The Mizoram Gazette EXTRA ORDINARY Published by Authority RNI No. 27009/1973 Postal Regn. No. NE-313(MZ) 2006-2008Re. 1/- per pageVOL - XLIII Aizawl, Thursday 3.7.2014 Asadha 12, S.E. 1936, Issue No. 336 NOTIFICATIONNo. J. 12011/3/2014-REV/23, the 27th June, 2014.In p ursuance to this Department’s Notifica tion No. H. 11018/6/2008-REV/pt, dt. 15.7.2013, the Governor of Mizoram is please to constitute Site Allotment Advisory Board (SAAB) within Mamit District station areas as Saikhawthlir village with immediate effect and valid for 2 years. T he composition of the SAAB shall be given as under. 1.Chairman:Pu Lalthlengliana, President, Village Council, Saikhawthlir. 2.Secretary:Pu Vanlalra wna, Headmaster, Middle School. MEMBERS :1.Pu Vanlalrawna, Secretary, Village Council. 2.Pu H ranglur a, President, MUP. 3.Pi Lalhlupuii, President, MHIP. 4.Pu C. Lalhr iatpuia , President, YMA Bra nch. FUNCTIONS AND TERMS OF REFERENCE OF THE SAAB1.The Site Allotment Advisor y Board will be the Screening Board for sending its recommendation to the government in the matter of application for allotment of land for agricultural and non-agricultural purposes. 2.The Board s hall have to ju diciously examine the applicant’s originality with reference to sub-section (16) of Section 2 of the Mizoram (Land Revenue) Act, 2013. If the condition in these provisions are not fulfilled by the applicant or applicants t he Boar d shall have to reject outright. 3.The Board shall have its sittingat least twicein a year or as may be required and TA shall be given to the members of t he Boar d if the place of sitting is more than 8 (eight) kilometers from the headquarters of the member. The S ecretar y SAAB shall issue Meeting Notice in consultation with the Chairma n by giving at least 10 (ten) days in advance to the member of S AAB. 4.All applications in prescribed Form for allotment of land in Village Plan area as referred in Explanation to Sub-rule (1) of Rule 14 and Rule 16 of the Mizoram (Land Revenue) Rules, 2013 read with Section 39 and 40 of the Act for any ca tegory or purpose must be su bmitted to the Settlement Officer or Assista nt Settlement Officer if Chairman of SAAB is the Deputy C ommissioner of the District. In case, Chairman of SAAB is SDO (C) or BDO or President, Village Council the application for land allotment of any category must be submitted to the concerned Chair man. - 2 - Ex-336/2014Published and Issued by Controller, Printing & Stationery Department, Government of Mizoram Printed at the Mizoram Government Press, Aizawl. C/50 5.The Board shall make initial screening of the application with regard to location of the applied site. After a summary scr eening, the Board shall place the ma tter for demarcation of land b y Surveyor, Revenue Depa rtment in the presence of the applica nt, the concerned VC and neighbouring land holder, if any. Measurement of land should be accurate and NOC shall be obtained from the neighbouring land holder, if existent. Format of NOC is as prescribed by Revenue Department. 6.The demarcation report of S urveyor duly vetted by Assistant Survey Officer shall be scrutinized by the Board carefully. T he recommendation of the meeting of Board shall be submitted to the concerned District Revenue Officer for further submission to the Government thr ough the Director, Land Revenue & Settlement, Aizawl Mizor am for decision of the Government. 7.In case, there are more than one a pplicant for one plot or one area SAAB will make recommendation of such names in order of prior ity. 8.The SAAB shall have to exa mine whether a llotment of land will interfere or infringe upon public safety and security or general public health or public inconvenience or adverse impact on environment or natural beauty of the area or potential obs truction to future infrastructure development wor k of the Government. It sha ll also take into a ccount that the allotment of land shall not violate the provisions of the M izoram (Prevention of Government Land Encroachment) Act, 2001 as amended fr om time to time. 9.The term of the Boa rd shall be three year s. The Government may, however, dissolve at any time or extend as it may deem necessary in the interest of public. R.L. Rinawma, Principal S ecretar y to the Govt. of Mizoram, R evenu e Dep ar t ment .

The Mizoram Gazette EXTRA ORDINARY Published by Authority RNI No. 27009/1973 Postal Regn. No. NE-313(MZ) 2006-2008Re. 1/- per pageVOL - XLIII Aizawl, Thursday 3.7.2014 Asadha 12, S.E. 1936, Issue No. 337 NOTIFICATIONNo. J. 12011/3/2014-REV/22, the 27th June, 2014.In p ursuance to this Department’s Notifica tion No. H. 11018/6/2008-REV/pt, dt. 15.7.2013, the Governor of Mizoram is please to constitute Site Allotment Advisory Board (SAAB) within Mamit Distr ict sta tion areas as Z amuang village with immediate effect and valid for 2 years. The composition of the SAAB shall be given as under. 1.Chairman:Pu Z arzolia na, President, Villa ge Council. 2.Secretary:Pu F. Lalra mhluna, Headmaster, Govt. Middle School. MEMBERS :1.Pu K. Lalchhuantha nga, Secretary, Villa ge Council. 2.Pu C. Lalnuntluanga, Congress Pa rty. 3.Pu C. Lalramsanga, MNF. 4.Pu J ossey Zabuanga , Range Officer, Environment & Forests. 5.Pu S angkunga, President, MUP. 6.Pu R. Thangza wna, President, YMA. 7.Pu Imanuel Khawlhring, Prominent person. 8.Pu R. Biakchhunga, Prominent person. FUNCTIONS AND TERMS OF REFERENCE OF THE SAAB1.The Site Allotment Advisor y Board will be the Screening Board for sending its recommendation to the government in the matter of application for allotment of land for agricultural and non-agricultural purposes. 2.The Board s hall have to ju diciously examine the applicant’s originality with reference to sub-section (16) of Section 2 of the Mizoram (Land Revenue) Act, 2013. If the condition in these provisions are not fulfilled by the applicant or applicants t he Boar d shall have to reject outright. 3.The Board shall have its sittingat least twicein a year or as may be required and TA shall be given to the members of t he Boar d if the place of sitting is more than 8 (eight) kilometers from the headquarters of the member. The S ecretar y SAAB shall issue Meeting Notice in consultation with the Chairma n by giving at least 10 (ten) days in advance to the member of S AAB. 4.All applications in prescribed Form for allotment of land in Village Plan area as referred in Explanation to Sub-rule (1) of Rule 14 and Rule 16 of the Mizoram (Land Revenue) Rules, 2013 read with - 2 - Ex-337/2014Published and Issued by Controller, Printing & Stationery Department, Government of Mizoram Printed at the Mizoram Government Press, Aizawl. C/50 Section 39 and 40 of the Act for any ca tegory or purpose must be su bmitted to the Settlement Officer or Assista nt Settlement Officer if Chairman of SAAB is the Deputy C ommissioner of the District. In case, Chairman of SAAB is SDO (C) or BDO or President, Village Council the application for land allotment of any category must be submitted to the concerned Chair man. 5.The Board shall make initial screening of the application with regard to location of the applied site. After a summary scr eening, the Board shall place the ma tter for demarcation of land b y Surveyor, Revenue Depa rtment in the presence of the applica nt, the concerned VC and neighbouring land holder, if any. Measurement of land should be accurate and NOC shall be obtained from the neighbouring land holder, if existent. Format of NOC is as prescribed by Revenue Department. 6.The demarcation report of S urveyor duly vetted by Assistant Survey Officer shall be scrutinized by the Board carefully. T he recommendation of the meeting of Board shall be submitted to the concerned District Revenue Officer for further submission to the Government thr ough the Director, Land Revenue & Settlement, Aizawl Mizor am for decision of the Government. 7.In case, there are more than one a pplicant for one plot or one area SAAB will make recommendation of such names in order of prior ity. 8.The SAAB shall have to exa mine whether a llotment of land will interfere or infringe upon public safety and security or general public health or public inconvenience or adverse impact on environment or natural beauty of the area or potential obs truction to future infrastructure development wor k of the Government. It sha ll also take into a ccount that the allotment of land shall not violate the provisions of the M izoram (Prevention of Government Land Encroachment) Act, 2001 as amended fr om time to time. 9.The term of the Boa rd shall be three year s. The Government may, however, dissolve at any time or extend as it may deem necessary in the interest of public. R.L. Rinawma, Principal S ecretar y to the Govt. of Mizoram, R evenu e Dep ar t ment .

The Mizoram Gazette EXTRA ORDINARY Published by Authority RNI No. 27009/1973 Postal Regn. No. NE-313(MZ) 2006-2008Re. 1/- per pageVOL - XLIII Aizawl, Thursday 3.7.2014 Asadha 12, S.E. 1936, Issue No. 338 NOTIFICATIONNo. J. 12011/3/2014-REV/21, the 27th June, 2014.In p ursuance to this Department’s Notifica tion No. H. 11018/6/2008-REV/pt, dt. 15.7.2013, the Governor of Mizoram is please to constitute Site Allotment Advisory Board (SAAB) within Mamit Distr ict sta tion ar eas as Lengte village with immediate effect and valid for 2 years. The composition of the SAAB shall be given as under. 1.Chairman:Pu Lalnunzira, President, Village Council, Lengte. 2.Secretary:Pu Lalnunthara, Headmaster, Middle School. MEMBERS :1.Pu T hankima, Secreta ry, Village Council, Lengte. 2.Pu L allunghnema, President, Congress Unit. 3.Pu Lallungmuana, Pr esident, MNF Unit. 4.Pu Duhkima, President, ZNP Unit. 5.Pu Raltawna, President, MUP Unit. 6.Pu Edenthara , Prominent person. 7.Pu R intluanga, Prominent person. 8.Israel Lalmuanpuia, President, Br. YMA. 9.Ralzidinga, Asst. Settlement Officer, Land Revenue & Settlement, Mamit District. FUNCTIONS AND TERMS OF REFERENCE OF THE SAAB1.The Site Allotment Advisor y Board will be the Screening Board for sending its recommendation to the government in the matter of application for allotment of land for agricultural and non-agricultural purposes. 2.The Board s hall have to ju diciously examine the applicant’s originality with reference to sub-section (16) of Section 2 of the Mizoram (Land Revenue) Act, 2013. If the condition in these provisions are not fulfilled by the applicant or applicants t he Boar d shall have to reject outright. 3.The Board shall have its sittingat least twicein a year or as may be required and TA shall be given to the members of t he Boar d if the place of sitting is more than 8 (eight) kilometers from the headquarters of the member. The S ecretar y SAAB shall issue Meeting Notice in consultation with the Chairma n by giving at least 10 (ten) days in advance to the member of S AAB. - 2 - Ex-338/2014Published and Issued by Controller, Printing & Stationery Department, Government of Mizoram Printed at the Mizoram Government Press, Aizawl. C/50 4.All applications in prescribed Form for allotment of land in Village Plan area as referred in Explanation to Sub-rule (1) of Rule 14 and Rule 16 of the Mizoram (Land Revenue) Rules, 2013 read with Section 39 and 40 of the Act for any ca tegory or purpose must be su bmitted to the Settlement Officer or Assista nt Settlement Officer if Chairman of SAAB is the Deputy C ommissioner of the District. In case, Chairman of SAAB is SDO (C) or BDO or President, Village Council the application for land allotment of any category must be submitted to the concerned Chair man. 5.The Board shall make initial screening of the application with regard to location of the applied site. After a summary scr eening, the Board shall place the ma tter for demarcation of land b y Surveyor, Revenue Depa rtment in the presence of the applica nt, the concerned VC and neighbouring land holder, if any. Measurement of land should be accurate and NOC shall be obtained from the neighbouring land holder, if existent. Format of NOC is as prescribed by Revenue Department. 6.The demarcation report of S urveyor duly vetted by Assistant Survey Officer shall be scrutinized by the Board carefully. T he recommendation of the meeting of Board shall be submitted to the concerned District Revenue Officer for further submission to the Government thr ough the Director, Land Revenue & Settlement, Aizawl Mizor am for decision of the Government. 7.In case, there are more than one a pplicant for one plot or one area SAAB will make recommendation of such names in order of prior ity. 8.The SAAB shall have to exa mine whether a llotment of land will interfere or infringe upon public safety and security or general public health or public inconvenience or adverse impact on environment or natural beauty of the area or potential obs truction to future infrastructure development wor k of the Government. It sha ll also take into a ccount that the allotment of land shall not violate the provisions of the M izoram (Prevention of Government Land Encroachment) Act, 2001 as amended fr om time to time. 9.The term of the Boa rd shall be three year s. The Government may, however, dissolve at any time or extend as it may deem necessary in the interest of public. R.L. Rinawma, Principal S ecretar y to the Govt. of Mizoram, R evenu e Dep ar t ment .

The Mizoram Gazette EXTRA ORDINARY Published by Authority RNI No. 27009/1973 Postal Regn. No. NE-313(MZ) 2006-2008Re. 1/- per pageVOL - XLIII Aizawl, Thursday 3.7.2014 Asadha 12, S.E. 1936, Issue No. 339 NOT IFICATIONNo. G. 24011/2/2009-F. APF, the 2nd July, 2014. In exercise of the powers conferred by the provision of Article 166 of the Constitution of India, the Governor of Mizoram is pleased to notify the Mizoram Audit Manual, 2014 to be used in accordance with Sub-Rule (27) of Rule 19 of the Mizoram Local Funds (Accounts & Audit) Rules, 2012 in the State of Mizoram. By Order, etc. F. Vanlalruata, Secretary to the Govt. of Mizoram, Finance Department. CHAPTER – 1 PRELIMINARY 1.1 AUTHORITY AND SHORT TITLE This Manual is framed as guidance for the purpose of audit under the provisions of Mizoram Local Funds (Accounts and Audit) Act, 2006 (Act No. 8 of 2006 and shall be called the MIZORAM AUDIT MANUAL, 2014. 1.2 COMMENCEMENT AND EXTENT OF APPLICATION This Manua l sha ll come i nto force with imme diate effect fr om its notification by the Government and shall apply to :- (i) The Director, Local Fund Audit, Accounts & Treasuries, Government of Mizoram; (ii) All Autonomous District Council in Mizoram; (iii) Aizaw l Municipal Council; (iv) Shinlung Hills Development Council; (v) Local Councils under the administrative control of the Chief Executive Officer, Aizawl Municipal Council; (vi) Village Councils under the administrative control of the Director, Local Administration Department, (vii) Village Councils under Autonomous District Councils; (viii) Departments, Institutions (both Government and Non-Government) including Non-Government Organizations and other organizations which are under the purview of audit of the Director, Local Fund Audit, Accounts and Treasuries, Government of Mizoram; (ix) Some other departments, institutions, or organizations as will be determined and entrusted by the Government of Mizoram in the Finance Department from time to time for conducting audit or special audit or surprise MIZORAM AUDIT MANUAL CHAPTER-1 verification of cash balances by the Director, Local Fund Audit, Accounts and Treasuries. 1.3 SUBJECT MATTERS (i) This Manual contains the Principles, Procedures and Instructions under which audit is to be conducted by the Director, Local Fund Audit, Accounts and Treasuries, Government of Mizoram. (ii) Audit conducted by the Director, Local Fund Audit, Accounts and Treasuries, Government of Mizoram is not a test audit but a detailed audit covering hundred percent checking of accounts except where otherwise provided in this M anual. Note:Audit conducted by any authority under the provision of this Manual shall be deemed to have conducted by the Director, Local Fund Audit, Accounts and Treasuries, Government of Mizoram. 1.4 DEFINITIONS Unless the context otherwise require, the terms defined in this Chapter are used in this Manual in the sense explained herein : (i) Accounting Authoritymeans an authority who maintained the accounts of the Funds (ii) Act means the Mizoram Local Funds (Accounts and Audit) Act, 2006. (iii)Annual Audit Report means Annual Audit Report of the Director, Local Fund Audit. (iv)Assistant Auditor means an Assistant Auditor appointed under the Government of Mizoram to assist the Audit Officer in discharging his functions as Audit Officer MIZORAM AUDIT MANUAL CHAPTER-1 (v) Assistant Directormeans Assistant Director, Local Fund Audit appointed under the Government of Mizoram and posted in the Accounts and Treasuries. (vi)Audit Note means a note issued by an audit office containing the results of audit concerned with reference to data, information or documents available in an audit or accounts office. (vii)Audit Officer means an Audit Officer appointed under “The Mizoram Local Funds (Accounts and Audit) Act, 2006 and includes Director of Local Fund Audit/ Director of Accounts and Treasuries, Joint Director of Local Fund Audit/Joint Director of Accounts and Treasuries, Deputy Director of Local Fund Audit /Deputy Director of Accounts and Treasuries, Assistant Director of Local Fund Audit/Assistant Director of Accounts and Treasuries, only for the purpose of audit. (viii) Auditor means an Auditor appointed under the Mizoram Local Funds (Accounts and Audit) Act, 2006 or an Auditor appointed under the Government of Mizoram to assist the Audit Officer in discharging his function as Audit Officer. (ix)Audit Party means the party consist ing of Audit Officer and s uch other officers and staff engaged to conduct audit of account. (x) Audit Report means the report of the audit of an account conducted by the Audit Officer. (xi)Auditing Standards means the prescribed norms which the Auditors are expected to follow in the conduct of audit. (xii)Audit Wi ng/Departmentmeans an Audit Cell or Bra nch functions in the Office of the Chief Controller of Accounts, Accounts and Treasuries. (xiii)Camp Office means the temporary office of the Audit Officer where he conducts Audit. (xiv)Client Organization means an organizations whose accounts is audited by the Audit Officer MIZORAM AUDIT MANUAL CHAPTER-1 (xv)Competent Authoritymeans the Government or any other authority to who m the re levant powers may be delegated by the Government. (xvi)Controlling Officer means an officer entrusted by a Department of Government of Mizoram with the responsibility of controlling the incurring of expenditure and or the collection of revenue. The term shall include Heads of Departments. (xvii)Department or Audit Department means the Office of the Chief Controller of Accounts, Accounts and Treasuries, Government of Mizo ra m. (xviii)Deputy Director means Deputy Director, Local Fund Audit appointed under the Government o f Mizora m and posted in the Accounts and Treasuries. (xix)Director means Director, Local Fund Audit, Accounts and Treasuries, Government of Mizoram or; a person appointed as s uch under “The Mizoram Local Funds (Accounts and Audit) Act, 2006 and includes any person for the time being performing the duties of Director, Local Fund Audit. (xx)Government means the Government of Mizoram. (xxi)Inspection Report means a report issued by an audit office containing the result of an audit. (xxii)Joint Director means Joint Director, Local Fund Audit appointed under the Government of Mizoram and posted in the Accounts and Treasuries. (xxiii)Local Accounts means the accounts of the Local Fund and of all other property vesting in or under the control of manage ment of any local authority o ther than a cantonment authority. (xxiv)Local Authority or Body means any authority or body which administered Local Funds as defined in the Act and; any other authorities or body as may be declared by the State Government as Local Authority /Body from time to time. MIZORAM AUDIT MANUAL CHAPTER-1 (xxv)Local Fund means any fund vested in or under the control or management of a municipal board, town committee, local board, village authority or the local authority not being a cantonment authority and includes any fund declared by the State Government to be local fund for the purpose of “The Mizoram Local Funds (Accounts and Audit) Act, 2006”. (xxvi) Non-Government Organization means an organization duly registered under the Firms and Society Act. (xxvii)Review Committee means a Committee constituted to review the settlement of audit objections in case of long pending outstanding audit objections (xxviii)Rulesmeans the Mizoram Local Funds (Accounts and Audit) Rules, 2012. (xxix) Treasurymeans any Treasury in the State of Mizoram and includes a Sub-Treasury. . . CHAPTER -2 NATURE AND SCOPE OF LOCAL FUND AUDIT 2.1 GENERAL The Local Fund Audit Wing has been function since the inception of Directorate of Accounts and Treasuries in 1975 acting as Local Audit Department. It functions under the administrative control of the Finance Department, Government of Mizoram. The service of this Department has been utilized by the Government to conduct Special Audit, Detail Audit, Pre-Audit, Surprise Verification of Cash Balances of various Departments and Offices under Government of Mizoram from time to time and other Miscellaneous Accounts like NGOs/Societies Accounts. Apart from this important works assigned to Local Audit Wing, service matters pertaining to Non-Gazetted Officials working under the State Government are also dealt by this department like checking of Service Books, Fixation and Pay of Non-Gazetted Government Servants, Pe nsion and Leave Salary Contribution etc. (a) Headquarters Office : The headquarters Office of the Local Fund Audit Wing is the Office of the Chief Controller of Accounts, Accounts & Treasuries, Government of Mizoram, Mizoram, Aizawl. The Local Fund Audit Wing functions as one Section amongst other Sections in the Office of the Directorate of Accounts & Treasuries till 2008. Now it functions under the control of the Chief Controller of Accounts, Account & Treasuries and is headed by the Director of Local Fund Audit (previously Examiner of Local Fund Accounts), who is assisted by Dy. Director/Assistant Director of Local Fund Audit, Auditors , Assistant Auditors and other supporting staff. (b) Auditorial Jurisdiction : Auditorial jurisdiction of the Local Fund Audit is throughout the State of Mizoram. For conducting audit of various Local Bodies/Authorities and also of Government Department/Offices as may be directed by the Finance Department, Government of Mizoram or by the Director Local Fund Audit, Accounts and Treasuries, an Audit Party is deployed under the supervision of Senior Officers viz. Deputy Director/Assistant Director comprising of an Auditor and Assistant Auditors. Likewise, the Senior Officers are also deployed for conducting the Special MIZORAM AUDIT MANUAL CHAPTER-2 Audit/Surp rise Verification of Cash Balances entrusted by the Government fro m time to time. In Mizoram, Local Authority or Body includes the following Authorities (as per Finance Department Letter No. G.11023/4/2008-FCC Dt. 18.6.2010 (Annexure-III) is shown in Table-1 below. The responsibility of certification of accounts and the statutory audit of the Local Bodies rest with the Director, Local Fund Audit, Accounts & Treasuries vide Finance Department (FC & MC) Notification No. G.11023/4/2008- FCC Dt.1.6.2011 and Corrigendum Even No. Dt. 24.6.2011(Annexure- IV & V) who will continue to function under the administrative control of the Finance Department, Government of Mizoram. TABLE-1 LIST OF LOCAL AUTHORITIES Sl.No.Name of Local Authority121 All Autonomous District Councils in Mizoram2 Aizawl Municipal Council3 Shinlung Hills Development Council4 All Local Councils under Aizawl Municipal Council5 All Village Councils under Local Administration DepartmentThe Government of Mizoram also approved the Auditors of the Accounts & Treasuries as duly qualified Auditors for the purpose of sub-section (2) of Section 16 of the Mizoram Societies Registration Act, 2005 vide Registrar, Firms and Societies, Government of Mizoram Notification No. B.14020/2/06-RFS/113 Dt. 21.11.2007 (Annexure-I). The Auditors of the Accounts & Treasuries, Government of Mizoram are also empowered by the Government to inspect and verify the physical achievements of the Departments for which the accounts are examined and audited by them vide Finance Commissioner, Government of Mizoram, Office Memorandum No. G.25012/52/96- F.APF Dt. 10.7.1997(Annexure-II). MIZORAM AUDIT MANUAL CHAPTER-2 (c) Technical Guidance and Supervision (TGS) for conduct of Audit As per provision of Rule 21 of Mizoram Local Fund (Accounts & Audit) Rules, 2012, the Director Local Fund Audit is require to conduct audit on the accounts of the Local Authority in accordance with the Technical Guidance and Supervision of the Comptroller & Auditor General of India and the Annual Report of the Director Local Fund Audit on such audit must be placed duly before the State Legislative Assembly. The responsibility of certification of accounts and the statutory audit of the local authority shall rest with the Director, Local Fund Audit who will continue to function under the administrative control of the Finance Department. Further, Audit Reports on 5% of the randomly selected and audited Local Bodies shall be sent by the Director, Local Fund Audit to the Accountant General (Audit), Mizoram, for his Technica l Inspection vide Finance Department (Finance Commission and Monitoring Cell), Government of Mizoram Letter No. G.11023/4/2008-FCC Dt. 7.6.2011(Annexure- VI) 2.2 ESTABLISHMENT OF THE LOCAL FUND AUDIT WING/ DEPARTMENT In pursuance to clause 9 of the Mizoram Local Funds (Accounts and Audit) (First Ammendment) Act, 2012, and as notified by the Government vide Notification No. H.12018/177/2006-LJD Dt. 25th July, 2012(Appendix-B), and Government of Mizoram, Finance Department Office Memorandum No. A. 11017/1/2012-F.Est/3 Dt. 3rd August, 2012[(Appendix-A(i)] nomenclature of the following posts have been changed by the Government as shown in Table-2 be low :- T A B L E - 2 N O M E N C L A T U R E Sl. NoExisting NomenclatureNew Nomenclature1231 Examiner of Local Fund AccountsDirector of Local Fund Audit2Deputy Examiner o f Loca l Fund AccountsDeputy Director of Local Fund Audit3Assistant Examiner of Local Fund AccountsAssistant Director of Local Fund Audit MIZORAM AUDIT MANUAL CHAPTER-2 Presently, the establishment of the Local Fund Audit Wing/Department consist of the following Officers and staff as shown in Table-3 below :- T A B L E - 3 SANCTIONED STRENGTH Sl.NoName of PostExisting Incumbency1231 Director of Local Fund Audit12 Joint Director of Local Fund Audit - 3 Deputy Director of Local Fund Audit14 Assistant Director of Local Fund Audit15 Auditor36 Assistant Auditor27 LDC cum Typist18 Peon/IV Grade1TOTAL10As per provision of Rule 3 of Mizoram Local Fund (Accounts and Audit) Rules 2012, the Office of the Director, Local Fund Audit shall comprise of officers and staff as may be decided by the Government by a notification from time to time. 2.3 ROLE OF LOCAL AUDIT 2.3.1 Introduction “Local Fund” as defined in the Mizoram Local Fund (Accounts and Audit) Act, 2006 means any fund vested in or under the control or management of a municipal board, town committee, local board, village authority or the local authority not being a cantonment authority and includes any fund declared by the State Government to be local fund for the purpose of “ The Mizoram Local Funds (Accounts and Audit) Act 2006”. In other words, it means any fund to the control or management of which, a local authority is legally entitled and includes the proceeds any cess, rate, duty or tax which such authority is legally entitled to impose and any property vested in suc h authority. Local Fund is not a part of Consolidated Fund of the State. MIZORAM AUDIT MANUAL CHAPTER-2 Audit is literally defined as an intelligent and critical scrutiny of books of accounts written on the basis of documents and vouchers to ascertain whether the results shown in the accounts like Profit and Loss Accounts/Income and Expenditure Accounts, Balance Sheet etc., are truly determined. The Audit in regard to Government Accounts, Semi-Government Institutions and Local Bodies accounts is defined as an instrument of financial control. The modern trends in administration visualizes audit in a different manner. Money and finance have been described as fuel for administrative machinery and blood stream of administration. No administration can efficiently function if it does not take care to maintain the financial health or discipline and audit is the only independent agency through which efficient maintenance of financial discipline is ensured. The financial health or discipline concerns the entire system right from the sources from which the public money flows into the executive and a gain flows out in the shape of benefits and amenities to the public or society as a whole. In the democratic form of Government, people through their elected representatives authorize the Executive to collect money in the shape of taxes and other incomes for utilizing in the manner authorized by them, through budget, appropriation accounts etc., and makes Executive accountable. Similarly, Local Bodies and Semi- Government Institutions enjoying the sanction of le gislation constitute de mocratic set up through public representatives and authorize the Executive to collect and utilize the public fund and account for the same. The money collected from the public by way of rents, rates and taxes or grants- in-aid sanctioned by the Government to the Executive constitute public fund. Therefore, it is necessary that a systematic accounting system is prescribed for the realization of income and its usage which in turn leads to prescribing of codes/manual, rules, regulations and a procedure to account for the public fund. The legislature or the statutory bodies who have authorized the Executive to deal with the public fund are not experts in examining the accounts of the said public fund. Therefore, the job of examining the public fund account is entrusted to an independent agency called ‘Audit’. The Director of Local Fund Audit, Office of the Chief Controller of Accounts, Accounts & Treasuries, conducts the audit in respect of Local Funds. The Auditor who has to play an important role in regard to collection and utilization of public finances is viewed from different angles. The tax-payers or public MIZORAM AUDIT MANUAL CHAPTER-2 see him like a Policeman. An Executive takes as an irritant instead of recognizing him as a Friend, Philosopher and Guide. Auditing is ever a welcome word with manage ment. It is essentially associated wit h statutory requirements and the role o f the Auditor is not fault finding but fact-finding, reporting, helping and guiding the administration in the proper utilization of public finances just like Architectures bringing a maximum living place from the available p iece of land besides making the whole structure beautiful. Thus, the Auditor has to play an important role in the financial management of a body or authority. While doing so he has to be conversant fully with all the methods and systems of audit so as to perform the role in a quite technical manner within the framework of rules, regulations and procedures. The Auditor who has got the inherent power of critical appraisal or commenting on the performance of Financial Administration of Local Bodies should behave in a highly responsible manner keeping good and pleasing relations with the Executive. He should note that the work of Executive should not be criticized. He should, therefore, exercise this difficult in such a manner that his role of functioning should not come in direct conflict with the Executive and at the same time play his role efficiently. His observations should be precise, effective, supported with facts and conform to rules and regulations all of which should be coached in a pleasing language. Frivolous objections should be avoided. Important irregularities should not be overlooked. The Audit Report should be precise and suggestive. Having produced the report in the manner, the same should be sent to the respective bodies for placing it in the respective committees of Local Bodies/Institutions for appraisal and necessary action over the observations. The compliance report over the observations has to be watched to see whether the defects pointed out have been rectified and the measures taken to guard against them. 2.3.2 Necessity of Local Fund Audit The main purpose of Mizoram Local Fund Audit is to conduct the audit on the accounts of Local Bodies/Authorities like Autonomous District Councils in Mizoram, Aizawl Municipal Council (AMC), Shinlung Hills Development Council, Local Councils under Aizawl Municipal Council and Village Councils under Director, Local Administration Department, Government of Mizoram and other miscellaneous accounts viz., accounts of various Non-Government Organizations/Societies/Boards registered under the Mizoram Societies Registration Act, 2005.Apart fro m this MIZORAM AUDIT MANUAL CHAPTER-2 important assignment, the Local Fund Audit is entrusted and directed by the Finance Department, Government of Mizoram to conduct audit on the accounts of various Government Departments and Offices from time to time. 2.3.3 General Arrangement for Local Audit The classes of accounts with which Local Audit staff deals are so varied that any general rules and instructions applicable to Local Audit could not possibly be laid down. The essential object of accounts of any institution is to present a definite financial picture and intelligent audit is impossible unless there is some consideration of the general financial picture as well as investigation of the transactions. The Local Audit staff be fore taking up the audit of any particular institution have, therefore, to study the system of accounts and accounting books/ledgers prescribed, Acts, Codes, Statutes, Ordinance and Manuals etc, wherever applicable. Audit staff has to ensure that instructions issued by the Government from time to time have been followed mutatis muta ndis by the institutions wherever applicable. They have also to consult the periodical administrative reports or any other publications, where the accounts o f income and expenditure of the institution appear, to obtain a correct perspective of the financial side of the institution. Further, one of the objects of Local Audit is to conduct Efficiency-cum- Performance Audit wherever possible. “Efficiency-cum-Performance Audit” of expenditure is to conduct with a view to ascertain (i) whether the various schemes are run economically (ii) whether they are actually yielding the results expected of them and (iii) have assumed the importance Examination would focus on aspects such as inefficient handling, lack o f foresight, expensive delays and wasteful expenditure due to lack of coordination. 2.4 DIFFERENT KINDS OF AUDIT Auditing in State Loca l Funds generally takes two forms : “Pre-Audit” and “Post-Audit”. Pre-Audit is the examination of transactions before payment is made. It is more traditional function, in which both treasury as well as audit functions are carried out simultaneously and is accomplished generally in similar manner throughout the country. Post-Audit represents an after-the-fact examination. Along with “Pre-Audit and Post Audit”, different kinds of Audit conducted by the Local Fund Audit Wing in the Office of the Chief Controller of Accounts, Accounts & Treasuries are enumerated below :- MIZORAM AUDIT MANUAL CHAPTER-2 2.4.1 PRE-AUDIT : The Pre-Audit, perhaps more accurately described as pre-encumbrance/pre- payment audit is pre-scrutiny of expenditure before the same are incurred. The basic objectives of pre-audit are to provide assurance that (i) expenditure are not, upon their face, unreasonable or extravagant (ii) significant funds are available to enable encumbrance of the order or payment of the voucher; and (iii) there has been compliance with budgetary, civil service, legislative and legal require ments. It may includes an exa mination of contracts prior to approval and encumbra nce, scrutiny of all vouchers before payment, and review of payroll before payment. Pre-Audit is conducted on need bas is by the Audit Wing/Branch in t he Office of the Chief Controller of Accounts , Accounts & Treasuries. It may includes pre- auditing of Government expenditure and also of Local Bodies /Board/ Agencies/ Societies. 2.4.2 POST AUDIT : The scope of Post-Audit in State Local Funds may be grouped into three general categories : (1) Financial accountability and legality – the verification of accounting records and review of internal control concerning revenues and expenditures (2) performance efficiency – the examination of efficiency and economy with which client institution’s operations are carried out and (3) program evaluation – the broad examination of the extent to which program goals are fulfilled. 2.4.3 SPECIAL AUDIT Special Audit means an audit of accounts pertaining to a specified item or series of items which requires thorough examination. In public exigencies, Special Audits of any Government Department/Office can be assigned by the Director, Local Fund Audit to its audit sta ff provided that the request to conduct such audit is rece ived from the Finance Department or Administrative Depart ment of the concerned Department. In such cases, an audit fees of such special audit shall be determined and charged by the Director, Local Fund Audit on merit considering the nature of accounts audited and nature of additional services to be provided and it will be the discretion of the Local Audit Department i.e Accounts & Treasuries to charge or not to charge any audit fees from the Government Department for such special audits. MIZORAM AUDIT MANUAL CHAPTER-2 2.4.4 DETAILED AUDIT Detailed Audit is an audit of inco me and expenditure of the institution for the whole year, which is conducted in public exigencies as assigned by the Chief Controller of Accounts/ Director, Local Fund Audit. The Auditors of the Local Audit Wing in the Office of the Chief Controller of Accounts, Accounts & Treasuries are acting as Local Audit Department and not only conducting from time to time audit on the accounts of local bodies, institutions etc., but also entrusted to conduct internal auditing of the accounts of receipts and expenditure of t he Government Departments/Offices and development Schemes. In such detailed audits, the Auditors normally check the initial accounts being maintained in the executing offices to see that the system and procedure in accounting on financial matters as per the Rules and Regulation are enforced. In some cases, proper maintenance of accounts does not necessarily ensure the corresponding actual physical achievements for the purposes for which expenditure had been incurred. Government of Mizoram, thus, empowered the Local Auditors to inspect and verify the physical achievements of the Departments, for which the accounts are examined and audited, wherever necessary. The Auditors in their Audit Reports should reflect their findings of the financial and physical aspects as far as practicable for further appropriate action by the Government of Mizoram vide Finance Depa rtment Office Memorandum No.G.25012/52/96-F.APF Dt 10.7.1997(Annexure-II). 2.4.5 AUDIT AGAINST REGULARITY Audit against regularity or Audit against rules and order consists in verifying that the expenditure conforms to the relevant provisions and rules made there under and is also in accordance with the financial rules, regulations and orders issued by a competent authority. The rules, regulations and orders against which audit is conducted mainly fall under the following categories – (i) Rules and orders regulating the powers to incur and sanction expenditure as well as delegation of powers to incur and sanction expenditure. (ii) Rules and orders dealing with the mode of presentation of claims, withdrawing money and in general the financial rules prescribing the detailed procedure to be followed by Government Servant in dealing with such transactions. (iii) Rules and orders regulating the conditions of service and pay and allowances of employees of client organization. MIZORAM AUDIT MANUAL CHAPTER-2 Audit in relation to regularity of expenditure is of a quasi-judicial character. It involves interpretation of statutes, rules and orders. The final power of interpretation, however, resides in t he authority specifie d in the Act/Statute or the Authority, which is the author of the rules or order. Interpretation by Audit should be based on the plain meaning of the section of statute or rule or order. In such a case the inconsistency should be referred to the competent authority for resolution or removal. It is, however, the duty of audit to bring to the notice of the competent authority any expenditure that does not appear to be covered by the terms of the section, rule or order quoted as justifying it, and which has been incurred by placing upon the section, rule or order an interpretation which may seem to it not to be natural, plain or reasonable one. It is a lso a n important function o f audit to e nsure that rules and regulations are observed not merely in their letter but also in their spirit. In re lation to audit of expenditure against re gularity, it is the duty of audit to examine all financial rules and orders issued by the executive authorities affecting expenditure and other transactions s ubjected to audit to see that the rules and orders are themselves intra-vires and to ensure that the transactions to which they relate may be effectively audited. In scrutinizing rules and orders, it should be seen that :- (a) These are not inconsistent with any provisions of any laws made thereunder. (b) These are consistent with the essential requirements of audit and accounts. (c) These do not conflict with the orders or rules made by any higher a uthority. (d) The authority issuing rules that have been separately approved by the competent authority is vested with the necessary powers to frame them. 2.4.6 AUDIT AGAINST SANCTION TO EXPENDITURE One of the important functions of audit in relation to the audit of expenditure is to see that each item of expenditure is covered by the sanction of competent authority. While doing so, audit has not only to see that expenditure is covered by a sanction, whether general or special, but it has also to satisfy itself that – MIZORAM AUDIT MANUAL CHAPTER-2 (i) The authority sanctioning the expenditure is competent to do so by virtue of the powers vested in it by the provisions of laws, rules or orders made thereunder or by the rules governing delegation of financial powe rs framed by the competent a uthority. (ii) The sanction is definite and therefore needs no reference either to the sanctioning authority itself or to any higher authority. (iii) Besides the question of co mpetency of the authority sanctioning the expenditure, the scrutiny of sanctions should extend to see whether :- (iv) The expenditure is a legitimate charge on the provision from which it is proposed to be met. (v) The expenditure conforms to the statutory provisions as well as the relevant financial rules, regulations and orders. (vi) The expenditure is in conformity with the standards of financial propriety. (vii) A satisfactory procedure of accounting has been evolved by the sanctioning authority in the case of sanctions of new schemes, and the detailed cost and time schedules, physical targets and other objects of the expenditure have been duly stipulated. Sanctions having a long period of currency, as well as sanctions of permanent nature, require to be reviewed periodically so that, if there is any reason to think that the administrative authority concerned should be requested to review the sanction, such action may be taken. The responsibility for watching the progress of expenditure against a grant or appropriation devolves on the executive who is ultimately responsible for keeping the expenditure within t he grant o r appropriation. Audit should, however, render all legitimate and constructive advice to the executive in this matter and see that suitable and adequate arrangements exist in all organizations for the control of expenditure. 2.4.7 AUDIT AGAINST PROPRIETY It is an essential and inherent function of audit to bring to light not only clear and obvious irregularities but also every matter that, in its judgment, appears to MIZORAM AUDIT MANUAL CHAPTER-2 involve improper expenditure or waste of public moneys or stores even though the accounts themselves may be in order and no obvious irregularity has been committed. Such audit, often called Propriety Audit, “extends beyond the formality of the expenditure to its wisdom, faithfulness and economy”. It is, thus, not sufficient to see that sundry rules or orders of a competent authority have been observed. It is of equal importance to see that the broad principles of orthodox finance are borne in mind not only by disbursing officers but also by sanctioning authorities. No precise rules can, however, be laid down for regulating the course of audit against propriety. Its objective is to support a reasonably high standard of public financial morality and sound financial administration and devotion to Government’s financial interest. In any case, audit staff in the performance of their duties should apply the following general principles that have long been recognized as standards of financial propriety :- (i) The expenditure should not prima facie be more than the occasion de mands. Every public officer is expected to exercise the same vigilance in respect of expenditure incurred from public moneys, as a person of ordinary prudence would exercise in respect of expenditure of his ow n money. (ii) No authority should exercise its power of sanctioning expenditure to pass an order that will be directly or indirectly, to its own advantage. (iii) Public moneys should not be utilized for the benefit of a particular individual or section of the community unless :- (a) The expenditure involved is insignificant; or (b) A claim for the amount could be enforced in a court of law; or (c) The expenditure is in pursuance of a recognized policy or custom; or (d) The amount of allowance, such as travelling allowances granted to meet expenditure of a particular type, should be so regulated that the allowance are not, on the whole, source of profit to the recipient. The proper discharge of duties by audit staff in this field is a very delicate matter and requires much wisdom. Audit observations against expenditure should not be expressed as based on “canons of financial propriety” but as transgressing a universally accepted standard of official conduct or financial administration. MIZORAM AUDIT MANUAL CHAPTER-2 2.4.8 AUDIT OF RECEIPTS Audit of Receipts embraces the audit of all taxes and non-tax receipts. It requires that audit staff should satisfy themselves that the rules and procedures in that behalf are designed to secure an effective check on the assessment, collection and proper allocation of revenues and are being duly observed and for this purpose to make such examination of the accounts as audit think fit and report thereon. It is the primary responsibility of the client organization’ authorities to see that all receipts due to it are correctly and properly assessed, realized and credited in the accounts. The most important functions of audit are (i) to see that adequate regulations and procedures have been framed by the client organization to secure an effective check on assessment, collection and proper allocation of taxes and (ii) to satisfy itself by adequate test check that such regulations and procedures are actually being adhered to. Audit s hould also make such examination as it thinks fit with respect to the correctness of the sums brought to account. Audit of receipts will be regulated mainly, with reference to the statutory provisions or rules or orders applicable to collection of receipts involved. If the test check reveals any defects, lacunae or loopholes in the provisions, rules or orders, the department’s attention should be d rawn to the ad visab ility of these being suitably amended. Audit should carefully review any outstanding dues and suggest to the client organization’s authorities any feasible means for their recovery. Audit will see that the internal procedures adequately secure correct and regular accounting of demands, collections and refunds and no a mount due to the client organization remain outstanding in its books without sufficient reason and the claims are pursued with due diligence and are not abandoned or reduced except with adequate justification and with proper justification. Whenever any dues appears to be irrecoverable, orders for their waiver and adjustment should be taken by client organization from competent a uthority. To sum up, the most important function of audit and the area of audit concern in relation to assessments and refunds are to satisfy itself, by such test checks, as it may consider necessary that the internal procedures adequately provide for and actually ensure :- (i) The collection and utilization of data necessary for the computation of the demand or refund are in order. MIZORAM AUDIT MANUAL CHAPTER-2 (ii) That the computation and realization of various taxes, fees, rents, royalty, etc are in accordance with the rules and regulations. (iii) The raising of demands on tax payers in the manner provided under statutory provisions. (iv) The regular accounting demands, collections and refunds. (v) The correct accounting and allocation of collections and their credits in the accounts. (vi) That the relevant and requisite records are being maintained properly. (vii) That proper arrangements are in place to safeguard against negligence or omission to levy or collect taxes or to authorized refunds. (viii) That adequate control and monitoring mechanisms have been devised to prevent loss or leakage of revenue. (ix) That there has not been any loss or leakage of revenue on account of lacunae or loopholes in the rules framed for the purpose or on account of avoidable delays in the issue of the necessary notifications and orders. (x) That the machinery for detection of cases of evasion is adequate. (xi) That the cases pending in courts of law or before appellate authorities have been pursued adequately and appeals, wherever justified or considered necessary, have been filed within the period of limitation. (xii) That a proper receipt is issued by the Local Body/Authority to the person from who m the amount is received on behalf the Local Body/Aut hority and record of all the receipt books used is properly kept and maintained by the Local Body/Authority. 