanction of the council, contribute towards the expenses of any public exhibition, ceremony or entertainment in the City. 8. The commissioner may, with the sanction of the council, defray the cost of the preparation and presentation of addresses to persons of distinction. 9. The commissioner may, with the sanction of the council and of the Government contribute to any fund for the defence of India, or charitable fund, or to the funds of any institution for the relief of the poor or the treatment of disease or infirmity or the reception of the diseased or infirm persons or the investigation of the causes of disease or incur any other extraordinary charges. Part II. 10. All moneys received by the corporation shall be lodged in the State Bank of India or with the sanction of the Government in any other bank and shall be credited to an account entitled the " Municipal Fund Account " : Provided that any such moneys may with the sanction of the Government- (i) be invested in any of the securities specified in section 20 of the Indian Trusts Act, 1882 (Central Act II of 1882) or in any other security which may be approved by the Government ; or (ii) be placed on a fixed deposit in the State Bank of India or any other bank approved by the Government. 11. (1) All orders or cheques against the municipal fund shall be signed by the commissioner or any officer or servant of the corporation specially authorised by the commissioner in this behalf and the bank in which the fund is lodged shall, so far as the funds to the credit of the corporation admit, pay all orders or cheques against the fund which are so signed. (2) If the council shall have given previous authority in writing such bank may at once pay out of the municipal fund without such order or cheque any expense which the Government have incurred on behalf of the corporation. 12. The payment of any sum out of the municipal fund may be made or authorised by the commissioner if such sum is covered by a budget-grant and a sufficient balance of such budget-grant is available. 13. The payment of any sum out of the municipal fund may be made or authorised by the commissioner in the absence of budget provision in the case of- (a) refunds of taxes and other moneys authorised by law, rule, by-law or regulation ; (b) repayments of moneys belonging to contractors or other persons and held in deposit and of moneys collected or credited to the municipal fund by mistake ; (c) costs incurred by the commissioner in the exercise of his powers under section 15 ; (d) sums payable under section 45 (1) (c) and section 185 (2) ; (e) sums payable under a decree or order of a civil court passed against the corporation or under a compromise of any suit or legal proceedings or claim ; (f) any sum which the commissioner is required by law, rule, by-law or regulation to pay by way of compensation or expenses ; (g) the salary payable to a special health officer appointed under section 109 ; and (h) expenses incurred by the commissioner under sub-section (3) of section 416 and expenses lawfully incurred in anticipation of recoupment from a person liable under any provision of law : Provided that the commissioner shall forthwith communicate the circumstances to the standing committee which shall take any action that may in the circumstances be necessary or expedient to cover any expenditure not covered by a budget-grant. Part III. Audit Surcharge and Disallowance. 14. The auditors appointed under section 171 shall maintain and keep a continuous audit of the municipal accounts. 15. (1) The commissioner shall submit all accounts to the auditors as required by them. (2) The commissioner shall make ready the annual accounts and registers and produce them before the auditors for scrutiny not later than the first day of July in the year succeeding that to which such accounts and registers relate. 16. The auditors may- (a) by summons in writing require the production of any document, the perusal or examination of which they believe necessary for the elucidation of the accounts ; (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 ; and (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. 17. The auditors shall- (a) report to the standing committee any material impropriety or irregularity which they may observe in the expenditure, or in the recovery of moneys due to the corporation or in the municipal accounts ; (b) furnish to the standing committee such information as the committee may require concerning the progress of their audit ; (c) report to the standing committee 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 standing committee 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. 18. (1) The commissioner shall forthwith remedy any defects or irregularities that may be pointed out by the auditors and send a report of the same to the standing committee which shall forward the report to the council. (2) The council shall forward its remarks on the audit report, if any, to the Government through the Examiner of Local Fund Accounts within six months after the receipt of the report by the council. 19. Copies of all correspondence addressed to or by the standing committee or its chairman- (a) on all matters falling within the scope of rules 17 and 18 and (b) on such other matters of importance as the commissioner may from time to time determine, shall be sent simultaneously to the commissioner by the auditors or by the chairman of the standing committee, as the case may be. 20. (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 or loss 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 auditors' 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-rule (2), the period of fourteen days fixed in rules 21 and 22 shall be calculated from the date of such refusal. 21. (1) Any person aggrieved by disallowance, surcharge or charge made may, within fourteen days after he has been served with the decision of the auditor, either- (a) apply to the district judge in the City to set aside such disallowance, surcharge or charge and the court, after taking such evidence as is necessary may confirm, modify or remit such disallowance, surcharge or charge with such orders as to costs as it may think proper in the circumstances ; or (b) in lieu of such application appeal to the Government, who shall pass such orders as they think fit. (2) From any decision of the court under clause (a) of sub-rule (1), an appeal shall lie to the High Court. 22. Every sum certified to be due from any person by auditors under this Act shall be paid by such person to the commissioner within fourteen days after the intimation to him of the decision of the auditors unless within that time such person has appealed to the court or to the Government against the decision ; and such sum if not so paid, or such sum as the court or the Government shall declare to be due, shall be recoverable on an application made by the commissioner to the court in the same way as an amount decreed by the court. 23. The corporation shall pay to the auditors out of the municipal fund such remuneration as the Government may determine. Part IV. 24. The council shall make regulations, subject to the approval of the Government to provide for- (a) the form in which the budget estimates, budget statements and returns of the corporation shall be kept ; and (b) the form in which the accounts of the corporation shall be kept.