The ODISHA LOCAL FUND AUDIT ACT,1948

Orissa Act V of 1948
*THE ORISSA LOCAL FUND AUDIT ACT,1948
No.5341-L.S.G.-In exercise of the powers conferred by sub-section(3) of
Section 1 of the Orissa Local Fund Audit Act, 1948 (Orissa Act V of 1948), the
Governor of Orissa is pleased to appoint the 1st day of June, 1952 as the date
with effect from which the said Act shall come into force in the State of Orissa.
WHEREAS it is expedient to consolidate and unify the law relating to the
audit of local funds in the Province of Orissa and to provide for a uniform procedure
for the audit of local funds therein;
It is hereby enacted as follows:-
1. Short title, extent and commencement - (1) This Act may be called
the Orissa Local Fund Audit Act, 1948
(2) It extends to the whole of the Province of Orissa
(3) It shall come into force on such date as the Provincial Government
may, by notification, appoint.
2. Definition- In this Act, unless there is anything repugnant in the subject
or context-
(a) "auditor'' means an auditor appointed under this Act ;
1[(b) "Examiner of Local Accounts" means the Examiner of Local Accounts
appointed under Section 4 and includes any officer for the time being performing
the duties of the Examiner of Local Accounts; and]
(c) "Local fund" means any fund not being a Cantonment fund to the
control or management of which a Local Authority is legally entitled and any
cess, rate, duty, or tax which such authority is legally entitled to impose and any
property vested in such authority.
3. Liability of Local Authority to submit its accounts to audit- 1[(1)]
Not withstanding anything contained in any enactment by which a Local authority
* Published vide Notification No.5341-L.S.G.-I Dated, 13.05.1952
1. Substituted vide Orissa Act 26 of 1976, Dated, 03.05.1976
2. Renumbered vide Orissa Gazatte Ext. No. 1891, Dated, 01.10.2012
The Odisha   Gazette
EXTRAORDINARY
PUBLISHED BY AUTHORITY
No. Date : 13th May 1952
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is constituted, the accounts of any Local Authority whose accounts are declared
by the Provincial Government by notification to be subject to audit under this Act,
shall be subject to audit in all respects in the manner provided by or under this
Act and any provision in any such enactment or in any bye-law or rules made
under such enactment inconsistent with or repugnant to the provision of this Act
or of any rule made thereunder shall, to the extent of such inconsistency or
repugnancy, be deemed to have been repealed by this Act.
2[(2) Save as otherwise provided in section 8, where the audit of accounts
of any Urban Local Body and Panchayati Raj Institution is undertaken by the
Comptroller and Auditor-General under section 20 of the Comptroller and Auditor-
General’s (Duties, Powers and Conditions of Service) Act, 1971, he shall have
the right to comment on and supplement to the report of the Examiner of Local
Accounts, and the report of such audited account s shall be laid by the S tate
Government, as soon as may be after it is received, before the Legislature of the
State.
Explanation - For the purpose of this section, the expression “Urban Local
Body” and “Panchayati Raj Institution” shall respectively mean a “Municipality”
as defined in clause (e) of article 243-P of the Constitution of India and a
“Panchayat” as defined in clause (d) of article 243 thereof.]
1[4. Appointment of Examiner , Deputy Examiner and Assistant
Examiner of Local Accounts and Auditors– (1) The State Government may,
by notification, appoint an officer of the State Government to be the Examiner of
Local Accounts and they may also appoint such number of Deputy Examiner of
Local Accounts and Assistant Examiner of Loca1 Accounts as they deem
necessary.
(2) The Deputy Examiner of Local Accounts and the Assistant Examiner
of Local Accounts shall exercise such powers and perform such functions of the
Examiner of Local Accounts as the State Government may, by notification, assign.
(3) The Examiner of Local Accounts may, with the approval of the State
Government, appoint such number of Auditors of Local Fund as he considers
necessary.]
5. Auditor to be deemed to be public servant- An auditor shall, for the
purpose of the powers and duties conferred and imposed on him by or under this
Act, be deemed to be a public servant within the meaning of Section 21 of the
Indian Penal Code.
6. Power of auditor to require production of documents and
attendance of persons concerned, etc.- For the purpose of any audit, an
auditor may-
(a) by summons in writing or by letter require the production before him of
any document which he may deem necessary for the proper conduct of the
audit;
1. Substituted vide Orissa Act 26 of 1976, Dated, 03.05.1976
2. Inserted vide Orissa Gazatte Ext. No. 1891, Dated, 01.10.2012
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(b) by summons in writing require a 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 at any such audit; 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.
7.Penalty for disobeying direction of auditor- Any person who wilfully
neglects or refuses to comply with any direction of the auditor under Section 6
shall be liable on conviction before a Magistrate to a fine not exceeding one
hundred rupees:
Provided that no proceedings under this Section shall be instituted except
with the previous written sanction of the Examiner of Local Accounts.