2.4.9 SURPRISE VERIFICATION OF CASH BOOK AND CASH BALANCES Notwithstanding anything contained under Section 5 and 6 of the Act, the Director of Local Funds Audit shall conduct audit including verification of cash balances of various State Government Departments/Bodies/Boards/Public Sector Undertakings/ Societies etc not included in ‘local funds’ in consultation with the Government/Finance Department. The report pertaining to surprise verification of MIZORAM AUDIT MANUAL CHAPTER-2 cash balance shall be reported separately and directly to the Finance Department and shall not be included in the Audit Report. The Director of Local Funds Audit shall exercise general supervision a nd control over the discharge by the Auditors of their duties under the Act. In conducting Surprise Verification,Form No. 25 – Specimen Form for conducting Surprise Verification of Cash and Book Balances may be used as a guide by the Auditor. CHAPTER -3 DUTIES AND FUNCTIONS OF OFFICERS 3.1 GENERAL DUTIES (i) Audit Officer, the passing authority and issuing authority of Audit Report, Audit Certificate and Utilization Certificate and the authority to authorized to settle the audit objections are required to see that unnecessary friction between the audit staff and the accounting authority are avoided. (ii) Notwithstanding anything contained in the provision of this Manual, the following instructions are laid down for the guidance of all members employed on audit duty to avoid unnecessary friction :- (a) The language of all documents for correspondence should be neatly and legibly written. (b) Except under special order of the Director, Local Fund Audit no objection should be raised which cannot be supported by the existing provision of the rules or orders or established practice. (c) Unless specially ordered by the Director, Local Fund Audit, changes in procedure should not be made in audit notes and objection statements. Nor should new interpretations of rules or orders be enforced through these documents. (d) In case of objections or audit remarks in the audit notes and its other documents which are for information of the accounting authority and final settlement thereof does not rest with the audit office in any manner or form, it should be made clear in the audit notes and in objection statements that the same is brought to the ir not ice for s uch action as they may deem fit. (e) Paragraphs dealing with the matters which are only brought to the notice should appear together in a separate section of the audit note under a suitable heading. MIZORAM AUDIT MANUAL CHAPTER-3 (f) Audit Officers and other entrusted with the job of audit, should clearly understand that their capacity will not be judged merely on the number of objections in the objection statement or on the volume of audit report but by the quality of the objections raised and by the results of review of their works. 3.2 DUTIES AND FUNCTIONS 3.2.1 DIRECTOR, LOCAL FUND AUDIT The main duties and functions of Director, Local Fund Audit are :- (i) General Administration of the Department (ii) Programming and Planning of audit works of the Department (iii) Inspection of Subordinate offices (iv) Inspection and Supervision of field works (v) Approval of draft Audit Report/Inspection Report (vi) Settlement of Audit Objections (vii) Preparation and Submission of Annual Audit Report (viii) To prescribed and modify, when necessary, the prescribed procedure of checking to be applied to audit (ix) To bring to the notice of the respective Heads of Departments and Administrative Department all cases in which loss of money and other property worthRs. 2000.00 or more due to embezzlement otherwise detected in the course of audit. (x) To bring to the notice of Finance Department any financial irregularity of serious nature which is detected in the course of audit. The following irregularities should also be brought to the notice of Finance Department. MIZORAM AUDIT MANUAL CHAPTER-3 (a) attempts to evade financial rules by manipulation of accounts and vouchers; (b) avoidance of lapse of grants by withdrawing funds from Treasury/Bank before the money is actually required for disbursement; (c) avoidance of necessity of higher sanction by splitt ing up one scheme into a number of schemes; (d) persistent neglect to comply with audit requirements ; (e) attempts to avoid audit or deliberate non-compliance of audit require ments. (xi) To conduct examination of the employees of educational institution on “Accounts” as and when entrusted by Government. (xii) To issue certificate of admissibility for payment of Gratuity (DCRG) as per provision of rules of “Mizoram Aided Schools Employees” (Death –cum- Retirement Gratuity) Rules, 1990. (This power shall not be delegated to his Sub- ordinate Officers) (xiii) To inspect the accounts of Local Funds. (xiv) To inspect Progress Register 3.2.2 JOINT DIRECTOR OF LOCAL FUND AUDIT Duties and functions of Joint Director of Local Fund Audit are :- (i) To assist the Director in discharge of his duties (ii) Scrutiny and passing of draft audit report/inspection report of Major Accounts and of Special Audit with approval of the Director, Local Fund Audit (iii) Issue of audit report/inspection report and audit certificate with the approval of Director, Local Fund Audit MIZORAM AUDIT MANUAL CHAPTER-3 (iv) Supervision of the work of Audit Wing/Department (v) Any other works allotted by the Director, Local Fund Audit from time to time 3.2.3 DEPUTY DIRECTOR, LOCAL FUND AUDIT Duties and functions of Deputy Director, Local Fund Audit are :- (i) To assist the Director in discharge of his duties (ii) Scrutiny and passing of draft audit report/inspection report of Major Accounts and of Special Audit with approval of the Director, Local Fund Audit (iii) Issue of audit report/inspection report and audit certificate with the approval of Director, Local Fund Audit (iv) Supervision of the work of Audit Wing/Department (v) Any other works allotted by the Director, Local Fund Audit from time to time. 3.2.4 ASSISTANT DIRECTOR, LOCAL FUND AUDIT Duties and functions of Assistant Director, Local Fund Audit are :- (i) To assist the Director in discharge of his duties (ii) Srutiny and passing of draft audit report/inspection report of Major Accounts and of Special Audit with approval of the Director, Local Fund Audit (iii) Issue of audit report/inspection report and audit certificate with the approval of Director, Local Fund Audit (iv) Supervision of the work of Audit Wing/Department (v) Any other works allotted by the Director, Local Fund Audit from time to time. (vi) To maintain Progress Register. CHAPTER – 4 POWERS OF DIRECTOR AND OTHER OFFICER 4.1 POWERS OF THE DIRECTOR, LOCAL FUND AUDIT (i) The Director being the Head of Department will exercises the powers delegated in Schedule-II of the Delegation of Financial Power Rules,1972, and will also exercise the powers delegated under Subsidiary Orders. (ii) He will exercises the powers delegated to him under the Mizoram Local Fund (Accounts and Audit) Act, 2006 which is reproduced inAppendix A. (iii) He will exercises the powers delegated to him under the Mizoram Local Fund (Accounts and Audit) Rules, 2012 which is reproduced inAppendix C. (iv) He will exercise the powers delegated to him under the provisions of the Mizoram Audit Manual, 2014. (v) He will have full powers to inspect, examine and audit the accounts of accounting authorities which are under his jurisdiction and control. 4.2 POWERS OF THE JOINT DIRECTOR, LOCAL FUND AUDIT (i) He will exercise such powers as are delegated to him by the Government and the Director, Local Fund Audit from time to time. (ii) He will conduct audit, inspect the accounts of accounting authorities, inspect and supervise the work of Audit Officer and his staff as and when directed by the Director, Local Fund Audit. (iii) He will pass Audit Reports/Inspection Reports/Annual Audit Report and issue Audit Certificates and Utilization Certificates with the approval of the Director, Local Fund audit. 4.3 POWERS OF THE DEPUTY DIRECTOR, LOCAL FUND AUDIT (i) He will exercises such powers as are delegated to him by the Government and the Director, Local Fund Audit from time to time. MIZORAM AUDIT MANUAL CHAPTER-4 (ii) He will exercise the powers delegated to him under the provisions of the Mizoram Audit Manual, 2014. (iii) He will conduct audit, inspect the accounts of accounting authorities, inspect and supervise the work of Audit Officer and his staff as and when directed by the Director, Local Fund Audit. 4.4 POWERS OF THE ASSISTANT DIRECTOR, LOCAL FUND AUDIT (i) He will exercise such powers as are delegated to him by the Government and the Director, Local Fund Audit from time to time. (ii) He will conduct audit, inspect the accounts of accounting authorities, inspect and supervise the work of Audit Officer and his staff as and when directed by the Director, Local Fund Audit. (iii) He will exercise the powers delegated to him under the Mizoram Local Fund (Accounts and Audit) Act, 2006 (iv) He will exercise the powers delegated to him under the Mizoram Local Fund (Accounts and Audit) Rules, 2012. (v) He will exercise the powers delegated to him under the provisions of the Mizoram Audit Manual, 2014. CHAPTER – 5 GENERAL INRSTUCTIONS 5.1 SPECIAL PRIVILEGES TO AUDIT PARTY (i) Audit Officer when engaged on audit work are allowed to occupy Circuit House/Inspection Bungalows, Tourist Lodges etc subject to the conditions laid down in the rules for the occupation of Circuit House, Inspection Bungalows and Tourist Lodges etc. They are also allowed to occupy subordinate quarters attached to Circuit House, or Inspection Bungalow o n the understanding that the Audit Officer will vacate the quarter when they are required for the staff of a touring officer. (ii) Audit Officer and other audit staff may purchase office box (brief case) with the sanction of the Director, Local Fund Audit. (iii) Audit Officer may recover the actual cost of the carriage of Government records by furnishing a detailed bill to the headquarter office. In the case of such claims in respect of railway or steamer freight they must furnish payees’ receipts in support of the charges. As regards others, they must certify that they actually paid the amounts when vouchers cannot be obtained. 5.2 LEAVE (i) Application for leave by the Audit Officers on tour should be addressed to the Director, Local Fund Audit. The application for leave of other staff attached to the Audit Officer should also be addressed to the Director, Local Fund Audit and submitted through the Audit Officer. While forwarding leave application, the Audit Officer shall also suggest the arrangement to be made for carrying on the applicant’s work. (ii) Audit Officers and other staff who are granted leave while on tour, should not come up to headquarters unless specially called upon to do so, but should ordinarily relinquish charge at the station where they are conducting audit. Members of the establishment are warned that if they overstay the leave granted to them, they are liable to be dealt with under Fundamental Rule 17. MIZORAM AUDIT MANUAL CHAPTER-5 5.3 CASUAL LEAVE (i) Audit Officer is authorized to sanction casual leave as admissible while on tour subject to the following limitation shown in Table – 4 below. T A B L E - 4 CASUAL LEAVE WHILE ON TOUR Sl.NoName of Sanctioning AuthorityTo whom Casual Leave can be sanctionedLimitation of Casual Leave12341Audit OfficerAssist ant Audit or, Driver and Peon attached to Audit OfficerUpto 1 (one) day at a time2Director, Local Fund Au d itAudit Officer, Auditor, Assist ant Audit or, Driver and Peon attached to Audit OfficerUpto 3 (three) days at a timeApplication for Casual Leave above 1 day at a time should be forwarded through proper channel along with the recommendation of Audit Officer to the Director well in advance for consideration. The application for Casual Leave with proper order of the Audit Officer should be s ent to the D irector for record. The Audit Officer will maintain a Casual Leave account of Auditor, Assistant Auditor, Driver, and Peon working under him. Casual Leave can be sanctioned up to a maximum of 8 days in a calendar year. (ii) Audit Officer and his staff are strictly forbidden to leave without permission the station in which they are working. Infraction of this rule renders them liable to be treated as absent without leave. 5.4 COMPENSATORY LEAVE Audit Officer and his staff who are required to attend office during holidays may be gra nted compensatory leave of one day for every whole da y thus spent, provided that an audit is completed owing to their having worked on the holidays. MIZORAM AUDIT MANUAL CHAPTER-5 5.5 HOLIDAYS The Audit Officer and his staff may avail gazetted holidays and local holidays on the condition that :- (a) if on any of the gazette holidays and local holidays the office of the institution where audit is going on remains open, the Audit Officer and his staff shall not avail that days as holidays, but that day shall be treated as working day. (b) if on any day not covered by the gazette holidays or local holidays, the officer of the institution where audit is going o n re mains closed, the Audit Officer and his staff may avail that day as holiday. 5.6 INFORMATION TO OUTSIDER (i) Except the Director, Local Fund Audit no other or staff is permitted to give to outsiders any information connected with audit or office matters. They are also not permitted to communicate or to make correspondence or to give any information either in writing or verbally to Press, Radio, Doordarshan or any other Media. (ii) Official papers or documents or copies thereof shall not be given to outsiders without written permission of the Director, Local Fund Audit. 5.7 AUDIT PARTY An Audit Party consists of one Audit Officer, one or more Auditors, Assistant Auditors, Driver , and one Peon. Audit Officer is the leader of the Party. CHAPTER – 6 PROFESSIONAL CONDUCT AND DISCIPLINE 6.1 INTRODUCTION Local Audit Wing in Accounts & Treasuries of Mizoram act as an Local Audit Department. It is an independent agency reporting to State Finance Department. It is vested w ith the authority to conduct a udits on any matter within its jurisdiction. This audit manual describes and provides an overview of the roles and responsibilities of the audit staff vis-à-vis professional discipline required in the conduct of audits. 6.2 APPLICATION This Manual applies to all Auditors within the Local Audit Wing/Department and to those Officers/Employees of the Office of the Chief Controller of Accounts, Accounts & Treasuries who may be involved in the conduct of a n Audit. Within the Audit Branch, Auditors include all Officers/Employees of the Audit Parties and those Officers/Employees of the Department who may be involved in the conduct of an Audit. The Audit Branch encourages all of its Auditors to view themselves as professionals in the sense that they aspire to high standards in the fulfillment of their employment duties and take pride in their accomplishments. This document sets out the Local Audit Department’s requirements for audit arrangements and gives the broad framework in which they should operate. The Manual describes minimum audit requirements and those that is consider to be good practice or worthy of consideration. This Manual is the Local Audit Department’s view on how effective audit coverage can be achieved. The Manual also provides an overview of the roles and responsibilities of the Audit staff of Local Audit Wing/Department. The Manual is primarily for use by the Auditors and Audit Parties. It should be read with the relevant publications, circulars and other guidelines issued from time to time. More detailed advice on any aspect of the Manual may be sought from the Local Audit Wing/Department. From time to time the Manual will be up-dated. The Department welcomes comments on the Manual and its operation at any time. The rest of this Manual deals with the separate elements of audit arrangements and sets out guidance on ge neral principles of audit. MIZORAM AUDIT MANUAL CHAPTER-6 6.3 RESPONSIBILITIES The Local Audit Department will undertake a programme of work over a cycle to achieve the fo llowing objectives :- (a) To appraise the soundness, adequacy and application of financial and other control. (b) To ascertain the extent of compliance with established policies and procedures. (c) To ascertain the extent to which assets and interests of funds provided to or by the Local Bodies/Authorities/Societies/Boards etc are properly controlled and safeguarded from losses of all kinds. (d) To ascertain that accounting and other information is reliable as a basis for the production of accounts and other returns. (e) To identify, and test where appropriate, the controls established to ensure the integrity and reliability of information used. (f) To ascertain that the system of control are laid down correctly and operate to promote the most effective, efficient and economic use of resources. 6.4ROLE AND SCOPE The primary role of Audit is to ensure that a body/an authority must establish that it has sound systems of control which help to ensure the following parameters :- (a) The Body’s/Authority’s objectives are achieved as far as possible. (b) The efficient, effective and economical, use of resources is promoted. (c) Adherence to management’s policies, directives and established procedures, and compliance with any relevant laws or regulations. MIZORAM AUDIT MANUAL CHAPTER-6 (d) The Body’s/Authority’s assets and interests are safeguarded – particularly from losses arising from fraud, irregularity or corruption. (e) As far as reasonably practicable, the integrity and reliability of accounting records and other information are established. While it is the responsibility of management to promote value of money, auditors can specifically assist with this process as they have a responsibility to consider the value of money in their routine audit work. Auditors should question policy objectives but should consider the effects of policy, the arrangements by which policy objectives have been determined and the means for delivering those objectives. Auditors may also assess the adequacy of the arrangements in place to prevent and detect irregularities, fraud and corruption. However, the primary responsibility for preventing and detecting corruption, fraud and irregularities rests with manage ment, who should institut e adequate systems of internal control, inc luding c lear objectives, segregation of duties and authorization procedures. The audit service should have formal terms of reference, agreed by the governing body of the Body/Authority and the audit department. 6.5 INDEPENDENT AND STATUS Independence is fundamental to the effectiveness of an audit. Therefore, while the auditor may consult with senior management on audit plans, these plans should be submitted to, and be approved by the Director, Local Fund Audit. Auditors may also carry out additional work at the re quest of management, including investigations, provided such work does not compromise the objectivity and independence of audit service or the achievement of the audit plan and should invariably be approved beforehand by the Director, Local Fund Audit. Accordingly, each local body /authority should satisfy itself that the independence of the audit service has not been affected by the extend and nature of other work carried out. Audit services s hould not have any management responsibilities other than fo r conduct of audit. The reporting arrangement should take account of the nature of audit work undertaken. MIZORAM AUDIT MANUAL CHAPTER-6 Audit should be seen to have sufficient status, respect and support within the Local body/authority. To be effective, the head of audit staff or equivalent, must have direct access to the Local body/authority’s designated officer and if necessary, to the Chairman of the governing body. Auditors must also have unrestricted access to all records, assets, which is necessary for smooth conduct of audit. 6.6 AUDIT PLANNING PROCESS All plans should be achievable and promot e the efficient use of resources. The work of the audit should be planned at each level of operation. The head of audit wing should prepare plans to carry out the responsibilities of the audit unit. Systematic planning helps an audit unit to achieve its objectives, and helps those with responsibility for reviewing the plans. Plans should cover all system and should :- (a) Established a schedule of systems assessed as requiring review and a period within which it is desirable that each of these system should be examined. (b) Define the tasks to be performed. (c) Assist in the direction and control of work, identifying critical areas, setting target dates and allocating resources. In order to plan adequately the head of an audit unit should :- (i) Define audit needs based on the terms of reference. (ii) Identify the staff and other resources needed and reconcile these with available resources. (iii) Agree the time period of audit plans. (iv) Records all plans in writing. (v) Monitor works against the plans and revise them accordingly. Plans should be sufficiently flexible and have adequate provision for contingencies to allow prompt response to unscheduled work. Audit plans should be MIZORAM AUDIT MANUAL CHAPTER-6 based upon a comprehensive understanding of the accounting authority/ institution/ organization and the way it operates. 6.7 DEVELOPMENT OF OVERALL PLAN The Audit Officer should consider the following matters in developing his overall plan for the expected scope and conduct of the Audit. (a) The terms of his engagement and any statutory responsibilities. (b) The nature and timing of reports or other communication. (c) The applicable legal and statutory requirements. (d) The accounting policies adopted by the client and changes in those policies. (e) The effect of new accounting and auditing pronounce ments on the audit. (f) The identification of significant audit areas. (g) The setting of materiality level for audit purposes. (h) Conditions requiring special attention, such as the possibility of material error or fraud. (i) The degree of reliance he expects to place on accounting system and internal control. (j) Possible rotation of emphasis on specific audit areas. (k) The nature and extent of audit evidence to be obtained. (l) The works of internal auditors and the extent of their involvement, if any, in the audit. (m) The involvement of experts. (n) Establis hing and coordinating staffing requirements. MIZORAM AUDIT MANUAL CHAPTER-6 6.8 REPORTING The Audit Officer shall report whether :- (a) The Financial Statements give true and fair view of the state of affairs of the a uthority/institution/organization’s affairs a nd o f its income a nd expenditure, recognized gains and losses and statement of cash flow for the year. (b) Funds from whatever source administered by the authority/ institution/ organization for specific purposes have been properly applied to those purposes and, if relevant, managed in accordance with relevant legislation. The department should determine arrangements after consideration of significant audit recommendations, which the audit considers has not received adequate management attention. It is important that the reporting arrangements do not compromise the independence or objectivity of the internal audit service. At the end of each audit assignment, the Audit Officer should provide a written report, which sets out the findings, conclusions and recommendation arising. At least for all systems based audits, it should also give an opinion on the adequacy and effectiveness of the system. CHAPTER -7 GENERAL PRINCIPLES OF AUDIT 7.1 INTRODUCTION The Government or the Local Bodies/Authority is to depend on the executive and staff employed by them for running the day to day business of the organization. To get correct position of the affairs of the organization, an independent authority having expertise in maintenance of accounts is employed to examine the accounts records and to report to the Government or Local Body/Authority whether in his opinion those accounts are correct, and fully and fairly disclose the position of affairs, or in what respects they fail to do so. The fundamental Principles of Audit is that it should be conducted by an Agency independent of the authority entrusted with the duty of carrying on the business a nd keeping of acc ounts of transactions which pass through his hands so that the Audit Officer can without fear or favour, point out any irregularities or improprieties in financial tra nsactions. Audit will see that :- (a) Whether the broad principles of public finance are observed. (b) Whether there is necessity for expenditure which has been incurred. (c) Whether the same result could have been obtained otherwise with greater econo my. (d) Whether rates and scale of expenditure are justified, and (e) Whether the accounts maintained correctly and truly portrays the exact state of affairs. 7.2 AIMS AND OBJECTIVES OF AUDIT Audit is an indispensable instrument of financial control. Its main aim is to safeguard the interest of tax-payers against any extravagance, carelessness or fraud on the part of the Officials or Management in realization and utilization of public moneys or other assets, and to ensure on tax payers ’ behalf that the accounts maintained truly and accurately represents facts, that the expenditure has been incurred with due MIZORAM AUDIT MANUAL CHAPTER-7 regularity and propriety and that the rules and orders framed by competent authority in regard to financial matters have been truly obeyed. Audit must bring to the notice of the competent authority any irregularity or impropriety in connection with financial transactions or matter relating thereto. 7.3 INDEPENDENT AND STATUS OF AUDIT OFFICERS/AUDITORS In the interest of honest and sound finance, the b usiness transaction should be subjected to the audit scrutiny of agency independent of that charged with the duty of keeping the accounts of those transactions. The same principles shall apply equally to Government transactions or Semi Government transactions or Local Bodies/ Authorities. The theory that audit should be independent of the authorities responsible for transactions is based on the propos ition that the conditions of the Audit Officer should be enable him to discharge, without fear or favour, his duty of scrutinizing the financial transactions of various authorities. If the Auditors is not free to do so or if he is dependent on the authority whose financial transactions hi is to scrutinize, the fundamental principle of reporting to the Executives, the irregularities and improprieties in financial transactions without fear or favour will be totally frustrated. Independent of Audit undoubtedly strengthens the hands of Government as well as the executive authority in-charge of the affairs of administra tion in the sense that the executive authority under such conditions will get the correct position of the affairs of his financial transactions. 7.4 PURPOSE OF AUDIT The main purpose of Audit is to ascertain whether the accounts maintained by the Executive is correct and truly portraits the exact state of affairs of the Organization. 7.5 FUNCTION OF AUDIT The primary function of audit is to verify the accuracy and completeness of accounts maintained to secure :- (a) That all revenues and receipts are collected and are brought to account under proper head. MIZORAM AUDIT MANUAL CHAPTER-7 (b) That all expenditure and disbursements are authorized, vouched and correctly classified. (c) That the Final Accounts represents a complete and true statement of financial transactions it purports to exhibits, and (d) That the prescribed rules and regulations including prescribed procedures are observed. 7.6 SUGGESTION TO PROMOTE ECONOMY The Executive Authority and not the Audit Department (Audit Officer/Auditor) is responsible for enforcing economy in expenditure of public money. The duty of Audit is to bring to notice wastefulness and infructuous expenditure in public administration. The Government or the Executive Authority will generally welcome the suggestion from Audit in promoting economy in the administration. 7.7 SPIRIT OF CHECKS The prescribed checks should be observed in spirit and not in letters as opposed to spirit. Trifling matters which are of little consequence to the finance of Government or of Local Bodies need not be given much attention. Auditor should devote more time a nd e nergy to unearth fra ud, defalcation and misuse of public money. If the objection be the such na ture that it cannot be overlooked, it will be the duty o f Auditor to press it firmly but courteous language. The more important the objection, the more necessary it is couch it in language courteous and impersonal. 7.8 AUDIT TO ASSIST GOVERNMENT AND LOCAL AUTHORITY Audit is an instrument of financial control. For better financial administration the Government and the Local Authorities will fruitfully utilize the result of Audit to avoid misuse of public funds. Simultaneously it is the duty of an Auditor to provide Government or the Local Authorities with all possible assistance within the sphere of his functions in financial matters. General functions of an Audit Officer is to analyze critically mal-functioning of the Executives in financial administration, but his duty to criticism must not be developed to exclude the constructive faculty of constructive help. For exa mple, when an Audit Officer inspects an Office he should not only point out the mistakes but also indicate how mistakes can be rectified and can be avoided in MIZORAM AUDIT MANUAL CHAPTER-7 future. He should also suggest improvement in system. He must investigate as well as educate. 7.9 LIMITATION OF AUDIT ENQUIRY Although the Auditor has the technical training in checking the accounts, the Executive Officers have an intimate knowledge of the details of the work done and are in a better position to explain the actual position. To find out the correct position, the Auditor, therefore, has the right of enquiring or further information from the Executive O fficers. In the meantime, Auditor is, however, not e ntitled to make independent enquiries a mong the tax-payers or the general public as such action will amount to encroachment on the functions of the Executive. 7.10 SPIRIT OF AUDIT An Auditor is bound to ascertain that the prescribed rules and orders are strictly followed by the Executives. But is not to be understood that the mere application of those rules and orders in their minutes details serves the purpose of audit. Such a view does not envisage the fundamental object of Audit Department whose main object is to secure value for the tax-payer’s money by seeing that expenditure is not irregularly and wastefully incurred. If the rules and orders are strictly regarded as ends in themselves and not as means to an end, the inevitable tendency of Auditor will be to assist rigidly on relatively petty matters and thus frustrate the real object of Audit. Such steps will consume much time and energy on expenditure of trifling character leaving little time for rea lly important and substantial irregularities. Undue insistence on trifling errors and technical irregularities should whenever possible be avoided and more time and energy be devoted to the investigation of really important and substantial irre gularities. At the same time it must be borne in mind that failure to appreciate the significance of what is trifling irregularity may lead to failure to discover an importance of an individual irregularity. 7.11 SOCIAL RESPONSIBILITY OF AUDIT Audit is to play a bigger role in the sphere of financial administration by printing out the defects and bringing to the notice of the Executives any wasteful and in fructuous expenditure in the public administration. Constructive criticism of audit will help the Executives to be prudent while spending public money, to remain clear, to maintain integrity and uprightness in financial tra nsactions. Such co nstructive criticism in the field of financial administration will also develop awareness among MIZORAM AUDIT MANUAL CHAPTER-7 the public regarding management of Ta x-payers money by the Go vernment or by the Local Bodies. The Executive should not treat the audit as a fault finding machinery but should accept the Audit as their guide, friend and philosopher in the matter of financial administration. 7.12 CLASSIFICATION OF AUDIT Audit may be broadly classified as :- (a) Commercial Audit (Profit earning Organization/Non-Profit Organization) (b) Government Audit 7.12.1COMMERCIAL AUDIT A Non-Government Commercial concern deals primarily with the utilization of capital for the purpose of making profit. The Commercial concern is interested to see at intervals how it stands in relation to its debtors or creditors, whether it is ga ining or losing, what are the sources o f its gain or loss and whether it is solvent or insolvent. To ascertain this , the job of auditing is entrusted to an agency independent of the authority charged with the duty of carrying on the business and keeping accounts o f transactions. In such case the main object of audit is to present before the proprietor of share-holders of the business an accurate statement of the position of affairs together with the Profit and Loss Accounts showing how his position has been reached and to report to them whether in his opinion those accounts are correct, and fully and fairly disclose the position of affairs or in what respect they fail to do so. In the meantime, there are Non-Profit Organization following Commercial Accounting System which primarily deals with utilization of capital for the welfare of the public as a whole. Unlike Commercial concern, an uniform format of financial statements consisting of (i) Receipts and Payments Accounts (ii) Income and Expenditure Accounts and (iii) the Balance Sheet is prescribed by the Government of India to be used by the Non-Profit Organizations. The job of Auditor is to report to the Government/Authority concerned whether in his opinion the accounts maintained are correct and fully and fairly disclose the position of affairs or in what respects they fail to do so. MIZORAM AUDIT MANUAL CHAPTER-7 7.12.2GOVERNMENT AUDIT The activities of Government in any country are determined by the needs of the country. Government activities are normally centered round the welfare of the society and not on profit earnings. Once the activities are determined if becomes necessary for the Government to take decision how to raise sufficient fund by way of taxation to meet the expenditure for that purpose. As such, the main object of audit is to ascertain whether the tax-payers interest is fully safeguarded or not. Unlike Commercial Audit, the audit of the Government transactions are entirely performed by Indian Audit and Accounts Department which is independent of the spending departments. In the case of transactions of Local Bodies and certain Semi-Government Organizations, the job of auditing is entrusted to the state audit machinery which is independent of the Local Bodies or Semi-Government Organizations. The job of Auditor is to report to the authority concerned whether in his opinion the accounts maintained are correct and fully and fairly disclose the position of affairs or in what respects they fail to do so. Objectives of Government Audit are :- (a) To see whether there is a provision of fund for the expenditure and whether such a fund has been duly authorized by competent authority. (b) To see that the expenditure has been properly sanctioned according to the rules and regulations. (c) To see whether the sanctioned expenditure has been incurred by an Officer competent to incur such an expenditure. (d) To see that the amount has been paid to the proper person, the relative receipt has been obtained and the payment has be en correctly recorded in the books of account so that a second claim on the same account is not possible. (e) To see that the payment has been properly and correctly classified. (f) To see whether the payment is to be debited to the personal account of a contractor or an employee or any other individual and whether such a payment is recoverable from such a person under any rule or order. If such an amount is recoverable, it is to be recorded in the prescribed account. MIZORAM AUDIT MANUAL CHAPTER-7 (g) To see, while auditing the receipts – (i) that money due from others is regularly recovered and checked against payment already made, and (ii) that the amount received is duly credited to the account concerned, (h) To see, while auditing the stores and stocks, whether they are properly and accurately valued, if price accounts are maintained. It should also be seen that the rates for such goods and articles fixed initially are reviewed from time to time in reclaim to the marker rate. (i) To see that the expenditure conforms to the General Principles of Standard of Financial Propriety as provided in General Financial Rules. CHAPTER – 8 COMPENDIUM OF AUDITING STANDARDS 8.1.DEFINITION Auditing standards prescribe the norms which the auditors are expected to follow in conduct of audit. These provide guidance to the auditor to help determine the auditing steps and procedures that should be applied in audit and constitute the criteria or the yardstick against which quality of audit results is evaluated. 8.2RELEVANCE AND APPLICATION (1) Auditing standards provide the framework for performing high quality audit. Compliance with these standards is expected to ensure that a high quality of audit is performed for achieving the audit objectives. (2) Auditing standards shall apply both to the individual auditor and the audit department. (3) Auditing standards shall apply to all types of audit including financial audit, compliance audit and performance audit. (4) Auditing standards shall be consistent with the guiding principles of audit as contained in this Manual. 8.3 BASIC PRINCIPLES GOVERNING AN AUDIT Compliance with the basic principles requires the application of auditing procedures and reporting practices appropriate to particular circumstances. An audit is the independent examination of financial information of an organization, whether profit oriented or not, and irrespective of its size and legal form, when such an examination is conducted with a view to expressing an opinion thereon. It describes the basic principles which governs the Auditor’s professional responsibilities and which should be complied with whenever an audit is carried out. MIZORAM AUDIT MANUAL CHAPTER-8 8.3.1 INTEGRITY, OBJECTIVITY AND INDEPENDENCE The Auditor should be straightforward, honest and sincere in his approach to his professional work. He must be fair and must not allow prejudice or bias to override his objectivity. He s hould maintain an impartial attitude and both be and appear to free of any interest which might be regarded, whatever its actual effect, as being incompatible with integrity and objectivity. 8.3.2 CONFIDENTIALITY The Auditor should respect the confidentiality of information acquired in the course of his work and should not disclose any such information to a third party without specific authority or unless there is a legal or professional duty to disclose. 8.3.3 SKILLS AND COMPETENCE The audit should be performed and the report prepared with due professional care by persons who have adequate training, experience and competence in auditing. The Auditor requires specialized skills and competence which are acquired through a combination of general education, technical knowledge obtained through study and formal courses concluded by a qualifying examination recognized for this purpose and practical experience under proper supervision. In addition, The Auditor requires a continuing aware ness of developments including pronounce ments o n accounting and auditing matters and relevant regulations a nd statutory require ments. 8.3.4 WORK PERFORMED BY OTHERS When the Auditor delegates work to assistants or uses work performed by other Auditors, he will continue to be responsible for forming and expressing his opinion on the financial information. However, he will be entitled to rely on work performed by others provided he exercises adequate skill and care and is not aware of any reason to believe that he should not ha ve so relied. The Auditor should carefully direct, supervise and review work delegated to assistants. The Auditor should obtain reasonable assurance that work performed by other Auditor is adequate for his purpose. MIZORAM AUDIT MANUAL CHAPTER-8 8.3.5 DOCUMENTATION The Auditor should document matters, which are important in providing evidence that the audit was carried out in accordance with the basic principles. 8.3.6 PLANNING The Audit Officer/Auditor-in-charge should plan his work to enable him to conduct an effective audit in an efficient and timely manner. Plans should be based on knowledge of the client’s business. Plans should be made to cover, among other things : (i) Acquiring knowledge of the client’s accounting system, policies and internal control procedures. (ii) Establishing the expected degree of reliance to be placed on internal control. (iii) Determining and progra mming the nature, timing and extent of the audit procedure to be performed; and (iv) Coordinating the work to be performed. Plans should be further developed and revised as necessary during the course o f audit. 8.3.7 AUDIT EVIDENCE The Auditor should obtain sufficient appropriate audit evidence through the performance of compliance and substantive procedures to enable him to draw reasonable conclusion therefrom on which to base his opinion on the financial information. The evidence used by the audit officer shall normally and as far as possible be documentary including electronic records, photographs, results of any study or survey, etc. The audit officers may rely upon evidence from internal sources of the auditable entity as well as from external sources. Where required by the audit officer, the auditable entity shall attest the data, information and documents forming the evidence. MIZORAM AUDIT MANUAL CHAPTER-8 8.3.8 ACCOUNTING SYSTEM AND INTERNAL CONTROL Management is responsible for maintaining an adequate accounting syste m incorporating various internal co ntrols to the extent appropriate to t he s ize and nature of the business. The Auditor should reasonably assure himself that the accounting system is adequate and that all the accounting information, which should be recorded, has in fact been recorded. Internal controls normally contribute to such assurance. 8.3.9 AUDIT CONCLUSIONS AND REPORTING The Audit Officer/Auditor-in-Charge should re view and assess the conclusions drawn fro m the audit evidence obtained from his knowledge of b usiness of the entity as the basis for the expression of his opinion on the financial information. This review and assessment involves forming as overall conclusion as to whether :- (i) The financial information has been prepared using acceptable accounting policies, which have been consistently applied. (ii) The financial information complies w ith relevant regulations and statutory require ments. (iii) There is adequate disclosure of all matters relevant to the proper presentation of the financial information, subject to statutory requirements, wherever applicable. The Audit Report should contain a clear written expression of opinion on the financial information. When a qualified opinion, adverse opinion or a disclaimer of opinion is to be given or reservation of opinion on any matter is to be made, the Audit Report should state the reasons thereof. 8.4 INITIAL ENGAGEMENTS 8.4.1 OPENING BALANCES “Opening Balances” means those account balances, which exists at the beginning of the period. Opening Balances are the Closing Balances of the preceding period brought forwarded to the current period and reflect the effect of :- MIZORAM AUDIT MANUAL CHAPTER-8 (a) Tra nsactions and other events of the pre ceding period; and (b) Accounting policies applied in the preceding period. For initial audit engagements, the Audit Officer should obtain sufficient appropriate audit evidence that :- (a) The Closing Balances of the preceding period have been correctly brought forward to the current period. (b) The Opening Balances do not contain misstatements that materially affect the financial statements of t he curre nt period; and (c) Appropriate accounting policies are consistently applied. 8.4.2 AUDIT PROCEDURES (i) For the purpose of appropriateness, the Auditor shall obta in audit evidence, which would depend on the following matters :- (a) The accounting policies followed by the Organization. (b) Whether the Auditor’s report contained an unqualified opinion, a qualified opinion, adverse opinion or disclaimer of opinion where the financial statements for the preceding period were audited. (c) The nature of opening balances, including the risk of their misstatement in the financial statement for the curre nt period. (d) The materiality of the opening balances relative to the financial statements for the current period. (ii) The Auditor shall consider whether the accounting policies followed in the preceding period, as per which opening balances have been arrived at, were appropriate and that those policies are consistently applied for the current period and where such accounting policies are inappropriate, the same have been changed in the current period and adequately disclosed. MIZORAM AUDIT MANUAL CHAPTER-8 (iii) For current assets and liabilities, some audit evidence can ordinarily be be obtained as part of audit procedures performed during the current period. For example, the collection/payment of opening accounts receivable/accounts payable during the current period will provide some audit evidence as to their existence, rights and obligations, completeness and valuation at the beginning of the period. (iv) For other assets and liabilities, such as fixed assets, investments, long-term debt, the Auditor will ordinarily examine the records underlying the opening balances. 8.5 AUDIT OF FINANCIAL STATEMENTS 8.5.1 OBJECTIVE OF AN AUDIT The objectives of an audit of financial statements, prepared within a framework of recognized accounting policies and practices and relevant statutory requirements, if any, is to enable an Audit Officer to express an opinion on such financial statements. The Auditor’s opinion helps to determine of the true and fair view of the financial position and operating results of an organization. The user, however, should not assume that the Auditor ’s opinion is an assurance as to the future viability of the organization or the efficiency or effectiveness with which management has conducted the affairs of the organization. 8.5.2 RESPONSIBILITY FOR THE FINANCIAL STATEMENTS While the Audit Officer is responsible for forming and expressing his opinion on the financial state ments, the responsibility for their preparation is that of the manage ment o f the organization/enterprise. Management’s responsibilities include the maintenance of adequate accounting records and internal controls, the selection and application of accounting policies and the safeguarding of the assets of the organization/enterprise. The audit of the financial statements does not relieve mana ge me nt of its respons ibilities. 8.5.3 SCOPE OF AN AUDIT OF FINANCIAL STATEMENTS (i) The Auditor having regard to the terms of the engagement, the requirements o f relevant legislation and the pronouncements of the organization will determine the scope of an audit of financial statements. MIZORAM AUDIT MANUAL CHAPTER-8 (ii) The audit should be organized to cover adequately all aspects of the enterprise as far as they are relevant to the financial statements being audited. To form an opinion on the financial statements, the Auditor should be reasonably satisfied as to whether the information contained in the underlying accounting records and other sources data is reliable and sufficient as the basis for preparation of the financial statements. In forming his opinion, the Auditor should also decide whether the relevant information is properly disclosed in the financial statements subject to statutory requirements, wherever applicable. (iii) The Auditor assesses the reliability of the information contained in the underlying accounting records by carrying out such other tests, enquiries and other verification procedures of accounting transaction and account balances as he considers appropriate in the particular circumstances. (iv) The Auditor’s work involves exercise of judgments, for example, in deciding the extent of audit procedures and in assessing the reasonableness of the judgments and estimates made by the manage ment in preparing the financial statements. (v) In forming his opinion on the financial statements, the Auditor follows procedures designed to satisfy himself that the financial statements reflect a true and fair view of the financial position and operating results of the enterprise. The Auditor recognizes that because of the test nature and other inherent limitations of an audit, together with the inherent limitations of any system of internal control, there is an unavoidable risk that some material misstatement may remain undiscovered. While in many situations the discovery of a material misstate ment by management may often arise during the co nduct of the audit, such discovery is not the main objective of audit nor is the Auditor’s programme of work specifically designed for such discovery. The audit cannot, therefore, be relied upon to ensure the discovery of all frauds or errors but where the Auditor has any indication that some fraud or error may have occurred which could result in material misstatement, the Auditor should extend his procedures to confirm or dispel his suspicious. (vi) The Auditor is not expected to perform duties, which fall outside the scope of his competence. For example, the professional skill required of an Auditor does not include that of a technical expert for determining physical condition of certain assets. MIZORAM AUDIT MANUAL CHAPTER-8 8.6 DOCUMENTATION Documentation for purposes of this standard refers to the working papers prepared or obtained by the Auditor and retained by him for further submission to the Headquarters’ Office in connection with the performance of his audit. 