The Manipur Local Funds (Accounts & Audit) Act, 1976

THE MANIPUR LOCAL
FUNDS
(ACCOUNTS
&
AUDIT)
?
1976
.
(As
p?ssed
by
the
Le/s'1j(v';
Assembly
of
Manipur)
A'f"'l
BU,;t;-.??
to
make
better
provision
for
the audit
and
safeguarding
of
local
funds
in
Manlpur.
·
It
is
hereby
enacted
as
follows
:'-
1.
(1)
This Act
may
be
called
the
Manipur
Local
Funds
(Accounts
Sho11
ti\le
and
Audit)
Act,
1976.
.
&
extent.
(2)
It
extends
to
the whole
of
Manipur.
2.
In
this
Act,
unless
there
be
anything
repugnant
in the
subject
or
Definitions.
context,-
·
(1)
••
Auditor"
means.
an
auditor appointed
under
this
Act
;
.
(2)
"Examiner
of Local
Fund
Accounts" means
a
person
appointed
as
such
under
this
Act
and includes
any
person
for
the
time
being
per­
forming
the
duties
of
an
Examiner of Local
Fund
Accounts
;
..
(3)
"Local.
Accounts"
or
"Accounts
of
a
Local
Authority"
means
the
accounts
of the
local fund
and of
all other
property
vesting
in
or
undes
the
control
or
management
of
any
local
authority
other
than
a
canton­
ment
authority
;
{4)
"LocalFund"
means
any.fund
vested
in
or
under
the control
01:
management
oi
a Municipal
Board,
Town Committee,
Local
Hoard,
Village
Authority
or
the
Local
Authority
not
being
a
cantonment
autho­
rity
and
includes
'any
fund
declared
by
the State
Government
to
be
a.
Local
Fund
for
the
purposes
of
this
Act
;
.
..
(5)
.
"Person
accounting"
or
"Accounting
Officer"
with
reference
to
ariy
local
fund
means
any person
charged
with
the
preparation
01,
maintenance
of
any
accounts
(
including
estimates,
measurement
books;:
bills etc.
)
connected
·
with
the
fund that
may
be
prescribed
under
this
or
any
other
Act
;
·
.
(6)
"Pre;.oribed" means,
prescribed
by
rules
made
under
this
Ai:?
;
and

2
(7)
"Tribunal"
means
any
officer
appointed
by
the
State
Govern-
ment
to
be
the
tribunal
for
the
purpose
of
this Act.
Appointment
3.
The
State
Government
may,
by
notification,
appoint any
person
of
Examiner
ofLocalFunil
to
be
an
Examiner
of
Local
Fund
Accounts
in
Manipur,
Accounts.
Appointmeat
4.
The
State
Government
may,
by
notification,
appoint
auditors
of
of
auditors,
local
accounts.
5.
Power
of
Examiner
of
Local
Fund
Accounts
and
Auditors
to
Examine
Local
Accounts,-
·
(1)
An
Examiner
of
Local
Fund Accounts
or
any
auditor
may,
in
accordance
with
the
rules
made
in this
behalf under
this Act,
examine
and
audit
the
accounts
of
any
local
authority.
(2)
For
the
purpose
of
any
examination or
audit
under this
Act,
an
Examiner
of
Local
Fund
Accounts,
and
for
the
purpose
of
any
appeal
under
this
Act,
a
Tribunal
shall
have the
powers
of
a
Civil Court
under
the
Code
of
Civil
Procedure,
1908,-
(a)
to summon
any
person
whose
presence
he
or
it
thinks
neces­
sary
to
attend
before
him
or
it
from
time
to
time
;
(b)
to
examine
any person
on oath
to
be
administered
by
him
or
it
;
(c)
to
issue a
commission
for
the
examination
on
interrogatories­
or,
otherwise
of
any person
;
and
(d)
to summon
any person
to
produce any
necessary
document
or
thing.
(3)
For
the
purpose
of
any
audit
under
this
Act,
and
auditor
mayj-«
(a)'
by
summon
in
writing
or
by letter
require
the
production
before
him
of
any
document
which
he
may
deem
necessary ;
(b)
.
by
summons
in
writing require
.any
whole-time
paid·
servant
of
the
local
authority
accountable
for,
or
having
the
custody
or
control
of,
any
such
document
to
appear
in
person
before
him
;
and
(c)
require any
such
person
to
make
and
sign
a
declaration
with
respect
to.
such
document
or
to
answer
any
question
or
prepare
and
submit
any
statement
relating
thereto.
(4)
·
Every
person
to
whom
a
summons
or
requisition
is
issued
under
sub-section
(2)
or
(3)
shall be
bound to
comply
therewith.
6.
·
Special
powers,
Duties
and
Responsibilities
of
Examiner
or
t.ocal
Fund,
Accounts.
:-
.
Notwithstanding
anything
contained· in Section
5,
the.State
Go-vet,n+;
·
ment
may
direct
the
Examiner
of Local
Fund Accounts
for. audit
on.
special.
audit of
the accounts
of
Government
.·
Departments and
Offices
including
these
declared
as
commercial
departments
in···
like
manner
as
may
be
prescribed
by
the State
Government.

