Scrutiny and audit of accounts

[204. Accounts to be kept.—

There shall be kept in such manner and in such form as may be prescribed by regulations the General Account of all receipts and expenditures of the Corporation.] 

3. Subs. by s. 92, ibid., for section 204 (w.e.f. 1-10-1993).  

205. Scrutiny of accounts by Municipal Chief Auditor and by the Standing Committee.—

(1) The Municipal Chief Auditor shall conduct a monthly examination and audit of the municipal accounts and shall report thereon to the Standing Committee who shall publish monthly an abstract of the receipt and expenditure of the month last preceding, signed by not less than two members of that Committee and by the Municipal Chief Auditor.

(2) The Standing Committee may also from time to time and for such period as it thinks fit conduct independently any examination and audit of the municipal accounts.

(3) For the purpose of examination and audit of the municipal accounts the Standing Committee and the Municipal Chief Auditor shall have access to all the municipal accounts and to all records and correspondence relating thereto and the Commissioner shall forthwith furnish to the Standing Committee or the Municipal Chief Auditor any explanation concerning any receipts or expenditure which they may call for.

206. Report by the Municipal Chief Auditor.—

(1) The Municipal Chief Auditor shall—

(a) report to the Standing Committee any material impropriety or irregularity which he may at any time 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 that Committee may from time to time require concerning the progress of the audit.

(2) The Standing Committee shall cause to be laid before the Corporation every report made by the Municipal Chief Auditor to the Standing Committee and every statement of the views of the Municipal Chief Auditor on any matter affecting the exercise and performance of the powers and duties assigned to him under this Act which the Municipal Chief Auditor may require the Standing Committee to place before the Corporation together with a report stating what orders have been passed by the Standing Committee upon such report or statement, and the Corporation may take such action in regard to any of the matters aforesaid as the Corporation may deem necessary.

(3) As soon as may be after the commencement of each year the Municipal Chief Auditor shall deliver to the Standing Committee a report of the entire municipal accounts for the previous year.

(4) The Commissioner shall cause the said report to be printed and shall forward as soon as may be a printed copy thereof to each councillor and alderman.

(5) The Commissioner shall also forward without delay to the 1*** Government so many copies of the said report as may be required by that Government with a brief statement of the action, if any taken or proposed to be taken thereon.

1. The word “Central” omitted by s. 93, ibid. (w.e.f. 1-10-1993).  

207. Special audit at the direction of the Central Government.—

(1) The 2*** Government may at any time appoint an auditor for the purpose of making a special audit 3[of the General Account] of the Municipal Fund and of reporting thereon to the 2*** Government and the costs of such audit as determined by the 2*** Government shall be chargeable to the Municipal Fund.

(2) An auditor so appointed may exercise any power which the Municipal Chief Auditor may exercise. Powers and duties of the Municipal Chief Auditor

2. The word “Central” omitted by 94, ibid. (w.e.f. 1-10-1993).

3. Subs. by s. 94, ibid., for “of any of the Accounts” (w.e.f. 1-10-1993).  

208. Procedure to be followed by the Municipal Chief Auditor.—

(1) The Municipal Chief Auditor shall audit the accounts of the Corporation with the assistance of officers and other employees subordinate to him.

(2) In the discharge of his functions under this section the Municipal Chief Auditor shall—

(a) audit the accounts of expenditure from the revenue of the Corporation, expenditure on account of loan works and expenditure incurred out of special funds shall ascertain whether moneys shown therein as having been disbursed were legally available for, and applicable to, the service or purpose to which they have been applied or charged, and whether the expenditure conforms to the authority which governs it;

(b) audit the accounts of debts, deposits sinking funds, advances, suspense and remittance transactions of the Corporation and report upon those accounts and upon the results of verification of the balances relating thereto.

(3) The Municipal Chief Auditor shall examine and audit the statement of accounts relating to the commercial services conducted in any department of the Corporation, including the trading, manufacturing and profit and loss accounts, and the balance-sheets where such accounts are maintained under the orders of the Corporation, 1[or the Standing Committee], and shall certify and report upon these accounts.

(4) The Municipal Chief Auditor shall, in consultation with 2*** the Standing Committee and subject to any directions given by the Corporation, determine the form and manner in which his reports on the accounts of the Corporation shall be prepared and shall have authority to call upon any officer of the Corporation to provide any information necessary for the preparation of these reports.

1. Subs. by Act 67 of 1993, s. 95, for certain words (w.e.f. 1-10-1993).

2. Certain words omitted by s. 95, ibid. (w.e.f. 1-10-1993).  

209. Power of Municipal Chief Auditor to make queries, etc. and call for returns, etc.—

(1) The Municipal Chief Auditor may make such queries and observations in relation to any of the accounts of the Corporation which he is required to audit and call for such vouchers, statements, returns and explanations in relation to such accounts as he may think fit.

(2) Every such query or observation as aforesaid shall be promptly taken into consideration by the officer or authority to whom it may be addressed and returned without delay with the necessary vouchers, documents or explanations to the Municipal Chief Auditor.

(3) The powers of the Municipal Chief Auditor with regard to the disapproval of, and the procedure with regard to the settlement of objections to, expenditure from the revenues of the Corporation shall be such as may be prescribed by the Standing Committee in consultation with the Municipal Chief Auditor and with the approval of the Corporation.

(4) If the Municipal Chief Auditor considers it desirable that the whole or any part of the audit applied to any accounts which he is required to audit shall be conducted in the offices in which those accounts originate he may require that those accounts, together with all books and documents having relation there to, shall at all convenient times be made available in the said offices for inspection.

(5) The Municipal Chief Auditor shall have the power to require that any books or other documents relating to the accounts he is required to audit shall be sent for inspection by him: Provided that if the documents are confidential he shall be responsible for preventing disclosure of their contents.

(6) The Municipal Chief Auditor shall have authority to frame standing orders and to give directions on all matters relating to audit, and particularly in respect of the method and the extent of audit to be applied and the raising and pursuing of objections.

(7) Expenditure sanctioned by the Municipal Chief Auditor shall be audited by an officer to be nominated by the Corporation.