8.6.1 WORKING PAPERS (a) Aid in the planning and performance of the audit. (b) Aid in the supervision and review of the audit work; or (c) Provide evidence of the audit work performed to support the Audit Officer’s opinion. 8.6.2 FORM AND CONTENT (i) Working papers should record the audit plan, the nature, timing and extent o f auditing procedures performed, and conclusions drawn from the evidence obtained. (ii) Working papers should be designed and properly organized to meet the circumstances of each audit and the Auditor’s needs in respect thereof. The standardization or working papers (For example – Check Lists, Specimen letters, etc) improve the efficiency with which they are prepared and reviewed. It also facilitates the delegation of work while providing a means to control its quality. (iii) Working papers should be sufficiently complete and detailed for an Audit Officer to obtain an overall understanding of the audit. The extent o f documentation is a matter of professional judgment since it is neither necessary nor pract ical that the Auditor in the working pape r documents every observation, consideration and conclusion. (iv) All significant matters, which require the exercise of judgment, together with the Auditor’s conclusion thereon, should be included in the working papers. (v) To improve audit efficiency, the Auditor normally obtains and utilizes, schedules, analysis and other working papers prepared by the client. In such MIZORAM AUDIT MANUAL CHAPTER-8 circumstances, the Auditor should satisfy himself that these working papers have been properly prepared. Example of such working papers are detailed analysis of important revenue accounts, receivables etc. 8.6.3 FILE CONTAINING WORKING PAPERS NORMALLY INCLUDES (a) Copies of audited financial statements for previous/current year (b) Copies of letters or notes concerning audit matters communicated to or discussed with the client. (c) Copies of management letter issued to the Audit Officer, if any. (d) Notes regarding significant accounting policies. (e) Significant audit observations of earlier year. (f) Copies of the financial information being reported on and the related audit reports. 8.7 AUDIT OF ACCOUNTING ESTIMATES AND SUBSEQUENT EVENTS (i) The Auditor should obtain sufficient appropriate audit evidence regarding accounting estimates. (ii)Accounting Estimates means an approximation and accounts receivable to their estimated realizable precise means of measurement. (a) Allowances to reduce inventory and accounts receivable to their estimated realizable value. (b) Provision to allocate the cost of fixed assets over their estimated useful lives. (c) Accrued Revenue MIZORAM AUDIT MANUAL CHAPTER-8 (d) Provision for taxation (e) Provision for a loss from a lawsuit. (f) Provision for retirement benefits in the financial statements of employees. 8.7.1 NATURE OF ACCOUNTING ESTIMATES The determination of an accounting estimate may be simple or complex, depending upon the nature of the item. For example, accruing a charge for rent may be simple calculation whereas estimating a provision for slow moving or surplus inventory may involve considerable analysis of current data and a forecast of future sales. In complex estimates, a high degree of special knowledge and judgment may be required. 8.7.2 TESTING OF CALCULATION The Auditor would test the calculation procedures used by management. The nature, timing, and extent of the Auditor’s testing will depend on such factors as the complexity involved in calculating the accounting estimate. 8.7.3 COMPARISION OF PREVIOUS ESTIMATES WITH ACTUAL RESULTS When possible, the Auditor would compare accounting estimates made for prior periods with actual results of those period to assist in evaluating whether differences between actual results and previous estimates have been quantified and that, where necessary, appropriate adjustments or disclosures have been made. Note :-The terms “Subsequent Events” is used to refer to significant events occurring between the balance sheet date and the date of theAuditor’s report. The Auditor should consider the effect of subsequent events on the financial statements and on theAuditor’s Report. 8.8 QUALITY CONTROL FOR AUDIT WORK The Local Audit Department should implement quality control policies and procedures designed to ensure that all audits are conducted in accordance with auditing MIZORAM AUDIT MANUAL CHAPTER-8 standards. Compliance with auditing standard is essential whenever an audit is carried out and requires the application of auditing procedures and reporting practices appropriate to the particular circumstances. Local Audit Department needs to implement appropriate quality control out in accordance with auditing standards. Compliance with auditing standard is essential whe never an audit is carried out and requires the application of auditing procedures and reporting practices appropriate to the particular circumstances. Audit department needs to implement appropriate quality control carried out in accordance with auditing standards. The objectives of the quality control policies to be adopted by audit department will ordinarily incorporate the following: (a) Professional Requirement Personnel in the audit department are to adhere to the principles of independence, integrity, objectivity, confidentiality and professional behavior. (b) Skill and Compete nce Personnel in the a udit department should have attained and maintain the technical standards and professional competence required to enable them to fulfill their responsibilities with due care. (c) Assignment Audit work to be assigned preferably to personnel who have the degree of technical knowledge and proficiency required in the circumstances of each and individual audit. (d) Consultati on Whenever necessary, consultation within or outside the audit d epartment is t o occur with those who have appropriate expertise on the subject. (e) Monitoring The continued adequacy and operational effectiveness of quality control policies and procedures is to be monitored. (f) Communication MIZORAM AUDIT MANUAL CHAPTER-8 The audit department’s general quality control policies and procedures should be communicated to its personnel in a manner that provides reasonable assurance that the policies and procedures are understood and implemented. (g) Implementation The auditor should implement those quality control procedures, which are, in the context of the policies and procedure of the audit department, appropriate to the individual audit. (h) Assessment of Professional Competence of Assistants The auditor with supervisory responsibilities will consider the professional competence of assistants performing work delegated to them when deciding the extent of direction, supervision and review appropriate for each assistant. (i) Delegation Any delegation of work to assistant would be in a manner that provides reasonable assurance that such work will be performed with due care by persons having degree of professional competence required in a particular circumstances. (j) Direction Assistants to whom work is delegated need appropriate direction. Direction involves informing assistants of their responsibilities and the objectives of the procedures they are to per form. It also involves informing them o f matters, such as the nature of client’s organization’s business and possible accounting or auditing problems that may affect the nature, timing and extent of audit procedures with which they are involved. (k) Supervision Supervision is closely related to both direction and review and may involve elements of both personnel carrying supervisory responsibilities to perform the following functions during the audit. MIZORAM AUDIT MANUAL CHAPTER-8 Monitor the progress of the audit to consider whether: (i) Assistants have the necessary skills and competence to carry out their assigned tasks. (ii) Assistants understand the audit directions ; and (iii) The work is being carried out in accordance with the overall audit plan and audit programe. (l) Review The work performed by each assistant needs to be reviewed by personnel of at least one step higher to consider whether :— (i) The work has been performed in accordance with audit program. (ii) The work performed and result obtained has been adequately documented. (iii) All significant audit matters have been resolved or are reflected in audit conclusions. (iv) The objectives of the audit procedures have been achieved. (v) The conclusions expressed are consistent with the results of the work performed and audit opinion. 8.9 KNOWLEDGE OF THE CLIENT’S ORGANIZATION’S OPERATIONAL ACTIVITIES In performing the audit of an organization, the auditor should have or obtain knowledge of the organization’s operational activities sufficient to enable the Auditor to identify and understand events, transactions and practices that, in the Auditor’s judgment, may have significant effect on the examination of documents. Obtaining the Knowledge Prior to conduct to audit, the Auditor would obtain a preliminary knowledge of the client’s organization activities, specific accounting practices and problems, legislation and regulatory framework, capital structure, sources and methods of MIZORAM AUDIT MANUAL CHAPTER-8 financing, financial performance, management and operations of the organizations to be audited. To the extent practicable, the Auditor would obtain the required knowledge at the start of the audit. As the audit progresses, that information would be assessed and updated and more information would be obtained. Obtaining the required knowledge o f the activities of the organization is a continuous and cumulative process of gathering, for example, although information is gathered at the planning stage, it is ordinarily refined and added to in a later stage of the audit as the Auditor and other members of the audit staff learn more about the business. For continuing audit, the auditor would update and re-evaluate information gathered previously, including in the prior year’s working paper. The Auditor would also perform procedures designed to identify significant changes that have taken place since last audit. The auditor can obtain knowledge of operations of the client organization from a number of sources. For example :— (a) Previous experience of the organization. (b) Discussion with the people of the organization. (c) Publication related to client organization. (d) Legislation and regulations that significantly affect the organization. (e) Visits to the organization’s premises. (f) Documents produced by the organization for example, minutes of meetings, prior year’s annual and financial reports, management policy manual, manuals of accounting and internal control system, charts of accounts, job descriptions etc. 8.10 CONSIDERATION OF RULES AND REGULATIONS IN AN AUDIT When planning and performing audit procedures and in evaluating and reporting the results thereof, the auditor should recognize that non compliance by the client organization with rules and regulations may materially affect the operation of organization. MIZORAM AUDIT MANUAL CHAPTER-8 The term non-compliance refers to acts of omission and commission by the organization being audited, either intentional or unintentional, which are contrary to prevailing laws and regulations. Such acts include transactions entered into by, or in the name of, the organization or on its behalf by its management or employees. The Auditor’s training, experience and understanding of the organization may provide a basis for recognition that some acts coming to the Auditor’s attention may constitute non-compliance with rules and regulations. In order to plan the audit, the Auditor should obtain a general understanding of the legal and regulatory framework applicable to the client organization and how the organization is complying with that framework. The Auditor should plan and perform the audit recognizing that the audit may reveal conditions or events that would lead to questioning whether an entity is complying with rules and regulations. Further, the Auditor should obtain sufficient appropriate audit evidence about compliance with those rules and regulations generally recognized by the auditor to have an effect on the determination of material amounts and disclosers in the financial statements. The Auditor should have a sufficient understanding of these rules and regulations in order to consider them when auditing the assertions related to determination of amounts to be recorded and the disclosers to be made. The Auditor may be specifically required to report as part of the audit of financial state ments whether the organization complies with certain provisions of rules and regulations. In such circumstances, the Auditor would plan to test for compliance with these provisions of the laws and regulations. 8.11 CIRCULARS TO AUDITORS Copies of all the Government Notification, Office Memorandum, Orders, Circulars, and important rulings should be supplied to all Auditors. CHAPTER-9 CONDUCT OF AUDIT 9.1 GENERAL PRINCIPLES FOR THE AUDIT OFFICERS/AUDITORS These general principles for auditors are intended to supplement, not to replace, those issued by the Government/Department from time to time. This is necessary because the audit of Public Funds is different from those in the private commercial sector, since auditors are also concerned with the Department’s requirement. While carrying out audit, Audit Officer and others associated with the job or audit shall see that broad principles of legitimate public finance are observed. They shall investigate the necessity of expenditure which has been individual item of expenditure were in furtherance of the scheme for which fund has been provided, whether the same results could have been obtained otherwise with greater economy; and whether the rate and scale of expenditure were justified in the circumstances. Briefly they shall ask every question that might be expected from an intelligent ta x- payer bent on getting the best value for his money; and are responsible to that audit is conducted with reference to the following principles, namely:- (a) Every Officer or other member of a local authority should exercise the same vigilance in respect of expenditure incurred from the local authority’s fund as a person of ordinary prudence would exercise in respect of expenditure of his own money. (b) No person should exercise his power of sanctioning expenditure to pass an order which will directly or indirectly to his own advantage. Note :- If, however, an order is perfectly meant for general application, it does not breach of this principle even if the particular authority that passes the order is also benefited thereby. (c) The Local Authority’s revenue should not be utilized for the benefit of a particular person or section of the community unless:- (i) The amount of expenditure involved is insignificant, or (ii) A claim for the amount could be enforced in a court of law, or (iii) The expenditure is in pursuance of a recognized policy or custom. MIZORAM AUDIT MANUAL CHAPTER-9 (d) The amount of allowance, such as Travelling allowances granted to meet the expenditure of a particular type, should be so regulated that the allowance are not on the whole a source of profit to the recipient. However, Auditors should avoid the following : (a) Official, p rofessional and personal relationships which might cause the auditor to limit the extent or character of the audit (b) Any responsibility for the executive management of the Loca l Body/Authority. (c) Any interest, financial or non-financial, direct or indirect, in the Local Body/Authority. Note 1 :-The Deputy/Assistant Director of Local Fund Audit is the in charge of audit party and the Auditor(s) works under him. In special cases, the Director Local Fund Audit may at his discretion appoints an Auditor to supervise the conduct of Audit.The Supervising Officer is commonly known as an ‘Audit Officer’. Note 2 :- The Audit Officer in charge should ensure that an Auditor as well as Assistant Auditors carry out the processes of audit. If any process is omitted, the Officer- in-charge will be held responsible for the omission. But for detail scrutiny, the responsibility for the omission/irregularity would be that of Auditor(s) or Assistant Auditor(s) who conducted the Audit. In case higher authorities subsequently detect any omission/irregularity which should have been detected in the audit, the Audit Officer would not be allowed to shift the responsibility to their assistants. Note 3 :- The Audit Officer should review the work of Auditor(s) and Assistant Auditors. The defects notified during review should be explained to the Auditor/Assistant Auditor to avoid its recurrence. Note 4 :- The Audit Officer while occupied with the audit of one concept should not depute their auditors to take up simultaneously any other account without previous approval of the Director, Local Fund Audit. 9.2 DUE PROFESSIONAL CARE In exercising due professional care, Auditors should :- MIZORAM AUDIT MANUAL CHAPTER-9 (a) Take reasonab le steps to obta in information relevant to the audit. Auditors should take into account information from the client organization, any changes in Legislation, and the results of previous audit work. (b) Keep up-to-date with developments in professional matters. (c) Look out for and take into account any unusual circumstances. (d) Consider audit objectives and plan work to adhere to them. (e) Document the conclusions arising from the planning process, and detail a budget for staff and time. (f) Discuss the main features of the audit with the client organization. (g) Ensure that as far as possible, audits are staffed with suitable qualified and experienced personnel, and that work is properly controlled and reviewed. (h) Ensure that conclusions are adequately supported by reliable evidence. This evidence should be sufficient for an experienced auditor with no previous connection with the audit to ascertain what work was done and how the conclusions were reached. (i) Maintain objectivity at all times. (j) Preserve confidentiality where appropriate. 9.3 APPROACH TO AN AUDIT The essential features of an audit are :- (a) To make a critical review of the system of book keeping, accounting and internal control. (b) To make such tests and enquiries as the Auditors consider necessary to form an opinion as to the reliability of the records as a basis for the preparation of accounts. (c) To compare the financial statements, profit & loss account/income and expenditure account and balance sheet with the underlying records in order to verify whether they in accordance with law, wherever applicable. (d) To make a critical review of the financial statements, in order to make a report thereupon, stating whether, in the opinion of the auditors, the accounts are presented and the items are described in such a way that they show true and fair view of the organization. In recent years the size and complexity of organizations have increased enormously with a corresponding effect on accounting syste m wherein fairly simple books of accounts provide all the necessary, far more sophisticated methods of record MIZORAM AUDIT MANUAL CHAPTER-9 keeping are now in use. Computers have become integral part of accounting system of many organizations. For an intelligent efficient audit or inspection of accounts, it is necessary that Auditor should concentrate on the following aspects. Auditor should have an intimate acquaintance with various Acts, Codes, Statutes and Manual relating thereto, and he should also be conversant with the subsidiary rules and orders issued from time to time. It should be ensured that rules are strictly enforced. Sometimes some informality, some irregular payment, or some slight discrepancy is detected in the course of audit. The general tendency is to embody this in a formal objection statement which in course of time is replied to, the requirements of audit department are complied within a particular case in question, and then the matter ends. But the case should not be winded up at this stage. Small circumstances like cited above may lead to the detection of large irregularities, or a defect in the system liable to lead to fraud, and their value and importance must be borne in mind. If the Auditor avoids frivolous objections, and convince the officers by the manner in which they go about. If they consider that they are working there not to complicate the procedure but to simplify it, not merely to criticize, but also to assist, they will meet with little difficulty in this direction. They should assist the client organization with advice and show, by means of practical examples, how the account registers should be posted /maintained and thus endeavor to eliminate the possibility of mistake in procedure due to ignorance. It is better to prevent mistakes in procedure than to discover after they have been committed. Auditors should use courteous language in drafting objections. Audit Officer should devote his time chiefly to the broader and more important aspects of client organization’s finances. Checking of classification of various accounts, seeing whether the budget allotment has not been exceeded, etc., have no doubt their importance but the real important work of Audit Officer/ Auditor-in- charge personally should be in the direction of suggesting fresh sources of revenue to the client organization, and even more important, perhaps, should be directed to apply the routine checks like checking totals, service postage stamps accounts, stock entries, checking of APRs, arithmetical checking of payments etc., and the Supervising Officer should review their work. Audit Officer should not treat himself as auditor but as a financial advisor to the client organization. The tendency of finding few points for the Audit Report and as soon as that is achieved, to slack off thereafter is the most dangerous. The real aim should be the proper appraisal of the results of audit by going at the root of things and suggesting effective meas ures to prevent the recurrence of MIZORAM AUDIT MANUAL CHAPTER-9 irregularities detected during the course of Audit. It is of no use wasting time in pointing out 500 technical mistakes, but if that time is utilized in ensuring that only one really important or serious irregularity has been stopped for all the times to come by personal discussion with the Head of Department/O ffice concerned and explaining him and to his staff the implications of the irregularity and by practically showing the way to stop it, he should have done some real work of abiding nature. Auditors should not merely audit the payment vouchers as a mechanical check seeing that a proper acquaintance is attached with the voucher in support of the payment and that the amount has been paid to the actual payee or that the rates etc., charged are arithmetically correct and are in accordance with the standard schedule of rates. In order to apply the higher functions of audit, it is necessary to see that the charges in the bill are not extra vagant. In such cases, however, no hard and fast rules can be laid down, as it demands the exercise of great intelligence and due care of the Auditor. Note 1 :-No Auditor is competent to undertake any investigation, which is not strictly within the scope of audit. If anything important is noticed during the course of audit, it should specifically be brought to the notice of Director of Local Fund Audit. In no case can Auditors undertake any special investigation work of any kind at the instance of Administrative Authorities without the sanction of Director of Local Fund Audit. Note 2 :-Auditors should confine themselves to the facts, which have a bearing on the accounts. They should not touch finances and matters not falling strictly within the scope of audit. 9.4 ASSISTANCE TO CLIENT ORGANIZATIONS Recently t here is an increasing de mand from the client organizations under auditorial purview to provide something more than a critical review of the past, and the modern approach to the audit is such that the auditor is better able to provide the client organization with advice for the future. Audit staff is encouraged to make suggestions to the organization concerned for improve ments in the accounting system where they think such changes are appropriate. At present the main method of providing such advice is overview of the major irregularities and audit reports sent to the client organization, usually at the end of MIZORAM AUDIT MANUAL CHAPTER-9 audit, informing the m of weaknesses in the system which have been found in the course of audit. The essential point of such overview/report is to provide constructive advice for the future. Another method of providing assistance to the client organization is by making constructive suggestions about administration of the accounting system. Such suggestions enhance the benefits o f the examination of the client organization by new ideas, which improve the efficiency of the organization. The method of presentation of these suggestions calls for considerable care and tact suggestions should be soundly based. Unless desired by the client organization, and audit staff should not extend enquiries beyond required for forming an opinion as to whether the accounts show a true and fair view. 9.5 AUDIT PROGRAMM E (i) The Director, Local Fund Audit shall conduct audit on the accounts of the Local Authority in accordance with the Technical Guidance and Supervision (TGS) of the Comptroller and Auditor General of India. Instructions issued b y the Finance Department, Government of Mizoram vide Notification No. G.11023/4/2008-FCC Dt. 1st June, 2011 (Annexure-IV) shall be observed and complied with by the Director, Local Fund Audit. (ii) Generally, audit shall be conducted under the direction of the Director, Local Fund audit. At the beginning of January each year, Audit Programmes are to be prepared by the Assistant Director, Local Fund Audit showing the work to be done during the ensuing financial year. The Director, Local Fund Audit will convey his approval with such modification, as he deems necessary. The Audit Programmes are to be sent to the respective propose Audit Offices for conducting audit accordingly. If there is any subsequent modification, the modified programme shall be sent to the respective offices. (ii) No Audit Officer is ordinarily allowed to conduct the same audit on two consecutive occasions. (iii) No extension of Audit Programme is permissible without prior approval of the Director, Local Fund Audit. MIZORAM AUDIT MANUAL CHAPTER-9 (iv) All programmes for special audit/surprise verification of cas h balances shall be chalked out by the Director, Local Fund Audit after the consultation with the Finance Department. Note 1 :- Time limit of of three weeks shall not apply where the Director, Local fund Audit himself conducts any audit. Note 2 :- Before commencement of audit on an account, the Audit Officer/Auditor- in-charge should call upon the Deputy Commissioner in his Office and on the Sub- Divisional Officer in the case of Audit of funds in a Sub-Division, in order that the Deputy Commissioner or Sub-Divisional Officer may bring to his notice any matter which may appear to him to require special attention in connection with the accounts to be audited. Upon the completion of audit, the Audit Officer/Auditor-in-charge should also call upon him before his departure. He should enquire previously of him when it will be convenient to receive him, and should record briefly the substance of his interview for the information of the Director, Local Fund Audit. 9.6 ADVANCE INTIMATION FOR TAKING AUDIT / INSPECTION The audit office shall as far as possible give advance intimation of a minimu m period of three weeks to the officer in charge of the office to be audited so as to consider and permit the organization/authority for the preponement/postponement of audit, if any, representation is received before the audit party proceeds for taking the audit. The intimation for audit shall state the likely duration of audit and also provide a list of the basic records that should be kept ready before the arrival of the audit team. In cases where the audit involves an element of surprise check, no advance intimation need be given. Intimation may be made to the Accounting authority inForm No.1- ‘Intimation to Audit’ appended to this Manual. Acknowledgement of intimation by the auditable entity The officer in charge of the office shall acknowledge the receipt of such intimation and shall make best efforts to be available in headquarters during the period of audit. The officer in charge shall also ensure that the basic records as stated in the list sent to him by the audit office are kept ready before the arrival of the audit team 9.7 ATTENDANCE For t he purpose of conduct of audit, the Audit Officer shall attend the office of the concerned Local Authority during the regular Office hours except in cases where MIZORAM AUDIT MANUAL CHAPTER-9 the Director of Local Fund Audit decides otherwise. The Local Authority shall provide suitable acco mmodation and furniture in his office to enable the Audit Officer to discharge his duties without undue interruption and shall render him all possible assistance in carrying out the audit. 9.8 CONTACTING THE ADMINISTRATIVE AUTHORITIES The first duty of the Audit Officer on visiting the station should be to call upon the highest administrative authority of the fund, the account of which is to be audited. He should, if necessary, call upon the administrator of the funds as often as is necessary to ensure smooth conduct of audit and to apprise him of the matter of importance. 9.9 DUTIES OF AUDIT OFFICER IN CHECKING ACCOUNTS (i) While auditing the accounts, the Audit Officer shall see that the accounts are kept and are presented in proper form; that the particular items of receipts or expenditure are stated in sufficient details; and that the payments are supported by adequate vouchers and authority. He shall examined whether a ll sums received or which to ought have been received have been brought into account; whether the expenditure is in all cases lawfully made and whether any loss has been incurred due to negligence or misconduct of any person . He shall also scrutinize the financial position of the local authority. He shall also satisfy himself that property of the local authority is duly accounted for in the books and regularly checked. (ii) Verification of Cash Balance being an essential part of the audit, the Audit Officer shall verify them by actual counting o f cash balance shown to be at the office or in the hands of any of the employee. (iii) In addition to the power of Audit Officer to conduct a regular audit under Section 5 of the Mizoram Local Fund (Accounts and Audit) Act, 2006, the Audit Officer may make a partial examination of the accounts of an Accounting Authority or make a local enquiry into any matter relevant to Audit at any time, or depute suitable officer to do so. (iv) The Audit Officer while inspecting shall make a brief examination of the various accounts books, registers etc, and a brief audit of scattered items. If he has reason to suspect that the accounts are not properly kept or if the last audit report was unsatisfactory, he will, if he considers it necessary, carry out a test MIZORAM AUDIT MANUAL CHAPTER-9 audit of a complete month, even though this may necessitate an alteration in the dates of his tour. He will also examine the pending objection statements and the last audit note a nd generally review the work done by pre vious a udit. 9.10 PRODUCTION OF RECORDS FOR AUDIT Auditors must ensure that all the registers, accounts, files and other record required for audit are produced in Audit. Requisition for supply of information/record should be issued in the beginning of Audit of the Organization, the accounts of which are to be audited. The Audit Officer may correspond with the Accounting authority whose accounts are being audited for the purpose of - (a) production of records (b) reporting embezzlement (c) making an enquiry in connection with the audit; or for any other purpose relating to Audit. Omission on the part of the client organization to put up necessary accounts, if not asked for s ufficiently in advance of the conclusion of audit is not an adequate ground for failure to conduct the audit. If an Auditor states that he asked for particular record, but that was produced, he must be able to prove it from the requisitions. Specimen for Audit RequisitionForm No.23 may be used as a guide by the Audit Officer. Note-1:- If in any case, complete accounts records of an individual item or head of accounts are not made available and incompleteness of the records and information supplied are not sufficient to conduct the audit smoothly, the matter should be promptly brought to the notice of the head of the organization and in the event of failure on the part of head of the organization for production of record, the matter should be brought to the notice of the Headquarter Office setting forth the full facts for deciding if the audit should be suspended. Till orders are passed, the Auditor should continue to check the items for which papers are available. Note-2:- The Audit Officer should not omit to exercise the prescribed checks if a part of the record is not available. He should exercise all the prescribed checks and specifically raise objections. Note 3 :- Subject to the provision ofpara 9.13, 9.35, and 9.36 of this Manual, the Audit Officer shall not, except with the written permission of the head of the office of the Accounting Authority whose accounts are being audited, remove from such office any book, voucher, record or document of any kind whatsoever. MIZORAM AUDIT MANUAL CHAPTER-9 9.11 NON-PRODUCTION OF RECORDS When any documents is not produced after commons or letter issued by Audit Officer under Section 5(3) of the Act, the Audit Officer shall send a written report of the failure to produce such documents to the Head of Department/ Chairman, or Vice- Chairman, or other Accounting Authority concerned. If the required document is not produced in spite of this written report, the matter shall be referred to the Director, Local Fund Audit together with any communications received from the Head of Department/Chairma n, or Vice Chairman, or other Accounting Authority. No document shall be left unaudited without the written order of the Director, Local Fund Audit. Note-1 :- If an Accounting Authority fails to produce the records a particular period or produces only a portion of records or fails to appear before the Audit Officer in spite of written reques t from him, the Audit Officer shall immediately report the matter to the Director, Local Fund Audit who in turn shall take up the matter with the Secretary of the Department concerned and the Finance Department, Government of Mizoram. Note-2 :- The Secretary of the concerned Department shall cause submission of the required records to the Audit Officer within 30 (Thirty) days. 9.12 AUDIT MARKS (i) In auditing the accounts, the Audit Officer shall tick or cross tick all entries checked by him and initial all vouchers with the special audit pencil (special green chalk pencil). (ii) Audit Officer shall not make notes, corrections or remarks in any of the registers or in any of the documents of the office, which he is auditing. These should be as clean and tidy after audit as before. (iii) Tick marks, cross tick marks, question marks, circle marks, or such other marks, initial of audit Officer on vouchers or other records, remarks, such as“Seen”, “Checked”, “Verified”, “Verified and found correct”, in course of audit whic h are mandatory under the Manual, recorded in audit pencil shall not be treated as defacing of official records. MIZORAM AUDIT MANUAL CHAPTER-9 9.13 EMBEZZLEMENT Notwithstanding anything contained in Note-3 below para 9.10 of this manual when an embezzlement is detected, or may reasonable to inferred from any suspicious circumstance or irregularity in the accounts, the Audit Officer shall take personal charge of the relevant records, and shall at once forward a list of such records to the head of the office. Any such record may be inspected by the head of the office in the presence of the Audit Officer. The Audit Officer shall report the circumstances immediately in writing to the Chairman/Head of Department or other Accounting Authority concerned, and also (by telegram, if necessary) to the Director, Local Fund Audit. When the fraud or e mbezzlement has been fully investigated by the Audit Officer, he shall submit a complete report on the case to the Director, Local Fund Audit who may order a further examination of and report on, all or any accounts, if he considers such an examination and report justified, and shall determined when any records seized by the Audit Officer shall be returned to the Accounting Authority. The Audit Officer may, if required, take the help of Civil Authority in case of taking personal charge of the relevant records. Audit Officers while reporting irregularities or defalcations direct to the head of the Office, must confine themselves to a plain statement of facts. On no account may these reports contain adverse criticism regarding superior officers. The Audit Officer’s report to the Director, Local Fund Audit should state clearly how the fraud or embezzlement was committed and whether he has reason to suspect that a detailed examination of the accounts will bring to light further instances. The Director, Local Fund Audit may order a detailed examination of all or any particular accounts, if he considers such an examination justified by the suspicion of fra ud or embezzlement. (iii) As per Finance Department, Government of Mizoram Notification No.G.11023/4/2008-FCC Dt. 1st June, 2011 (Copy appended in Annexure-IV), the Director, Local Fund Audit is required to any serious irregularities noticed such as system defects, serious violation of rules, frauds noticed by him to the Accountant General (Audit), Mizoram. (iv) The Director, Local Fund Audit shall maintained “Embezzlement Register” in Form- 7 appended to this Manual. MIZORAM AUDIT MANUAL CHAPTER-9 9.14 PRELIMINARY OBJECTION STATEMENT (POS) During the course of Audit, the Audit Officer shall issue Preliminary Objection Statement (POS) inForm No-4. The Accounting Authority shall return the Preliminary Objection Statement along with reply to the Audit Officer within three days from the date of issue but not later than the day of closing audit. 9.15 MATTERS TO BE INCLUDED IN THE PRELIMINATRY OBJECTION STATEMENT The Preliminary Objection Statements shall include not only objections raised on payment vouchers but every sort of objection and remark which the Audit Officer raises or makes or proposes to include in his report. One of the main objects is to inform the head of the office and to give him opportunity to reply to every point which will appear in the Audit Report. Audit Officer should not make any suggestions or finally embody any criticisms in their Audit Reports without giving the Officers of the Accounting Authority full opportunity for explanation and considering as fully as possible their views and agreement. 9.16 APPEARANCE IN PERSON BEFORE AUDIT (i) Every person to whom a summon is issued under sub-section (2) or (3) of Section 5 of the Act, shall be bound to be present before the audit. (ii) For the purpose of audit an Audit Officer may require any such person as provided under sub-section 3 (b) of Section 5 of the Act, to make and sign a declaration with respect to such document or to answer any question or prepare and submit any statement relating thereto. (iii) 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 of the Local Accounts provided that :- MIZORAM AUDIT MANUAL CHAPTER-9 (iv) He has obtained the previous permiss ion of the Audit Officer or of the Director, Local Fund Audit on a written application stating the grounds on which he desires to be present ; and (v) 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 forthwith forward copy of the application and of the order passed thereon to the Chairman or other Principal Executive Officer of the Local Authority concerned. 9.17 AUDIT WORKING PAPERS/ROUGH SHEETS The main objects of preparing audit working papers are – (a) To clarify the thinking of those by whom they are complied-exposition in writing often reveals points, which have been overlooked or not fully understood. (b) To enable the accounts and audit to be independently reviewed and evaluated. (c) To provide for future reference a record of all material features of the accounts, of the audit tests applied to them, and of the information and explanation received. To fulfill the objectives, the working papers/rough sheets should provide in a clear and convenient from all the information needed for the decisions to be taken in regard to audit, these decisions add to the adequacy of the audit, the scope of improve ment whether in effectiveness or economy, the validity of the accounts, any recommendation which should be made to the client organization or any point which should be further taken up with them, and the opinion which Auditor’s Report on the accounts should express. In providing this information the working papers/rough sheets not only enable these decisions to be taken properly but also provide, the means of justifying them in the event of any subsequent challenge or enquiry and for guidance and saving of time for those coming new to the job on subsequent occasions. Working papers/rough sheets should be prepared in such a manner that on conclusion of audit they could if necessary are reviewed without the presence of audit MIZORAM AUDIT MANUAL CHAPTER-9 staff that prepared them. They should, therefore, give full details of the sources of the information shown, the work done should be in conformity with them and notes of the conclusions reached as a result of the examination. Audit Officer/Auditor-in-charge should maintain a note book in which they should keep notes of all important points relating to the accounts in District- wise/Department-wise and any other instructions which may from time to time be issued by the Local Audit Wing/Department in connection with audit of accounts etc. If any of the accounts are at a later stage allotted to some other Auditor/Assistant Auditor, it will be the duty of the Audit Officer/Auditor-in-charge to refer to his note- book and intimate the connected points to the Auditor/Assistant Auditor concerned. 9.18 DISPOSAL OF PREVIOUS AUDIT REPORTS The first duty of an Auditor should be to see that deficiencies pointed out in the previous Audit Reports or Inspection Reports and objection statement have bee n remedied as promised in the annotated replies either by the production of the required documents, by recovery of over-payments, or by adoption of the procedure suggested. The further correspondence, if any, on the replies should also be pursued, with a view to ensuring how the several matters referred to were eventually settled. In all cases, where the promised action has not been taken, attention should at be drawn to the matter, and in cases of recoveries or missing documents, the client office should be given every opportunity of repairing its previous omissions, before the completion of audit. If, however, the conclusion of audit, the fact should be clearly mentioned in t he Audit Report or Inspection Report with additional remarks as are called for. Auditors should particularly see that in case of serious irregularities as pointed out in the previous audit, the actions should have been taken by the client organization. If n o action or partial action has been taken and the results are unsatisfactory, he should report the matter separately to the notice of the Director, Local Fund Audit for taking up the matter with the Administrative Department i.e Finance Department. Note-1 :- Audit Officer should at the commencement of the audit, inform the highest administrative authority of the client organization concerned that he is going to devote so many hours each day or full days, as the case may be, solely for the disposal of old objections and suggest that suitable arrangements should be made for collection and production of record along with annotated replies to the old objections during the course of audit. Note-2 :-The job of disposal of old outstanding audit objections should not be left till the current audit is over. MIZORAM AUDIT MANUAL CHAPTER-9 Note-3 :- Audit Officer should appreciate the true significance of the various objections. It is duty of every Audit Officer to revie w the old objections statements thoroughly and necessary to recast frequent nature of audit objections in the current report with up-to-date position. In such a case, the Audit Officer in his own handwriting should give a cross reference across the old objection. The Audit Officer should record his reasons in clear terms, in the margin of the Draft Audit Note in the case of such transfer of objections. Note-4 :- It is not sufficient to see that an annotated copy has been prepared and submitted. It has also to be verified that it was submitted within the prescribed period failing which the Auditors should clearly state in Part-I of their Draft Audit Report or Inspection Report, the date on which the Audit Report or Inspection Report was received in the Office of the client organization and the date on which the copy of the annotated replies was forwarded to the Director, Local Fund Audit. The delay should be objected to and references to the Government Orders, if any, prescribing the period for this purpose should invariably be mentioned. Where the annotated copy is not submitted even till the commencement or conclusion of the next audit, it is not sufficient merely to point out this omission in Part-I of the Audit Report or Inspection Report. The lapse on the part of client organization should specifically be brought to the notice of the Directorate/Administrative Department of the client organization as well as Director, Local Fund Audit in such cases. Note-5 :- Audit Officer should issue requisition calling from the Head of Department/Office of the client organization concerned and study the observation of Government, if any, in respect of the last Audit Report and see whether any action as desired by the Government has been taken. If no action has been taken on the observations of the Government, they should in their Audit Report or Inspection Report incorporate suitable comments containing these observations. Note-6 :- Auditors should see that if an objection in its original form has been met, fresh observation on the system relating thereto, record or document, if any, should appear in Part-II of the current Audit Report or Inspection Report. An old objection should under no circumstances be kept alive if it has met in its original form. Note-7 :- At the commencement of the audit, Audit Officer should issue a requisition (Form No.23) to the Head of Department/ Office of the client organization concerned whose accounts are to be audited requesting him to arrange for the production of record which was not produced in the last audit and the details of which are noted in the last Audit Report or Inspection Report. The record should be checked with MIZORAM AUDIT MANUAL CHAPTER-9 requirements of audit and defects, if any, should be incorporated in the current Audit Report or Inspection Report. Note-8 :- All objections which remain outstanding for over five years should be examined with particular care and if the Audit Officer feels that he is not competent to withdraw them after verifying the connected record, they should refer all such objections along with replies thereof to the Headquarter Office for consideration. Note-9 :- Removal of objections during the course of audit is an important job and should not ordinarily be entrusted to the Assistant Auditors. Note-10 :- Audit Officer should ascertain whether the Director, Local Fund Audit or any other Officer of Local Audit wing/Department has issued any Inspection Note on the inspection of any accounts carried out by him and sees that the defects have been remedied. The unsettled points should be taken in Part-I of the Audit Report or Inspection Report. 9.19 WRITING OF AUDIT REPORT/INSPECTION REPORT (i) In order to achieve effective control and monitoring in writing and issuing of Audit Reports or Inspection Reports, the Headquarter and Office/District Offices, if any, should maintained monthly statements showing - Statement of Draft Audit Reports or Inspection Reports issued during the month inForm No. 11; Statement of Draft Audit Reports or Inspection Reports pending at the end of the month inForm No.12 ; the Audit Reports or Inspection Reports issued inFor m No.16; Statement of time taken in Audit of various Authorities inForm No. 20; appended in this Manual. (ii) The Audit Officer shall write his Aud it Report or Inspection Repo rt including all Schedules and Statements during the allotted time of Audit and in all cases shall complete his Report in all respects immediately after the close of audit. No extra time for writing Audit Report or Inspection Report shall be allowed. 