(b)
,
(c)
.3
·7.
Auditors and Examiners· of Local
Fund Accounts
are
Public
Servants
within
the
meaning
of the Indian Penal
Code;-
Every
auditor and
examiner
ofLocal
Fund Accounts
appointed
under this Act
shall,
for the'
purposes
ofthe
powers
and duties
conferred,"
and
imposed
upon
him
by
or
'under
this
Act,
be
deemed
to.
be
a
public
servant
within
the
meaning
of
section
21 of
the
Indian
Penal
Co?e.
8.
Presence of.interested
persons
at
the time
of
audit,-
Any
person
who'
is
assessed
to
any
tax, rate,
or
fee
the
proceeds
of
which are
required
to
be
credited
to
the local
fund
may
be
present"
·
at
any
audit of the
local
accounts
·
under
this
Act
provided
that
:
·
··
(a)
·
he
has obtained
the
previous·
permission
of
the
auditor
or
of
the Examiner of
Local-Fund-Accounts
ona
written
application·
stating
the
grounds
on
which
he
desires
to
be
present.
;
and
····
(b)
he shall be
permitted
to
be
present
only
during
that
part
of
the audit with
which
the
grounds
disclosed
in
his
application
are
concerned.
·
·
In
every
such
case,
the
authority
granting
permission
shall
forth­
with
forward
a
copy
of
the
application
and of' the
order
passed
thereon
to
the
chairman
or
other
principal
executive
officer of
the
local
authority
concerned.
·
9. When
an
auditor has
comp'eted
the audit
ofthe
accounts
of'any
=...
.
local
authority
he
shall
prepare
a
report
on
them
and shall
furnish.
one
copy
of the
report.
to
'the
Iocar
authority
and
another
copy
to
tbe·'Exa?
miner
of.
Local Fund
Accounts.
10
..
Power of Examiner of Local
Fund
Accounts
to
Surcharge
or
Charge
Illegal
PaymentorLoss
incurred
by Negligence :-
(1)
The
auditor
shall
include
in
his
report
(
hereinafter
called
the
audit.
report
}
·
a
statemen?
of,'"-
.
-
·
(a)
every
payment.
which
.appears
to
him
to
be
contrary
to
law
:
the
amount
of,
or
the
equivalent
in
money
of,
any
deficiency
or
lass
which
appears
to
have
been
.incurred
by
the
negligence or
.misconduct of
any
perspn
accounting
;
the
amount
of·
any
.
sum
or
the
equivalent
in
.money
of
any
article which
ought
to
have
.been,
.but.
is
not
brought
into
account
by
any
such
person
;
and
(d)
the
name
of
the
person
making
'or
authorising
the
illegal
,
payment
or
accountable
for
the
deficiency,
loss,
or
omission,
as
the
case
may
be. ·
(2)
After
considering
such'report.the
Examiner
Local
Fund
Accounts
·may,-
(a)
order that
any
..
payment
referred
to.
in
.clause
(a)
of
sub-sec­
tion
(1)
.shall
be
allowed
or that
no
further
action
shall
-be
taken
as
regards
a?y
.amount
referred.
to
in.
elause
{b)
of
(c).
.
.
.
9!
tb.e
said
sub?.section;
o?
·