8. Audit Report- As soon as possible after the completion of the audit the
auditor shall prepare a report on the accounts audited and examined and shall
deliver such report to the Examiner of Local Accounts who shall forward a copy
thereof to the Local Authority concerned.
9. Power of Examiner of Local Accounts to surcharge or charge
illegal payment or loss incurred by negligence- (1) The auditor shall include
in his report a statement of-
(a) every payment which appears to him to be contrary to law;
(b) the amount of any deficiency or loss which appears to have been
incurred by the negligence or misconduct of any person; and the
amount of any sum which ought to have been but is not brought into
account by any person.
(2) After considering such report the Examiner of Local Accounts may-
(a) order that any payment referred to in clause (a) of sub-section (1)
shall be allowed or that no further action shall be taken as regards
any amount referred to in clause (b) or clause (c) of the said sub-
section, or
(b) serve a notice on the person making or authorizing any such payment
or the person responsible for or failing to account for such amount,
requiring him to show cause within one month why such payment
should not be surcharged or such amount should not be charged
against him.
(3) After considering such cause as may be shown by any such person,
the Examiner of Local Accounts may surcharge such payment on the person
making or authorizing such payment or charge the amount of any loss or deficiency
against the person responsible therefor or any amount which ought to have been
but is not brought into account against the person failing to account for such
amount and shall in every such case certify the amount due from such person.
10. Recovery of surcharge and charges- (1)Any amount certified under
section 9 as due from any person shall, if not paid by such person within one
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month next after the date of the certification thereof, be recoverable from him as
an arrear of land revenue under the provisions of the law for the time being in force
for the recovery of arrears of land revenue.
(2) For the purposes of this Act, the Collector shall be deemed to be the
person to whom the amount recoverable under sub-section (1) shall be payable.
(3) The Collector shall pay all certified amounts received by him under
sub-section (2) to the local authority concerned.
11. Appeal from order of surcharge or charge- (1) Any person aggrieved
by any surcharge or charge made, may, within fourteen days from the date of
communication of such order , appeal to such authority as the Provincial
Government may appoint in this behalf to set aside such surcharge or charge
and the authority so appointed after making such enquiries as it considers
necessary, may pass such orders as it thinks fit.
(2) Pending the disposal of such appeal all proceedings for recovery of the
certified amount shall be stayed.
12. Payment of expenses incurred in civil suit- (1) All expenses incurred
by the Collector in any suit that may be brought in a Civil Court under the provisions
of the law for the time being in force for the recovery of arrears of land revenue·
shall, in the first instance, be borne by the Provincial Government.
(2) The Provincial Government may recover from the local authority
concerned such amount as may be decreed as cost in favour of the local authority
and any amount so recoverable shall be paid to the Provincial Government by
such local authority.
13. Charges in respect of audit to be payable out of local funds- All
expenses incurred by a local authority in complying with any requisition of the
auditor under clause (b) of Section 6 shall be payable out of its local funds.
14. Powers to make rules- (1) The Provincial Government may, subject
to the condition of the previous publication, make rules to carry out the purposes
of this Act.
(2) In particular and without prejudice to the generality of the foregoing
power such rules may provide for -
(a) the manner in which a local authority shall keep accounts in cases
in which no such provision or , in the opinion of the Provincial
Government, insufficient provision is made by the enactment under
which such authority is constituted ;
(b) the powers and duties of auditors and the procedure to be followed
by them for conducting an audit and the times and places at which
such audit may be conducted;
(c) for the recovery by the Provincial Government from a local authority
of expenses incurred by the Collector under section 10 or the
Provincial Government under section 12; and
(d) the powers and duties of the Examiner of Local Accounts.
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15. Repeals and Savings- (1) The enactments specified in the Schedule
are hereby repealed to the extent mentioned in the fourth column thereof.
(2) The provisions of this Act shall not apply to any case, suit, appeal,
revision petition or any other proceedings that may be pending at the
commencement of this Act before an auditor, or the Civil Court, or the Provincial
Government and the law in force immediately before the commencement of this
Act shall, not withstanding any repeal effected by this Act, continue to apply to
such cases, suits, appeals, revision petitions and other proceedings.
SCHEDULE
(See Section 15)
Enactments Repealed
Year Number Short title Extent of repeal
(1) (2) (3) (4)
1952 II The Bihar and Orissa The Whole
Local Fund Audit Act, 1925
1936 I The Orissa Laws Regulations, The following entry in
1936 part-II of the Fourth
Schedule, namely:--
-
“1925. II The Bihar and Orissa Local The area transferred
Fund Audit Act,1925. to Orissa,the Central
Provinces”

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