9.19.1ARRANGEMENTS FOR WRITING AUDIT REPORT/ INSPECTION REPORT (a)The Audit Officer himself, leaving one third of the page for corrections, should draft Audit Report or Inspection Report. The Audit Report or Inspection Report should be drafted on one side of the paper. If the Draft Audit Report or MIZORAM AUDIT MANUAL CHAPTER-9 Inspection Report is typed it should be on double. The Audit Report or Inspection Report should ordinarily be divided into two Parts. (b) Audit Report or Inspection Report : The results of the Audit shall be communicated through Audit Report or Inspection Report, which may be drawn in two parts as below :- (i) Part-I –It includes :- (a) Introduction (b) Incumbency (c) Financial Analysis data (d) Outstanding object ions from previous reports, (in this part, all outstanding objections shall be reproduced in full, every alternate year along with up to date position). This is done to bring the outstanding paras, pointedly to the notice of all concerned for facility of watch and expeditious disposal. The old outstanding objections are to be replied separately through the respective old inspection reports, which should not be treated as closed till all the objections are settled. (e) Schedule of persistent irregularities (f) Disclaimer Statement (ii) Part-II – Contains two sections “A” & “B”. Section ‘A’ shall include all important irregularities, i.e, irregularities involving recoveries, questions of violation of principles, misappropriation and losses, etc. Section ‘B’ shall contains irregularities, though not major, which the Audit wants to bring to the notice of higher authorities. Irregularities in payments and adjustment vouchers may be shown in Form No. 2and Irregularities and Omissions in accounts and Registers may be shown inForm No. 3. For reporting defalcation/misappropriation of Government Grants/Other Funds, report form inForm No. 9 should be enclosed in the Report. 9.19.2MATTERS TO BE INCLUDED IN THE AUDIT REPORT/ INSPECTION REPORT Objections admitted or questions settled during the course of an Audit shall be recorded in the Report only if the irregularity is a serious one, or if a defect of system or error in principle has been brought to light and has not been permanently removed. MIZORAM AUDIT MANUAL CHAPTER-9 Apart from any matters of a general nature which cannot be disposed of by the Audit Officer. The following points should invariably be recorded in a separate para in the Report :- (i) Attempts to evade financial rules by manipulation of accounts and vouchers. (ii) Avoidance of lapse by withdrawing funds from the Treasury or from Bank before the money is actually required for expenditure. (iii) Avoidance of necess ity of higher sanction by splitting up one scheme or expenditure into a number of component details. (iv) Persiste nt neglect to comply with audit requirements. (v) All unsettled objections relating to previous audit shall be specifically brought to notice. A list of such items shall be appended to the Report inForm – 5. (vi) Attempts to avoid audit or deliberate non-compliance of audit requirement. (vii) Attention should be drawn to the matter in the Audit Report or Inspection Report, if the balance of a local fund is too low or is without reason being allowed to accumulate unduly. If there is any reason why an accounting authority should keep a large balance, the fact should be stated in the Audit Report or Inspection Report. Large variation in the receipts and expenditure of the year as compared with the figures of the previous year should also be briefly explained in the report. 9.19.3FINANCIAL ANALYSIS DATA Financial Analysis Report of the local authority/c lient organizations must be submitted in the form of comparative chart containing the following data. (i) Head-wise and Sub-head-wise expenditure of the organization/body/authority for the past three years. (ii) Head-wise and Sub-head wise income of the organization/body/authority for the past three years. (iii) Detail of Fixed Assets of the organization/body/authority for the past three years with break-up of individual item of Fixed Asset. (iv) Detail of Current Assets of the organization/body/authority for the past three years with break-up of individual item of Current Asset. MIZORAM AUDIT MANUAL CHAPTER-9 (v ) Detail of Long-term Liabilities of the organization/body/authority for the past three years with break-up of individual item of Long-term Liability. (vi) Detail of Short-term Liabilities of the organization/body/authority for the past three years with break-up of individual item of Short-term Liability. (vii) Detail and amount of Corpus/General Fund/Accumulated Fund of the organization/body/authority for the past three years. Financial position of the organization/body/authority as on date of audit as per Cash Book, Bank Pass Book/Bank Statement etc., along with interest allowed/credited may be indicated separately at the end of the Financial Analysis Data. In case o f major variation in any of items or sub items mentioned in the foregoing paragraph (i) to (vii) above, in a particular year as compared to previous or other years, reasons for the same may be clearly be depicted in respect of each para pertaining to expenditure on establishment and other matters in the financial analysis report of the organization/body/authority. This analysis should be incorporated in Part-I of the Audit Report or Inspection Report. The Audit Officer, apart from brief note on financial position, shall make a statement showing :- (a) cash recoveries on audit objections (b) money capable of being saved by the detection of embezzlements in audit ; and (c) possible reduction in expenditure due to audit suggestions. At the end of his note, he shall give a very brief resume of the matters dealt with therein, and an opinion on the state of the accounts as a whole. 9.19.4OTHER IMPORTANT INSTRUCTIONS IN WRITING AUDIT REPORT/ INSPECTION REPORT The instructions contained in the following paragraphs should be kept in view while drafting the Audit Report or Inspection Report:- (i) Audit Report or Inspection Report should be written in a clear and concise manner. It does not judge the value of Audit Report or Inspection Report. Every point must be clearly expressed so that there can be no doubt as to the meaning of the point at ‘iss ue’. It should be clea rly and neatly wr itten. Abbreviations should on no account be used and dates should be given in full. Auditor should take particular care to use courteous language and charge of explicit or implicit MIZORAM AUDIT MANUAL CHAPTER-9 dishonesty or misrepresentation, which is usually so hard to substantiate, and which the officers of Funds audited resent should be avoided. A tactful drafting and use of phrases as ‘it appears’, ‘it seems’, ‘possibly’, ‘it may be likely that’ often dilutes the unpleasantness in such cases and at any rate leaves the way open for reasonable answer. (ii) Serious notice will be taken if any important defects or irregularities omitted are subsequently discovered. (iii) Audit is concerned with facts only. Irregularities should be commented upon without specifying the names of the individuals responsible for the same. Only in cases of very serious dereliction of duty or embezzlement, should the designation of the officer(s) be mentioned. Such cases, however, not be very frequent. The Auditors should state facts with utmost accuracy. There is room for difference of opinion but the fact must be unassailable. (iv) Care should be taken to see that every paragraph comprises of three distinct parts: first, a statement of facts, next the rules or orders infringed and the nature of irregularity and then the action required for removing it. (v) Auditors should be prepared to defend fully against a potential challenge of any and all audit findings, conclusions, and observations they recorded in the audit reports. Auditors should ensure that the evidence supporting an audit report is appropriate in quality and quantity and are supported with document, rules and regulations, which are infringed by the body/authority to make a convincing case for the conclusions reached. (vi) Where higher sanction is called for the rule under which the authority sanctioning in the instance is not competent must be distinctly stated and the authority whose sanction is necessary be specifically named. Terms like“This appears to require higher sanction or the sanction of the competent authority is needed” should not be used. (vii) The Auditors should discuss the objections with the Head of Office concerned. Minor points which can be settled by personal discussions, should be settled without bringing them in the Draft Audit Report or Inspection Report, the reason for doing so being recorded on the requisition concerned. In case, however, an Auditor is of the opinion that explanation rendered is not satisfactory, the administrative view point with its rejoinder should be incorporated in the Audit Report or Inspection Report in a faithful manner. MIZORAM AUDIT MANUAL CHAPTER-9 (viii) Auditors should draw attention in Audit Reports or Inspection Reports to cases where the balance of any Local Fund is too low or is without any reason being allowed to accumulate unduly. Auditors should also review any substantial variations in the receipts and expenditure of the year as compare with the figures for the previous year and as far as possible give the main causes which have contributed to such variation. (ix) Auditors should comment in the Audit Report or Inspection Report on the excesses over Budget a llotments and should call for the sanction of the competent a uthority to any excess instead of merely bringing excesses to the notice without asking for any sanction. (x) Audit Officer should attach a copy of the ‘Audit Fee’ requisition issued by them to the Administrative head of the Fund concerned. (xi) Audit Officer should not merely attached the various Appendices, e.g., Appendices relating to grants, taxes, arrears etc., as handed over to them by the Officer of the client organization, but should also verify the accuracy of the statements before incorporating them in the Audit Report or Inspection Report. (xii) Auditors while raising objections or commenting upon the action taken by the client organization, should not trench upon administrative matters not falling within the scope of audit. Their business is to deal with facts as disclosed in audit and to suggest remedies connected with the audit and accounts matters according to Rules and Orders and not to meddle with administrative affairs. (xiii) The Audit should present only those findings that are soundly based on facts and they can stand up to rigorous scrutiny. All Audit Reports or Inspection Reports must meet the highest attainable standards for content a nd prese ntation. They should be written in accordance with audit policies, in clear, precise and plain language and have gone through an editing/vetting process. (xiv) The Auditors must keep in mind that the objection raised in the Audit Report or Inspection Report should be fully based/supported with relevant rules, orders and instructions, unless an objection is raised from an angle where accepted Cannons of Financial Propriety have been infringed. MIZORAM AUDIT MANUAL CHAPTER-9 9.20 TIME FOR WRITING AND SUBMISSION OF AUDIT REPORTS or INSPECTION REPORTS (i) The Audit Officer shall sub mit his Report in complete state to the Director, Local Fund Audit as per time schedule specified below :- T A B L E - 5 TIME SCHEDULE FOR WRITING AUDIT REPORT Sl.No Name of AccountsTime allowed for submission1231Minor AccountsTwenty days from the date of completion of Audit2Major Acco untsForty Five days from the date of completion of Audit(ii) Time Schedule for submission of Audit Reports or Inspection Report as specified in this para shall be strictly adhered to. Any lapse on the part of the Aud it Officer in submission of the Audit Report or Inspection Report in time will be treated as dereliction of duty. In case of belated submission of Audit Reports or Inspection Reports, the Director, Local Fund Audit can convey the displeasure whenever the explanation to late submission is found unsatisfactory or where the approval for doing so has not been obtained and further action for issue of warning or other suitable action may be taken against the defaulting Officer/Official according to the circumstances of the case. (iii) As per Finance Department, Government of Mizoram Notification No.G.11023/4/2008-FCC Dt 1st June, 2011 (Copy appended in Annexure-IV), the Director, Local Fund Audit is required to submit copies of issued Audit Reports in respect of 5% of Local Bodies to the Accountant General (Audit), Mizoram for advice on system improvements and the Accountant General would make suggestions for improvement of existing manuals etc, followed by the State Audit Department. 9.21 PREPARATION AND SUBMISSION OF ANNUAL AUDIT REPORT OF THE DIRECTOR LOCAL FUND AUDIT (i) A Report on the working of the Local Audit Department in audit works during the pre vious financial year shall be sub mitted to the Finance Department of Government of Mizoram on or before the 30th September each year with a copy to the Accountant General (Audit), Mizoram. MIZORAM AUDIT MANUAL CHAPTER-9 (ii) ANNUAL AUDIT REPORT : Specimen Form for preparation of Draft Annual Audit Report is appended inForm No. 24 of this Manual. All the outstanding audit objections and the replies of which are considered and need for further probe shall be included in the Audit Report. The Annual Audit Report shall be prepared by the Director of Local Funds Audit to be published annually. The Report shall contain all those outstanding objections which could not be settled during the previous year Audit’s Inspection Report. It shall then be submitted by the Director of Local Funds Audit to the Finance Depa rtment/V igilance Department of the State Go vernment for further discussion and recommendations with the concerned departments/local authority within six months from the date of beginning of next financial year. In case any discrepancy is noticed in the facts and figures mentioned in the Annual Audit Reports, the same should be reported to the Director of Local Funds Audit/Audit Officer immediately and should not be held up for discussion in the Finance Department/Vigilance Department meeting. It shall be ensured by the departmental authority/local authority prior to appearing before the meeting that the discrepancy pointed out to Audit have been duly taken notice of by the Audit, so that a complete picture is available in the meeting as regards the facts. (iii) LAYING OF ANNUAL AUDIT REPORT BEFORE THE STATE LEGISLATURE As per recommendation of 13th Finance Commission in its repo rt at paragraph 10:121 and 10:161 and as provided in Rule 21 of Mizoram Local Fund (Accounts and Audit) Rule 2012, the Annual Report of the Director, Local Fund Audit shall be laid before the State Legislative Assembly. In order to comply with this sub-para, Annual Audit Report of the Director of Local Fund Audit, shall be submitted to the Finance Department by the Director, Local Fund Audit as per provision of sub-para –(i) of this para. 9.22 AUDIT CONDUCTED BY THE DIRECTOR, LOCAL FUND AUDIT When the Director, Local Fund Audit himself undertakes an audit of the accounts of Local Body/Authority, he may cause a preliminary scrutiny of the accounts to be made by an Audit Officer. MIZORAM AUDIT MANUAL CHAPTER-9 9.23 LIABILITY FOR ILLEGAL PAYMENT When a Surcharge Certificate (Appendix –XXVII of the Mizoram Local Fund (Accounts & Audit) Rules,2012 ) is issued on the members of a Local Body/Authority who have voted for a particular resolution authorizing an illegal payment, all such members shall be made jointly or severally liable for the whole of the amount suggested. Procedures for serving charge proceedings, Charge Notice and Charge Certificate shall be as per provision of Rule 20 and 22 of Mizoram Local Fund (Accounts and Audit) Rules, 2012. 9.24 CONFIDENTIALITY OF AUDIT INFORMATION Auditors are require by this Ma nual to respect the confidentiality of information acquired from the client organization. Auditors shall not disclose any official information or use it for personal reasons without authorization. Information collected in the course of an audit may only be used for the purpose for which it was collected and may not be disclosed other than for audit purposes. The Audit has certain practices and procedures for reporting audit findings. Disclosures of such official information by Auditors shall be only with the authorization of Finance Department, Government of Mizoram. In addition. Auditors must ensure the security and confidentiality of all files, whether in the offices of Audit Department or on the premises of the client organization. Auditee has an interest and a right to know audit findings and conclusions. Out of fairness to those entities and to ensure proper verifica tion o f conclusions. Out of fairness to those entities and to ensure proper verification of conclusions, it is necessary that all audit findings and conclusions be kept confidential until they have been completely substantiated, processed through an authorized clearance procedure with the audit entity., and approved for release by the authorities. Improper or pre-mature external disclosure of audit findings can harm the audited entity and cause embarrassment to the Department. The principle of confidentiality also dictates that all those working in the Audit Department must be cautious in discussing, with friends, relatives, and colleagues outside the Audit Department. 9.25 CHANGE OF AUDIT OFFICER DURING AN AUDIT If an Officer is relieved by another Audit Officer during the currency of an audit, the former shall deliver to the later an exact statement of the audit complete d up-to-date. This statement shall be filed in the Office of the Director, Local Fund Audit. The Audit Officer re lieved shall also draft the paragraphs for the Audit Report MIZORAM AUDIT MANUAL CHAPTER-9 regarding the audit done by him before he makes over charge, and deliver them to the relieving Audit Officer taking the acknowledgement thereof, both the respective portion. 9.26 EMBEZZLEMENT DETECTED BY THE LOCAL AUTHORITY Whenever any loss of money or other property due to embezzlement, theft or to facts indicating misconduct, neglect or dishonesty on the part of any Officer or staff is discovered, the fact shall promptly be reported by the Accounting Authority/Local Authority to the Director, Local Fund Audit and the Deputy Commissioner concerned. When the matter has been fully investigated, the Accounting Authority shall submit a further and complete report showing the total sum of money or property lost., the matter in which was lost, and the steps taken to recover the amount and punishment afflicted, if any. The fact that such a report has been made to the Director, Local Fund Audit or the Deputy Commissioner shall not prevent the institution of proceedings by a Local Authority should such a course be considered advisable. 9.27 QUANTUM OF AUDIT The accounts of Local Bodies/Authorities, subject to the Mizoram Local Fund (Accounts and Audit) Act, 2006, shall be audited not less than once in twelve months unless the Director, Local Fund Audit directs otherwise. 9.28 RE-EXAMINATION OF RECORDS (i) If the Director, Local Fund Audit is of the opinion that the Audit Report or Inspection Report submitted by the Audit Officer does not reflect full or correct picture or if he has reason to believe that some records for the relating period were not examined or examined but detected misappropriation or any other financial irregularity could not be detected, the Director, Local Fund Audit may issue order for re-checking of such document or documents before issue of final Audit Report/Inspection Report. (ii) In such event as mentioned in the above para, the Accounting Authority s hall be bound to produce all records or such records as will be demanded by the Audit Officer. (iii) The Audit Officer engaged for examination of such portion of the records will re-examined the same and submit his report to the Director, Local Fund Audit who will take into consideration of this additional report in addition to the previous report already submitted for finalization of the Audit Report. MIZORAM AUDIT MANUAL CHAPTER-9 9.29 RE-AUDIT OF ACCOUNTS (i) If the Director, Local Fund Audit is of the opinion that the Audit Report submitted by the Audit Officer does not reflect full or correct picture or if he has reason to believe that some records for the relating period were not examined or examined but defalcation, misappropriation or any other financial irregularities could not be detected, the Director, Local Fund Audit may issue order to re-audit the entire accounts of the period even if the final Audit Report is issued. (ii) In such event as mentioned in sub-para (i) of this para, the Accounting Authority shall be bound to prod uce all records or such records as will be demanded by the Audit Officer. (iii) The Audit Officer so engaged for the re-audit of such portion or whole of the accounts will re-audit the same and sub mit hi report to the Director, Local Fund Audit who will deal with the matter accordingly. (iv) The Director, Local Fund Audit will issue the Audit Report :- (a) after cancelling the previous Audit Report or Inspection Report already issued if the present Audit Report or Inspection Report is on the basis of complete re-audit of the accounts; or (b) in addition to the previous Audit Report or Inspection Report and or in submission of such paragraphs of the Audit Report or Inspection Report already submitted, if the present Audit Report or Inspection Report is on the basis of partial re-audit of the accounts. 9.30 AUDIT OF BROKEN PERIOD Generally audit shall be conducted for one full account year. Audit for fraction of the year is not permissible unless otherwise provided. When a defalcation is detected and reported to the Director, Local Fund Audit as per provision of para 9.13, the Director, Local Fund Audit may order up-to-date detailed examination of all or any particular accounts, if in his opinion such examination is necessary. MIZORAM AUDIT MANUAL CHAPTER-9 9.31 SPECIAL AUDIT In case and if there is any such special requests for audit of such accounts, special order from the Government (in the Finance Department) shall be required to audit such accounts. The Accounting Authority or his higher authority shall move Government in the Finance Department for according sanction to such Special Audit. 9.32 EXEMPTION FROM AUDIT (i) No accounts of a particular financial year or years or part thereof be left unaudited. (ii) In extra –ordinary special cases where the accounting authority fails to produce the accounts of a particular year or years or part thereof, for any reason whatsoever, the Audit Officer shall not audit the accounts of subsequent period unless the Secretary of the Administrative Department concerned exempts from audit the accounts of such period with concurrence of the Finance Department. (iii) In such circumstances the Audit Officer shall immediate ly report the matter to the Director, Local Fund Audit who in turn shall examine the case and report the matter to the Secretary of the concerned Administrative Department and the Finance Department for necessary action. 9.33 SEIZURE (i) In course of audit when a fraud or embezzlement is detected or the Audit Officer or other officers authorized to conduct audit has sufficient reason to suspect fraud or embezzlement in the accounts, he may seize such records as he thinks necessary. (ii) Subject to provision of sub para (i) of this para, the Audit Officer also shall seize such records as will be directed by the Director, Local Fund Audit. 9.34 PROCEDURE OF SEIZURE While seizing any record required formalities shall be observed and seized records shall be kept in safe custody (Reference Para 11.1.4). The Director, Local Fund Audit shall maintained “Register of Seized Records” inForm No. 6 appended to this Manual. MIZORAM AUDIT MANUAL CHAPTER-9 9.35 TRANSPORTATION OF SEIZED RECORDS (i) The Officer who has seized the records is authorized to incur the required expenditure for transportation of seized records from the place of seizure up to the place of keeping the same in safe custody. The expenditure so incurred will be reimbursed by the Director, Local Fund Audit. (ii) If the Officer who has seized the records is of the opinion that the seized materials are likely to be damaged or destroyed or snatched away or if he thinks that there is risk in carrying such records without escort, he may take help from the Civil Authority and Police. 9.36 INTIMATION OF SEIZURE TO DIRECTOR, LOCAL FUND AUDIT The Audit Officer authorized to seize any record shall inform the Director, Local Fund Audit regarding the seizure made by him on the very day of seizure by way of Fax/Telephone and any other means of communication when the place of seizure is away fro m Headquarter, such intimation may be sent through se nt through special messenger on the day of seizure. 9.37 RELEASED OF SEIZED RECORDS (i) The records seized under the provision of para 9.33 of this Manual, can be released only under the specific written order of the Director, Local Fund Audit. (ii) If there is a court case or likelihood of filing a suit, the seized records may be released only after the final disposal (including appeal) of the case. (iii) If in any case there is specific recommendation to release the seized records from the concerned Head of the Department, the Director, Local Fund Audit may after due consideration of the merit of the case pass such orders as he thinks necessary in the interest of public services. (iv) Seized records may be released either in full or in part as will be determined by the Director, Local Fund Audit. (v) The Accounting Authority claiming for release of the seized records should come through the concerned Heads of Departments. MIZORAM AUDIT MANUAL CHAPTER-9 9.38 TEMPORARY RELEASE OF SEIZED RECORDS (i) The Director, Local Fund Audit, if he is satisfied, may issue order to release the seized records temporarily for special period for the purpose of :- (a) audit (b) inspection by Police Authority or any other Investigating Agency (authorized) of the State G overnment or Central Government when it is so required. (c) examination of records by the concerned Accounting Authority or Controlling Authority. (ii) For the purpose of temporary release of the seized records formal request for such release should come through :- (a) in the case specified in sub para (i)(b) of this para – Superintendent of Police. (b) in the case specified in sub para (i)(c) of this concerned – Heads of Department. (iii) In case of temporary release of seized records, the authority mentioned in (b) and (c) of sub-para (i) of this para may examine the required records in presence of the Officer authorized by the Director, Local fund Audit. Such Authority shall not remove, deface, tamper, or destroy records in any manner whatsoever and shall keep the records as it was. (iv) The records so temporarily released under provision of sub-para (i) of this para should be properly released and kept in safe custody as specified in para 9.34. Note :- Temporary release means release of seized documents temporarily from the custody of Treasury Officer or such other Officer at whose custody the seized records were kept only for the purposes mentioned in (a), (b) and (c) of sub-para (i) of para 9.38. 9.39 EMBEZZLEMENT REGISTER (Reference Para 9.13) (i) The Embezzlement Register should contain particulars of each report of embezzlement and should frequently be referred to in order to ascertain whether the final reports have been submitted as required by the rules. (ii) The Embezzlement Register shall be maintained in the Director, Local Fund Audit Office. The relevant data can be collected from the passed Audit Reports MIZORAM AUDIT MANUAL CHAPTER-9 of both Major and Minor Accounts. The Director, Local Fund Audit Office shall record all embezzlements of all accounts of the entire state pertaining to irrespective of Major Accounts or Minor Accounts. (iii) During the course of audit if any embezzlement is reported by the Office conducting audit, the same shall also be recorded in the Embezzlement Register both in the Head Office as well as in the Embezzlement Register after the Audit Report or Inspection Report is passed and issued. Similar procedure shall be adopted in case of embezzlement reported by the accounting authority. (iv) Embezzlement Register shall be maintained in Form-7. 9.40 AUDIT FEE (i) Whenever any audit of the accounts of Private Institution/Local Authority/ Board/Society or Government Undertakings is required to be done at the request of the Executive Head of such Institution/Local Authority/ Board/Society/Government Undertakings - the following Audit Fees, as shown in Table - 6, shall be charged by the Director, Local Fund Audit unless and until the Finance Department, Government fixed Audit Fees for this purpose :- T A B L E - 6 RATES OF AUDIT FEE Sl.No Audit PartyDaily rate of Audit Fee123(a) Outstation i.e outside Aizawl1One Audit Officer, One Audito r, two Assistant Auditors and Driver/PeonRs 3000.002One Audit Officer, one Assistant Auditors and Driver/PeonRs 1500.00(b) Within the Station i.e., Aizawl 0.3 per cent of the audited amount or part thereof subject to a maximum of 1 Rs. 2,00,000.00 per Audit.(ii) The Audit Fees should be realized in advance according to Audit Programme and shall be credited to revenue of the State Government under the head – 0070 – Other Administrative Service, 800 – Other Receipt. The Director, Local Fund Audit is empowered to order such audit. In special case Government may consider to waive a part or full amount of audit fee. MIZORAM AUDIT MANUAL CHAPTER-9 (iii) A de mand Note for Audit Fees as mentioned in sub-para (i) and (ii) shall be sent by the Director, Local Fund Audit to the Accounting a uthority inForm No. 14 and detail calculation of Audit Fees inForm No. 15, for realization of Audit Fees in advance. (iv) The Director, Local Fund Audit shall maintain a Register of Audit Fee realized as perForm No. 1 9. 9.41 PROGRESS REGISTER (Reference Para 11.1.5) The Directo r, Local Fund Audit Office shall maintain a Progress Register in Form No. 10and shall be maintained by the Se ction Officer of an audit unit/branch. Progress Register shall be reviewed to ascertain the progress of audit at the end of each month. 9.42 INCLUSION OF NEW ACCOUNTS IN THE PROGRESS REGISTER No new account shall be included in the Progress Register except under the order of the Director, Local Fund Audit. As soon as the Director, Local fund Audit received and order from the competent authority sanctioning budget/grants–in-aid to a Department/ an Institution which has not been included in the Progress Register, the Director, Local Fund Audit after considering all aspects may pass order to allow inclusion of the name of such institution in the Progress Register. 9.43 DELETION OF ACCOUNTS FROM THE PROGRESS REGISTER No accounts shall be deleted from the Progress Register without the specific order of the Director, Local Fund Audit. Where the Director, Local Fund Audit is of the opinion, which is to be recorded in writing, that no useful purpose will be served in maintaining the particular account in the Progress Register, he may after considering all aspects order for deletion of such account from the Progress Register. 9.44 ANNUAL REVIEW OF PROGRESS REGISTER (i) The Director, Local Fund Audit shall review the respective Progress Register in the 1st week of April each year and take necessary action as to make the Progress Register up-to-date. MIZORAM AUDIT MANUAL CHAPTER-9 (ii) Review of Progress Register shall clearly indicate the position of progress of audit and arrears position. (iii) The Director, Local Fund Audit shall see that each account is audited once in every year. 9.45 MONTHLY REPORT ON PROGRESS OF WORK (i) The Assistant Director, Local Fund Audit shall submit a report every month to the Director, Local Fund Audit showing the progress of work done during the previous month. (ii) The Director, Local Fund Audit shall examine the monthly report on progress of work done and shall take such steps as he deems necessary to ensure satisfactory progress of audit work. (iii) During Monthly review of progress of work, various statements mentioned in Para 9.19(i) of this Manual should be enclosed along with the Monthly Progress Report. 9.46 TENTATIVE PROGRAMME The Deputy Director of Local Fund Audit /Assistant Director of Local Fund Audit shall submit a statement showing the tentative programme of the audit to be undertaken in the next month as per Form-13. 9.47 CLASSIFICATION OF ACCOUNTS (i) The Accounts which are required to be audited by the Director, Local Fund Audit are classified as follows :- (a) Major Accounts; and (b) Minor Acco unts (ii) If a new account or a class of new accounts is required to be incorporated in the Progress Register the same shall first be classified by the Director, Local Fund Audit as either Major Accounts or Minor Accounts according to importance and volume of transactions. MIZORAM AUDIT MANUAL CHAPTER-9 9.48 PUBLICATION OF AUDIT REPORT (i) The Director, Local Fund audit shall examine the draft Audit Reports or Inspection Reports and Audit Certificates of all the major accounts and the draft Report of Special Audit and after being satisfied will and publish the Audit Reports or Inspection Reports and Audit Certificates under his signature or under the signature of any officer (not below the rank of Assistant Director, Local Fund Audit) working under him. Note :-The Director, Local Fund Audit may authorize any Gazetted Officer (not below the rank of Assistant Director, Local Fund Audit) working under him to examine the draft Audit Reports or Inspection Reports and Audit Certificates on his behalf. (ii) The Audit Reports or Inspection Reports and the Audit Certificates as mentioned in sub para (i) of this para shall be issued and published within 30 (thirty) days from the date of receipt of such Audit Reports or Inspection Reports and Audit Certificates from the Audit Officer. (iii) The Director, Local Fund Audit shall see that the instructions or suggestions issued to the Audit Officer are properly reflected in the Audit Reports or Inspection Reports. 9.49 CONDONATION OF IRREGULAR PAYMENT (i) The Director, Local Fund Audit may condone irregularity in a particular payment made from a Local Fund which appears to him to be contrary to law or rules provided that : (a) in his opinion, there was no negligence or mis-conduct on the part of the person making or authorizing such payment ; (b) such payment was bona-fide and a similar irregularity in payment from the same local fund had not been condoned earlier and ; (c) such payment does not exceed rupees two thousand. (ii) The Director, Local Fund Audit shall submit to the Government a report of all such condonations with the reasons for each condonation. MIZORAM AUDIT MANUAL CHAPTER-9 9.50 RECORDS OF EVIDENCE The Director, Local Fund Audit may record evidence taken under Section 5(2) or Section 5(3) of the Act as the case may be. 9.51 DIET AND ROAD MONEY TO WITNESSES The Director, Local Fund Audit may pay diet and road money to witness out of his contingency on the scale laid down to Audit Party. 9.52 SETTLEMENT OF AUDIT OBJECTIONS Replies to audit objections for settlement shall be sent in duplicate within three months by the Accounting Authority to the Director, Local Fund Audit irrespective of Major and Minor Accounts. If the replies to the audit objections are considered satisfactory by the Director of Local Funds Audit, the objections included in the audit report/inspection reports shall, after careful examination, be dropped by the Director of Local Funds Audit himself. If these are not considered satisfactory and need further probe, it shall be included in the Annual Audit Report as explained in Rule 8 of Mizoram Local Fund (Accounts & Audit) Rules, 2013. 9.53 REMOVAL OF OBJECTIONS (i) Once the transaction has been challenged by the Audit, the responsibility for having the objection removed and their prompt settlement, will primarily devolve upon the department/ local authority concerned. An audit objection is usually removed by obtaining the requisite sanction, by making the necessary recovery, by correcting or completing the relevant account or voucher, or by furnishing the necessary documents or information, or by otherwise securing compliance with the provisions of a specified Rules/Regulations. (ii) Audit Inspection Reports/Audit Reports should be promptly dealt with by the concerned Department Officer/Local authority at the initial stage so that the contingency of reporting of any point or para to the State Government (Finance Department/ Vigilance Department) does not arise due to negligence or delay in reply. First reply should invariably be sent to the Director of Local Funds Audit within one months of the date of the receipt of printed reports. MIZORAM AUDIT MANUAL CHAPTER-9 9.54 REMINDERS If reply to an audit report is not received within the prescribed period, a reminder should be issued to the client organization. If this action does not bring the required reply, a second reminder should be sent. If even the second reminder fails to produce the desired result, the Director, Local Fund Audit should sent a demi-official letter to the Head of the Office/Accounting Authority of the fund as the case may be. In important cases reminders to the Government should be issued in the form of special letter, U.O or Demi- Official letter and should be signed by the Director, Local Fund Audit. 9.55 AUDIT CELL OR AUDIT BRANCH (i) In order to settle the objections raised in course of audit, there shall be an Audit Cell/Audit Branch in the Office of the Chief Controller of Accounts, Accounts & Treasuries. 9.56 REVIEW COMMITTEE There shall be aReview Committee to review the settlement of audit objections in case of long pending outstanding audit objections with the following members as shown in Table – 7 below :- T A B L E - 7 REVIEW COMMITTEE ON LONG OUTSTANDING AUDIT OBJECTIONS Sl.NoMembers1231 Director, Local Fund AuditChairman2 Head of Department concernedMember3Head of the Local Authority, if any, in case of sanctioned Grants-in-AidsMember4Representative of Finance Department, Government of MizoramMember5 Deputy Director, Local Fund AuditMember6 Assistant Director, Local Fund AuditMember & Secretary MIZORAM AUDIT MANUAL CHAPTER-9 The Review Committee shall sit once in a year. The Director, Local Fund Audit shall thereafter submit an Annual Report to the Finance Depart ment by 30th September incorporating major outstanding audit objections relating to local bodies which are pending for settlement for further action by the Finance Department. CHAPTER – 10 GUIDANCE NOTES ON PROCESS OF AUDIT 10.1 INTRODUCTION In this Chapter, instructions as to the audit procedure to be followed are given for the guidance of the Audit Officers. It must be clearly understood that these instructions o nly represent the minimum that is necessary for an effective audit. The true value of an audit w ill be found, over and above this, in the personal zeal and interest of the Audit Officer in his work and in the application of his own personality and experience to the constantly changing facts presented before him. It should be borne in mind that as the Audit Officer has access to the basic facts and to the men who deal w ith them, he is far better posit ion to get at realities. It is b y his s kill and success in doing so, and by exposing fraud and mismanage ment, if any, ra ther than by his mere compliance with rules and orders that he will be judge. 10.2 SPECIAL PROVISIONS FOR CERTAIN ACCOUNTS Subsequent para of this Chapter deal in detail with the process of audit relating to various subject matters common to all Local Funds whether profit earnin g organization or non-profit earning organization. Process of audit for certain accounts with certain peculiarities are dealt in the next Chapter. 10.3 ANNUAL AUDIT REPORT AND INSPECTION REPORTS The audit Officer shall go through the Annual Audit Report of the Director, Local Fund Audit for the year covering the period of audit and also go through all Audit Reports or Inspection Reports recorded by the Director, Local Fund Audit or other Officers covering the period of audit. Valuable hints may sometimes be obtained from these sources as to points which require special attention in audit. 10.4 PREVIOUS AUDIT REPORTS The Audit Officer shall take up the previous Audit Report, the explanation furnished by the Local Authority and the Director, Local Fund Audit’s orders thereon and see that necessary action has been taken on the objections noted therein. He shall examine also the Schedule inForm No. 2and Form No. 3 containing technical irregularities, defects and omissions in accounts and registers and shall see if the MIZORAM AUDI T MANUALCHAPTER-10 defects have been remedied. He shall dispose of as many objections as possible and the matter of such settlement be specifically mentioned in a separate para in Part-I of his Audit Report or Inspection Report drawing particular attention to points raised in more than one previous report, and audit will generally begin with this check. 10.5 GUIDANCE NOTE ON AUDIT OF RECEIPTS The audit of receipts will ordinarily start with the Cash Book and in checking the receipts, the entries will be traced from the various registers, Receipt Books etc., each description of receipt being completely checked for the entire period covered by Audit before check of the receipt of any other description is taken up. A complete list of all kinds of demands duly certified by the executive of the Local Authority should be obtained before the audit of receipts is commenced; in case of non-compliance with the above requisition, the fact should be reported to the Director, Local Fund Audit and noted in the Audit Report or Inspection Report as well. 10.5.1CHECKING OF RECEIPTS In dealing with receipts the following points should be observed :- (a) that the totals in the several registers and receipts are correct; (b) that credits are traced in the Cash Book for all amounts shown as realized in the Subsidiary Registers, Receipt Books etc.; (c) that the demands are punctually and fully realized; (d) that the levy of rents, fees, tax etc is duly authorized; (e) that remissions are duly supported by proper sanction; (f) that collections are not necessarily retained in the hands of the collecting staff; (g) that the Stock Account of receipt books has been maintained properly. Audit Officer must pay special attention to unusual delays in the remittance of collections to the Treasury or Bank as the case may be. If such delay is casual and relates only to small amounts, it may be merely noted as an irregularity. If, however, MIZORAM AUDI T MANUALCHAPTER-10 the delays are systematic and relate to large amounts, the matter should be specially dealt with in the Audit Report/Inspection Report. 10.5.2CHECKING OF STOCK ACCOUNTS OF RECEIPT BOOKS In checking the Stock Account of Receipt Books, the following points should be observed :- (i) that the opening balance tallies with the last closing balance; (ii) that the number of books shown to have been received from the printing press tallies with the bill of the printing press and the number of Receipt Book so printed, has the specific sanction of the Managing Committee, Governing Body, Council or such other appropriate authority in every individual case. (iii) that all the used and unused books are produced to audit; (iv) that the books are serially numbered and they contain all the pages as certified in the fly-leaf; (v) that one Receipt Book is issued to and used by one person at a time and a fresh Receipt Book is issued on return of the used Receipt Book issued earlier; (vi) that the annual physical verification of the stock of the Receipt Books has been done and a certificate to that effect recorded in the Stock Book under the signature of the proper authority. 10.6GUIDANCE NOTE ON AUDIT OF REVENUE 10.6.1INTRODUCTION : Revenue is the gross inflow of cash, receivables or other consideration arising in the course of ordinary activities of an organization like market fees, fees and funds in educational institutions, rent receipts, yielding interest, royalties and other misc. income etc. The revenue is measured by the charges made to customers for services rendered to them and by the charges and rewards arising from the use of resources by them. The term ‘revenue’ covers only the gross inflow of cash, receivables or other MIZORAM AUDI T MANUALCHAPTER-10 consideration, as aforesaid, received or receivable by the organization on its own account. Amounts collected on behalf of third parties are excluded from revenues. This Guidance Note deals with the audit of the following types of revenue arising in the course of ordinary activities of an organization:- (i) Collection of Various fees/funds under the authority of Govt. (ii) Rendering of services. (iii) Use by others organization’s resources like rent receipts, yielding interest, royalties and other misc. income etc. In carrying out an audit of revenue, the auditor is particularly concerned with obtaining sufficient appropriate audit evidence to corroborate the management’s assertions regarding the following : (a) Occurrence -that recorded revenue arose from transactions, which took place during the relevant period and pertain to the organization. (b) Completeness -that there is no unrecorded revenue. (c) Measurement- that revenue is recorded in the proper amounts and is allocated, to the proper period. (d) Presentation and Discloser- that revenue is disclosed, classified, and described in proper head of accounts in accordance with recognized policies and practices and relevant statutory requirements, if any. The auditor should study and evaluate the system of internal control relating to revenue, to determine the nature, timing and extent of his other audit procedures. He should particularly review the following aspects of internal control relating to the revenue:- (i) The systems and procedures relating to generation of revenue including authority to fix process. (ii) Accounting procedures relating to recognition of revenue. (iii) Existence of periodic reports on actual performance vis-à-vis budgets. MIZORAM AUDI T MANUALCHAPTER-10 10.6.2VERIFICATION Verification of revenue may be carried out by applying the following procedures. (a) Examination of records. (b) Analytical review procedures. The nature, timing and extent of substantive procedures to be performed is, however, a matter of professional judgment of the auditor which is based, inter alia, on the a uditor’s evaluation of effectiveness of the related internal controls. 10.6.3EXAMINATION OF RECORDS The auditor should examine whether the basis of recognition of re venue by the organization is in accordance with the recognized accounting principles. Where the consideration is receivable in installments and includes an element of interest, the auditor should examine that the revenue attributable to the consideration excludes the interest element. In respect of revenue arising from services rendered, the Auditor should examine the related agreements and other documents. Similarly revenue in the form of interest, royalties and rent receipts etc., the Auditor should examine the related documents such as loan agreements, lease agreements and rent agreements etc. They may seek confirmation certificates from the parties concerned. The auditor should also verify realizations subsequent to the date of the audit period to identify items of unrecorded revenue. 10.6.4ANALYTICAL PROCEDURES In addition to the audit procedures discussed above, the following analytical procedures may often be helpful as a means of obtaining audit evidence regarding the various assertions relating to revenue. (i) Comparison of revenue for the current year with the corresponding period of the previous year. (ii) Comparison of interest, royalties and rent receipts etc. for the current year with the corresponding of the previous year. MIZORAM AUDI T MANUALCHAPTER-10 (iii) Comparison of different ratios relating to revenue for the current year with the corresponding of the previous year. It may be clarified that foregoing is only an illustrative list of analytical procedures, which an auditor may apply in carrying out an audit of revenue. The exact nature of analytical procedures to be applied in a specific situation is a matter of professional judgment of the auditor. 10.7GUIDANCE NOTE ON AUDIT OF EXPENDITURE 10.7.1INTRODUCTION Expenditure is a cost relating to the operations of an accounting period and is incurred in the relevant period. e.g. purchases, salaries & wages, telephone, traveling, rent of office building, normal interest, bonus, retirement benefits, establishment and general administrative expenses, depreciation, research & development expenses, repairs and maintenance, contingencies and taxes on income etc. In carrying out an audit of expenditure, the Auditor is particularly concerned with obtaining sufficient appropriate audit evidence to corroborate the management’s assertions regarding the following : (a) Occurrence -that recorded expenditure arose from transactions, which took place during the relevant period and pertain to the organization. (b) Completeness -that there is no unrecorded expenditure. (c) Measurement -that expenditure is recorded in the proper amounts and is, allocated to the proper period. (d) Presentation and Discloser -that expenditure are disclosed, classified, and described under proper head of accounts in accordance with recognized policies and practices and relevant statutory requirements, if any. In view of the divergence in nature of expenditure incurred by different organizations, guidance is provided on procedures to be employed in carrying out an audit of expenditure, which would be applicable in case of most of the organizations. It is recognized, however, that audit procedures different from or additional to may be necessary in a particular case, depending upon its facts and circumstances. MIZORAM AUDI T MANUALCHAPTER-10 The auditor should study and evaluate the system of internal control relating to expenditure, to determine the nature, timing and extent of his other audit procedures. He should particularly review the following aspects of internal control relating to the expenditure. (i) The syste ms and procedures relating to incurring of expenditure including authorization procedures. (ii) Accounting procedures relating to recognition of expenditure. (iii) Existence of periodic reports on actual performance vis-à-vis budgets and internal management reports. 