(b)
4
serve a
notice
on
the
person
named in
the
report.or
any
other
person
whom the
Examiner
of
Local
Fund Accounts considers
to
have
made
or
authorised the
illegal payment.
or
-to
be
accoun­
table for
the
deficiency,
loss
OJ'
omission,
requiring
him
to
show
cause
within
one
month
why
the
payment
·
or
amount
refer­
red
to
in
the
report
or
any
similar
payment
or
amount
omitted
therefrom
should
not
be
surcharged
on
or
charged· against
him.
(3)
After
considering
the
cause
(
if
any)
shown
by
the
person
notified,
the Examiner
of Local Fund Accounts
may
surcharge
any
such
payment
on,
9r
charge
any
such
amount
against
him
and shall
in
every
such
case
certify
the
amount
due from
such
person.
(4)
Publication of the
certificate
and the
audit
report,-
The certificate
shall
be
according
to
the forms
set
forth
in
the
schedule
hereto
annexed
or
to
the
like
effect and
a
copy
thereof
together
with
a
copy
of
the
audit
report
shall be
published
in
the
prescribed
manner.
11.
Application
of
sections
9 and
l O
to
Audit
conducted
by
the
Examiner of
Local
Fund
Accounts,-
All
the
provisions
of sections
9
and
10 shall
apply
mutatis
mutan­
dis when
the
Examiner
of
Local
Fund Accounts
himself conducts
any
audit under
this
Act.
12.
Credit
of certified
sums
to
Local
Fund
:'-
Except
as
hereinafter
provided
every
sum
certified
under section 10
as
due
from
any
person
shall
be
forthwith
paid
by
him
to
the
local
authority
concerned
and
shall
thereupon
be
credited
to
its local
fund.
13.
Appeal
against surcharge
or
charge
made
under section
10(1)
a)
:-
(a)
Any
person
aggrieved by
any
surcharge
or
charge.made
under
section
10
whether
by
reason
of
its
being
excessive
or
in­
sufficient, or
on
any
other
ground
whatsoever
;
and
(b)
Any
person
aggrieved by
the
omission'
to
make
a
surcharge
or
charge
under
section
10,
may
within
thirty
days
of the date
cf
publication
of the certificate
thereof
in
case
(a)
and
of the
audit
report
in
case
(b),
appeal
to
the Tribunal
which
may
thereupon
take further
evidence
or
direct
further evidence
to
be taken
and
pass
such
orders,
including
an
order
as
to
costs,
as
it
may
tbink
fit,
and
these orders shall
be final.
J4,
Surcharge
or
Charge
to
be recoverable
as
an
arrear,
of
Land
Revenue
:
-
(1)
The
sum
stated in
the
certificate
of
the
Examiner
of Local
Fund
Accounts,
in
all
cases
in which
no
appeal
bas.
been:
preferred
under
section
B
and
the
sum
stated
.
in
the
order of, the
appellate
authority,
in
all
cases
in
whichari
appeal
has
been
preferred,
may
on
his
application
ot
dn.
the·
apjlica'tion
of
the
lecalauthority
con­
.
cerned,
within
three
years
of
the·<l'ate
of
the
certificate:
or.
order,
as
the
case
may
be,
be recovered
by
the
Deputy
Comrnissionercas.Iif
it
were an
arrear
of land
revenue.

