The SIKKIM LOCAL FUND AUDIT ACT,2012

SIKKIM 'GOVERNMENT GAZETTE EXTRAORDINARY PUBLISHED BY AUTHORITY Gangtok Saturday 30th June, 2012 No. 312 GOVERNMENT OF SIKKIM LAW DEPARTMENT GANGTOK No. 221LD/P/12 Dated: 21.6.2012 NOTIFICATION The following Act passed by the Sikkim Legislative Assembly and having received the assent of the Governor on 3rd day of May, 2012 is hereby published for general information:- THE S/KKIM LOCAL FUND AUDIT ACT, 2012 Act No. 22 of 2012 Arrangement of Sections 1. Short title, extent and commencement. 2. Definitions. 3. Appointment of Director. 4. Audit of accounts. 5. Power of audit of accounts of certain authorities, bodies, lnstitutions or funds. 6. Audit of accounts of stock and stores and verificQtion of cash balance. 7. Ma~ner in which audit is to be conducted. 8. ~udl.t?r to be deemed to be public servant. ?f 9. gablhtlY local authorities to prepare and present accounts for audit 10. ornp etion of audit of accounts. . 11. Power of auditor to require product' f 12. Audit reports to be sent to ce . IO~0 accounts and attendance of persons 13. Contents of audit report. rtaln officers and bodies as Government may dir~ct. 14. Procedure to be followed after gettin the . . 15. Powers and Duties of the Director g report of the Director under section 13. 16. Delegation .Of powers and functions. 17. Power t<? dispense with detailed audit 18. Def~lcatlon or loss in money or store~ to b 19. Laylng of audit report. e reported by the Executive authority. 20. Prote.ction o~~ction taken in good faith, 21. Special prOVISIonfor pending audit 22. Power of Government to make rul . 23 P t es. . ower 0 remove difficulties 24. Savings. . --' -..: may by notification in . t . th Government, , , (ii) any other fund which e t be a local fund tor the purpose the Official Gazette, declare 0 of this Act; ib d by rules made under this Act; (i) 'Prescribed' means preSCrl e nded to this Act; (j) 'Schedule' means the Schedule tPP;ounts pertaining to aspecified (k) 'Special Audit' means an aU.~lt0 a~rou hexamination, and includes items or series ofitems requiring th. d glreadY covered by audit as re-audit of the accounts for a peno a specified by the Director; . . (I) 'State' means the State of Slkklm. Notification in the Official Gazette, (1) The State Governme~t Sh:~I~~y ualifications as may be prescri~ed, 3. Appointment of . appoint a person, haVing qd A dlt In-charge of the Audit of Director to be the Director of Local ~un u ~ cal Fund included in the Accounts of a Local Authority or a 0 Schedule. int such other officer in the Loc~1 o' (2) The State Government may appol ctor in the exercise of hls .Fund Audit Directorate to assist. thfe I~i~ns and duties under this d the disCharge of rus unc powers an Act. . (3) All officers and staff of the Local Fund Audit Directorate shall be sub-ordinate tothe Director who shall have genera.1supenntendenCQ and control over them in the performance of their functions under this Act or the rules made there under. Ia.wfor the time (1) Notwithstand'ing anything containQd in any other Audit of accounts 4. being in force, but subject to the provisions of the ComptroliQr and Auditor General, (Duties, Powers and Conditions of Service) Act, 1971the Director shall, in the manner provided by or under this Act, conduct the audit of accounts of a local authority or a local fund included in the Schedule. (2) The State Government may, by notification in the Official Gazette and for reasons to be specified therein, add any other authority, body, institution or local fund to the Schedule referred to in sub-section (1) and on the publication of the notification, such authority, body, institution or local fund shall be deemed to have been added to the Schedule. (3) No authority, body, institution or local fund included inthe Schedule. referred to in sub-section (1) shall be omitted there from except by the authority of a law made by the State Legislature. Power of audit of 5. The Director may, with the previous sanction of the State Government, Accounts of certain and without prejudice to the provisions of sub-section (1) of section 4, Authorities, bodies audit the accounts ofany authority, body, institution or fund not included in institution or funds the Schedule subject to such terms and conditions as may be agreed upon between thQDirector and the person responsible forthe administration of such authority, body, institution or fund. 3 (2) On receipt of a report under sub-section (1), the Director shall immediately conduct or cause to be conducted a special audit of the accounts of that local authority as he considers necessary depending upon the magnitude of such defalcation or loss: Provided that nothing in this section shall prevent the loca! .authortty from taking criminal proceedings against any person suspected of, or involved in, any defalcation or loss of money or stores, where such a course is considered expedient. Laying of audit 19. The Director shall send to the Government annually a consolidated report report of the accounts audited by him containing such particulars which he intends to bring to their notice and the Government shall within a period of three months after the receipts of the same; cause it to be laid before the Legislative Assembly. Protection of action 20. No suit, prosecution or other legal proceedings shall lieagainst the Director taken in good or any officer acting under the provisions of this Act for anything which is, faith in goodfaith, done or intended to be done under this Act or rules made there under. Special provision 21. All audit of accounts pending at the commencement of this Act in respect forpending audit . of any local authority or local fund included in the Schedule shall, notwithstanding anything contained inthis Act, be continued and completed by the Director, within such time as may be prescribed, inthe same manner in which such accounts were being audited by him, as ifthis Act had not been enacted. Power of the State 22. (1) The State Government may, by notification in the Official Gazette, make rules for the purpose of carrying into effect Government to of this Act. make rules (2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:- (a) the manner and the form in which the accounts of a local authority whose accounts are subject to audit under this Act, shaff be kept and presented; (b) the powers and duties of auditors and the procedure tobe followed by them for conducting an audit and the period at which such audit may be conducted; (c) the manner in which the matters required to be published under-this Act shaff be published; and (d) all other matters, which may be or are required to be prescribed. (3) Every rule made under this Act shall be laid as soon as may be after it is made before the Legislative Assembly while itisinsession and if, the Legislative Assembly makes any modification in the rule or decides that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; 7