10.7.2VERIFICATION Verification of expenditure may be carried out by applying the following procedures. (a) Examination of records. (b) Analytical review procedures. The nature, timing and extent of substantive procedures to be performed is, however, a matter of professional judgment of the auditor which is based, inter alia, on the a uditor’s evaluation of effectiveness of the related internal controls 10.7.3ANALYTICAL PROCEDURES The Auditor should conduct analytical procedures, which involve analysis of significant investigation of fluctuations and relationship that are inconsistent with other relevant information or which deviate from predicted/ budgeted amount. 10.7.4EXAMINATION OF RECORDS Examination of records and documents is one of the most important techniques of auditing. An auditor has to examine a large number of documents in the course of an audit s ince most transactions are supported only by documentary evidence. The auditor should carry out examination of the relevant records to satisfy himself about their validity, accuracy, and o ther assertions with regard to various expenditure incurred by the organization. The extent of such examination would depend on the auditor’s evaluation of efficacy of internal control. The Auditor should examine whether the basis of recognition of expenditure by the organization is in accordance with the recognized accounting principles. MIZORAM AUDI T MANUALCHAPTER-10 10.7.5CHECKING OF PAYMENT VOUCHERS In dealing with the payment vouchers the following points should be observed :- (i) that the claim is admissible; (ii) that the claim is covered by the requisite sanction, where necessary; (iii) that the sanctioning authority possesses the necessary power to issue sanction; (iv) that there is provision in the Budget Estimate to meet the charge or that re-appropriation have been duly sanctioned; (v) that every payment is supported by a voucher in proper form that the vouchers are consecutively numbered and arithmetically correct, and are supported by proper receipts. It should be seen that the signature of the payee, whenever it is recorded in the bill, agrees with that given in the receipt; (vi) that amounts paid are correctly entered in the relevant registers; (vii) that all bills are passed for payment by the competent authority and that the payment orders are expressed both in words and in figures; (viii) that all paid bills have been stamped “Paid by Cheque No…..dated…., Bank Draft No….Dated….., Cash”; (ix) that the General Financial Rules and other Subsidiary Rules frame thereunder and any other Rules as adopted by Government of Mizoram are followed and observed in all respect in which they apply; (x) Generally, that a particular rules introduced are followed, and that prescribed forms are used; (xi) that the payment is covered by valid letter of credit or ceiling where applicable MIZORAM AUDI T MANUALCHAPTER-10 10.7.6SALARIES AND WAGES The Auditor should exa mine the entries in the pay roll/wa ges sheets with reference to relevant records, e.g. employees record maintained by the organization viz. salary register, establishment check register showing therein details of pay such as basic pay, allowances, annual increment, etc. Special attention may also be paid by the Auditor in respect of new employees joining the institution during the period covered under audit. Similarly, the payroll may also be exa mined with reference t o the time records/ attendance records and leave records maintained by the organization. The deductions made in respect of income-tax, provident fund, welfare schemes, etc. may be examined with reference to the returns submitted to the authorities concerned and the receipts/acknowledgements issued by the authorities. The Auditor should exa mine whether any legal, re gulatory or contractual requirements having a bearing on the rate or amount of wages and salaries have been complied with. In case of casual labourers, besides carrying out the other audit procedures, the auditor should specifically e xamine the sanction of the co mpetent a uthority for employment of such labourers and ascertain whether such employees are retained for the period mentioned in the sanctioned orders only. The Auditor should obtained a list of employees who have retired or otherwise left the services of the organization during period under audit and examine that they have not been included in the payroll. 10.7.7ESTABLISHMENT AND GENERAL ADMINISTRATIVE EXPENSES The Auditor should verify establishment expenditure and general administrative expenditure such as insurance, re nt, rates, conveyance, traveling, telephone, entertainment, printing and stationary, general expenses, etc. with reference to the sanction of the competent authority, the supporting documents, related agreements and the rules and regulations applicable and followed by the organization. Apart from verifying stock entries, where applicable, the auditor may also compare the amounts of these expenses with the corresponding figures for the previous year. MIZORAM AUDI T MANUALCHAPTER-10 10.7.8REPAIR AND MAINTENANCE The Auditor should scrutinize the repairs and maintenance account to ascertain that new fixed assets and substantial improvements to existing assets have not been included in repairs and maintenance. The Auditor should exercise special care particularly in case large amounts are involved in the repair and maintenance of vehicles, premises or other fixed assets. 10.7.9CONTINGENCIES The Auditor should ve rify various items of expenditure incurred on contingencies with reference to supporting documents and related agreement. For example, the cost of material consumed for contingent expenditure may be verified with reference to such documents as purchase invoice/cash memo, goods received notes, records relating to issue of material etc. 10.7.10RETIREMENT BENEFITS The Auditor should examine whether the organization is liable to pay retire ment benefits to its employees suc h as provident fund, superannuation/pension, gratuity, etc., whether in pursuance of require ments of any law and/or in terms of agreement with the employees. If so, the Auditor should examine whether the amount payable has been computed in accordance with relevant rules and regulations, legal and/or contractual requirements. In respect of gratuity/pension, the Auditor should specifically examine whether the provision for accruing gratuity/pension liability has been made by the organization. 10.7.11INTEREST AND FINANCIAL CHARGES The Auditor should verify the amount of interest expenditure for the year with reference to the terms and conditions of relevant agreements. The Auditor may also work out the ratio of interest expenditure for the year to average interest bearing loans and advances outstanding during the year and compare it with the corresponding figures for the previous years and reconcile the same. If the organization has paid any penal interest, it should be examined. MIZORAM AUDI T MANUALCHAPTER-10 10.7.12DEPRECIATION The Auditor should check the rates and calculation of depreciation. The total depreciation arrived at should be compared with that of previous years to identify the reasons for variations. The Auditor should particularly examine whether the depreciation charge having regard to rate of depreciation and method of depreciation followed consistently is adequate keeping in view the generally accepted bases of accounting for depreciation. 10.8GUIDANCE NOTE ON AUDIT OF MISCELLANEOUS/ PRE- LIMINARY EXPENDITURE 10.8.1INTRODUCTION Miscellaneous/Preliminary Expenditure embrace within its fold a variety of items of expenditure which are not charged to income in the year in which they are incurred, but are carried forward to be written-off in subsequent periods. The amount of expenditure to be carried forward should not exceed the expected future revenue/other benefits related to the expenditure. It should however be ascertained that unless some benefit from the expenditure can reasonably be expected to be received in future and unless the amount of such benefit is reasonably determinable, there is no justification for carrying forward the expenditure for being written-off in subsequent period. The Auditor should study and evaluate the system of internal control relating to the various items of miscellaneous/preliminary expenditure to determine the nature, timing and extent of his other audit procedures. He should particularly review the following aspects. (a) The re should be a system of internal control over expenditure incurred on these ite ms. An effective met hod of exerc ising such control is budgeting which, apart from ensuring proper authorization of expenditure incurred, also shows in general how effectively such expenditure is being controlled. This is accomplished through periodical comparisons of actual with budgeted figures. (b) Accountability should be established over each item of such expenditure. This can be achieved, inter alia, by up-to-date maintenance of proper records. MIZORAM AUDI T MANUALCHAPTER-10 10.8.2VERIFICATION While verifying an item of miscellaneous/preliminary expenditure in the year in which the relevant expenditure are incurred, the auditor should satisfy himself regarding the a mount o f such expenditure and its deferral as also re garding the reasonableness of the period of amortization of the expenditure. Till the amount is fully amortized, the auditor should examine every year that a proper amount is amortized during the year by way of charge to income for the year. The auditor also examines every year that the criteria, which previously justified the deferral of the expenditure, continue to be met. If those criteria no longer apply, the auditor should examine whether the unamortized balance has been charged as expense immediately. 10.9GUIDANCE NOTE ON AUDIT OF FIXED ASSESTS 10.9.1INTRODUCTIO N Fixed assets are assets held for the purpose of providing or producing goods or services and are not meant for sale in the normal course of operation. Therefore, an asset can be classified as a fixed asset or otherwise, depending upon the use to which it is put or intended to be put. For example, assets, which are classified as fixed in one type of operation, may be considered as current assets in another. Fixed assets normally constitute a significant portion of the total asset of an enterprise. Audit of fixed assets, therefore, assumes considerable importance. The following features of fixed assets have an impact on the related audit procedures : (i) By their very nature, fixed assets are turned over much slower than current assets. Normally, fixed assets are carried over from year to year. (ii) The average unit of fixed assets is normally of a relatively larger rupee value. (iii) Since fixed assets are high value items, their acquisition is more effectively controlled. An auditor should review the system of internal controls relating to fixed assets, particularly the following : MIZORAM AUDI T MANUALCHAPTER-10 (i) Control over expenditure incurred on fixed assets – an effective method of exercising this control is capital budgeting, which, apart from ensuring proper authorization of the expenditure incurred, also shows, how effectively such expenditure is being controlled through periodical comparisons of actual with budgeted figures. (ii) Accountability and utilization Controls – accountability over each fixed asset or each class of fixed assets is established, among other things, by maintaining appropriate records. This facilitates control aspects of custodianship of such assets. (iii) Information Control – these controls ensure that reliable information is available for calculating and allocating depreciation, establishing the amount of insurance co verage, filing insurance claims co ntrolling repa irs and maintenance charges etc. 10.9.2VERIFICATION OF RECORDS Verification of fixed assets consists of examination of related records. The auditor should normally verify the records with reference to the documentary evidence and by evaluation of internal controls. Physical verification of fixed assets is primarily the responsibility of the management. (i) The opening balances of the existing fixed assets should be verified from records such as schedule of fixed assets, ledger or register balances. (ii) Acquisition of new fixed assets and improvements in the existing ones should be verified with reference to supporting documents such as orders. Invoices, receiving reports, and title deeds. (iii) The Auditor should scrutinize expense accounts e.g. repairs and renewals to ascertain that new capital assets and improvements have not been included therein. (iv) Where fixed assets have been written-off or fully depreciated in the year of acquisition/construction, the auditor should e xamine whether these were recorded in the fixed assets register before being written-off or depreciated. MIZORAM AUDI T MANUALCHAPTER-10 In respect of fixed assets destroyed, scrapped or sold, the auditor should examine (a) whether the assets and depreciated accounts have been properly adjusted (b) whether the sale proceeds, if any, have been fully accounted for, and (c) whether the resulting gains or losses, if material, have been properly adjusted and disclosed. 10.10GUIDANCE NOTE ON AUDIT OF INVESTMENTS 10.10.1INTRODUCTION Investments are assets held by an entity for earning income by way of interest, rentals, for capital appreciation or for other benefits. Investments are classified as ‘current investments’ and ‘long term investments’.A current investment is an investment that is by its nature readily realizable and is intended to be held for not more than one year from the date on which such investment is made. A long-term investment is an investment other than current investment. The Auditor should study and evaluate the system of internal control relating to investments, to determine the nature, timing and extent of his other audit procedures. He should particularly review the following aspects of internal control relating to investments. (a) Control over acquisition, accretion and disposal of investment There should be proper authority for sanction, acquisition and disposal of investments. It should also be ensured that investments are made in accordance with the legal requirements governing the entity as also with its internal regulations, trust deed, etc. (b) Safeguard of investments The investments should be in the name o f the entity. The legal req uirements in this behalf, if any, should be complied with. There should exist a proper system for the safe custody of all scripts or other documents of title to the investments belonging to the entity. (c) Controls relating to the title to investments It should be ensured that in cases where the title does not pass on to the entity immediately on acquisition, the same is transferred to the entity in due course of time, along with the benefits that might have accrued since the acquisition of the investments. It should be ensured that t here is no undue time lag in the e xecution of various stages of the tra nsactions. MIZORAM AUDI T MANUALCHAPTER-10 10.10.2VERIFICATION The auditor’s primary objective in audit of investments is to satisfy himself as to their existence and valuation. Verification of investments may be carried out by applying the following procedure : (a) Verification of Transactions The Auditor should ascertain whether the investments made by the entity are within its authority. In this regard, the auditor s hould examine whether t he legal requirements governing the entity, insofar as they relate to investments made by the entity are not ultra vires the entity. Apart from above, the a uditor should a lso e nsure that any ot her covenants or conditions, which restrict, quality or abridge the right o f ownership and/or disposal of investments, have been co mplied w ith by the entity. (b) Verification of authority and documentation The Auditor should satisfy himself that the transactions for the purchase/sale of investments are supported by due authority and documentation. (c) Examination of Valuation and discloser The Auditor’s objective concerning valuation is to obtain evidence that the amount at which investments have been valued is computed on an appropriate basis. 10.11GUIDANCE NOTE ON AUDIT OF LOANS AND ADVANCES 10.11.1INTRODUCTION Loans and Advances may constitute a significant proportion of the total assets of an organization. The auditor should take these factors into account in designing his audit procedures. In respect of loans and advances, as far as possible, the system should specify the following : (i) Total amount up to which loans may be made (ii) The purposes for which loans may be made MIZORAM AUDI T MANUALCHAPTER-10 (iii) Maximum amount of loan, which may be made for each such purpose in individual case (iv) The terms on which such loans may be made (v) The persons who are authorize to make loans (vi) Procedure for ensuring compliance with relevant legal requirements All variations in the terms of loans and advances should be duly approved in writing by the competent authority. The system should provide for identification of cases where principal and/or interest have become overdue or where any other terms are not being complied. Confirmation of balances of loans and advances should be obtained at periodic intervals. In carrying out an audit of loans and advances, the auditor is particularly concerned with obtaining sufficient appropriate audit evidence to corroborate the manage ment’s assertions regarding the following : (a) Existence -that all the amount recorded in respect of loans and advances are outstanding in the Financial Statement. (b) Completeness -that there is no unrecorded loans and advances. (c) Presentation and Discloser -that loans and advances are disclosed, classified, and described under proper head of accounts in accordance with recognized policies and practices and relevant statutory requirements, if any. 10.11.2VERIFICATION Verification of loans and advances may be carried out by employing the following procedures : (a) Examination of records (b) Analytical review procedures MIZORAM AUDI T MANUALCHAPTER-10 (a) Examination of Records The Auditor should carry out an examination of the relevant records to satisfy himself about the validity, accuracy and recoverability of loans and advances. The extent of such examination would depend on the auditor’s evaluation of the efficacy on internal control. The Auditor should c heck the agreement of loans and advances with those in the ledger accounts. He should check the agreement of total loans and advances with the related control accounts. Any difference in this regard should be examined. The following are some of the indications of doubtful and uncollectible loans and advances : (i) The terms of credit have been repeatedly ignored. (ii) There is stagnation, or lack of healthy turnover, in the account. (iii) Payments are being received but the balance is continuously increasing. (iv) Payments, though received regularly, are quite small in relation to the total outstanding balance. (v) The cheques received from the loanees have been repeatedly dishonored. (vi) The loan and advances are under litigation, arbitration, or dispute. (vii) The Auditor becomes aware of unwillingness or inability of the loanee to pay the dues e.g. when the loanee has either become insolvent, or closed down his account. (viii) Amounts of advances due from the employees, which have not been repaid on retirement of employee. (ix) Collection is barred by statue of limitation. The Auditor should also examine any other aspects required to be examined or reported upon by the relevant statute. (b) Analytical Review Procedure In addition to the audit procedures discussed above, the following analytical review procedures may often be helpful as a means of obtaining audit evidence regarding the various assertions re lating to loans to advances : MIZORAM AUDI T MANUALCHAPTER-10 (i) Comparison of closing balances of loans and advances with the corresponding figures for the previous year. (ii) Comparison of actual closing balances of loans and advances with the corresponding budgeted figures, if available. (iii) Comparison of curre nt year’s aging schedule of loans and advances with the corresponding figures for the previous year. It may be clarified that the foregoing is only a n illustrative list of analytical review procedures, which an auditor may apply in carrying out an audit of loans and advances. The exact nature of analytical review procedures to be applied in a specific situation is a matter of professional judgment of the auditor. 10.12 GUIDANCE NOTE ON AUDIT OF CASH AND BANK BALANCES Cash and Bank Balances may constitute a significant proportion of the total assets of an organization. An important feature of cash and bank balances, which has a significant impact on the related audit procedures, is that these assets are highly prone to misappropriation, misapplication and other forms of fraud. In carrying out an audit of cash and bank balances, the Auditor is particularly concerned with obtaining sufficient appropriate audit evidence to corroborate the manage ment’s as sertions regarding the following: (a) Existence -that recorded cash and bank balances exist as at the year-end. (b) Rights and Obligations -that recorded cash and bank balances represent the assets of the organization. (c) Completeness -that there is no unrecorded cash and bank balances. The Auditor should particularly review the following aspects of internal control relating to cash and bank balances : (i) Segregation of duties relating to authorization of transactions, handling of cash/issuance of cheques and writing of books of account, and rotation of duties periodically. (ii) Proper authorization of cash and banking transactions. MIZORAM AUDI T MANUALCHAPTER-10 (iii) Daily recording of cash transactions. (iv) Safeguards such as restrictive crossing of cheques use of pre-printed, pre- numbered forms. (v) Periodic reconciliation of bank balances. (vi) Reconciliation of cash-in-hand with book balance on a daily basis or at other appropriate intervals. (vii) Safe custody of cash, cheques books, receipt books etc. (viii) Cash/fidelity insurance. The Auditor should advise the organization to send a letter to all its bankers to confirm the balances to the client organization. The Auditor should examine the bank reconciliation statement prepared as on the last day of the year. It should be examined whether (i) cheques issued by the organization but not presented for payment, and (ii) cheques deposited for collection by the organization but not credited in the bank account, have been duly credited in the subsequent period. For this purpose bank statement of the relevant period should be examined. If the cheques issued before the end of the year have not been presented within reasonable time i.e. six months in normal course of business, the Auditor should examine that the organization has reversed the relevant entries. The Auditor should pay special attention to those items in the reconciliation statements, which are outstanding for an unduly long period. The Auditor should ascertain the reasons for such outstanding items from the management. He should also examine whether any such items require an adjustment/write-off. Where a large number of cheques have been issued/deposited in the last few days of the year, and a sizeable proportion of such cheques have subsequently remained unpaid/uncleared, this may indicate an intention of understating/overstating dues payable/recoverable or understating/overstating bank balances. In such a case, it may be appropriate for the auditor to impress upon the authorities to obtain confirmations from the parties concerned, especially in respect of cheques involving large amounts. The Auditor should also examine whether a reversal of the relevant entries would be appropriate under the circumstances. MIZORAM AUDI T MANUALCHAPTER-10 The Auditor in cases where a large number of cheques are in hand at the date of the balance sheet and a sizeable proportion of such cheques have subsequently remained undeposited/uncleared should also consider the procedures discussed in the foregoing paragraph. In relation to balances/deposits with specific charge on them, or those held under the requirements of any law, the Auditor should examine that suitable disclosures are made in the financial statements. In respect of fixed deposits or any other type of deposits with banks, the relevant receipts/certificates, duly supported by bank advices, should be examined. The remittances shown as being in transit should be examined with reference to their credit in the bank in the subsequent period. Where the Auditor finds that such remittances have not been credited in the subsequent period, he s hould ascertain the reasons for the same. He should also examine whether the organization has reversed the relevant entries in appropriate cases. Where the Auditor finds that the number of bank accounts maintained by the organization is disproportionately large in relation to its size, the Auditor should exercise greater care in satisfying himself about the genuineness of banking transactions and balances. 10.13GUIDANCE NOTE ON AUDIT OF LIABILITIES 10.13.1 INTRODUCTION Liabilities are financial obligations of an organization other than co rpus funds. Liabilities include loans and borrowings, other current liabilities, insta llment payable under hire purchase agreements and deferred payment credits. The audit of liabilities is primarily directed at ensuring that all known liabilities have been properly accounted for, since material omission or misstatement of liabilities vitiates the true and fair view of financial statements An important feature of liabilities, which has a significant effect on the related audit procedure, is that these are represented only by documentary evidence, which originates mostly from third parties in their dealing with the organization. MIZORAM AUDI T MANUALCHAPTER-10 In carrying out an audit of liabilities, the Auditor is particularly concerned with obtaining sufficient appropriate audit evidence to satisfy him that all the known liabilities are recorded and stated at fair and reasonable amounts. The Auditor should particularly review the following aspects of internal control relating to liabilities. (a) In respect of loans and borrowings including advances and deposits, as far as possible, the following should be clearly specified : (i) The borrowing and powers limits. (ii) Persons competent and authorized to borrow. (iii) Terms of borrowings. (iv) Procedure for ensuring compliance with relevant legal requirements/internal regulations. (b) In respect of other current liabilities; The internal control procedures as spelt out above for loans and borrowings broadly apply in relation to these items. Verification of liabilities may be carried out by examination of records by applying following procedures. 10.13.2 LOANS AND BORROWINGS The Auditor should satisfy himself that the loans obtained are within the borrowing powers of the organization. The Auditor should carry out an examination of the relevant records to judge the validity and accuracy of the loans. In respect of loans and advances fro m banks, financial institutions and others, the auditor should examine that the book balances agree with the statements of the lenders. He should also examine the reconciliation statements, if any, prepared by the organization in this regard. In the case of their repayment as prescribed and recovery of interest including penal interest according to applicable conditions are being complied with. 10.13.3OTHER CURRENT LIABILITIES The Auditor should verify that in cases where income is collected in advance for services to be rendered in future, the unearned portion, not applicable to the period MIZORAM AUDI T MANUALCHAPTER-10 under audit, is not recognized as income of the period under audit but is shown in the Financial Statements as part of current liabilities. The Auditor should examine the hire purchase agreements for the purchase of assets by the organization and ensure the correctness of the amounts shown as outstanding in the acco unts and also exa mine the security aspect. Future installments under hire purchase agreements for the purchase of assets may be shown as secured loans. The deferred payment credits should be verified with reference to the important terms in the agreement, including due dates of payments and guarantees furnished by banks. 10.14GUIDANCE NOTE ON AUDIT OF GRANTS-IN-AID 10.14.1. AUDIT AGAINST GRANTS-IN-AID Audit of grants-in-aid is primarily an extension of audit of expenditure and the broad principles of audit of expenditure shall apply. Additionally, it examines whether the amount of Government assistance is utilised for the intended purpose. 10.14.2 VERIFICATION TO BE DONE DURING AUDIT OF GRANTS- IN- AID Audit of Go vernment assistance in the form of grants-in-aid or loans shall be conducted to verify whether systems and procedures are in place and are being complied with for: (1) clear enunciation of purpose for the sanction of the Government assistance; (2) proper and transparent identification and selection of persons, bodies and authorities for Government assistance with reference to their antecedents, absorptive capacity, financial position, systems and management practices; (3) determination of amount of assistance and its timely release; (4) proper accounting of assistance by the grantee or the loanee including maintenance of accounts in such form as may be prescribed; (5) ensuring the fulfillment of conditions of Government assistance; MIZORAM AUDI T MANUALCHAPTER-10 (6) monitoring and ensuring the economical, efficient and effective end use of assistance including achievement of the objectives of assistance; (7) refund to the Government of any unutilised amount; and (8) All Grants-in-Aid received during the period covered by the audit should be checked with the entries in the Cash Book and in the Register of Grants-in-Aid. It shall be ensured that the Grants-in-Aid as mentioned in the statements o f Grants-in-Aid received have been entered in the Register of Grants-in-Aid and Cash Book of the Accounting Authority and that no item is left out. (9) Each item of expenditure against each gra nt shown in the Register of Grants-in- Aid should be checked with the Register of Works/ Register of Fixed Assets and/or Payment Vouchers. Statement of Utilization and unspent balances of Government Grants/Other Grants shall be prepared inForm No. 8 appended to this Manual and the same shall be enclosed in the Audit Report or Inspectio n Report. (10) In scrutinizing the accounts of Grants for specific purposes (other than recurring grants), it should be seen if the conditions on which the gra nts were made have been duly fulfilled it and that no money has been diverted fro m any such grant to a purpose other than that for which it was sanctioned/meant. If any such irregularity is noticed, it should be prominently mentioned in the Audit Report or Inspection Report. If no such irregularity is found, it should be mentioned in the Audit Report or Inspection Report that the condition on which grants were made have been duly fulfilled. Any case in which the grant has been unspent, it should also be prominently mentioned in the Audit Report or Inspection Report. (11) A statement showing drawa l, utilization and unspent balance of Grants-in-Aid to Recurring and Non-recurring Grants shall be enclosed in the Audit Report/Inspection Report in the prescribedForm No. 18.It should be ascertained and mentioned in the report whether such unspent balances are likely to be spent in the near future. In the case of works out of Government Grants, it shall be seen whether the unspent balance has been surrendered to Government or not. Note : Separate Statement may be prepared and submitted for recurring and non- recurring grants. MIZORAM AUDI T MANUALCHAPTER-10 10.15FORM OF REGISTER It must be seen that the registers are properly bound and are in the prescribed form, and that the pages are serially numbered and the entries properly indexed. The total number of pages in a register should be certified on the front page by the Accounting Authority/Competent Authority. Erasures and over-writings in any account, register, schedule, or cash book are absolutely forbidden. If any correction be necessary, the incorrect entry should be cancelled neatly in red ink, and the correct entry inserted. Each such correction deemed necessary should be authenticated by the Accounting Authority/Competent Authority under his full dated signature. 10.16CASH BOOK It should be seen that :- (i) the Cash Book is written up daily; (ii) the entries are classified correctly and the postings, balances, etc., are arithmetically correct; (iii) the Cash Book is closed monthly or daily as the rules require and that a reconciliation of the closing balance of the Bank Pass Book and Cash Book is effected and recorded under the signature of the Accounting Authority/Competent Authority; (iv) the closing balance as shown in the last Audit Report/Inspection Report has been correctly brought forward. (v) all outstanding cheques are brought forward month by month until they are cashed. Specific mention should be made in the Audit Report/Inspection Repo rt regarding any cheque which is outstanding for more than three (3) months and it is to be ascertained, if possible, the reason of its non-encashment; (vi) all totals, subsidiary totals, amount brought forward and balances worked out in Cash Book shall be properly examined; MIZORAM AUDI T MANUALCHAPTER-10 (vii) the various receipts and charges should be traced in the Cash Book. The receipts from advice lists, challans and the receipt side of the Cash Book and the payments from the cheques and the payment side of the Pass Book shall be properly examined. The opening balance should be properly examined. The opening balance should be checked with the closing balance of the previous month and the closing balance with the Treasury/Bank Pass Book, the difference between the two due to un- credited challans/deposit receipts or unpaid cheques being traced. (viii) If it is to be specifically seen that the Accounting authority/Competent Authority has recorded a certificate of physical verification of each under his dated signature on closing balance at the end of the month. (ix) In the case of Gra nts-in-Aid institutions it should be seen that – (a) For each fund a separate bank account is maintained and that there is only one bank account and not more than one account for each fund. (b) For opening of any bank account there is specific resolution of the appropriate authority. (c) There shall be a :Register of Bank Accounts: in which name of all the bank accounts with Account No. are entered under the dated signature of the Accounting Authority. (x) The audit Officer shall go through the Resolution Book to ascertain the correct position regarding opening of Bank Accounts. (xi)CASH ANALYSIS At the end of the month an analysis of t he cash-in-hand shall be made and be recorded in the Cash Book. MIZORAM AUDI T MANUALCHAPTER-10 (xii) CERTIFICATE OF VERIFICATION OF CASH A certificate of verification of cash on closing balance at the end of the month be recorded in the Cash Book under the signature of the Drawing and Disbursing Officer just below the closing balance as follows – “Certify that the cash balance on ………. Has been counted by me and found to be Rs………. (in words)…………….. and agrees with the cash balance as shown in the Cash Book”. (a) Cash-in hand = Rs……………………….. (b) Cash-at –Bank = Rs …………………….. (Bank A/C No………) TOTAL Rs…………………….. Signature of the Drawing and Disbursing Officer 10.17 BILL REGISTER It should be seen that a Bill register is invariably maintained in the prescribed form. Bills to be signed by the Head of Office or the Officer authorized on his behalf are entered in the Bill Register and put up to the Officer along with the bills for attestation of the entries in the register while signing bills. Such bills need not be entered in the Cash Book until they are cashed. 10.18 TRANSIT REGISTER FOR SUBMISSION OF BILLS TO TREASURY It should be seen that a Transit Register for submission of bills to Treasury for each Drawing and Disbursing Officer is maintained in prescribed form. This register is put up to the Drawing and Disbursing Officer while signing the bills for attesting the entries made therein. It is to be ensured that the acknowledgement of the Treasury Office with Token Number is duly recorded in the Transit Register. 10.19 TREASURY PASS BOOK It should be seen that – i) the Pass Book is written up regularly in the Treasury and the closing balance is authenticated by the Treasury Officer. MIZORAM AUDI T MANUALCHAPTER-10 ii) the totals of the receipt and payment sides are correct. iii) the collection credited into the Treasury have been duly credited and that o nly those sums for which cheques have been issued a nd cashed have been debited in the Pass Book. iv) the page certificate is recorded under the signature of the Treasury Officer. 10.20 CHEQUES It is to be seen that – i) the Cheque Books are obtained from the Treasury or fro m the Bank as the case may be. ii) each book contains a specified number of cheques which should be certified by the Head of the Office. iii) the cheque books are kept under lock and key in the personal custody of the drawing officer. iv) cheques are not drawn for sums below Rs.5. v) the amount of each cheque is written in words as well as figures on the counterfoil and that the counterfoil is initialed by the person or persons authorized to sign the cheque. vi) the cheques have not been drawn unless required for immediate encashment or delivery to the payee concerned vii) the cheques are drawing in favour of payees and not in favour of drawing officers for; (a) amount required for disbursement of pay of establishments. (b) amount required for recoupment of permanent advances; MIZORAM AUDI T MANUALCHAPTER-10 viii) all cancelled cheques are enfaced or stamped “Cancelled” under the initials of the drawing officer and are preserved for scrutiny and destruction by Audit Officers; ix) intimation of the loss cheques for which fresh ones have been issued, has been sent to the Treasury Officer of the Bank concerned and a fresh cheque is not issued until receipt of intimation to the effect that the payment of the lost cheque has been stopped at the treasury or at the Bank. 10.21 CHALLANS It is to be seen that – i) every challan has been stamped with the treasury seal and has been signed by the Treasury Officer and/or by the Treasury Accountant; it should also be signed by the Bank will seal except in the case of sums received by transfer in account. ii) challans for sums of Rs. 2,500/- and above have been signed by the Treasury Officer; iii) the amount shown deposited by challans tally with the amounts recorded in the Treasury Receipt Register/Consolidated Treasury Receipts. 10.22 ABSTRACT REGISTERS OF RECEIPTS AND EXPENDITURE i) all items on both sides of the Cash Book are correctly posted one by one under the respective heads of accounts in the Abstract Registers. ii) the monthly total of adjustments is correctly posted from the adjustment Register, and the monthly totals are correctly posted in the monthly account. iii) the progressive totals have been correctly worked out. MIZORAM AUDI T MANUALCHAPTER-10 10.23 BUDGET All the sanctioned estimates for the year should be examined to see if there is any excessive provision under any head as compared with the provision in the previous years and in case of marked difference the cause for such excessive provision be recorded in the draft audit report. It should be seen that all liabilities (current or carried over from the previous years) have been taken into account in preparing the budget and money indisputably payable is never left unpaid and the money paid is under no circumstances be kept out of the accounts a day longer than is absolutely necessary. (It is no economy to postpone inevitable payments, and it is very important to ascerta in, liquidate , and record the payment of all actual obligations at the earlier possible date). It should be seen that whether the budget allotment have been correctly noted in the Abstract Registers of Receipts and Expenditure and the re-appropriations sanctioned from time to time have been noted against the heads concerned. Annual expenditure figures with the sanctioned allotment (including re-appropriations) under each head should be compared to see whether any expenditure was incurred in excess of the allotment. Marked deficiencies in receipts should also be noted in the audit reports. 10.24 RE-APPROPRIATION In case of re-appropriations it should be examined whether the re- appropriations have been sanctioned by the competent authority and as per provisions of rules. It should be examined whether the savings proposed to be transferred will really accrue after meeting all legitimate charges and there is no tendency to withhold payment under purpose. It should be also be examined whether re-appropriations give any indication of inaccurate budgeting or insufficient control over expenditure. 10.25 FINANCIAL POSITION Financial position of the organization should be examined very carefully. If there is heavy liabilities, a list of such liabilities should be given in the report with comment on the proposal of the Head of the Office, if there is any, as to how t he liabilities will be cleared. Specific comment o n the overa ll financ ial posit io n of the organization shall be recorded in the audit report. MIZORAM AUDI T MANUALCHAPTER-10 10.26 PERMANENT ADVANCE i) It should be ascertained that whether the holder of the permanent advance has given an acknowledgement on the first working da y of each year, (In the case of a transfer of charge the relieving officer should also furnish a similar acknowledgement on the date of taking over charge) In the case of a sub-impress granted to an officer, it should be ascertained that the holder of sub-impress also similarly furnishes an acknowledgement to the Head of the Office on the 1st working day of each year. ii) It should be seen that the entries in the Permanent Advance Register are initiated by the Head of the Office. iii) It should be ascertained that recoupments are always made in full on the last working day of e very mo nth, except when the expenditure is less that Rs.10/- iv) The amounts of the Sub-vouchers audited should be compared with the entries in the Pe rmanent Advance Register. v) Totals of the Permanent Advance Registers should be checked and the totals of the vertical columns with recoupment vouchers should be compared. vi) All Sub-vouchers for the entire period covered by the audit should be properly checked. vii) It is to be seen that all Sub-vouchers have been stamped “paid in cash” and “cancelled” MIZORAM AUDI T MANUALCHAPTER-10 10.27 ADJUSTMENT REGISTER i) All entries in the Adj ustment Register with the adjustment vouchers should be checked. ii) It should ascertained that adjustment are in order, are recorded in sufficient details and are correct ly made. iii) Totals of the Adjustment Register should be checked and the net totals into the Abstract Register is also compared. 10.28 ADVANCE REGISTER i) All advance payments should be traced from the Advance Ledger. ii) It should be ascertained that no repayments are credited except those that have duly appeared in the Cash Book and the Adj ustment Re gister, a nd that no advance is kept out of account, and also that there is no undue delay in the adjustment of ad vances. iii) It should be ascertained that correct balances are brought forward from previous years. iv) Closing balances should be checked. v) The old items of advances left unadjusted shall be examined with special care. 10.29 DEPOSIT REGISTER i) It should be ascertained that all deposits received are entered in the Deposit Ledger and that the amounts repaid are duly debited. ii) It is to be seen that no deposit is credited except those have appeared in the Cash Book or in the Adjustment Register and that no deposit is kept out of account. It is also to be seen that there is no undue delay in the adjustment of deposits. iii) It should be seen that correct balances are brought forward from previous years. MIZORAM AUDI T MANUALCHAPTER-10 iv) Closing balances shall also be checked. 10.30 REGISTER OF LANDS It is to be ascertained – i) that proper records of all lands including roads, roadside lands, sites of building, tanks, etc., are maintained. ii) that lands acquired through land acquisition proceedings, by private purchases, by free gift or otherwise are entered promptly in the Register of Lands. iii) that if any plot of land shown in the Register is sold or otherwise transferred the entry relating to it is struck off and the facts in connection with the sale or transfer stated in the remarks column under the initials of the Head of the office. iv) that the register is annually examined and signed by the Head of the Office personally. v) that a registered deed has been executed in each case of purchase and free-gift. 10.31 POSTAGE STAMPS REGISTER i) It is to be ascertained whether all purchases of postage stamps are recorded in the Postage Stamps Register. ii) Total and closing balances should be checked. iii) Balance in hand as on the date of audit should be physically verified and result of such verification shall be recorded on the Posta ge Stamp Re gister. 10.32 STATIONERY REGISTER It is to be ascertained whether – (i) all purchases of stationery are recorded in the Stationery Register. MIZORAM AUDI T MANUALCHAPTER-10 (ii) balances have been correctly brought forward for each item. (iii) all issues are bonafide(signature of the recipient is obtained for each items issued) 10.33 SERVICE BOOKS It should be seen – i) that service books are opened for all employees and are in the custody of the Head of Office. ii) that the record of service of each employee is complete; iii) that all leave, increments, promotions, transfers etc., have been recorded and attested by the Head of Office. iv) that service books bear evidence of periodical verification by the Head of the Office. 10.34 LEAVE ACCOUNTS It should be seen – i) that a leave account is kept for each employee in the prescribed form. ii) that all leaves (Earned leave and Half-pay leave) are recorded in the leave account. iii) that the leave granted is admissible as per rules. iv) that the leave account is signed by the Head of the office periodically and is up-to-date. MIZORAM AUDI T MANUALCHAPTER-10 10.35 SECURITY REGISTER It should be seen – i) that all employee who are required by the rules or by the nature of their d uties to furnish security ha ve furnished the full amount of security. ii) that security bonds have been executed in all cases in the forms prescribed and that stamp duty has been paid by the employees concerned. iii) that in the case of personal security and landed property the validity of the securities has been verified by the head of the office and this fact has been recorded in the Security Register. iv) that the return of the Post Office Savings Bank Pass Books/Bank Pass Books and other documents have been duly acknowledged by the parties concerned. 10.36 PROVIDENT FUND LEDGER It should be seen – i) that the subscribers to the Provident Fund are all entitled to subscribe under the rules; ii) that the declaration has been obtained from each subscriber; iii) that the full amount due from each subscriber has been recovered and credited to the Post Office Savings Bank together with the amount of contribution form the Local Fund generally between the first a nd the fourth of each month; iv) that interest on Post Office Savings Bank Deposits is correctly calculated; v) that amounts of investments made have been posted correctly in the Ledger accounts; MIZORAM AUDI T MANUALCHAPTER-10 vi) that interest on investments are drawn promptly and is posted under proper column in the Ledger accounts; vii) that advances from Provident Fund are made only in accordance with the rules; and that recoveries are regularly made and posted in the Ledger under the column provided for the purpose; viii) that subscribers acknowledgements for final withdrawals and advances are available in audit. ix) that amounts withdrawn from Post Office Savings Bank have been promptly disbursed to the subscribers concerned. x) that unclaimed balances, if any, are transferred to the Dead Account Register and credited to the Local Fund as a miscellaneous receipt. Also that payments of amount transferred to ‘Dead Account’ are only made under the orders of the Competent Authority and that necessary entries are made in the Dead Account register. xi) that the entries in the Ledger Accounts at least for two months are compared with the vouchers. xii) In the case of an employee who has not joined the Provident Fund on the ground that his Life Insurance policy has been assigned to the Local Body, it should be ascertained that the assignment is in order and that the latest receipt for the premium paid is forthcoming fo r examination in audit; t hat the amount of insurance money received on maturity is not paid to the employee before his retirement from the service and that it is kept in the Post Office Savings Bank in the name of the assignee till the employee actually retires. MIZORAM AUDI T MANUALCHAPTER-10 10.37ESTABLISHMENT BILLS, ETC 10.37.1PAY BILLS It is to be seen that – i) establishment and fixed recurring charges are duly sanctioned and are drawn according to the sanctioned scale; ii) last pay certificate is attached to the establishment bill in the case of all transfers of Government or other servants and that the transfers are authorized by competent authority. iii) in the case of Government Servants deputed outside the department or to a Local Fund leave salary contribution and pension contributions are duly remitted to the treasury every month as per terms of deputation. iv) the dates of making over and taking over charge are noted on the bills or on separate reports and that the joining time is not exceeded. v) income-tax, provident fund and other deductions are regularly made as required by the rules. vi) pay, allowances and leave salaries are separately shown in the bill and that the names of all persons on leave, under suspension, on deputation, as well as of those holding acting appointments, are entered in the absentee statement appertaining to the bill; vii) leave salary and allowances drawn are admissible under the Fundamental Rules or under the rules in force adopted by the Local Authority. viii) increments drawn have actually accrued. (All incre ments shall be examined by reference to the respective Service Books) ix) in the case of fixed conveyance and horse allowances, certificates of actual maintenance of the conveyance, etc., have been furnished; MIZORAM AUDI T MANUALCHAPTER-10 x) the amount of an Establishment bill for a month is not drawn and disbursed before the last working day of the month except for the month of March. xi) temporary establishment are separately billed for and are covered by the sanction of the competent authority; xii) undisbursed amounts of pay have been refunded by short drawal in subsequent month’s bills or in cash by challans; xiii) the supplementary pay bills shall be checked by reference to the original bills from which the amounts were withheld or refunded, and that the numbers and dates of subsequent bills have been quoted on the original bills. xiv) arrear pay is drawn in a separate bill; xv) in the case of time-scales of pay with efficiency bars at certain stages, the appointing authority to the effect that the officer in question is fit to cross the efficie ncy bars; xvi) acknowledgements of the employees have been obtained in the bills or in the acquittance rolls; xvii) the pay Bill Register and the Abstract of Bill Register are properly maintained in prescribed forms; 10.37.2 TRAVELLING ALLOWANCE BILLS It should be seen that – (i) whether T.A. bill is preferred within a year from the date of journey.