Procedure to be followed after report of the Director under section 8

§9

Summary

9. (1) On receipt of the reports under section 8, the Principal Officer of the local authority shall take immediate action and record replies within one month against each point raised therein showing the action taken or proposed to be taken thereon. Thereafter, the audit report along with the comments of the principle officer shall be considered and decision taken in a special meeting of the local authority concerned to be held within three months from the date of receipt of the audit report. (2) It shall be the duty and responsibility of the principle officer to see the defects and irregularities pointed out in audit notes and objection statement are removed or settled promptly and with due dispatch. (3) An annotated copy of the audit report along with the comments of the Principal Officer and the decision of the local authority on each point shall be sent to the Director or the Officer appointed by him within one month of holding of the meeting referred to in sub-section (1). The annotated copy will show against each para the name or names of officials responsible for irregularities and the action taken or proposed to be taken against them. Further correspondence regarding the disposal of audit objections shall be conducted directly between the local authority and the Director or the officer authorised by him. (4) On the receipt of the annotated copy of the audit note long with the comments of the Principle officer and the decision of the local authority, The Director or the officer authorised by him in this behalf may, in respect of all or any of the matters dealt with in the report (a) Accept the action taken by the local authority and settle the objection; or (b) direct that the matter be further investigated at the next audit or at any earlier date; or (c) hold that the defects or irregularities Pointed out in the reportor any of them have not been removed or remedied. (5) If it is held that any defect or irregularity in the accounts of the local authority pointed out in the report has not been removed or Remedied within a reasonable time the director may specially bring the matter to the notice of to the Prescribed authority and the state government, and The state Government may subject to any law for time being in force, direct any such action as may be considered necessary, namely (1) prosecution of any person responsible for the defect or irregularity as the case may be; (2) dissolution of the local authority; (3) supersession of the local authority; (4) suspension of the grant-in-aid to such local authority (5) departmental enquiry against any officer or servant of the local authority; (6) removal of the Principal Officer of the local authority. (6) While recommending action under sub-section (5), the Director shall invite special attention to any information which appears to him to support a charge of criminal misappropriation or fraud or which in his opinion requires special attention or immediate action.

9. (1) On receipt of the reports under section 8, the Principal Officer of the local authority shall take immediate action and record replies within one month against each point raised therein showing the action taken or proposed to be taken thereon. Thereafter, the audit report along with the comments of the principle officer shall be considered and decision taken in a special meeting of the local authority concerned to be held within three months from the date of receipt of the audit report. (2) It shall be the duty and responsibility of the principle officer to see the defects and irregularities pointed out in audit notes and objection statement are removed or settled promptly and with due dispatch. (3) An annotated copy of the audit report along with the comments of the Principal Officer and the decision of the local authority on each point shall be sent to the Director or the Officer appointed by him within one month of holding of the meeting referred to in sub-section (1). The annotated copy will show against each para the name or names of officials responsible for irregularities and the action taken or proposed to be taken against them. Further correspondence regarding the disposal of audit objections shall be conducted directly between the local authority and the Director or the officer authorised by him. (4) On the receipt of the annotated copy of the audit note long with the comments of the Principle officer and the decision of the local authority, The Director or the officer authorised by him in this behalf may, in respect of all or any of the matters dealt with in the report (a) Accept the action taken by the local authority and settle the objection; or (b) direct that the matter be further investigated at the next audit or at any earlier date; or (c) hold that the defects or irregularities Pointed out in the reportor any of them have not been removed or remedied. (5) If it is held that any defect or irregularity in the accounts of the local authority pointed out in the report has not been removed or Remedied within a reasonable time the director may specially bring the matter to the notice of to the Prescribed authority and the state government, and The state Government may subject to any law for time being in force, direct any such action as may be considered necessary, namely (1) prosecution of any person responsible for the defect or irregularity as the case may be; (2) dissolution of the local authority; (3) supersession of the local authority; (4) suspension of the grant-in-aid to such local authority (5) departmental enquiry against any officer or servant of the local authority; (6) removal of the Principal Officer of the local authority. (6) While recommending action under sub-section (5), the Director shall invite special attention to any information which appears to him to support a charge of criminal misappropriation or fraud or which in his opinion requires special attention or immediate action.

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