-5
(2).
All
c;xpenses
qoonecte,d
}'}'ith
an)!
llpplication
under
sub-section
(1)
shall
.
bf:
a
charge
on
J?e
local
:
f?nd
and
all sums
recovered thereunder
ahall
be
credited
to
the::sa.i)Jt;
:Jund?:-·
...
:
?
..
,·
"'·?
-
,
.
,; .
.pa.,:.
·'
'..,.
15.
9harges
iil
respect-'oC'audit
fot>e·-pas?bie
out
oflocal fund
:-
All
expe?esincur;?d\bt?
..!?cal
:?uth;?i-.itt
in
.
complying
with
any
requisition
under
section .S
shall
·be.,pa:yable
out
of
its
local
fund.
16.
0)
The
State
.Government.'
may,
?Jtei; previous
publication,
make
rules fot
the
purpose
·
of
carr.ying
out
.the
provisioils
of.
this
Act.
(2)
·.
In?#culllt
ah<l'.witnoi,,tprejudice
to
the
generalit,
of
the fore­
going
powers,
·
such
rules
may
regillate,'---
(
i)
the
manner
in
which
a
local
authority
shall
keep
accounts
in
cases
in.
which no
such, provision
.or,
in
the
opinion
of
the State
Government,
insufficient
-
provision
is
made
by
the
enactment
under
which
such
authority
is
constituted
;
·
(ii)
the
powers
and
duties of
an
Examiner of
Local
Fund
Accounts
and
auditors·
and
the
procedure
to
be
followed
.by.
'them
in
conducting
an
audit
under this Act
and
the
times and
places
at
which
the
audit.
IBl:lY
be
conducted
:
and
(iii)
the
manner
in
which
certificate
'Under
sectiorr 10
··are
to
be
served
Qn
the·
persons_
c;png;rn,ed.
'
·
(3)
Every
rule
made
under
tliis
Act shall
be.
laid,
as
.
soon
as
may
be
after it
is
made,
before
the
Legislative
Assembly
ofManipur
while
it.
is
in
session
for
a
total
period
of
not
less than
fourteen
days
which
may
be
ccmprised
in
one
session
or
in
two
or more
successi-
e
sessions
and
if·
before
the
expiry
of
the
session
in
which
it is
so
laid
or
the
sessions aforesaid,
the
Assembly
makes
any
modification
in
the
rule
or
decided
that
the rule
.shall not
be
made,
the
rule shall
thereafter
have
effect
only
in such
modified form
or
be
of
no effect,
as
the
case
may
be,
so,
however,
that
any
such
modification
or
annulment
shall
be without
prejudice
to
the
validity
of
anything
previously
done
under
that
rule.
17.
Repeal
of
Repugnant
provisions
in
other
enactments
:-
Where
any
enactment
by
which
a
local
authority
is constituted
contains
any provisron
repug11a,nt_to
the
provisions
of
this
Act
-
or
of
any
rule
made
hereunder,
that
provisions
shall,
to
the
extent
of
the
repug­
nancy,
be
deemed to
have-been
repealed
.by
this Act.
18.
Repeal
and
Savings
:
-
(1/.
'{he },;fanipur
Local
Funds··
(Accounts
and
Audit)
Ordinance,
1975·
(M?ipur':Qrdfnance
No.
3
of
1975),
shall
stand
repealed
on
the
day ·this
Act·
comes
into force.
(2)
On
and
from:
the;
date
en
'which the
provisions
of this
Act
·
arc
brought
into
force
in
the
State
of
Manipur, anything
done and
any
step
?akep,
(inclµ?g
o/def,t,
scl,J.e??·
rule,
form
or
notice}
and
any
action taken.
u.µ.g?r,
Jp.e'--J;?,,P?afpd
q_1;9Jpanc?
by
the
In?ernal
A
ndit
Unit
of
the
Man,ip1.1r
Q?ye?£?hW.
<i£?P.?t10?
wtth
the
a?d?t
of
??Y.
Depart­
.
menr,
offic:e;
?r4,?QF,?W:!Pt?t???hajf,
Jn ?o
far
as
it
is
not
meonsistent
rit?
the
pi:ovi,sipn-itof:Jl:!?:·A.lEtt::f?fJP1;1_?it(\be
.1?
force
un!ess.
and
until
1t 1s
.
supersede.dJ:.>Y
,-,l:lilytlj.?,?9??-
9r;J!:DY
action
taken 1n
ac.i:;ordance
?blaw..,.·_.
>
..
<)
·:,,.J
·. ·
t1·,·",T
·
Power to
ruake
rule?,

SCHEDULE
{Sub-Section
10l4)}
FORMS
'OF
CERTIFICATE
FORM-I
1.
Against
an
accounting
officer.
I
do
hereby
certify
that
in
the
account
of
-
-
-
-
-
-
-
(here
enter
------
-of----
name
and
office
of
tbe
per&on).
there
enter
------
the name
of
the
local
authority).
-
-
-
-
-
I
have
disallowed
(or
:;urcharged)
the
sum
of
Rs.
-
-
-
-
which
is
accordingly
now
due
from
him.
As
witness
my
hand,
this
-
-
day
of -
-
19
Examiner
of
Local
Fund
:Accounts.

and
description
of the
person)
FORM-II
Against
a
person
not
an
accounting
officer.
I
do
hereby
certify
that in
the
accounts
of the
- -
-
-
-
_
(Here
enter the
name
of
-
-
-
-
-
-
-
-
-
-
-
I have
disallowed
the
local
authority).
the
sum
of
Rs.
as
payment
illegally
made
out of
the funds
of the
Local
authority
and
I
find
that
-
-
-
_
_
_
(here
enter
name
authorised
the
making
of
such
illegal
payments,
and I
do
hereby
surcharge the
said
-
with
the
same,
which
is
accordingly
now
due
from
him.
As witness
my
hand,
this
-
-
day
of
-
-
19
Exa!Tiiner
of
Local
Fund
Accounts.

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