\ (ii) whether rates of D.A., mileage, rail or bus fares are correct. (iii) whether bill is countersigned by the compet ent authority. (iv) whether the required certificates are furnished by the claimant. MIZORAM AUDI T MANUALCHAPTER-10 (v) whether transfer is in public interest or at request in the case of scrutiny of transfer travel allowance b ill. (vi) whether TA check register has been maintained. (vii) whether there is budget provision for Traveling Allowance head. (viii) whether acknowledgements have been obtained on the bills or in the acquittance rolls. 10.37.3MEDICAL RE-IMBURSEMENT BILLS (i) whether bill is preferred within three months from the date of completion of treatment. (ii) whether the charges of only admissible medicines/tests are reimbursed to the claimant. (iii) whether the cash memos of medicines/tests and essentiality certificate are verified/countersigned by the medical officer. (iv) whether the medical bills in case of indoor patients are countersigned by the medical superintendent. (v) whether the permission of Director Health Services of the State has been obtained for treatment outside the State. (vi) whether medical reimbursements are allowed to either husband or wife in case both spouses are employed and requisite certificate to this effect has been obtained from the DDO of respective organization where other spouse is serving. . (vii) whether medical reimbursement check register has been maintained. (viii) whether medical bills are signed by DDO and countersigned by the controlling officer of the claimant. MIZORAM AUDI T MANUALCHAPTER-10 (ix) whether medical reimbursement are allowed only for recognized hospitals where treatment is not taken from Govt. hosp ital or necessary permission of competent authority is obtained in case treatment is taken in emergent cases from private hospitals as per rules/instructions. (x) whether there is budget provision for Medical Reimbursement head. 10.38CONTINGENT BILLS It shall be seen that :- (i) whether expenditure is authorized. (ii) whether there is sanction of competent authority and whether it is within prescribed limit. (iii) whether quotations or tenders are called for after due publicity of tender notice. (iv) whether earnest money is paid by the tenderers. (v) whether lowest tender is accepted by the competent authority and if not whether reasons for not accepting lowest tender are recorded and sanction of next higher authority as required under rules is obtained. (vi) whether sub-vouchers are enclosed and are duly cancelled and obtained payee’s acknowledge ment on the body of the sub-vouchers. (vii) whether necessary agreement is carried out. (viii) whether stock entry is recorded duly mentioning the page number of stock register as well as certification signed by the Store Officer. (ix) whether telephone, electricity and other office expenses register are correctly maintained. (x) whether the Log Books/ Repair and maintenance /Unserviceable Part registers of the vehicles are correctly maintained. MIZORAM AUDI T MANUALCHAPTER-10 (xi) whether the Property Register of the organization is maintained. (xii) whether there is budget provision for Office Expe nses head. 10.39SCHOOL FEES AND FINES In the case of Schools/Institutions under the direct management of the Local Authorities where the collection of fees and fines is in force, the monthly statements of school fees and fines submitted by the school teachers are checked and credited in the Cash Book are traced. It shall be seen that the collection of fees and fines are remitted in full and not in part, retention of money in hand for more than seven days should be brought to notice in the Audit Note. It shall also be seen that there is evidence of check in the office and that the challan or receipts number and the date of credit of realization are total in the monthly statement. 10.40REGISTER OF LOANS It should be seen that :- (i) any loans raised are covered by proper authority, (ii) payments of principal and interest are being regularly made in accordance with the conditions of the loans. (iii) the loan is applied solely for the purpose for which it is taken, (iv) the balance of loans outstanding is mention in the report. 10.41REGISTER OF BILLS The Register of Bills received shall examined. It shall be seen that it is written up completely and is up-to-date. If any bill has been held over unnecessarily for an unusually long period of time, the fact shall be mentioned in the Audit Report. If there is any rush of payment at the end of financial year, the same shall also be mentioned in the Audit Report. The number and amount of bills paid during the last month and those paid during the other eleven months of the year should be reported. MIZORAM AUDI T MANUALCHAPTER-10 10.42REGISTER OF BUILDING TANKS, WELLS AND ROADS It shall be seen that the Registers are complete and kept up-to-date. All completed buildings, tanks, wells and roads shall be checked with the Register of Works. It shall be seen that the registers are examined periodically and signed by the Head of Office. 10.43SCHEDULE OF RATES It shall be seen that :- (i) A Schedule of Rates containing rates for different classes of works has been prepared and sanctioned by the competent authority; (ii) Every through rate is supported by an analysis showing in detail the cost of materials, labours and contractor’s profit; (iii) The Schedule of Rates have been prepared by the officer-in-charge of the Engineering Branch and has been approved by the competent authority and no rates have been increased nor new rates introduced without the approval of the competent authority. (iv) The Schedule of Rates has been kept up-to-date and is periodically revised in accordance with the fluctuation of labours and materials in the market; 10.44ESTIMATES (i) an estimates is prepared and sanctioned for every work in accordance with the Rules a nd Regulations and instructions issued by the Government from time to time; (ii) estimates are not prepared in piecemeal; (iii) estimates are approved and sanctioned by the competent authority as required by the rules; (iv) the amount of the sanctioned estimate is expressed in words as well as in figure and is signed and dated by the officer sanctioning the estimate; MIZORAM AUDI T MANUALCHAPTER-10 (v) sanctioned estimates are filed in a guard file for each year in chronological order and an index is kept; (vi) in the case of new work to be constructed partly from materials obtained from the demolition of an old structure, the estimate is framed for the nest cost of the work. Such estimates shall be examined with particular care to ensure that the value of the old materials are credited to the estimate; (vii) a few estimates should be examined to see that the estimates are prepared on the basis of approved Schedule of Rates. 10.45TENDERS AND AGREEMENTS It shall be seen that :- (i) tenders have been duly called and contract agreement has been made as per provision of rules and regulations and also of instructions issued by the Government from time to time; (ii) specific rates have been quoted in the tender for all items of work, and that they are not in excess of those provided in the sanctioned estimate for the work. Grounds for accepting higher rates should be scrutinized. (iii) earnest money/security deposit has been furnished; (iv) the total value of the work tendered for, has been noted in the tender; (v) the date of completion of work has been stipulated in the tender; (vi) the tender has been accepted by the competent authority; (vii) all corrections and alterations in the accepted tender have been duly attested by the officer accepting the tender and by the contractor as well; (viii) the value of materials supplied departmentally in the case of through rate contract is recovered from the contractor at a rate not less than that MIZORAM AUDI T MANUALCHAPTER-10 provided for materials in the analysis of the through rates in the schedule of rates, the rates to be charged to the contractor for materials to be supplied are definitely spec ified. It is only in the case of materials the supply of which is not stipulated in the contract by which it may be necessary to supply afterwards in the interest of the work that recovery may be made at rate not less than those provided for in the schedule of rates or the market rates prevailing at the time of the supply, whichever may be greater. No carriage or incidental charges should be borne by the local body in connection with such supplies; (ix) the contractor is penalized for unwarranted delay in completion of the work within the stipulated time; (x) the accepted tenders are numbered and filed in a guard file for each year, and kept under the custody of the Accountant; (xi) all rejected tenders have been preserved and filed in a separate file; (xii) unless there be some objection to the capability of the tender, the lowest tender should usually be accepted. In cases where the lowest tender has not been accepted the reasons for not accepting the lowest tender have been recorded by the competent authority under his dated signature. In case where lowest tender has not been accepted, the difference of cost shall be calculated and excess expenditure so incurred shall be reported in the audit report. 10.46MATERIAL-AT-SITE It shall be seen that :- (i) a monthly account of material purchased for a work has been kept; (ii) purchases and issues of materials are not in excess of actual requirements for the work; (iii) balances of materials at the end of the each month are correctly worked out; MIZORAM AUDI T MANUALCHAPTER-10 (iv) the monthly account for each work is checked by the Accountant regularly; (v) surplus materials are transfer to other works in which they are likely to be utilized within a reasonable time or to “surplus stores account” and their value adjusted by transfer entry orders; (vi) materials at site have been verified once a year or on completion of the work whichever is earlier; (vii) the value issued is charged direct to work when the contract is for labour only and is recovered from the contractor when the contract is a through rates; 10.47REGISTER OF WORKS It shall be seen that :- (i) (a) entries for each work are in accordance with the sanctioned estimate; (b) all sanctioned estimate for works have been entered in the Register of Works; (ii) the expenditure incurred on each work has been regularly and correctly posted in the Register monthly from the Work Abstract or from the payment vouchers; (iii) excess over estimates or under sub-heads are covered by sanction obtained fro m the competent authority; (iv) when a work has been completed, a double line in red ink is ruled below the last entry and the note of completion is made; (v) the Register bears evidence of check at least once a quarter by the Head of the Office; (vi) the detailed accounts for the amount shown under “Materials at site” are forthcoming; (It should be ascertained whether there are any materials at site of completed works). MIZORAM AUDI T MANUALCHAPTER-10 (vii) the necessary entries, in the case of incomplete works, have been brought forwarded from year to year until the works have been either finally completed or abandoned; (viii) the value of all materials purchased and supplied to the contractor for the work, is posted under column “Due from Contractors” and such plus entries in this column are ba lance by minus entries, before the work is completed; (ix) the balance shown under column “Due to Contractors” agree with the balance shown in the Contractor’s Ledger, a nd that all such d ues are cleared off along with the final payments made to the contractor. 10.48CONTRACTOR’S LEDGER It shall be seen that :- (i) all “on account” and final bills of contractors have been entered in the contractor’s ledger, on the credit side; (ii) all payments for works done and bill for the “running account forms”. The value of materials, etc., supplied to the contractor and advances made are debited to his account; (iii) each individual account is balanced monthly and that the balances due to, and from, the contractor are shown in detail for each work separately and are correctly brought forwarded to the subsequent month; (iv) the ledger bears evidence of check at least once a quarter by the Head of the Office and monthly by the Accountant who should be responsible for the correctness of the contractor’s ledger. It should be specifically examined that dues of contractors are promptly recovered while passing their bills for payments; (v) there is no heavy outstanding for a long time, if there is such outstanding in the same should be prominently noted in the Audit Report and the steps taken to adjust them; MIZORAM AUDI T MANUALCHAPTER-10 10.49REGISTER OF TOOLS & PLANTS It shall be seen that :- (i) the balances have been correctly brought forward from the previous year; (ii) all tools and plants, etc., purchased (according to the payment vouchers) have been entered in the Register of Tools and Plants; (iii) the purchases of Tools and Plants, etc., and sales of unserviceable articles have been made under proper sanction; (iv) Credits for all sale proceeds of unserviceable tools, etc., are traceable in the Cash Book; (v) The balances of all Tools and Plants, etc., at the end of the year have been struck and the certificate of actual physical verification of the balances in stock has been furnished by the competent authority; (vi) All tools and plants temporarily lent to contractor or to employees of local bodies have been duly accounted for; (vii) No tools and plants, etc., have been written off except with the sanction of the competent aut hority. Note : The above checks applied mutatis mutandis to all stock account in general. 10.50MEASUREMENT BOOKS It shall be seen that :- (i) (a) pencil entries Measure ment Books have not been inked over; and that the entries in the “area or contents” column have been made invariably in ink; (b) reference has been given in all cases to the vouchers on whic h payments have been made; MIZORAM AUDI T MANUALCHAPTER-10 (c) measurement are crossed off by diagonal red ink lines as soon as payments have been made; (d) compare 10 per cent of the bills with the abstracts prepared at the end of each set of measurements; (e) measurements have been recorded in chronological orders in the Measurement Book, and that blank pa ges or portions of pages left blank have invariably been crossed out and cancelled under the signature of the officer authorized to record measurement in the Measurement Book; (f) payments on account of measured works have been promptly made; (g) whether the quantity of work said to have been measured and in any one day in the measurement book is physically possible. It should be specifically checked at random to see whether the date of measurements are recorded in the Measurement Book agree with the date, where recorded, in the travelling allowance bill of the officer taking the measure ment. (ii) 5 (five) per cent of the calculations of the detailed measurements should be checked; (iii) Stock Register of Measurement Books should be checked; (iv) Reason for non-payment in the case of measurements not crossed off should be investigated. 10.51ROAD METAL ACCOUNT It shall be seen that :- (i) (a) a monthly statement of road metal showing the receipts, issues, and balance (kilometer by kilometer) is kept separately for each work; (b) the surplus found as a result of verification by check measurement has been brought on to the road metal account at once; MIZORAM AUDI T MANUALCHAPTER-10 (c) deficits have not been removed from the accounts except by recovery of the value from the person at fault or by a write off with the sanction of the competent authority; (d) there is evidence of periodical check of the balance by a responsible officer and that a road metal rate book is maintained. (ii) Receipts and issues should be checked with the contractor’s bills and measurement book. 10.52NOMINAL MUSTER ROLLS It shall be seen that :- (i) (a) Muster Rolls are kept for daily labour only and do not include the wages of Peons, Section Assistant, etc., and other similar employees for the entertainment of w hich distinct sanction is required; (b) the charges have been correctly allocated and that there are no unusual de lays in the payments; (c) unpaid balances are brought forward to the next Muster Roll and that there are no long-standing arrears; (d) the payments to labourers are made by the officer in charge of the work and where possible, by an officer of higher standing available; (e) whether the out turn of work is commensurate with the expenditure incurred; (f) the sanctioned strength of the Muster Roll and the period allowed is duly certified on the body of the Muster Roll by the competent authority under his own signature and date; (g) a register of Muster Roll forms issued is maintained properly in the head office and each item is signed by the competent authority; (ii) 25 (twenty five) per cent of the paid Muster Roll shall be checked arithmetically. MIZORAM AUDI T MANUALCHAPTER-10 10.53PUBLIC WORKS BILLS It shall be seen that :- (i) (a) expenditure on the work is permissible; (b) the estimate is duly prepared and duly sanctioned administratively and technically; (c) Whether estimate is prepared with reference to current schedule of rates and whether the competent authority sanctions deviations, if any. (d) wide publicity is given to the tender notice as required under rules; (e) Whether prescribed earnest money is deposited by the tenderer. (f) comparative statement is prepared correctly; (g) the contractor’s tender has been duly accepted; (h) necessary agreement has been enacted and executed and work order issued; (i) whether the site on which the work is proposed to be executed belongs to the client organization. (j) whether lowest tender is accepted b y the competent authority and if not whether reasons for not accepting lowest tender are recorded and sanction of next higher authority as required under rules is obtained. Justification for not accepting the lowest rate shall be carefully examined and shall be recorded in the audit report. (k) measurement are recorded are recorded by the competent authority and necessary test check of measurements are carried out by higher authorities as required under rules; (l) pre-measurements are recorded of cutting/clearance work and steel used for RCC; MIZORAM AUDI T MANUALCHAPTER-10 (m) the rates charged in the bill are not in excess of those entered in the accepted tender; (n) the quantity of each item of work charge in the bill agrees with that shown in the Measurement Book; (o) all calculations in the bills are correct; (p) dismantled materials have been properly accounted for and that a complete list of such materials has been furnished by the officer- in-charge of the work and has been accepted by the head of the office; (q) a completion certificate has been furnished on every final bill (whether Petty final bill or final contract bill); (ii) verify from the last Running Account Bill and the Contractor’s Ledger that the payments shown as having been made on last Running Account bill are correct. (iii) whether amount due to contractor is correctly arrived at with reference to the agreed rates and quantities as per recorded and checked measurements. (iii) when advance payments for work done but not measured are paid for, the relevant certificate is recorded and such payment together with that already made does not exceed the value of the estimated quantity against the relevant item in the tender. (iv) Whether cost of material supplied departmentally if any is recovered in the bill. (v) Whether material used in the work is as per requirement as per consumption factor data. MIZORAM AUDI T MANUALCHAPTER-10 (vi) Whether material if any supplied to contractor in excess of requirements have been returned by the contractor and entered in the stock register/bin card. (vii) Whether double charges is recovered in respect of unused materials not returned by the contractor. (viii) Whether dues if any towards supply of necessary services to the contractor by the department for carrying out work is recovered. (ix) Whether N.M.Rs. are correctly prepared duly notifying certificates of payment and alternative certificates are furnished by competent authority. (x) In the case of departmental execution whether materials purchased are properly accounted for and unused taken to stock register. (xi) Whether sufficient security as per rates approved by the Government have been taken from the contractor for due fulfillment of contract. (xii) Whether the measurement of work done have been accepted by the contractor. (xiii) Whether the quantity and value of work done since previous running bill have been correctly shown. (xiv) Whether the signature of the contractor as noted in his receipt on the foot of ‘Memorandum of payment made’ tally with that appearing at the foot of the bill. (xv) Whether revised estimates or completion report is prepared and approved by competent authority. (xvi) Whether buildings are entered in the register of immovable property. (xvii) when the work is measured and paid for the advance payment is also recovered. MIZORAM AUDI T MANUALCHAPTER-10 (xviii) when materials not provided for in the original contract are supplied, the materials so supplied are charged at issue rate or market rate whichever is higher (xix) Arithmetical calculations of all final bills shall be checked to ascerta in that payment was made correctly; (xx) Value of the store materials issued from the stores have been recovered at the agreed rates; (xxi) It shall be examined properly to ascertain that all recoverable amounts such as advance payments, secured advance, security deposit, income tax, forest royalty, fines and penalties, other amounts due from the contractor relating to other works are recovered from the contractor’s bill. (xxii) the contractor has not exceeded the time limit and if exceeded the excess has been covered by a valid grant of extension of time limit. (xxiii) Memorandum of Payment shall be checked carefully to ensure that payment was made correctly; (xxiv) it shall be carefully examined to ensure that undue financial aid is not given to the contractor in any for which it is not authorized under the rules except under special orders of the competent authority; (xxv) final value of the work done shall be checked with the amount of the sanctioned estimate and the amount sanctioned in the administrative approval. (xxvi) when the work is carried out on behalf of the contractor and the cost thereof is recovered from the Running Account Bills and see that the cost is correctly computed and overheads like establishment, tools & plants etc., are also charged according to the rules. MIZORAM AUDI T MANUALCHAPTER-10 10.54REGISTER OF PAYMENTS FOR CONSTRUCTION AND REPAIRS (OF BUILDINGS, ROADS, BRIDGES, CULVERTS ETC) It shall be seen that :- (i) building grants are sanctioned by the proper authority; (ii) actual payee’s receipt or payee’s acknowledgment receipt is furnished for each payment; (iii) a certificate of satisfactory completion of the work is furnished by the competent authority for each grant and that there is no unusual delay in obtaining such a certificate; (iv) all payments for grants are regularly entered in the Re gister and that it is reviewed periodically by the Accounting Authority. 10.55WORKS ABSTRACT It shall be seen that :- (i) Works Abstracts are correctly prepared from vouchers month by month; (ii) all payments including purchases of materials, etc., for works are correctly posted in the Works Abstracts, month by month. (iii) total of all Works Abstracts are worked o ut monthly head-wise and the y agree with those shown in the Abstract Register; (iv) all Works Abstracts are correctly posted every month in the Register of Works. MIZORAM AUDI T MANUALCHAPTER-10 10.56SECURITY DEPOSITS (i) Securities paid in cash are taken into the Cash Book on the same day and formal receipts have been issued, for the same; (ii) Deposit Register is maintained properly and security deposits of various classes are taken into the Deposit Register class-wise from the Cash Book and the Vouchers. (iii) while refunding the Security Deposits the formal receipts earlier issued has been deposited with the claim of refund. While refunding the Security Deposits, the amount is refunded by debt to deposit, which has been recorded in the Deposit Register; (iv) the word “refunded” or “adjusted” is noted in the Cash Receipt earlier issued, and in the Deposit Register in red ink as well as in the original voucher from where Security Deposit was earlier deducted or in the Adjustment Register against the original entry in the receipt side. After audit of the voucher, the original receipt sub mitted along with the claim for refund shall be destroyed and the fact shall be recorded in the duplicate copy of the receipt. 10.57MISCELLANEOUS RECEIPTS In addition to the checks mentioned earlier, the following checks should be exercised :- (i) Receipts from other sources such as rent on land and buildings, sales of property, both movable and immovable shall be checked, sales and bid lists shall be called for and be checked with the entries in the Cash Book to ascertain that receipts so realized have been credited to the revenue of the Local Body/Authority. (ii) It should also be ensured that sales have been conducted properly and that the highest bid has been accepted. In case of highest bid is not accepted the reason for non-acceptance of the highest bid has been recorded in the bid list under the dated signature of the competent authority. In case if it is found to be less favourable to the interest of the MIZORAM AUDI T MANUALCHAPTER-10 tax-payers, the same should be specifically be mentioned in the Audit Report. (iii) In case of rent on land, buildings, etc., it should be seen that proper records have been maintained for lease of land, building etc.; (iv) In case of other sources of fixed income it should be properly checked to see that the fixed incomes are realized in time and are credited to the revenue of the Local Body/Authority. 10.58ADDITIONAL CHECKS The checks to be exercised while auditing as mentioned in this part of the Manual are not to be a complete record of an Auditor’s duties, but illustrative and recommendatory in nature. The Auditor must exerc ise such further checks as his intelligence, prudence and experience suggest him to be necessary and valuable. CHAPTER – 11 AUDIT INSTRUCTIONS 11.1SPECIAL INSTRUCTIONS 11.1.1ON DUTIES OF AUDIT OFFICER IN CHECKING ACCOUNTS (Reference Para 9.9) The various receipts and charges shall be traced into the Cash Book, the receipt from the Challans and, the receipt side of the Pass Book. The Opening Balance (reference para 8.4) shall be checked w ith the Clos ing Balance of the previous month. Total of both side of the account shall be checked arithmetically, and the Closing Balance agreed with the Treasury Pass Book/ Bank Pass Book/Bank Statement. Any difference between the two due to amounts not credited or unpaid cheques shall be traced and necessary Bank Reconciliation Statement be made. 11.1.2ON PRELIMINARY OBJECTION STATEMENT (POS) (Reference Para 9.14) (i) Any enquiry which it is necessary for the Audit Officer to make either on the subject of accounts, registers or other matters, shall be made through an objection statement in Form No.4. The Preliminary Objection Statement shall be prepared in duplicate with a carbon copy or photo copy. The original Preliminary Objection Statement shall be issued to the Accounting authority and duplicate/photo copy shall be retained with the Audit Officer. The Audit Officer shall issue Preliminary Objection Statements day by day as the audit proceeds and shall obtain the dated signature of the head of the organization/authorized officer on the statement itself. Except as provided below, these statements shall be returned by the Accounting Authority along with reply with least possible delay and in any case within three days from their issue by the Audit Officer. They shall bear the dated signature of the head of the office, and shall show the action which has been taken or proposed to be taken to settle the objections raised, or the replies to the enquiries made. All Objection Statements shall in any case be returned on the day on which audit is finally closed. The Audit Officer shall bring any items of previous Audit Report which have not been disposed off when he leaves the office to the notice of the head of the office in writing. MIZORAM AUDIT MANUAL CHAPTER-11 (ii) At the end of the audit, the Audit Officer will arrange a meeting with the head of the office and will give him an opportunity to discuss the various aspects of the preliminary objections found during the course of audit before finalizing his report. The Audit Officer will consider the reply of preliminary objection statements and views express by the head of the office in course of the discussion and shall finalize his audit report and submit the same after duly signed by him along with the original reply of preliminary objection statements, if any received, to the Director, Local Fund Audit. (iii) If the reply of preliminary objection statement is not received within the prescribed time limit or if the meeting mentioned above is not held for any reason whatsoever, the Audit Officer shall finalize his report accordingly without waiting for reply of preliminary objection statement or discussion with the head of the office. (iv) Every endeavor should be made by the concern authority to settle the objections finally before returning the objection statement to the Audit Officer, but a whole statement should not be held back simply because of inevitable delay in settling one or two objections in it. (v) All objections which can be removed on the rules being complied with, should be so removed during the audit. Every effort should be made to reduce to a minimum the audit objections to be dealt with after the conclusion of the audit, and it is a part of the Audit Officer’s duty to render every assistance to the concern authority in attaining this result. (vi) Separate objection statements should be issued for each department separately, so that it can proceed to take immediate action on its own objections as soon as they received. (vii) In conducting audit. Audit Officer should be very careful never to interfere in executive matters. They should give attention to points tht may arise but which cannot be provided for in advance by formal audit rules, and if an Audit Officer realizes that he has touched on a matter which may require investigation, he should e xamine it with an exhaustiveness which leaves nothing undiscovered. He should, however, be careful not to infringe on questions of administration which have nothing to do with accounts, or which are otherwise outside the province of legitimate enquiry. MIZORAM AUDIT MANUAL CHAPTER-11 (viii) Audit Officer, while dealing in nothing they consider to be part of their official duty, should be careful to avoid friction with any of the officers with whom they come in contact. If they avoid frivolous objections, and convince the officers by the manner in which they go about their work that they are not to complicate procedure but to simplify it, not merely to criticize but to assist, they will meet with little difficulty in their direction. They should assist the local bodies with advice and show by means of practical examples how account registers should be posted, thus endeavoring to after they have been committed. If nevertheless, trouble arises, the facts of the case must be reported at once by the Audit Officer to the Director, Local Fund Audit. (ix) A request to arrange for accommodation does not constitute an obligation. (x) In order that the Director, Local Fund audit may see whether the objection statements are being promptly disposed of, movements of objection statements should be indicated in the Audit Officer’s diaries, clearly showing the objection statements issued and received back from day to day. 11.1.3ON WRITING OF AUDIT REPORT In addition to instructions contained in Para 9.19 of this Manual, it should be strictly observed that :- (i) Audit Officer should states in the first paragraph of the report when audit was taken up, when it was completed, and how many working days were actually taken in the audit. (ii) Name of the Audit Officer, Auditor(s), and Assistant Auditor(s) conducting audit should also be mentioned. (iii) The audit reports should contain the names of the persons mainly responsible for administering the fund including the name of the Accountant and the Cashier for the period cover by Audit. (iv) The audit report should be as concise as possible, though every point worthy of notice must be included by the Audit Officer, who should give special attention to all those matters which cannot be covered by a set of ordinary audit rules. At the same time the report must be clearly expressed, so that there can be no doubt as to the meaning of the point at issue. The number of lengthy statements MIZORAM AUDIT MANUAL CHAPTER-11 and tables in the audit note should be reduced to minimum. Audit Officers should take particular care to use courteous language in the reports. (v) Abbreviation should on no account be used, and particular care should be paid to the correct quotation of rules and orders, etc. Date should be given in full. Care should be taken to use capital letters for the names of all registers, e.g., Cash Book, Demand Registers, etc. (vi) In submitting a report, the Audit Officer should indicate in the endorsement any paragraph he considers necessary to be specially brought to notice of Head of Department, Administrative Department, and Finance Department. (vii) The Director, Local Fund Audit or Joint Director, Local Fund Audit shall check the report with the objection statement referred to in para 9.14 and sub-para 11.1.2 of para 11.1 of this Manual and may make corrections and additions that may be necessary. They may also verify any item by inspection of local records. The report shall then be finalized, published and issued as per provision of para 9.48 of this Manual. (viii) The Audit Officer should also sign the draft Audit Report in token of audit was conducted by him and draft Audit Report and draft Audit Certificate was prepared by him. 11.1.4PROCEDURE OF SEIZURE(Reference Para 9.34) When person charge of any relevant records is taken by the Audit Officer as per Para 9.13 of this Manual, the following steps shall be followed :- (i) The documents should be seized in presence of the Accounting authority or his duly authorized representative and two witnesses. Full name and designation with dated signature of the Accounting Authority or his duly authorized representative and the two witnesses shall be obtained on the body of the each page of all the copies of the seizure list. (ii) Five copies of the seizure list shall be prepared with double faced carbon. (a) One copy shall be handed over to the Accounting Authority or his duly authorized representative; MIZORAM AUDIT MANUAL CHAPTER-11 (b) One copy shall be sent with the Audit Report; (c) One copy shall be sent to the Director, Local Fund audit along with keys of the sealed box containing seized records and the receipt granted by the authority kee ping the sealed box for custody; and (d) One copy to be retained by the officer seizing the records. (iii) If during the time of seizure, the Accounting Authority or his authorized representative remains absent to avoid seizure of documents, the officer seizing the records shall seek appropriate help from the Civil Authority to affect seizure of the documents. In such case signature with full name and designation of the Civil Authority present shall be obtained on each page of all copies of the seizure list. (iv) Notwithstanding anything contain in Note -3 below Para 9.10 of this Manual, the seized documents shall be taken into the personal custody, if not already taken, of the Audit Officer or the Officer conducting the audit and shall be kept in steel trunk(s) and be locked and properly sealed. The sealed trunk(s) shall be kept preferably in the Treasury for safe custody on the same day. Where it is not so possible, the sealed trunk shall be kept wither at the custody of Officer- in-Charge of Police Station for which formal receipt shall be obtained from the custodian of the sealed box(es). The receipt and the keys of the lock(s) along with the copy of the seizure list shall be sent to the Director, Local Fund Audit. (v) The Director, Local Fund Audit shall maintain a Register of Seized Records in Form No.6. (vi) The Accounting Authority shall provide with trunk(s) and lock(s) and keys (in duplicate) to the Audit Officer for keeping the seized records. 11.1.5ON PROGRESS REGISTER(Reference Para 9.41) (i) Annual Progress Register in Form No. 21 shall be maintained for each financial year in the head office for all accounts which are under the purview of audit of the Director, Local Fund Audit. MIZORAM AUDIT MANUAL CHAPTER-11 (ii) Progress Register shall be maintained category-wise in order of serial as prescribed in the list of Major Accounts and Minor Accounts. This order of serial shall not be altered in the subsequent year’s Progress Register. (iii) Progress of Audit made and Audit Report published shall be clearly shown in the Progress Register. (iv) The Progress Register showing the disposal of Audit Report (or Audit Certificate) shall be reviewed by the Director, Local Fund audit on the last day of each month. At the end of the Progress Register, there shall be a summary showing the number of accounts under each category. The same shall be maintained inForm No.21as below. T A B L E - 8 (Reference Para 9.41 & 11.1.5) F O R M No. 21 - ANNUAL PROGRESS REGISTER Sl.NoCategory of AccountsNo. of Accounts as per previous P/RNo. of new accounts added during the yearNo. of accounts deleted during the yearTotal No. of Accounts123456Signature of Officer-in-Charge of P.R Signature of Director, Local Fund Audit 11.1.6ON ANNUAL AUDIT REPORT(Reference Para 9.21) (i) Grants given to Local Bodies for specific purposes shall be detailed in an Appendix to the Report in Form No. 17 and the Director, Local Fund Audit shall furnish a general certificate in the following manner subject to the condition that physical verification of utilization of grants have been conducted by the Audit Pa rty during the course of audit and furnish suitable report to this effect. MIZORAM AUDIT MANUAL CHAPTER-11 “Certified that the grants above, with the exceptions noted below, have been spent within the prescribed period for the purpose for which they were sanctioned.” (ii) Where the purpose is not fulfilled or the grant is not fully utilized, the fact should be mentioned in the Appendix to the Report. The Report should be brief one reviewing the audit work carried out by the officers on the accounts of the preceding year. (iii) In this review, principles rather than details should be kept in view, as the latter have already been embodied in the separate Audit Reports. Specific mentioned should be made in it of the number of days during the year that the Director, Local Fund Audit and the Officers under him had been on tour and number of inspections made by them. This report should also bring together the irregularities and other important matters which came to notice in the course of audit, and the orders passed on them by Government, if any. (iv) At the time of scrutiny of the draft audit reports and the draft explanation statements, the Director, Local Fund Audit and other Officers shall take note of any important items that will assist the Director, Local Fund Audit in the preparation of the Annual Audit Report of the Department. 11.1.7ON AUDIT OF EXPENDITURE(Reference Para 10.7) If the required voucher either supported by Actual Payee Receipt or Vouchers without ob taining signature of payees in their acknowledge ment on the body of the vouchers is not produced to audit, the Audit Officer in his Preliminary Objection Statement will specifically indicate such vouchers. If such vouchers are not produced subsequently during the course of audit, the Audit Officer will have sufficient reason to suspect irregular or false payments. Such cases should be examined very carefully and a case should be properly argued as irregular payments or defalcation of fund. Simply writing “Voucher Wanting” in the final Audit Report is not sufficient to discharge the duties as Audit Officer. Such cases should specifically be record ed in a separate para in the Audit Report. MIZORAM AUDIT MANUAL CHAPTER-11 11.2INSTRUCTIONS APPLICABLE TO ALL LOCAL FUNDS Guidance notes on audit relating to various matters are provided in Chapter -10 of this Manual, which are primarily designed to provide guidance to the Audit Officer/Auditors on matters, which may arise in the course of their professional work, and on which they may desire assistance in resolving issues, which may pose difficulty. All these notes are not exhaustive but recommendatory in nature. However, in addition to these, other instructions, among other things, which are consider important and applicable to all Local Funds is explained below. 11.2.1MONEY ORDER ACKNOWLEDGEMENTS Money orders acknowledgements may be accepted in Audit for any sum irrespective of the amount, provided always that the sender writes after the words, “received the sum specified on the reverse on………..”, in the Postal Money Order receipt, on what account the money has been paid. 11.2.2VALUE PAYABLE COVERS In the case of articles received by Value-Payable-Post (VPP), the Value- Payable cover together with the invoice or bill showing the details of the items paid for may be accepted as a voucher. The paying officer should endorse a note on the cover to the effect that the payment was made through the Post Office and this will also cover charges for the postal commission. Audit Officer should, however, exercise caution in seeing the Value-Payable covers should accordingly be marked “Cancelled” over t he initials of the Audit Officer in green colour chalk pencil. 11.2.3ACCEPTANCE OF POST OFFICE CASH CERTIFICATE AND NATIONAL SAVING CERTIFICATE AS SECURITY DEPOSIT Post Office five years Cash Certificates may be accepted as Security Deposits for the amount at which the certificates were purchased and not for their face value, provided the depositor formally transfer the certificates, with the sanction of the Post Master General, to the Officer who would hold ordinary Government pape r similarly deposited. National Savings Certificates issued by the Postal Department may also be accepted as Security Deposit at purchase value, not at maturity value provided it is duly pledged by the issuing authority in favour of the Local Fund Authority, MIZORAM AUDIT MANUAL CHAPTER-11 Note- :- Government Securities should be accepted at their market value at the time of deposit. In the case of such security appreciating or depreciating no readjustment of their value should be made unless market value is such as to render it necessary to call upon the depositor to produce further security to make up the deficiency. 11.2.4PROVIDENT FUND MONEY OR RESERVE BANK SHARES CANNOT BE PLEDGED AS SECURITY DEPOSIT (i) A subscriber to a provident fund cannot create a lien in favour of his employer on the sum at his credit in the Provident Fund with a view to the substitut ion of such lien for Security Deposits. (ii) As the Reserve Bank of India does not bind itself to take any action on any notice of trust expressed, implied or constructive, the share of the Reserve Bank of India cannot be accepted as Security. 11.2.5VALIDITY OF SECURITY BONDS Security Bonds executed in favour of the Governor of Mizoram are not binding if the officer is transferred to service under a Local Authority, and Security Bonds executed in a particular capacity are not valid when service is to be rendered in a different capacity. 11.2.6STAMP DUTY ON SECURITY BONDS Local Fund employees who are required to furnish Security Bonds are not exempted from payment of Stamp Duty under Article 57(e) of Section-I of the Indian Stamp Act,II of 1899, they being officers not of Government but of a Local Authority. 11.2.7REGISTRATION OF SECURITY BONDS The registration of Security Bonds executed by Local Fund employees is optional unless immovable property is hypothecated by such bonds. MIZORAM AUDIT MANUAL CHAPTER-11 11.2.8REGISTRATION OF MORTGAGE BONDS Mortgage Bonds executed by the Local Fund e mployees for House Building Advance, Motor Car Advance etc., are required to be registered an are chargeable with Stamp /duty under Article 40, Schedule-I of the Indian Stamp Act of 1899, cost of such Stamp Duty are registration fee is to be borne by concerned employee. 11.2.9DEATH OF PAYEE Pay, Allowances or Pension can be drawn for the day a man’s death, the hour at which death takes place has no effect on the claim. 11.2.10WITHOLDING OF INCREMENTS UNDER FUNDAMENTAL RULES When the authority passing orders to withhold an increment fails to specify clearly for what period and under which condition the officer is to be deprived of his increment, the deprivation should be held to cease on the expiry of the period during which the officer would have drawn the increment withheld and his future increments should not be withheld 11.2.11SERVICE BOOKS Service Books should kept for all employees of Government Servants and of Local Aut hority whether they are temporary or per manent. 11.2.12IMPRESSING CHALLANS WITH THE TREASURY SEAL Challans with which money is remitted to the Treasury should be impressed with the Treasury Seal, with a view to authenticate the challans 11.2.13INCOME TAX, SALE TAX AND PROFESSIONAL TAX Whenever Income Tax, Sales Tax or Professional Tax are recoverable by deduction from bills or if such taxes are received in cash the same should be paid to the concerned authorities t hrough challan within fifteen da ys from the date of suc h receipts. MIZORAM AUDIT MANUAL CHAPTER-11 11.2.14IRREGULAR GRANT OF LEAVE (i) When an irregularity regarding grant of leave is detected in the course of audit, it should be pursued until it is regularized under the orders of the competent authority (ii) It is the duty of the competent authority to enforce, in the case of Extraordinary Leave the observance o f the conditions laid down in Funda mental Rules 85, or CCS(Leave) Rules, 1972. 11.2.15EXEMPTIONS FROM STAMP DUTIY The following are exempted from Stamp Duty :- (i) Gra nts from Provincial revenues for :- (a) augmenting the resources of the local authority. (b) establishing equilibrium between receipts and expenditure. (c) maintenance of equipments of schools. (d) improvement of roads or water supply. (e) Gratuitous relief in famine stricken areas. (ii) Payment on account of Scholarships. (iii) Grants to Aided-Schools. (iv) If the net amount paid on a bill (after making all deductions, etc.), does not exceed Rs 500.00, the acknowledgement need not be stamped. (v) Payments to Libraries being payment without consideration are exempted from Stamp Duty. Note 1 :- Duplicate and Triplicate of the original receipts are not exempt from Stamp Duty. Certified copies however of the original receipts do not require to be stamped. MIZORAM AUDIT MANUAL CHAPTER-11 Note 2 :-If the original receipt is not stamped but the total amount including the subsequent payments exceeds Rs 500.00 a stamped receipt is required in respect of the subsequent payment although the amount thereof may be less than Rs 500.00. Note 3 :- When two or more bills are paid by one cheque, a separate stamped receipt on each bill is not necessary. A single stamped receipt is sufficient. There should, however, be note on each bill that the relevant receipt is included in the receipt attached to such and such bills. Note 4 :- Cash Memoranda issued by tradesmen for sales against Cash payment are not receipts within the meaning of Section 2(23) of the Indian Stamp Act, 1899 and they do not require to be stamped even if the amount exceeds Rs 500.00 and they may be accepted as sub-vouchers in audit. But where there is specific acknowledgement of the receipt of money from the purchaser on the memorandum it should be regarded as a receipt and it should be stamped when the amount exceeds Rs 500.00. 11.2.16UTILIZATION OF LOANS OR GRANTS Loans or Grants from Central Government or State Government or from any other source to Local Authority for a particular purpose must not be diverted for other purposes. Such diversion of fund is unauthorized and as such illegal. Loans or Grants received from the Government or from any other source should be spend only for the purpose for which it was sanctioned. Unspent balance should be returned back to the Sanctioning Aut hority. 11.2.17AUDIT OF GRANTS MADE TO STATE GOVERNMENT/LOCAL AUTHORITY FOR SPECIFIC PURPOSE When a grant is made for specific purpose, it has to be seen that the amount granted has been actually spent on the work for which it was given and that the work has been completed. Audit Officer should accordingly record in the draft audit report a certificate to the effect that Grants-in-Aid to State Government/ Local Authority for specific purposes have been properly utilized and that the unspent balances have been surrendered. Such certificate can be recorded by the Audit Officer only after being fully satisfied that the grants have been properly utilized for the purpose for which the same were sanctioned and all the conditions have been properly fulfilled. However, MIZORAM AUDIT MANUAL CHAPTER-11 the Audit Officer should obtained approval of the Director, Local Fund audit, before such certificate is made. 11.2.18GRANTS FROM THE CENTRAL ROAD FUND TO STATE GOVERNMENT The amounts handed over to State Government for the construction or reconstruction of roads out of the Central Road Fund are not contributions towards their funds to be spent in any way that seem best to them, but grants to cover the cost of carrying out specific projects to a certain standard. The State Government act as agents of Central Government in carrying out the projects under the existing rules and orders of Government. 11.2.19PAYMENT BY CHEQUES When two or more bills are payable to the same person, single cheque should be issued for their aggregate amount, though the particulars of each bill should be entered separately in the register of cheques delivered. 11.2.20TENDERS Instruments between contractors and Local Authority are not exempted from Stamp Duties. The accepted tenders be stamped by the contractors according to law. The stamp should be an “Impressed” one and not a n “Adhesive” one and the value should be as per the provision of the Indian Stamp Act, 1899. Usually the lowest tender should be accepted unless there be some objection on account of the qualification and capability of the contractor, the Security offered by him or execution of his former work. In cases where the lowest tender is not accepted, reasons should be recorded. In selecting the tender to be accepted, the financial status of the individuals and firms tendering should be taken into consideration in addition to all other relevant factors. 11.2.21SUPPLY OF LIVERIES TO LOCAL BODY EMPLOYEES Local Bodies/Aut horities are left free in the matter of supplying liveries to their employees. In the interest of economy they would do well to be guided by the rules laid down by Government for the supply of liveries to their e mployees, but the application of these rules to the individual cases of the employee of Government is left to the discretion of those authorities. MIZORAM AUDIT MANUAL CHAPTER-11 11.2.22LIMITATION FOR SUITS FOR RECOVERY OF MISCELLANEOUS DEMANDS Limitation for suits for the recovery of demands on account of markets, ponds, etc., is governed by Article-110, Schedule-I of the Indian Limitation Act, 1877 and the period is three years from the time the rent becomes due. 11.2.23SALE PROCEEDS OF ARTICLES SOLD BUT NOT PAID WITHIN THREE YEARS BECOME TIME BARRED If the price of goods sold and delivered, where no fixed period of credit is agreed upon, are not paid within three years of the date of delivery of goods, then the claim becomes barred by the law of limitation, vide Item No 52 of the Indian Limitation Act-XV of 1877. 11.2.24POWER OF LOCAL AUTHORITIES AS REGARDS REMISSION DUES Under Section – 63 of the Indian Contract Act, every promise may dispense with or remit, wholly or in part, the performance of the promise made to him. The Local Authority as the promise is legally competent to remit a portion of any dues originally stipulated. Whether the remission is justified by the facts of the case is an entirely different matter, into which the Audit Officer may properly enquire. The Director, Local Fund Audit should report to Government in the Finance Department such instances in w hich the power wielded b y the Local Authority appears to have been abused. 11.2.25EXPENDITURE REQUIRING SANCTION OF A HIGHER AUTHORITY Budget provision is no authority for incurring any expenditure which requires sanction of a higher authority. The fact of a charge which requires special sanction having been included and passed in a budget is no authority for its payment. MIZORAM AUDIT MANUAL CHAPTER-11 11.2.23EXPENDITURE WITHOUT OR INADEQUATE BUDGET PROVISION No expenditure should be incurred for which there is no provision in the current year’s budget. In no circumstances expenditure should exceed the budget provision. 11.2.24INEVITABLE PAYMENTS Money indisputably payable should never be left unpaid, and money paid should under no circumstances be kept out of the accounts. It is no economy to postpone inevitable payments, and it is very important to ascertain, liquidate and record the payment of all actual obligations at the earliest possible date. 11.2.25PROSECUTION OF EMPLOYEES FOR MISAPPROPRIATION Misappropriation of public money is a very grave offense, and, where such offense is established, it is not sufficient to punish the delinquent by dismissal or to rest satisfied with the refund of the amount, which has been misappropriated. In the interest of public morality, the offenders in cases in which there is legal advice in favour of prosecution should invariably be prosecuted criminally. CHAPTER-12 AUDIT PROCEDURES OF CERTAIN ACCOUNTS 12.1 AUTONOMOUS DISTRICT COUNCILS The Audit Officer while auditing the accounts of the Autonomous District Councils, viz, Lai Autonomous District Council, Mara Autonomous District Council and, Chakma Autono mous District Council, should carefully study the system of accounts as provided in the Mizoram Autonomous District Councils Fund Rules, 2010(Appendix-D) before conduct of audit. Instructions and procedures provided in this Manual shall be used by the Audit Officer in checking accounts of the concerned Autonomous District Council. The Auditor must exercise such further checks as his intelligence, prudence and experience suggest him to be necessary and valuable. While discharging his reporting function, an Audit Officer should see whether the Accounting Procedure prescribed have been followed or not. If the same have not been followed, the Audit Officer should mentioned in his Audit Report. 12.2 AIZAWL MUNICIPAL COUNCIL A comprehensive and detail Accounting Procedure, viz., Aizawl Municipal Accounting Manual is prescribed for the Council for maintenance of accounts. An extract copy of Rule 90 and 91 of the Aizawl Municipality Act, 2007 is appended inAppendix-E. It must be studied by the Audit Officer before conducting audit of the Council’s Accounts. Further, audit instructions and procedures provided in this Manual shall be used by the Audit Officer in checking accounts of the Aizawl Municipal Council. The Auditor must exercise such further checks as his intelligence, prudence and experience suggest him to be necessary and valuable. While discharging his reporting function, an Audit Officer should see whether the Accounting Procedure prescribed have been followed or not. If the same have not been followed, the Audit Officer should mentioned in his Audit Report. MIZORAM AUDIT MANUAL CHAPTER-12 12.3 GRANTS-IN-AID INSTITUTIONS (Reference Para – 10.14) 12.3.1The following points should be carefully noted : (i) The period covered by the audit should be specifically mentioned in the audit report. (ii) Dates of conducting audit shall also be mentioned in the audit report. 12.3.2INCUMBENCY The audit reports should contain the names of the person or persons mainly responsible for administering the fund including the name of the Accountant and or the Cashier showing the different period or periods against each of them. 12.3.3GRANTS RECEIVED Recurring Grants or Non-Recurring Grants received from the State Government or from any other agency should be shown in separate statements. Details of the grants including Non-Recurring Grants should be mentioned in the Statements enclosed as Appendices to the Report for this purpose. A general certificate to the effect that the conditions of the Grants were fulfilled with exception, if any, should be incorporated in the draft audit report. Provision of para 10.14 & 10.39 of this Manual should carefully be observed. 12.3.4CLOSING BALANCE The Closing Balance of the Institution with details of cash-in-hand and in Bank, if any, should shown after reconciliation of discrepancy, if any. The details of reconciliation should be shown with instructions to the Secretary concerned to correct the necessary Registers on the basis of the reconciliation. 12.3.5CASH BOOK : Cash Book is the original record book from which the accounts start. The Auditor should see that the Cash Book is written in proper form and proper order and necessary certificates in respect of pages etc are furnished before a book is brought into use and the balance correctly struck and correctly carried forward. Every entry in the Cash Book should be verified with the corresponding supporting MIZORAM AUDIT MANUAL CHAPTER-12 records/vouchers. For uniformity the prescribed form of the Cash Book as provided in Rule 5(9)(1) of Mizoram Local Funds (Accounts and Audit) Rules, 2012, and Appendix-V ibid should be used unless separate Cash Book is prescribed by the competent authority. The Auditor is to see that the Cash Book is written in double entry system and there should be contra entry on the opposite side in respect of Bank deposits and withdrawals. The Auditor should see that the Cash Book is written daily as soon as the transactions occur and is closed regularly and completely checked. He should also see that an analysis of Cash Balance and certificate at the closed of the month has been furnished and signed by the officer-in-charge of the Cash Book. 12.3.6MAINTENANCE OF BOOKS OF ACCOUNTS AND REGISTERS The Auditor should see that whether books of accounts and registers prescribed under Rule 5(9) of Mizoram Local Fund (Accounts and Audit) Rules,2012 is strictly observed and complied with by the Accounting Authority. 12.3.7GOVERNMENT GRANTS REGISTER There should be a Government Grant Register showing records of all Government Grants. There should be uniformity in the form of the Register for all Grants received. The followingForm No. 22 is, therefore, suggested as shown in Table - 9 below :- TABLE -9 F O R M No. 22 - REGISTER OF GOVERNMENT GRANTS Sl.NoNo and Date of Sanctioning LetterPurpose and condition of grantsAmount of grant sanctionedAmount ReceivedDate of Receipt123456 MIZORAM AUDIT MANUAL CHAPTER-12 Tv .No & Date/ Cash/Cheque/Draft/Telegraphic TransferFrom whom receivedAmount UtilizedUnspent amount till the close of the period of AuditBalance refunded, if any, with remarksSignature of the Accounting A utho rity789101112Particulars of all Government Grants received whether by cash or by cheque or draft s hould be entered in the Register. In case of do ubt, the Auditor should verify the particulars with those records in the Treasury or in the Countersigning Officer. The Auditor is to se e that the Grants Register is maintained as prescribed and should note in his report if there is any discrepancy between the date of drawal and date of credit of the Grant in the Institution’s account/ Bank Account. List of Grants-in-Aid received from the Government should be compared with the grants as recorded in the Grants-in-Aid Register. It should be examined that whether gra nts have been actually utilized for the purpose for which it was sanctioned. 12.3.8COLLECTION REGISTER Audit Officer should see that fees are collected in accordance with the relevant rules. The totals of Abstract of Collection Registers should be verified with the office copy of the used Receipt Books and compare it with the entry in the Cash Book. The short or excess credit, if any, should be pointed out in detail in the Audit Report. 12.3.9EXECUTION OF PROJECTS/WORKS Audit Officer should see that the projects/works undertaken has the sanction of Managing Board/Governing Body or such similar authority or other competent authority. Audit instructions and procedures concerning execution of project/works as provided in this Manual shall be used as a guide for checking the works accounts. MIZORAM AUDIT MANUAL CHAPTER-12 12.3.10DEFICIT GRANTS Audit Officer should see whether the conditions of the Deficit Grants are fulfilled or not. Important irregularities, if any, should be recorded in his report. 12.3.11RECEIPT/ PAYMENT VOUCHERS Minor irregularities in receipt/payment vouchers should be shown in the report. Important irregularities that are to be specially brought to the notice of the authorities concerned should be mentioned under this paragraph. In case of vo uchers not produced before audit, the procedure laid down in sub-para 10.7.5(v) of para 10.7 of this Manual should be strictly followed. Observation such as “ Voucher Wa nting” should be avoided. The Officer will examined the case further and find out the exact position of the case. 12.3.12ANNUAL ACCOUNTS : Auditor should carefully examined with reference to Rule 18 of Mizoram Local Fund (Accounts and Audit) Rules, 2012, and the guiding principles provided in this Manual, Annual Statement of Accounts – (i) Receipts and Payments Accounts (ii) Income and Expenditure Accounts and (iii) the Balance Sheet along with Schedules, if any. 12.3.13OPENING BALANCE AND CLOSING BALANCE Auditor should carefully check and compare Opening Balance and Closing Balance as shown in the Cash Book with the balance in Bank Pass Book/Bank Statement, if any. It should be seen that whether Bank Reconciliation had been done at regular interval by the council or not. Otherw ise, the same should be included in the Aud it Report. 12.3.14ISSUE OF AUDIT CERTIFICATE Audit Certificate of the audited accounts of the organization should only be issued with the approval of the Director, Local Fund Audit. MIZORAM AUDIT MANUAL CHAPTER-12 12.3.15 COUNTERSIGNATURE OF UTILIZATION CERTIFICATE Countersignature of Utilization Certificate against the grants/funds received by the client organization should not be done unless physical verification had been conducted while conducting the accounts. Only with the approval of Director, Local Fund Audit, Utilization Certificate be countersigned by the authorized officer on behalf of the Director, Local Fund Audit. 12.3.16 PREPARATION AND SUBMISSION OF AUDIT REPORT Auditor should strictly observed and complied with the provision of para 7.9 of this Manua l. 12.3.17ADDITIONAL CHECKS Instructions mentioned above are not exhaustive but illustrative. The Auditor must exercise such further checks as his intelligence, prudence and experience suggest him to be necessary and valuable. 12.4 AUDIT OF LOCAL COUNCIL/ VILLAGE COUNCILS ACCOUNTS 12.4.1GENERAL As provided under Rule 8 of the Mizoram Grants-in-Aids to Village Councils Rules,2007, the accounts shall be audited by the Auditor appointed by the State Government or Accountant General(Appendix – F). In conducting the accounts of Local Council or the Village Council Court, books of Accounts and Registers required to be maintained by the concerned organization as mentioned in sub-para 12.4.3 of this para, the following records/documents should invariably be furnished by the concerned organization (i) Details of Incumbency (ii) Cash Book (iii) Bank Pass Book/Bank Statement duly updated (iii) Receipts Vouchers along with connected Register wherever necessary (iv) Expenditure Vouchers along with connected Registers wherever necessary (v) Stock Register (Fixed and Consumable Assets) (vi) Annual Accounts, viz – (a) Receipts & Payment Accounts (b) Income & Expenditure Accounts and (c) the Balance Sheet. MIZORAM AUDIT MANUAL CHAPTER-12 12.4.2CASH BOOK : Cash Book is the original record book from which the accounts start. The Auditor should see that the Cash Book is written in proper form and proper order and necessary certificates in respect of pages etc are furnished before a book is brought into use and the balance correctly struck and correctly carried forward. Every entry in the Cash Book should be verified with the corresponding supporting records/vouchers. For uniformity the prescribed form of the Cash Book as provided in Rule 5(9)(1) of Mizoram Local Funds (Accounts and Audit) Rules, 2012, and Appendix-V ibid should be used unless separate Cash Book is prescribed by the competent authority. The Auditor is to see that the Cash Book is written in double entry system and there should be contra entry on the opposite side in respect of Bank deposits and withdrawals. The Auditor should see that the Cash Book is written daily as soon as the transactions occur and is closed regularly and completely checked. He should also see that an analysis of Cash Balance and certificate at the closed of the month has been furnished and signed by the officer-in-charge of the Cash Book. 12.4.3MAINTENANCE OF BOOKS OF ACCOUNTS AND REGISTERS The Auditor should see that whether books of accounts and registers prescribed under Rule 5(9) of Mizoram Local Fund (Accounts and Audit) Rules, 2012 is strictly observed and complied with by the accounting authority. 12.4.4GRANTS RECEIVED Recurring Grants or Non-Recurring Grants received from the State Government or from any other agency should be shown in separate statements. Details of the grants including Non-Recurring Grants should be mentioned in the Statements enclosed as Appendices to the Report for this purpose. A general certificate to the effect that the conditions of the Grants were fulfilled with exception, if any, should be incorporated in the draft audit report. Provisions of para 10.14 & 10.39 of this Manual should carefully be observed. MIZORAM AUDIT MANUAL CHAPTER-12 12.4.5GOVERNMENT GRANTS Check the Grants Register with sanction order and see that the Grants received from the Central Government, State Government and other sources for which the same were sanctioned. Prepare a Statement of Grants showing utilization and attach the same with the Report. 12.4.6GOVERNMENT GRANTS REGISTER There should be a Government Grant Register showing records of all Government Grants. There should be uniformity in the form of the Register for all Grants received. The followingForm No. 22 is, therefore, suggested as shown in Table-10 below :- TABLE -10 F O R M No.22 - REGISTER OF GOVERNMENT GRANTS Sl.NoNo and Date of Sanctioning LetterPurpose and condition of grantsAmount of grant sanctionedAmount ReceivedDate of Receipt123456Tv .No & Date/ Cash/Cheque/Draft/Telegraphic TransferFrom whom receivedAmount UtilizedUnspent amount till the close o f the period of AuditBalance refunded, if any, with remarksSignature of the Accounting A utho rity789101112 MIZORAM AUDIT MANUAL CHAPTER-12 Particulars of all Government Grants received whether by cash or by cheque or draft s hould be entered in the Register. In case of do ubt, the Auditor should verify the particulars with those records in the Treasury or in the Countersigning Officer. The Auditor is to se e that the Grants Register is maintained as prescribed and should note in his report if there is any discrepancy between the date of drawal and date of credit of the Grant in the Local Council/Village Council’s account/ Bank Account. List of Grants-in-Aid received from the Government should be compared with the grants as recorded in the Grants-in-Aid Register. It should be exa mined that whether grants ha ve been actually utilized for the purpose for which it was sanctioned. 12.4.7RECEIPT/ PAYMENT VOUCHERS Minor irregularities in receipt/payment vouchers should be shown in the report. Important irregularities that are to be specially brought to the notice of the authorities concerned should be mentioned under this paragraph. In case of vouchers not produced before audit, the procedure laid down in sub-para 10.7.5(v) of para 10.7 of this Manual should be strictly followed. Observation such as “ Voucher Wanting” should be avoided. The Officer will examined the case further and find out the exact position of the case. 12.4.8ANNUAL ACCOUNTS : Auditor should carefully examined with reference to Rule 18 of Mizoram Local Fund (Accounts and Audit) Rules, 2012, and the guiding principles provided in this Manual, Annual Statement of Accounts – (i) Receipts and Payments Accounts (ii) Income and Expenditure Accounts and (iii) the Balance Sheet along with Schedules, if any. 12.4.9OPENING BALANCE AND CLOSING BALANCE Auditor should carefully check and compare Opening Balance and Closing Balance as shown in the Cash Book with the balance in Bank Pass Book/Bank Statement. It should be seen that whether Bank Reconciliation had been done at regular interval by the council or not. Otherwise, the same should be included in the Audit Report. MIZORAM AUDIT MANUAL CHAPTER-12 12.4.10ISSUE OF AUDIT CERTIFICATE Audit Certificate of the audited accounts of the organization should only be issued with the approval of the Director, Local Fund Audit. 12.4.11 COUNTERSIGNATURE OF UTILIZATION CERTIFICATE Countersignature of Utilization Certificate against the grants/funds received by the client organization should not be done unless physical verification had been conducted while conducting the accounts. Only with the approval of Director, Local Fund Audit, Utilization Certificate be countersigned by the authorized officer on behalf of the Director, Local Fund Audit. 12.4.12 PREPARATION AND SUBMISSION OF AUDIT REPORT Auditor should strictly observed and complied with the provision of para 7.9 of this Manua l. 12.4.13ADDITIONAL CHECKS Instructions mentioned above are not exhaustive but illustrative. The Auditor must exercise such further checks as his intelligence, prudence and experience suggest him to be necessary and valuable. 12.5AUDIT OF NON-GOVERNMENT ORGANIZATIONS (NGOs) 12.5.1GENERAL In conducting Non-Government Organization’s Accounts, formal application or request for conduct of audit of accounts should be furnished by the President/Secretary of the concerned organization. Before conducting any accounts of such organization, approval of the Director, Local Fund should invariably be obtained beforehand. Books of Accounts and Registers required to be maintained by the concerned organization as mentioned in sub-para 12.5.3 of this para, the following records/documents should invariably be furnished by the concerned organization :- MIZORAM AUDIT MANUAL CHAPTER-12 (i) Registration Certificate under the Mizoram Societies Registration Act, 2005. (ii) Cash Book (iii) Bank Pass Book/Bank Statement duly updated (iii) Receipts Vouchers along with connected Register wherever necessary (iv) Expenditure Vouchers along with connected Registers wherever necessary (v) Stock Register (Fixed and Consumable Assets) (vi) Annual Accounts, viz – (a) Receipts & Payment Accounts (b) Income & Expenditure Accounts and (c) the Balance Sheet. 12.5.2CASH BOOK : Cash Book is the original record book from which the accounts start. The Auditor should see that the Cash Book is written in proper form and proper order and necessary certificates in respect of pages etc are furnished before a book is brought into use and the balance correctly struck and correctly carried forward. Every entry in the Cash Book should be verified with the corresponding supporting records/vouchers. For uniformity the prescribed form of the Cash Book as provided in Rule 5(9)(1) of Mizoram Local Funds (Accounts and Audit) Rules, 2012, and Appendix-V ibid should be used unless separate Cash Book is prescribed by the competent authority. The Auditor is to see that the Cash Book is written in double entry system and there should be contra entry on the opposite side in respect of Bank deposits and withdrawals. The Auditor should see that the Cash Book is written daily as soon as the transactions occur and is closed regularly and completely checked. He should also see that an analysis of Cash Balance and certificate at the closed of the month has been furnished and signed by the officer-in-charge of the Cash Book. 12.5.3MAINTENANCE OF BOOKS OF ACCOUNTS AND REGISTERS Notwithstanding anything contained in Rule 16 of the Mizoram Societies Registration Act, 2005 (Appendix-G), the Auditor should see that whether books of accounts and registers prescribed under Rule 5(9) of Mizoram Local Fund (Accounts and Audit) Rules, 2012 is strictly observed and complied with by the accounting authority. MIZORAM AUDIT MANUAL CHAPTER-12 12.5.4GRANTS RECEIVED Recurring Grants or Non-Recurring Grants received from the State Government or from any other agency should be shown in separate statements. Details of the grants including Non-Recurring Grants should be mentioned in the Statements enclosed as Appendices to the Report for this purpose. A general certificate to the effect that the conditions of the Grants were fulfilled with exception, if any, should be incorporated in the draft audit report. Provisions of para 10.14 & 10.39 of this Manual should carefully be observed. 12.5.5GOVERNMENT GRANTS Check the Grants Register with sanction order and see that the Grants received from the Central Government, State Government and other sources for which the same were sanctioned. Prepare a Statement of Grants showing utilization and attach the same with the Report. 12.5.6GOVERNMENT GRANTS REGISTER There should be a Government Grant Register showing records of all Government Grants. There should be uniformity in the form of the Register for all Grants received. The followingForm No. 22 is, therefore, suggested as shown in Table-11 below :- TABLE -11 FORM N o. 22 - REGISTER OF GOVERNMENT GRANT S Sl.NoNo and Date of Sanctioning LetterPurpose and condition of grantsAmount of grant sanctionedAmount ReceivedDate of Receipt123456 MIZORAM AUDIT MANUAL CHAPTER-12 Tv .No & Date/ Cash/Cheque/Draft/Telegraphic TransferFrom whom receivedAmount UtilizedUnspent amount till the close of the period of AuditBalance refunded, if any, with remarksSignature of the Accounting A utho rity789101112Particulars of all Government Grants received whether by cash or by cheque or draft should be entered in the Register. Incase of doubt, the Auditor should verify the particulars with those records in the Treasury or in the Countersigning Officer. The Auditor is to se e that the Grants Register is maintained as prescribed and should note in his report if there is any discrepancy between the date of drawal and date of credit of the Grant in the Organization’s account/Bank Account. List of Grants-in-Aid received from the Government should be compared with the grants as recorded in the Grants-in-Aid Register. Cash Book, actual drawal from Government Office and any discrepancy noticed would be carefully examined along with drawal from the sanctioning authority be specifically recorded in the Audit Report in a separate para. 12.5.7RECEIPT/ PAYMENT VOUCHERS Minor irregularities in receipt/payment vouchers should be shown in the report. Important irregularities that are to be specially brought to the notice of the authorities concerned should be mentioned under this paragraph. In case of vo uchers not produced before audit, the procedure laid down in sub-para 9.2.5(v) of para 9.2. should be strictly followed. Observation such as “ Voucher Wanting” should be avoided. The Officer will examined the case further and find out the exact position of the case. MIZORAM AUDIT MANUAL CHAPTER-12 12.5.8ANNUAL ACCOUNTS : Auditor should carefully examined with reference to Rule 18 of Mizoram Local Fund (Accounts and Audit) Rules, 2012, and the guiding principles provided in this Manual, Annual Statement Accounts – (i) Receipts and Payments Accounts (ii) Income and Expenditure Accounts and (iii) the Balance Sheet along with Schedules, if any, appended with the Reports. 12.5.9OPENING BALANCE AND CLOSING BALANCE Auditor should carefully check and compare Opening Balance and Closing Balance as shown in the Cash Book with the balance in Bank Pass Book/Bank Statement. It should be seen that whether Bank Reconciliation had been done at regular interval by the organization or not. Otherwise, the same should be included in the Audit Report. 12.5.10ISSUE OF AUDIT CERTIFICATE Audit Certificate of the audited accounts of the organization should only be issued with the approval of the Director, Local Fund Audit. 12.5.11 COUNTERSIGNATURE OF UTILIZATION CERTIFICATE Countersignature of Utilization Certificate against the grants/funds received by the client organization should not be done unless physical verification had been conducted while conducting the accounts. Only with the approval of Director, Local Fund Audit, such Utilization Certificate be countersigned by the authorized officer on behalf of the Director, Local Fund Audit. 12.5.12ADDITIONAL CHECKS Instructions mentioned above are not exhaustive but illustrative. The Auditor must exercise such further checks as his intelligence, prudence and experience suggest him to be necessary and valuable. APPENDIX – AThe Mizoram Gazette Extra Ordinary Published By Authority REGN. NO. NE.-313 (MZ) Rs.2/- per issueVol.XXXV Aizawl, Thursday, 23.11.2006, Agrahayana, 2, S.E. 1928, Issue No. 312 N O T I F I C A T I O N No.H. 12018/177/06-LJD, the 17th November, 2006. The following Act of the Mizoram Legislat ive Assembly which re ceived the assent of the Governor of Mizoram is hereb y publis hed for gener al information. The Mizoram Local Funds (Accounts and Audit) Act, 2006 (Act No. 8 of 2006) (Received the assent of the Governor of Mizoram on 20th October 2006) AN ACT THE MIZORAM LOCAL FUNDS (ACCOUNTS & AUDIT) ACT, 2006 CONTENTS PREAMBLE SECTION 1.Short title, extent and commencement. 2.Definitions 3.Appoint ment of Examiner of Local Fund Accounts. 4.Appoint ment of Auditors 5.Power of Examiner of Local Fund Accounts and Auditors to examine local accounts. 6.Special Powers, duties and responsibilities of Examiner of Local servants within the meaning of the Indian Penal Code. 7.Examiners of Local Fund Accounts and Auditors Public servants within the meaning of the Indian Penal Code. 8.Presence o f interested persons at the time of audit. 9.Audit Report. 10. Power of Examiner of Local Fund Accounts to surcharge or charge illegal payment or loss incurred by negligence. 11. Application of Section 9 and 10 to audit conducted by the Examiner of Local Fund Accounts. 12. Credit of certified sums to local fund. 13. Appeal against surcharge or charge made under Sec. 10(1) (a). 14. Surcharge or charge to be recoverable as an arrear of land revenue. 15 Charge in respect of audit to be payable out of local fund. 16. Power to make rules. 17. Repeal of repugnant provisions in other enactments. 18. Repeal and savings. SCHEDULE THE MIZORAM LOCAL FUNDS (ACCOUNTS & AUDIT) ACT 2006 AN ACT To make better provisions for the audit and safeguarding of Local Funds in Mizoram. Be it enacted by the Legislative Assembly of Mizoram in the fift y-seventh year of the Republic of India, as follows: 1. SHORT TITLE, EXTENT AND COMMENCEMENT. (a)This Act may be called the Mizoram Local Funds (Accounts and Audit) Act, 2006. (b)It extends to the whole of Mizoram. (c)It shall come into force on such date as the Government may, by notification in the Official Gazette, appoint in this behalf. 2. DEFINITIONS. In this Act, unless there is anything repugnant in the Context- (1)“auditor” means an auditor appointed under this Act; (2)“examiner o f local fund accounts” means a person appo inted as such Under this Act and includes any person for the time being performing the duties of an Examiner of Local Fund Accounts; (3)“local account” or “accounts of local authority” means the accounts of local fund and of all other propert y vest ing in o r under t he control of ma nagement of any lo ca l aut horit y other then a cant onment authorit y; (4)“local fund” means any fund vested in or under the control or management of a municipal board, town committee, local board, village authority or the local author ity not being a cantonment authority and includes any fund declared by the State Government to be a local fund for the purpose of this Act; (5)“Person Accounting” or Accounting Officer” with reference to any local fund means any person charged with the preparation or 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)“prescribed” means prescribed by rules made under this Act; (7)“Tribu nal” means a body appointed by the St ate Gover nment to be the tribu nal for t he purpose of this Act. 3. APPOINTMENT OF EXAMINER OF LOCAL FUND ACCOUNTS. The State Government may be not ificat ion, appoint any person to be an Examiner o f Lo cal Fund Accounts in Mizoram. 4. APPOINTMENT OF AUDITORS. The Stat e Government may, by no tificat ion, appo int auditors of local accounts in consultation with the Examiner of Local Fund Accounts. 5. POWER OF EXAMINER OF LOCAL 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 an audit t he 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, as amended from t ime to time. (a) To summon any person whose presence be or it thinks necessary to attend before him or it, from time to time. (b) To examine any person on oath to be by him or it; (c) To issue a commission for the examination or interrogatories or otherwise of any perso n; and (d) To summon any person to produce any necessary document or thing. (3) For the purpose of any audit under this Act, an audito r may- (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 writ ing 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; (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 requisit ion is issued under sub sec. (2) or (3) shall be bo und t o co mply therew it h. 6.SPECIAL POWERS , DUTIES AND RESPONSIBILITIES OF EXAMINER OF LOCAL FUND ACCOUNTS. Notwithstanding anyt hing contained in Sec, the State Government may direct the Examiner of Local Fund Accounts for audit or special audit of the accounts of Government Departments in like manner as may be prescribed by the State Gover nment. 7.EXAMINERS OF LOCAL FUND ACCOUNTS AND AUDITORS ARE PUBLIC SERVANTS WITHIN THE MEANING OF THE INDIAN PENAL COD E.Every auditor and Examiner of Local Fund Accounts appointed under this Act shall, for the purposes of the powers and duties conferred and imposed upon him by or under this Act, be deemed to be a public servant within the meaning of Sec.21 of the Indian Penal Code. 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 o n a writt en app licat ion stating t he grounds on which he des ires 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 forthwith forward a copy of t he applicatio n and of the o rder passed ther eon to t he Chairman or other Principa l Execut ive Officer of the local aut hority concerned. 9.AUDIT REPORT. When an auditor has completed the audit o f the accounts of any local authority, he shall prepare a report on them and shall submit the report to the Examiner of Local Fund Accounts, who he in turn shall furnish a copy to the local authority. 10. POWER OF EXAMINER OF LOCAL FUND ACCOUNTS TO SURCHARGE OR CHARGE ILLEGAL PAYMENT OR LOSS INCURRED BY NEGLIGENCE. (1) The auditor shall include in his report (hereinafter called the audit report) a statement of- (a) every payment which appears to him to be contrary to law; (b) the amount of, o r the equivalent in money of any, deficiency or loss which appears to have been incurred by the negligence or misconduct of any person accounting; (c) the amount o f any sum or the equivalent in money o f any articles which ought to have been, but is not brought into account by any such person; and (d) the name of the persons making or authorizing the illegal payment or accountable for the deficiency, loss, or omission, as the case may be. (2) After considering such report the Examiner of Local Fund Accounts may- (a) Order that any payment referred to in Cl. (a) under Sub. Sec. (1) shall be allowed or that no further action shall be taken as regards any amount referred in Cl. (b) or (c) of the said sub – section; or (b) Serve a notice on the person named in the report or any ot her person who m t he Examiner of Local Fund Accounts considers to have been made or authorized the illegal payment or to be accountable for t he deficiency, loss or omission, requiring him to show cause within one month why the payment or amount referred to in the report or any similar payment or amount omitted there from should not be surcharge 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 o n, or charge any such amount against him and shall in every such case certify the amount due from such person. (4) Publicat ion of the certificates and the audit report. The cert ificate 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 10 TO AUDIT CONDUCTED BY THE EXAMINER OF LOCAL FUND ACCOUNTS. All the provisions of Sections 9 and 1- shall apply mutatis mutandis 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 Sec. 10 as due fro m any person shall be for with 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 SEC. 10(1). (a) Any person aggrieved by any surcharge or charge made under Sec. 10 whether by reason of it s excessive or insu fficient , or on any ot her ground w hatsoever; and (b) Any person aggrieved by the omission to make a surcharge or charge under Sec.10, may within thirt y days of the date of 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 think fit, and these orders shall be final. 14. 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 has been preferred under Sec. 13 and the sum stated in the order of the appellate authority, in all cases in which an appeal has been preferred, may on his application or on the application of the local aut hority concerned, within three years of the date of the certificate or order, as the case may be, be recovered by the Deputy Commissioner as if it were an arrear of land revenue. (2) All expenses connected with any application under Sub-Sec (1) shall be a charge o n the local fund and all sums recovered thereunder shall be credited to the same fund. 15. CHARGES IN RESPECT OF AUDIT TO BE PAYABLE OUT OF LOCAL FUND. All expenses incurred by a local authority in complying any requisition under sec.5 shall be payable out of its local fund. 16. POWER TO MAKE RULES. (1) The State Government may, after previous publications, make rules for the purpose of carrying out the provisions of this Act. (2) In particular and without prejudice to the generality of the foregoing powers such rules may regulate – (i) the manner in which a local authority shall keep accounts in cases in which no such provision or, in t he opinio n of t he State Government, insufficient provisio n is mad e by t he enact ment under which such aut horit y is c onst ituted; (ii) the power 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 time and places at which the audit may be conducted; and (iii) t he manner in which certificates u nder Sec. 10 are to be served on t he persons co ncerned. (3) Every rule made under this Act shall be laid, as soon as may be after it is made, before the Legislative Assembly of Mizoram while it is in session for total a period of not less than fourteen days which may be comprised in one session or in two or more successive sessions and if before the expiry of the session in which it is so laid of the sessio n 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 provision Repugnant to the provisions of this Act or any rule made there under, that provision shall, to the extent of the repugnancy, be deemed to have been repealed by this Act. 18. REPEAL AND SAVINGS. (1) On and fro m t he co mme ncement of t his Act, the Assam Lo cal Funds (Accounts and Audit) Act, 1930 shall stand repealed in its applicat ion to Mizoram. (2) Not withstanding such repeal, any action taken, any order passed, any notification issued or any proceedings commenced under the Act so repealed shall be deemed to have been taken, passed, issued and commenced under the corresponding provisions of t his Act. SCHEDULE Section 10(4) FORM OF CERTIFICATE FORM I AGAINST AN ACCOUNTING OFFICER I do hereby certify that in the account of ………………………………………………. (here enter the name and office of the person) ………………………………………………… Of ……………………….(here enter the local authority) I have disallowed (or surcharged) The sum of Rs……………………….. Which is accordingly now due from him. As witness my hand, this ……………………Day of ………..……...20……………… Examiner of Local Fund Accounts. FORM II Against a person not an accounting officer I do hereby certify that in the account of ………………………………………………. (here enter the name of the local authority ). I have disallowed the sum of Rs…………….. As payment Illegally made out of the funds of the local authority and I find that …..….…..(here enter the name and descript ion of person) authorized 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 ……………..20………………. Examiner of Local Fund Accounts. P. Chakraborty, Secretary, Govt. of Mizoram Law & Judicial Deptt.Published and Issued by the Controller, Printing & Stationary, Mizoram Printed at the Mizoram Government Press, Aizawl C-700 APPENDIX-A(i) No.A. 11017/1/2012 – F.Est/3 GOVERNMENT OF MIZORAM FINANCE DEPARTMENT OFFICE MEMORANDUMAizawl, the 3rd August,2012 In the interest of public service and in pursuance of Clause 9 of the Mizoram Local Funds (Accounts and Audit) (First Amendment) Act, 2012 notified vide Issue No.H.12018/177/2006- LJD dt.25.7.2012 and published in the Official Gazette under Issue No. 354 dt.30.7.2012, it is brought to the notice o f all concerned that the nomenclature of the following post under Accounts & Treasur ies ha ve been changed as shown be low. All co mmunicat ions should be addressed accordingly with immediate e ffect. Sl.No Existing NomenclatureNew Nomenclature1.Examiner of Local Fund AccountsDirect of Local Fund Audit2.Deputy Examiner of Local Fund Accounts Deputy Director of Local Fund Audit3.Assistant Examiner of Local Fund AccountsAssistant Director of Local Fund AuditSd/- VANLALNGHAKA Secretary to the Govt. of Mizoram Finance Department. Memo No. A. 11017/1/2012 – F. Est/3:Aizawl, the 3rd August, 2012. Co py t o:- 1. Secretary to Governor, Mizoram. 2. Secretary to Chief Minister, Mizoram, 3. P.S to Speaker/Dy. Speaker, Mizoram. 4. P.S to all M inist ers. 5. P.P/S to Chief Secretary, Government of Mizoram. 6. Secretary DP&AR (GSW) for information. 7. Secretary, Mizoram Public Service Commission, Aizawl. 8. Accountant General, Mizoram, Aizawl. 9. Chief Controller of Accounts, Accounts & Treasuries. 10. All Treasury Officers, Mizoram. 11. Controller, Printing & Stationeries, Govt. of Mizoram with 6 (six) Spare copies for publication in the Mizoram Gazette. 12. Guard File. (ANGELA ZOTHANPUII) Under Secretary to the Govt of Mizoram APPENDIX-B The Mizoram Gazette Extra Ordinary Published By Authority RNI No. 27009/1973 Postal Regn. No. NE-313(MZ) 2006-2008Re. 1/- per pageVOL – XLI Aizawl, Monday 30.7.2012 Sravana 8, S.E. 1934, Issue No. 354 NOTIFICATION No. H. 12018/177/2006-LJD, the 25th July, 2012. The following Act is hereby published for general informat ion. The Mizoram Local Funds (Accounts and Audit) (First Amendment) Act, 2012. (Act No.9 of 2012) {Received the assent of the Governor of Mizora m on the 23rd July, 2012} P. S ingt hanga, Secretary to the Govt. of Mizoram AN ACT To amend the Mizoram Local Funds (Accounts and Audit) Act, 2006. ( Act No.8of 2006) hereinafter referred to as the Principal Act; It is enacted by the Legislative Assembly of Mizoram in the Sixty-Third Year of the Republic of India as follows :- 1.Short title and commencemen t - (1) This Act may be called the Mizoram Local Funds (Accounts and Audit) (First Amendment) Act, 2012. (2) It shall come into force from the date of its publication in the Official Gazette. 2.Amendment of Section 3 - In Section 3 of the Principal Act for the word, ‘be’ in between t he words, ‘may’ and ‘notification’ shall be subst ituted by the word, ‘by’. 3.Amendment of Section 5 - In Section 5 of the Principal Act, for the word, ‘an’ in between the words, ‘examine’ and ‘ ‘audit’ shall be substituted by the word, ‘and’. Ex-354/2012 4.Amendment of Section 6 - In Section 6 of the Principal Act, for the word, ‘Sec’ in between the words, ‘in’ and ‘the’ shall be substituted by the word, ‘Sec.5’ 5.Amendment of Section 9 - In Section 9 of the Principal Act, the word, ‘he’ in between the words, ‘who’ and ‘in’ shall stand deleted. 6. Amendment of Section 10 - (1) In clause (b) sub-section (2) of Section 10 of the Principal Act, for the word, ‘surcharge’ in bet ween the words, ‘be’ and ‘on’ shall be substituted by the word, ‘surcharged’. (2) In sub- section (4) of Section 10 of the Principal Act, for the word, ‘sel’ in between the words ‘forms’ and ‘forth’ shall be substituted by the word, ‘set. 7.Amendment of Section 12 -In section 12 of the Principal Act, for the word, ‘forwith’ in bet ween the wo rds, ‘be’ and ‘paid’ shall be substituted by the word, ‘forthwith’. 8.Amendment of Section 16 -In sub- Section (3) of Section 16 of the Principal Act, for the word, ‘total a period’ in between the words, ‘fo r’ and ‘of’ shall be subst ituted by the words ‘a total period’. 9.Amendment of Section Act -In the Principal Act, the nomenclature, ‘Examiner of Local Fund Accounts’, wherever it occurs, shall be substitute by the nomenclature, ‘Director of Local Fund Audit’.Published and Issued by Controller, Printing & Stationery Department, Government of Mizoram Printed at the Mizoram Government Press, Aizawl. C/500 APPENDIX-C GOVERNMENT OF MIZORAM FINANCE DEPARTMENT (APF BRANCH) NOTIFICATION Dated Aizawl, the 8th February, 2013 No.G.24011/2/2009-F. APF: In exercise o f the powers conferred by Section 16 of the Mizoram Local Funds (Accounts and Audit) Act, 2006 (Act No. 8 of 2006), the Governor of Mizoram is pleased to make the following rules, namely; GENERAL 1. SHORT TITLE AND COMMENCEMENT 1)These Rules may be called the Mizoram Local Funds(Accounts and Audit) Rules, 2012 2) They shall co me int o force on such dates as the Government may, by not ificat ion in the Offic ial Gaz ett e, appoint in this behalf. 2. DEFINITIONS : I these rules, unless the context otherwise requires, 1)“Act” means The Mizoram Local Funds (Accounts and Audit) Act, 2006(Act No.8 of 2006); (2) “Appendix” means an appendix appended to these rules; (3) “Auditor” means an Auditor appointed under the Act; (4)“Central Government” means Government of India; (5) “Constitution” means the Constitution of India ; (6)“Finance Departmentt “ means the Finance Department under the Government of Mizoram; (7) “Local Authority” means any authority which administer Local funds as defined in the Act and; or any authorities as may be declared by the State Government as Local Authority from t ime to time. (8) “State Government” means Government of Mizoram; (9) “Treasury” means any Treasury in the State of the Mizoram and includes a sub- Treasury ; Words and expressio ns used in these rules and not otherwise defined sha ll have the same meaning as respect ively assigned to them in the Act . 3. APPOINTMENT OF DIRECTOR OF LOCAL FUND AUDIT, OTHER OFFICERS AND STAFF Notwithstanding anyt hing contained in Section 3 and 4 of the Act, the Office of the Director of Local Funds Audit shall comprise of officers and staff as may be decided by the Government by a notificat ion fro m t ime to time. GENERAL PRINCIPLES AND METHODS OF ACCOUNTS 4.Notwithstanding anyt hing contained under clause (i) of sub section 2 of Section 16 of the Act wher e t he account s of the Local Authority fo llow the Gover nment Account ing Syste m, the principles and methods for maintenance of Accounts should be as under :- (1) Period of Accounts : The annual accounts of the Local Authority shall record transactions which take place during a financial year running from 1st April of a year to 31st March of the next year. (2) Main Division of Accounts : The Accounts of the Local Authority shall be kept in the following two parts :- (i)Part-I – Fund of the Local Authorit y (ii) Part-II – Deposit Fund (3) In Part-I of the Accounts, there shall be two main Divisions, namely : (i) Revenue Account : Revenue Receipt Heads (Revenue Account) and Expenditure Heads Revenue Account) The first Division, viz, ‘Revenue Account’ shall deal with the proceeds of taxation and other receipts classed as Revenue, and expendit ure met therefrom. It shall also include the grants and co nt ribut ions received fro m t he Ce ntral Government or State Gover nment or any other sources, and also grants and contributions made by the Local Authorit y. (ii) Capital Account : Public Debt, Loans and Advances consisting of Section for Receipt Heads (Capital Account) and Expenditure Heads (Capital Account). The Second Division shall deal with expendit ure met usually from borrowed funds wit h the object either o f increasing concrete assets of a material and permanent character or reducing recurring liabilities. It also includes receipt of a capital nature intended to be applied as a set off to capital expenditure. The Sect ion “Public Debt ” and “ Loans and Advances etc” o f t he second divis io n shall comprises of Loans received and their repayments by the Local Authority and Loans and Advances made a nd t heir recoveries by the Lo cal Authority. 4) In Part – II of the Accounts, the transactions relating to Deposit including Contributor y Provident Fund and other Funds and Advances shall be recorded. The transactions under ‘Debt’, ‘Deposit and Advances’ in this part are such, in respect of which the Local Authorit y incurs a liability to repay the money received or has a claim to recover the amount paid, together with the repayment of Deposits and the reco veries of Advances. (5) Classification of Accounts : (i) Wit hin each o f t he divis io n/sect ions ment ioned in sub sect ion (3) a bove, t he t ransactions shall be divided into Major Heads of Accounts which shall be divided into Minor Heads, each of which shall have number o f Subordinate Heads. The Classification of Accounts shall be such as given in the List o f Major Heads and Minor Heads of Accounts. In all account records, the Major and Minor Heads shall be arranged in t he e xact order sho wn in t he list of Major and M inor Heads of Accounts. The classification prescribed (including the Code Number assigned up to the Major Heads) should be strictly followed. (ii) The Major Heads of Accounts generally correspond ‘sanction’ of the Local Authority, such as different services like ‘Agriculture’, ‘Public Works’ etc provided by the Local Authority, while t he Mino r Heads subordinat e t o them ide nt if y the ‘programme’ undertaken to achieve t he objectives of the functions represented by the Major Heads. A ‘Detailed Head’ may be termed on objective classification. On the expenditure side of the accounts, the detailed heads are primarily meant for it em-wise control over expendit ure a nd to indicate the nat ure o f expenditure on a scheme or activity of organization in terms of input such as ‘pay and allowances’, ‘Other Charges’ etc. 5. ACCOUNTS OF COMMERCIAL NATURE (1) Complete Accounts in respect of the monetary transactions of the Local Authorit y in the Headquarter Office as well as in the Subordinate Offices shall be maintained in the same manner as required in a State Government Office. Where the accounts of any Authority mentioned above are conducted on Commercial lines, the essential formalities of Commercial Accounts should be strictly observed. The Head of Accounts shall be as per list atAppendix I. (2) The Local Authority under sub-rule 5(1) shall prepare the annual statement of accounts every financial year. The Chairman/Secretary of the Local Authority may authorize an officer of the local authority to prepare the account on his behalf. (3) The Chairman/Secretary of the Local Authority shall supervise the maintenance of the accounts of the Local Authority as well as subordinate offices, the compilation and financial st atement and return, and shall ensure t hat all acco unt s, books, connected vo uchers and ot her documents and papers of the Local Authority required by the audit officer for the purpose of auditing the accounts of the Local Authority are placed at the disposal of that officer. (4) The Annual Statement of Accounts duly approved by the Chairman and aft er certification by the Director of Local Funds Audit or his authorized representative, shall be submitted by the Secretary of the Local Authorit y to Finance Department, Government of Mizoram by such date as may be specified by the Government. (5) Forms of Accounts : The Local Author ity under sub-rule 5(1) shall prepare the following accounts in the forms mentioned below:- (1) Receipt and Payment Accounts inAppendix-II (2) Income and Expenditure Accounts inAppendix – III (3) Balance Sheet inAppendix – IV (6) The authorized sig natory to sign and authent icat e the ‘Receipt and Payment Accounts’, ‘Inco me and E xpendit ure Accounts’ and ‘Ba lance She et’ shall be t he Secretary of t he Lo ca l Authority. (7) The Annual Statement of Accounts shall be submitted to the Director of Local Funds Audit/Audit Officer on or before the 30th Ju ne following t he year to whic h the acco unts relate and the Director of Local Funds Audit/Audit Officer shall audit the accounts of Local Authorit y and report thereon. (8) Opening of Bank Account :-The Local Authority under sub – rule 5 : (i) shall open account(s) in one or more Nationalised/ Scheduled/Regional Banks. (ii) shall make available the specimen signatures of two of its officers to be the authorized signatories to the nominated bank/banks for their information and records. (iii) the link branch of the nominated bank/banks shall furnish daily payment and receipts scrolls to the Local Authorit y which will ensure that the cheques appearing in the payment scrolls are those issued by the Local Authority and reconcile each transaction with the Bank/Banks. (9) Books of Accounts : The following books of Accounts and Registers shall be maintained by the Local Authority under sub rule 5. (i) Cash Book (Appendix-V) (ii) Ledger (Appendix – VI) (iii) Journal(Appendix-VII) (iv) Register of Temporary Advances (Appendix-VIII) (v) Register of Money orders, Cheques and Bank drafts received (Appendix-IX) (vi) Cheque Book and Cheque Issue register (Appendix-X and XI) (vii) Register of remittance made into Bank (Appendix-XII) (viii) Bank Pass Book (ix) Register of Money orders, postal orders and bank drafts dispatched (Appendix-XIII) (x) Stock Register (Appendix – XIV) (xi) Monthly Accounts of Receipts and Payments (Appendix – XV) (xii) Monthly Accounts of Receipt and Payments Register (Appendix-XVI) (xiii) Bill Register (Appendix – XVII) (xiv) Fixed Assets Register (Appendix – XVIII) (xv) Register of Investment and Ledger for Investment (Appendix – XIX and XX) (xvi) Register of Bank Interest (Receipt s and Pa yments)(Appendix – XXI) 6. ACCOUNTS PERTAINING TO LOCAL AUTHORITY NOT COVERED BY RULE 4 AND 5 The principles and method of accounts to be followed by any Local Authority not covered by Rule 4 and 5, shall be maintained strictly as per the provisions of Accounting Manual or Procedure of the respective Acts or Rules. 7. The Local Authority under rule 4,5 and 6 shall maintain proper accounts and other records of t he grant s and loans in the ma nner as may be prescribed by the Central Government / State Gover nment. 8. At the close of each Financial Year, the Local Authority under ru le 4,5 and 6 shall furnish an Utilisation Certificate stating therein the opening balance, amount (including grants and loans) received and utilized during the year and the balance remaining unutilized duly signed by the Execut ive Authorit y for obtaining certification by the Director of Local Funds Audit or any other officer appointed by him in this behalf. 9. At the close of each quarter, a consolidated account showing the total receipts and payments during the period under each heads of account with opening and closing balances shall be prepared and submitted to the Director of Local Funds Audit for compilation and onward submission to the Government. 10. The Local Authority under rule 4,5 and 6 shall lay down a detailed procedure for sanction of various expenditure and delegation of powers among the Local Authorit y. 11. The accounts of the Local Authority shall be audited by the Director of Local Funds Audit at such interval as may be prescribed by him. 12. Books and forms of acco unts shall be maintained in t he forms in w hich these are maintained in State Government Offices. If some of the Registers and forms are not in use in the St ate Government Office, the form adopted by the Local Authorit y with the approval of Director of Lo cal Funds Audit will be fo llowed. 13.The Local Authority should maintain Register of Assets for the assets acquired wholly or substant ially out of Government Grants and Stock Register separately for capital goods, consumable and non- consumable articles and shall arrange for their physical verificat ion at least once a year. These should be maintained at the main office of the Local Author ity. The relevant abstract of Register of Assets should be appended to the Annual Statement of Accounts submitted by the Local Authority either to the State Government or Government of India as the case may be. 14. The maintenance of accounts of the programme funds should be governed by the principle that no expenditure is incurred by the local authority which is repugnant to the objectives of the programme o f the fund and e ver y item of expenditure which is incurred in accordance with the prescribed procedure, and the canons of Financial Propriety. 15. It shall be the dut y of the Accounts Wing in the Local Authority to ensure strict observance of the account ing pr incip les. 16. Any grant s o r po rtion thereo f given by the Governme nt of India or t he St ate Go vernment to the Local Authority for a specific purpose shall not be re-appropriated without the previous sanction of the granting authority to a purpose other than that for which it was originally approved. 17. Any other books, accounts and registers which may be considered necessary for the day to day work of the Local Authorit y shall also be maintained with the approval of the Director of Local Funds Audit. 18. LIABILITY OF LOCAL AUTHORITIES UNDER RULE 4, 5 AND 6 TO PR EPARE AND PRESENT ACCOUNTS FOR AUDIT (1) The annual accounts of a Local Authority or any other authorit y ment ioned above prepared or caused to be prepared by the Executive Authority, in such form and in such manner as may be prescribed, and presented for Audit within four months of the close of financial year. (2) Where an Executive authorit y makes defaults in the preparation and presentation of accounts for audit within the period specified under sub rule 1 of 18, he shall be punishable, on conviction, with fine which may extend to five thousand rupees but which shall not be less than one thousand rupees. (3) No proceedings under sub-rule 2 of 18 shall be taken by the Director of Local Funds Audit without giving the person, affected thereby an opportunity to show cause, within fifteen days, why such proceedings should not be taken against him/her. (4) The annual accounts of a Local Authority prepared or caused to be prepared by the Executive Authority under this Rule shall be in Forms(Appendix-XXII and Appendix-XXIII) appended to this rules. The same shall contain the following details:- (i) The o pening ba lance for the year s howing the bala nce in Ba nk/Treasury acco unt; (ii) A Statement of Re ject and Payment and Inco me and Expenditure under each head o f account; (iii) The amount at the credit o f the local authority/local fund or any other authority at the year showing the balance in each Bank/Tr easury account ; (iv) A Stateme nt sho wing the demand, co llect io n and balance or revenue co llect ion including arrear collection; (v) A statement of investments made; (vi) A statement of Grants utilised; (vii) A statement of loans availed and utilized; (viii) A stateme nt showing outstand ing debts a t the beginning o f t he year, repayment made dur ing t he year and o utst anding de bts at the end of the year; (ix) A statement showing the details of public works undertaken during the financial year concerned, amount expended for each work and balance of fund, if any, available; (x) A statement showing details of physical progress of public works undertaken during the financial year along with financial progress for each it em(s) of works; (xi) A statement of assets and liabilit ies as on the close of the accounting year. 19. POWERS AND DUTIES OF DIRECTOR OF LOCAL FUND AUDIT AND AUDITORS AND PROCEDURE TO BE FOLLOWED IN CONDUCTING AN AUDIT (1) Investigation : In addition to carrying out the ordinary processes of audit, the Director of Local Funds Audit and the Auditors shall see that the broad principles of legitimate public finance are observed. They shall investigate the necessity for expenditure which has been incurred or is proposed to be incurred; whether individual items of expenditure were in furtherance of the scheme for which the budget provided; whether the same result could have been obtained otherwise with greater economy; and whether t he rate and scale of expenditure were justified in the circumstances. Briefly they ask every question that might be expected from an intelligent tax payer bent on getting best value for his money and are responsible that audit is conducted with reference to the following principles, namely :- (i) Every Officer or other member of a Local Authority should exercise the same vigilance in respect of expenditure incurred from the Local Authority’s funds as a person of ordinary prudence would exercise in respect of the expenditure of his own money. (ii) No person should exercise his powers of sanctioning expenditure to pass an order which will be directly or indirectly to his own advantage. Note: If, however, an order is of perfectly general application it does not constitute a breach of the principle if the particular authority that passes an order is also benefited thereby. (iii) The Local Authorit y’s revenue should not be utilized for the benefit of a particular person or a section of the community unless- (a) the amount of expenditure involved is insignificant, or (b) a claim for the amount could be enforced in a court of law, or (c) the expenditure is in pursuance of a recognized policy or custom. (iv) The amount of allowance, such as Travelling Allowances granted to meet expenditure of a particular type, should be so regulated that allowances are not on the whole sources of profit to t he recipients. (v) If a system of int ernal audit is in exist ence in the Local Author it y under audit, it should be seen that- (a) the system is functioning according to the Rules prescribed in this behalf (b) objections are raised by the internal auditor wherever necessary and (b) complianc e of the objections is wat ched by the int ernal audit ors. The report o f the internal auditors should be pursued and comments regarding the state of accounts and audit should be incorporated in the paragraph regarding general remarks in the Audit Reports, whenever found necessary. (2) Intimation of Audit :Except as provided in the explanation hereunder, the auditors after obtaining written approval of the Director of Local Funds Audit shall send notice to the Local Authority concerned of his intention to audit the accounts of such authority at least three weeks before the date on which he intends to commence such audit, unless the Director of Local Funds Audit shall, for reasons to be communicated to Government, decide otherwise, in such a case, a copy of his order dispensing with previous notice shall be presented by the auditor to the head of the office. He shall, as far as possible, send with such notice a list of all documents or records which he may require for the purpose of such audit. The notice shall be sent by registered post with a prepaid acknowledgment or, when the auditor is in the same station, by a messenger who shall obtain a n ack nowledgment of receipt . The a uditor shall, if ne cessary ca ll fo r any other documents required dur ing the course of audit on a separate requisit ion, which shall be acknowledged by the head of the ministerial establishment. (3) Attendance : For the purpose of conducting audit the auditor shall attend during the regular office hours, at t he office of the Local Authority concerned, except in cases where the Director of Local Funds Audit shall decide otherwise. The Local Authority shall provide suitable accommodations and furniture’s in the office to enable the auditor to discharge his duties without undue interruption, and shall render him all possible assistance in carrying out the audit. (4) Removal of Office records : Subject to the provision of rule 11, the auditor shall not, except with the written per mission of the head o f the office o f the Local Authority whose accounts are being audited, remove from such office any books, vouchers or documents of any kind whatsoever. (5) Communication with heads of offices :The auditor sha ll no t correspond direct ly with t he Chairman, Vice-Chairman, or other managing author ity of a Local Authority whose accounts are being audited except for the purposes of reporting an embezzlement, or making any enquiry in connection with the audit, or as provided in the Act and the rules framed thereunder. (6) Duties of Auditors in checking accounts : (i) In aud iting the accounts, the auditors shall se e that they have been kept and are pr esent in proper form; that the particular items of receipts and expenditures are stated in sufficient detail; and that the payments are supported by adequate vouchers and authority. He shall examine whether all sums received or which ought to have been received have been brought into account, whether the e xpendit ure in all cases suc h as might lawfully be mad e and w hether any loss has been incurred by the negligence or misconduct of any person or persons. He shall also scrutinise whether the financial position of the local authority is duly accounted for in the books and regularly checked. (ii) In carrying out his duties, the auditors may sometime have to touch on administrative matter but at su ch times he should be careful never t o interfere in those mat ter s and not to to uch on purely administrative matters more than it may be absolutely necessary. Certificates of facts given by responsible executive officers should be accepted as correct, unless there are prima facie grounds for do ubt. He should br ing to no tice defect s in the s ystem and po int out irregularities in a manner, which can be readily grasped and completely removed. In making a suggestion for improvement, he should be practical and should go beyond more technical examination of registers and vouchers. The executive and administrative usually have difficulties of which due account should be taken for necessary act ion. It should be borne in mind t hat t he function of audit is not to find fault or to magnify defects but to provide valuable and constructive help to enable local bodies to execute their tasks more effectively and efficiently, as time passes on. (iii) The e xecut ive authoritie s of the Local Authorit y, and not the Local Fund Audit Depart ment are responsible for enforcing economy in the expenditure of the local fund. It is, however, the duties of the auditor to bring to the notice, wastefulness in public administration and infructuous expenditure. Generally a Local Authority will welcome suggestions to promote economy, based on information forthcoming from the accounts. Only the Director of Local Funds Audit should make such suggest ions and t he right to put them to use should be left to the discret ion of t he executive. (iv) Auditors should not make notes, corrections or remarks in any of the Registers or on any of the documents of the office, which they are audit ing, except the usual audit endorsement. (7) Physical Verification of balances, securities, postage stamps, receipts and forms etc: (i) Verify balance o f the Cash Book and Regist er of Per manent Advance and ot her advances and the balances as per the Register of undisbursed amounts, copying fees, etc. (ii) See wherever poss ible t hat t he cash balance on hand indicated in the Day Book/Cash Book is retained on hand, only on account of its late receipt after banking hours:- (iii) See that the Cash, collections received and await ing remittance are kept in safe with double lock arrangement. (iv) See at the time of verification of balance of petty cash, that paid but unrecouped vouchers are produced. (v) Agree the Treasury of Bank balances with the respective pass books. (vi) Check the analysis of the Cash Balance as on the date of physical verification and see t hat there is not delay in d isburse ment of the amo unt drawn from t he T reasury or other sources, no drawal of fund is made in advance of requirement or to avoid lapse of budget grant. (vii) Verify a ll invest ment on hand, acco rding to entries in the I nvest ment Reg ist er , safe custody receipts received fro m the Reserve Bank and also Bank receipts for Fixed Deposits. The securities kept in the Reserve Bank of India and in the safe custody of Banks should be verified with the list o f securities in the Reserve Bank’s custody, annually published in the Government Gazett e and Banks acknowledgements. It should be seen that interest is recovered on due dates and dates of maturity of Fixed Deposits receipts or securities as the case may be and vigilantly watched. Default in encashment and realization on due dates, leading to losses should be prominently brought to notice in audit. (viii) Verify the stock of postage, revenue and court fee stamps, balance of receipts books, and forms which are issued to the public on payment, e.g., Voters lists, Tender Forms, etc by actua l counting. NOTE :This work should be done by the Audit Supervising Officer/ Senior Auditor himself and ver ificat ion of cash may be reported in the proforma enclo sed in a para o f the auditor’s not e when verification is done as a normal Audit. (8) Partial Examination :In addition to his powers to conduct a regular audit under Section 5 of the Act, the Director of Local Funds Audit himself may make a partial examination of the accounts of a Local Authority or make a local enquiry into any matter relevant to audit at any time, or depute an auditor to do so. (9) Audit Marks :Every entry examined or checked should be ticked or cross ticked, wherever necessary, by the Auditor and all document s, vouchers and papers examined shall be initiated with the special audit pencil and dated. For this purpose, special green chalk pencils are used, and these should be carefully kept in the personal custody of the Auditors. In the absence of these tick marks, the Director of Local Funds Audit or his authorized officer will presume that the necessary checks have not been applied. When, however, in comparing an entry in an original account or voucher with a subsidiary Register, the auditor finds that the letter does not agree or if a check is not feasible in any case, he must mark a cross X his audit period instead of usual tick mark. When an objection is removed, a circle should be drawn round the cross X. (10) Change of Auditor during an audit :If an auditor is re lieved by anot her auditor during t he course of an audit, the former shall deliver to the later an exact statement of the audit co mpleted up to date. The stat ement sha ll be filled in the o ffice o f t he Direct or of Lo cal Funds Audit. The auditor relieved shall also draft the paragraph for the audit report regarding the audit done by him before he make over charge and deliver them to the relieving auditor, taking his acknowledgment t herefore. Bot h aud itors will sig n t he report incorporating therein a not e be ing made t o show t he responsibility of each. (11) Audit Requisition :When any document is not produced after summons or letter issued by the auditor under Section 5 (3) of the Act, the auditor shall send a written report of the failure to produce such document to the Chairman, Vice-Chairman, or to the Managing Authority of the Local Authorit y concerned. If the required document is not produced in spite of this written report, the matter shall be submitted to the Director of Local Funds Audit together with any communications received in this connection from the Chairman, Vice-Chairman, or other Managing Authority. No document shall be left un-audited without the written order of the Director of Local Funds Audit in each case. (12) Embezzlement :When embezzlement is detected, or may reasonably be inferred from any suspicious circumstance or irregularity in the accounts, the auditor shall take personal charge of the relevant records, and shall at once forward a list of such reco rds to the head of the office. Any such record may be inspected by the head o f the office in the presence of t he auditor. The auditor sha ll report t he circu mst ances i mmediat ely in writ ing t o the chair man/other Ma nag ing Authority concerned and also (by fax, if necessary) to the Director of Local Funds Audit. When the fraud or embezzlement has been fully investigated by the auditor, he shall submit a complete report on the case to the Director of Local Funds Audit who may order a further examination of, and report on, all or any accounts, if he considers such an examination and report justified, and shall determine when any records seized by the auditor shall be returned to the local authority. (13) Objections :In order to avoid a rush of objections towards the end of the audit, the auditor shall as far as possible audit receipts first in the case of municipalities, and expenditure first in the case of local boards. The objection Statement shall be prepared as per Form appended to these rules(Appendix-XXIV). (14) Inspection Report :The results of the Audit shall be communicated through Inspection Report, which may be drawn in two parts as below:- (i) Part I – It includes:- (a) Introduction (b) Outstanding objections from previous reports, ( in this part, all outstanding objections shall be reproduced in full, every alternate year along with up to date position). This is done to bring t he o utstanding Para’s, po inted ly to t he no tice o f all concerned for facilit y of watch and expeditious disposal. The old outstanding objections are to be replied separately through the respective old inspection reports, which should not be treated as closed till all the objections are settled. (c) Schedule of persistent irregularities (ii) Part- II – Contains two sections “A” & “B”. Section ‘A’ shall include all important irregularities, i.e. irregularities involving recoveries, questions of violation of principles, misappropriation and losses, etc. Section ‘B’ shall contains irregularities, though not major, which the Audit wants to bring to the notice of higher authorit ies. (15) Matters to be included in the Inspection Report :Objection admitted or questions settled during the course of an audit shall be noticed in the report only if the irregularity is a serious one, or if a defect of system or error in pr inciple has been brought to light and has no t been permanently removed. Apart from any matter required to be included under section 9 of the Act, the audit report shall be confined to matters of a general nature which cannot be disposed of by the Auditors. The following points should be prominently brought to notice in the report:- (i) Attempts to evade financial rules by manipulation of accounts and vouchers. (ii) Avo idances of lap ses by withdraw ing funds from the T reasury before the money is actually required for expenditure. (iii) Avo idance o f necessity o f hig her sanct ion by splitt ing up o ne sche me of expenditure into a number of component details. (iv) Pers ist ent neglect t o comply wit h audit requirements. All unrect ified object ions relating to a previous audit shall be specially brought to notice. A list of such items shall be appended to the report. (16) Time for writing inspecting report :The auditor shall have his repo rt and schedules completely written up immediately after the close of the audit, printed copies of the report being sent to the local aut horit y as soon as possible. (17) Instruction regarding the inspection reports :The auditor shall attach to his inspection report a brief note explaining clearly the financial position of the local authority and statement sho wing: (i) Cash recoveries on audit objections (ii) Money capable of being saved by the detection of embezzlements in audit, and (iii) Possible reduction in expenditure due to audit suggestions. At the end of this report, he shall give a very brief resume of the matters dealt with therein, and an opinion on the state of the accounts as a whole. (18) Removal of objections : (i) Once the transaction has been challenged by the Audit, the responsibility for having the objection removed and their prompt settlement, will primarily devolve upon the department/local authority concerned. An audit objection is usually removed by obtaining the requisite sanction, by making the necessary recover y, by co rrecting or complet ing the relevant account or voucher, or by furnishing the necessary documents or information, or by otherwise securit y compliance with the provisions of a specified Rules/ Regulations. (ii) Audit Inspection Reports should be promptly dealt with by the concerned Department Officer/Local aut horit y at the init ial st age so that the conting ency o f reporting o f any po int or para to the State Government (Finance Department/Vigilance Department) does not arise due to neg ligence o r delay in rep ly. First rep ly should in var iably be sent to t he Direct or of Lo cal Funds Audit within one months of the receipt o f printed reports. (19) Audit by Director of Local Funds Audit himself :When the Director of Local Funds Audit himself undertakes an audit of the accounts of the local authority/department, he may cause a preliminary scrutiny of the accounts to be made by an auditor appointed under the Act, if the Director of Local Funds Audit felt necessary. (20) Settlement of Audit Objections : If the replies to the aud it objections are considered satisfactory by the Director of Local Funds Audit, the objections included in the inspection reports shall, after careful examination, be dropped by the Director of Local Funds Audit himself. If these are not considered satisfactory and need further probe, it shall be included in the Audit Report as explained in Rule 8. (21) Audit Report :All the o utst and ing au dit objections and t he r ep lies o f w hich ar e considered and need for further probe shall be included in the Audit Report. The Audit Report shall be prepared by the Director of Local Funds Audit to be published annually. The Audit Report shall contain all those outstanding objections which could not be settled during the previous year audit’s inspection report. The Audit Report shall then be submitted by the Director of Local Funds Audit to the Finance Department/Vigilance Department of the State Government for further discussion and recommendations with the concerned departments/ local authority within six mo nths fro m t he date of beginn ing o f next financial year. In case any discrepancy is noticed in the facts and figures mentioned in the Audit Reports, the same should be reported to the Director of Local funds Audit/Audit Officer immediately and should not be held up for discussion in the Finance Department/Vigilance Department meeting. It shall be ensured by the departmental authorit y/local authority prior to appearing before the meeting that the discrepancy pointed out to Audit have been duly taken not ice of by the Audit, so that a complete picture is available in the meeting as regards the facts. (22) Quantum of Audit : The accounts of Local Authority subject to the Mizoram Local funds (Accounts and Audit) Act, 2006, shall be audited not less often t han once in twelve months unless the Direct or of Local Funds Audit directs otherwise. (23) Power and duties of Director of Local Funds Audit : Notwithstanding anything contained under Section 5 and 6 of the Act, the Director of Local funds Audit shall conduct audit including verification of cash balances of various State Government Departments/ Bodies/ Boards/ Public Sector Undertakings/ Societies etc not included in ‘local funds’ in consultation with the Government / Finance Department. The report pertaining to surprise verification of cash balance shall be reported separately and direct ly to the Finance Department and shall not be included in the Audit Report. The Director of Local Funds Audit shall exercise general supervision and control over the discharge by the auditors of their duties under the Act. (24) Condonation of Payments :Notwithstanding anything contained under Section 5 and 10 of the Act: The Director of Local Funds Audit may condone a payment made from local fund which may appear to him to be contrary to law or rule provided that: (i) in his opinion, there was no negligence or misconduct on the part of the person making or authorizing such payments. (ii) such payment was bonafide and a similar payment fro m the same local fund had not been condoned before. (iii) such payment does not exceed Rs 2000.00 The Director of Local Funds Audit shall submit a report of all such condonations, with the reason for each condonations to the Tribuna l. (25) Summons :Summons issued by the Director of Local Funds Audit under Section 5(2) of the Act shall be sent for service of the Tribunal who upon receipt thereof shall proceed as if such summons have been issued by him and shall return them with the record, if any, of the proceedings taken with regard thereto. (26) Recording of Evidence : The Director of Local Funds Audit may record evidence taken under Section 5(2) of the Act in English/ Mizo Language. (27) Instructions and Guidelines :The Auditors while conducting the audit of the local fund should strictly follow the general instructions and guidelines provided in Mizoram Audit Manual, 2011. (28) Audit Fee : Whenever any audit of the accounts is required to be undertaken by the Department, an appropriate amount of Audit Fee prescribed by the Government should be charged against the authority or authorities proposed to be audited. The Audit Fee should be realized in advance according to Audit programme and shall be credited to the revenue of the State Government under the appropriate Head of Accounts. A demand note for Audit fee shall be sent to the authority proposed to be audited for realization of audit fee in advance. 20. POWER OF DIRECTOR OF LOCAL FUNDS AUDIT TO SURCHARGE OR CHARGE ILLEGAL PAYMENTS OR LOSSES INCURRED AND PROCEDURE TO BE FOLLOWED IN CHARGE OR SURCHARGE PROCEEDINGS AS PROVIDED UNDER SECTION 10 OF THE ACT:- (1) The Officer/ Auditor authorized to issue the Inspection Report on the audit of the accounts of the Local Authorit y shall while issuing the further remarks under rule 19(18)(ii) of these rules forward to the Director of Local Funds Audit a proposal for charge/surcharge action in respect of the cases of illegal payments or losses incurred by negligence or misconduct pointed out in the audit Inspection Report concerned. The charge or surcharge proposal shall be in Form appended to these Rules(Appendix-XXV). (2) On receipt of the proposals for charge/surcharge proceedings from the officer/auditor authorized to issue the audit inspection report, the Director of Local Funds Audit shall as early as practicable but before the co mpletion of one month from the date of receipt of such proposals, issue, charge/surcharge notices to the officer(s) held responsible for the illegal payments or losses detected by the auditors. (3) The charge/ surcharge notice shall be in Form appended to these rules(Appendix- XXVI). (4) The charge/ surcharge notices (in duplicate) along with extracts of the relevant objections in the audit inspection report shall be communicated to the person against whom it is made by registered post with acknowledgement due. (5) The duplicate copy of the charge/surcharge notice shall be returned, to the Director of Local Funds Audit by the person receiving it, with his dated acknowledgement in proof of having received the notice. (6) Copy of the charge/surcharge notice shall be issued to t he Executive Authority concerned. (7) Unless the person or persons served with a charge/ surcharge notice remit, with the allowance of the Director of Local Funds Audit as provided under Sec 10 of the Act, to the Executive Authority co ncerned t he amount invo lved in the no tice and fur nish the d et ails t hereo n to the Director of Local Funds Audit within two months, from the date of receipt of the notice, or furnish satisfactory explanations, such person shall be served with charge/surcharge certificate under rule 21 of these rules and also in Form appended to these rules(Appendix XXVII). (8) The report showing details of remittance o f amounts involved in the charge/surcharge notices to be furnished by the person (s) responsible under sub-rule 7 of Rule 20 above shall be forwarded to the Director of Local Funds Audit through the Executive Authority concerned. The Executive Authority shall transmit the same to the Director of Local Funds Audit with a certificate to the effect that the details furnished have been verified by him and found correct. (9) The charge/surcharge cert ificate (in duplicate) shall be communicated to the person against whom it is made, by registered post with acknowledgement due provided under rule 21 of these rules. (10) The duplicate copy of the charge/surc harge certificate shall be returned to the Director of Local Funds Audit by the person receiving it with his/her dated acknowledgement affixed on it. (11) The charge/surcharge certificate shall be served on the persons responsible wit hin a period of four months fro m the date of receipt of the charge/surcharge notice by such person. (12) The Director of Local Funds Audit shall serve on the person responsible for any loss to a local authority supplementary charge/surcharge notice or charge/surcharge certificate relating to the audit report if the circumstances so warrant. (13) Every sum charged/surcharged by the Director of Local Funds Audit on any person shall be remitted by such person to the Execut ive Authority within one month from the date of receipt of such charge/surcharge cert ificate, unless within that time such person files an application before the Tribunal provided under Sec 2(7) and Sec 5(2) of the Act against the decision of the Auditor. Such amount, if not so paid or such amount as the Tribunal shall declare to be due under Section 13 of the Act shall be recoverable as provided under Section 14 of the Act, as if it were arrears of public revenue due on land and shall be credited to the same local fund. 21. POWER OF DIRECTOR OF LOCAL FUNDS AUDIT TO CONDUCT AUDIT ON THE ACCOUNTS OF LOCAL BODIES As recommended by the Thirteenth Finance Commission in its report at paragraph 10:121 and 10:161, the Director of Local Fund Audit shall conduct audit on the accounts of the Local Authority in accordance with the Technical Guidance and Supervision of the Comptroller Auditor General of India and the Annual Report of the Director of Local Funds Audit on such audit must be placed duly before the State Legislative Assembly in due course. Also the responsibility of Certification of accounts and the statutory audit of the Local Authority shall rest with the Director of Local Funds Audit who will continue to function under the administrative control of the Finance Department. 22. PROCEDURE FOR SERVING CERTIFICATE A Cert ificate under Section 10 of the Mizoram Local Fund (Accounts and Audit) Act, 2006, shall be deemed to have been served if sent by registered post (acknowledgement due) to the persons concerned and notwithstanding the fact that the registered cover is not accepted by the addressee. The Charge Certificate shall be served in accordance with Form(Appendix XXVII) appended to these rules. By Order, Sd/- L.N. Tochhawng Finance Commissioner, Government of Mizoram Memo No. G.24011/2/2009-F. APF :Aizawl, the 8th February, 2013 Copy to: 1. The Secretary to Governor, Mizoram 2. P. S to Chief M inist er/Minis st ers/ Parliament ar y Secret aries /Speaker/V ice Chairman, SPB/Ministers of State/ Deputy Speaker, Mizoram. 3. P.P.S to Chief Secretary, Mizoram. 4. All Co mmissio ners/ Secret arie s, Go vernment of Miz oram. 5. All Heads of Administrat ive Departments. 6. All Heads of Depart ments. 7. The Chief Controller of Accounts, Accounts & Treasuries Mizoram, Aizawl 8. The Director of Local Fund Audit, Accounts & Treasuries Mizoram, Aizawl. 9. The Controller, Printing & Stationeries with 6 spare copies for publication in the Mizoram Gazette. Extra-ordinary 200 copies may be sent to the undersigned. 10.Guard File. (ROSIAMLIANA) Under Secretary to Govt. of Mizoram, Finance Depart ment (APF) APPENDIX – I (See Rule 5(1) Detailed Heads of Accounts with description A/c Description REVENUE/RECEIPTS 2.Grants 2.1 From Gover nment 2.2 From others Total 3.Loans 3.1 (a) From Bank 3.2 (b) From Other Bank 4. Income on Investments and Deposits 4.1 (a) Earmarked/Endowment Fund 4.2 (b) Own Funds 5.Sales 5.1 (a) Sale of Assets 5.2 (b) Sales of Publications 5.3(c) Sale of Investments/Depo sits 5.4(d) Others (Specify) 6. Ga ins / Profits 6.1(a) on Sale of Assets 6.2(b) on Sale of Publication 6.3(c) on Sale of Investments/ Deposits 6.4(d) Others (Specify) 7.Gifts 8.Fees/Fines/Charges 8.1 (a) Services 8.2 (b) Seminars/Conferences 8.3(c) Consultanc y 8.4(d) Fees charged by the Board 8.5(e) Others (Specify) 9.Interests 9.1 (a) Cash at Bank 9.2(b) Invest ments/ Deposits 9.3(c) Loans & Advances to Employees 9.4(d) Others (Specify) 10Recoveries from Staff 10.1 (a) HBA/MCA/SCA/CA 10.2 (b) Recoupment of GPF Advance paid to Deputationists 10.3 (c) Others (Specify) 11. Co ntribut ions 11.1 (a) Health Care Scheme 11.2 (b) CPF/GPF 11.3 (c) Insurance Scheme 11.4 (d) Others (Specify) 12. Remittance Receipts 12.1 (a) License Fee 12.2 (b) HBA/HUDCO/LIC 12.3 (c) MCA/SCA/CA 12.4 (d)SGEGIS/CGEGIS 12.5 (e) Insurance 12.6 (f) Surcharge 12.7 (g) GPF 12.8 (h) Others (Specify) 13. Debt/Deposit Receipts 13.1 (a) Reco very of Cont ingent Advance (i) Advance to PWD (ii) Advance to Suppliers ( iii) Ot her s (Spec ify) (b) Other Deposits (i) Security Deposit (ii) Earnest Money Deposits ( iii) Ot her s (Spec ify) 14. Miscellaneous Income 15. Any Other (Specify) EXPENDITURE 16ESTABLISHMENT EXPENSES 16.1 Pay & Allowances 16.1.1 Chairman and Members 16.1.2 Officers and Staff 16.2 Allowances and Bonus 16.2.1 Overtime Allowances/ Honorarium 16.2.2 Payment by Professional & Other Services 16.2.3 Other Benefits 16.3 Travelling Expenses 16.3.1 Chairman and Members 16.3.1(i) Overseas 16.3.1(ii) Domestic 16.3.2 Officers and Staff 16.3.2(i) Overseas 16.3.2(ii) Domestic 16.4 Medical & Healt h Care/Medical Treatment 16.5 Contribution to Provident Fund 16.6 Contribution to Other Funds 16.7 Staff Welfare Expenses 16. 8 Co nsult at ion Fee 16.9 Other Establishment Expenses 17ADMINISTRATIVE EXPENSES 17.1 Purchases 17.2 Labour & Processing Charges 17.3 Electricit y & Power 17.4 Water Charges 17.5 Insurance 17.6 Repair and Maintenance 17.7 Rent, Rate & Taxes 17.8 Motor Vehicle 17.9 Postage, Telephone & Communication Charges 17.10 Printing & Stationery 17.11 Seminars & Workshops/Conference 17.12 Subscription/Membership Fee 17.13 Fees 17.14 Audit/Legal Fee 17.15 Hospitality Expenses 17.16 Provision for Bad & Doubtful Debt 17.17 Bad Debt Written Off 17.18 Advertisement and Publicity 17.19 Others (to be specified) 17.20 Hire and Conveyance 17.21 Publicat ions 17.22 Other Office Expenses 18. Investments and Deposits 18.1 Investments 18.2 Deposits 19. Loans and Advances 19.1 To Employees 19.1.1 HBA/MCA/CA 19.1.2 Other Advances (to be Specify) 19.2 To Suppliers and Contractors 19.3 To other (specify) 20. Other Adjustment or Remittances 20.1 License Fee 20.2 HBA/HUDCO/LIC 20.3 MCA/SCA/CA 20.4 SGEGIS/CGEGIS 20.5 Insurance 20.6 Surcharge 20.7 GPF 20.8 Other (specify) 21. Co ntribut ions 21.1 Pension & Lea ve Sa lary Co ntribut ion 21.2 Other Contributions (to be Specified) 22. Repayment on Loans 22.1 Principal 22.2 Interest 23. Expenditure on Fixed Assets and Capital Work-in-Progress 23.1 Land 23.2 Buildings 23.4 Furniture & Fixtures 23.5 Machinery & Equipments 23.6 Motor Vehicles 23.7 Books & Publications 23.8 Any Other (to be specified) 24. Loss on sale of Asset s 25. Miscellaneous / Other Expenditure TOTAL APPENDIX – II (See Rule 5(5)(1)) RECEIPTS AND PAYMENTS ACCOUNTS FOR THE PERIOD/Y EAR ENDING _______(Amount in Rupees)Hea d of A/c or A/c c odeREC EIPT SCUR RENT YEARPREVIOU S YE ARHea d of A/c or Ac Cod ePAYMENT SCURR ENT YEARPREVIOU S YEARTo opening Balances1 .B y Expenses(a) Cas h in Hand(a) Establishment Espense s(b) Bank Balanc e(i) Salar ies (Chai rm an & Members)(i) In Current Accounts(ii) Salari es (Officers & Staff)(ii) In Deposit Acc ounts(ii i) Allowanc es & Bonus(iii) In Saving Accounts(iv) Payment by Professional & Other Servic es(b) Trave lling Expenses(i) For eign T ravels(ii) Domestic Travels( c) Overtime Allowances(d) Medical & Health Care Facilities(e) Other Est ablish ment Charges(i) T uition Fees(ii) LTC(f) Contribution t o P ro vident F u nd(g) Contribution to Other Funds(h) Staff Welfare Expenses16To Grants Received2.By Administrative Expenses(a) From GOI(a) Purc hases(b) F rom State Go vt.(b) Labour & Proc es sing Charges(c ) Elec rtri city & Power(d) Water Charges(e) Insurance2(c ) From Other Sources (Grants for Capi tal & Re venue E xpdr s hould tobe shown seperatel y (f) Repair & Mainten anc eTo Loan taken(g) Rent, Rate & T axes(a) From Bank(h) Vehic le running & maintenanc e3 (b) From Other Sourc esTo Income on investment from(i) Posta ge, T elephone and Communication Char ges(i) Earm ark / Endow Fund(j) Printing & Station er y4 (ii) Own Funds(k) Expens es on Seminar/W orkshopTo sales(l) Subsc ription Expenses(a) Sale of Assets(m) Expense on Fees(b) Sale of Publications(n) Audit Fee/ Legal Fee(c ) Sale of investment/ Deposits(o) Hospitality Expenses5 (d) Others (Specify)(p) Pro v. For bad & doubtful debtTo Gains(q) Bad Bebt W ritten Off(a) on Sale of Assets17 (r ) Adverti sement & Publicity(s) Others (to be s pec ified)(b) on Sale of Publi cations (c ) on Sale of Investment/ Depos its3.By Investment and Deposit made6 (d) Others (Specif y)(a) In vestment(b) Deposits18 Head of A/c or A/c c odeREC EIPT SCURRENT YEARPREV IOU S YEARHead of A/c or Ac Code PAYMENTSCURRENT YEARPREVIOU S YEAR7To Gifts4.(I) By Advances t o St affTo Fees/Fines/Charges(a) HBA(a) Servic es(b) Mot or Car/ Com puter Advance(b) Seminar/Confer ences(c ) Scooter /Motor C ycle Advance(c) Consultancy(d) Other Advances (to be specify)(d) Fees c harged by the Bo ard(II) By Contingent Advances8 (e) Others (Specify)(a) Advanc es to PW DTo interests(b) Adv. To Suppliers/Contractors(a) Cas h Balance at Bank(c ) Other Advances (to be s pec if y)(b) Investments/Deposits(c) Loans & Advances to employees(III) By Other Adjustment or Remittances9 (d) Others (Specify)To rec overie s from staff(a) G PF/GPF recovere d from Deputationist(a) HBA/MCA/SC A/CA(b) License fee(b) Recoupment of GPF Advance paid to Deputationists (c ) Postal Life Insuranc e(c ) Principal amount of Loans & Advances(d) HBA10 (d) Others (Specify)(e) Mot or/Computer AdvanceTo Contributions(f) Scooter/Motor C ycle Adv.(a) Health Care Scheme(g) Other rec overi es/Adjus tment(b) CPF /G PF(c ) Insurance Scheme11 (d) Others (Specify)5 . By Contrib utionsTo Remittance Receipts(b) Pension & Leave S alar ya) License Fee(b) HBA/HUDCO/LIC/(c ) Other Contri butions (to be s pec ified(c ) MCA/ SCA/C A(d) SGEGIS/CGEGIS6.Repayment of Loans(e) Ins uranc e(f) Surcharge7 .B y Exp d r o n Fixe d Asse t s and C apit al Wor k in - P rog res s(g) GPF(a) Land12 (h) Others (Specify)(b) Building(s)To D ebt/Deposit Receipts(c ) Furnitures & Fixtures(a) Recovery of Contingent Advance(d) Mechiner y & Equipments(i ) Advanc e to PW D(e) Mot or Vehicles(ii) Advance to Suppliers(f) Books & Publi cations(iii) Others (Speci fy)19 & 20 21 22 23 (g) Any Others(b) Other Deposits24Loss on Sale of Assets(i) Security Deposit25Mis cellaneous / Other Exp enditure(ii) Earnest Money Deposit13 (iii) Others (Speci fy)8. By Closing Balances14 Miscellaneous Income(a) Cash in Hand15 Any Other (Specify)(b) Bank Balanc e(i ) In Current Acc ounts(i i) In Dep osit Acc ounts(iii) In Saving AccountsTOT ALTOT AL Secretar y Member (Finance) Chairman APPENDIX – III (See Rule 5(5) (2)) INCOME AND EXPENDITURE ACCOUNTS FOR THE PERIOD / YEAR ENDED_ (Amount in Rupees) INCO MESchedule C/Year P/YearEXP ENDITURESchedule C/Year P/Year1 By Grants/Subsidies 1.1 Govt.of In dia 1.2 State Govt. 1.3 Other Sources1. T o Est ablishmen t Expens es 1.1 Pay & Allcs of Chair man & Members2 By Sales /Servic es1.2 Pay & Allcs of Officers3 By Seminar y/C onf er enc es1.3 Pay & Allcs of Staff4 Bu C ons ultanc y1.4 Honorarium1.5 Overtime Allowances1.6 Medic al & H ealth C ar e1.7 Bonus1.8 Any other Charges5 By Fees / Subscription/Fines 5.1 Fee f or petition 5.2 Other charges 5.3 Fines 5.4 Any Other 2. To Payment of Pr of es s i on al an d oth er s ervices6 By invest ment (f rom E ar m ar k ed/ end owed f und tr ans f er to fund3. T o Travelling Expenses 3.1 For eign 3.2 Domestic7 By R oyalt y/Pu blic at ions etc 7.1 R oyalt y 7.2 Public at ions8By int erest 8.1 Interest on Deposit 8.2 In t. on L oan & Advanc es 8.3 Int on Investment 8.4 Int on Cash at B ank 8.5 Any Other (to be specified)4. To other Administrative Expens es : 4.1 S eminar & C onferenc e 4.2 Telephone & Fax 4.3 R ent, R ate & T axes 4.4 N ewsp apers / Periodicals 4.5 Advt and Pu blicit y 4.6 Pos tag e an d T elegr am 4.7 Liveries 4.8 W ater & Electricity 4.9 Any Other5. T o Stationery & Printing6. T o Public ations9By other Income 9.1 Medical & H ealt h Care 9.2 G ain on s ale of ass ets 9.3 St aff C ar rec overies 9.4 Any other7. Misc and ot her expens es8. T o R epair & Maint enance 8.1 Buildings 8.2 Mechinery & Equipment 8.3 Furnitures & Fixtures 8.4 Vehicles9. T o Petrol and Lu bric ants10. T o Hos pitality Expens es11. T o Audit F ee12. To Legal Charges INCOMESch edule C/ Year P/ YearEXPENDITURESchedule C/Year P/Year13. To Pr ovid ent Fund and other C ontri but ions 13. 1 P ens ion & G r atuity (including Commuted value of Pension) 13. 2 C ontri bution t o GP F 13. 3 D epos it Li nked Insur anc e 13. 4 Pension C ontributions 13. 5 Leave Salary C ontribution 13.6 Gratu ity C ontribution14. 1 T o Interes t 14. 1 Interes t on GPF 14. 2 Interes t on CP F 14.3 Any Other to be specified15. T o Group Ins uranc e Scheme 15. 1 CGEG IS (i) Saving Fund (ii) Insur anc e Fund 15. 2 CGEIS (i) Saving Fund (ii) Insur anc e Fund16. To D epr ec iat ion17. T o Loss on S ale of Assets18. To Bad Debts10By Excess of Expdr over19. To Excess of Income overinc ome (tr ansf err ed to C ap italExpenditure (Transferred toFund Account) Capital Fund Account)TOTALTOTALSecretaryMember (Finance)Chairman APPENDIX – IV (See Rule 5(5) (3)) BALANCE SHEET AS ON__________ (Amount in Rupees) LIABILITIESSCHD C/YEAR P/YEARASSET S SCHDC/YEAR P/YEAR1.Fixed Ass ets2.Capital W ork-i n-Progres s1. Cap ital Fund 1.1 Add Excess of income over Expen ditur e 1.2 Less E xc ess of E xpd r over Inc ome3. Advanc e 3.1 Fest ival Adv anc es 3.2 Other Advances2. Other Funds 2.1 Pr ovident Fun d 2.2 Other ( to be sp ec ified)3. Res erves and Surp lus es4. D epos its 4.1 Security Deposits 4.2 Petrol Account 4.3 Any Other (to be specified)5.L oans and Ad vanc es4.Earmar ked/Endowmen t Funds 6. Gifts and D on ations7.Sundr y Debt ors5. Sec ured Loans & Borr owings 5.1 Fr om G overnment 5.2 Fr om Oth ers8. Payment Made to PW D for W orks6. U ns ecur ed Loans & Borr owings7.Def err ed Credit L iabilit ies8. C urrent Liabilities & Pr ovisions9. S un dry Cr edit ors9. Cas h and Bank Balanc es 9.1 Cash at Bank 9.2 Cash-in-hand 9.3 Impr es tTOTALTOTALSecretaryMember(Finance)Chairman . APPENDIX – V (See Rule 5(9)(1) CASH BOOK Dr RECEIPTS PAYMENTS Cr DateVr No & DateParticulars of TransactionLedger FolioCash Bank Total DateVr No & DateParticulars of TransactionLedger FolioCash Bank TotalInitial of D DO123456789101112131415 APPENDIX –VI (See Rule 5(9) (2)) REGISTER OF LEDGER Name of Account :-For the month of ___________________ DrCr Dat e Part icular sHead of A/c or Acco unt Code NoCB/JF Amount DateVoucher No & DateParticulars CB/JF Amount12345678910Note : 1. Pages of Ledger shall be machine numbered 2. Separate page shall be allotted to each Account. 3. Index shall be prepared i n the Ledger to show page numbers allotted to each Accounts. 4. T he Cr edit or Debit B alan ce to the end of the m onth whi ch i s r equ ired to b e br ought down to the next month shall be indicated by “Balance b/d to next month” APPENDIX – VII (See Rule 5(9)(3)) REGISTER OF JOURNAL For the month of :- DatePart icul ars of TransactionsHead of A /C or Account code No-LFDEBIT (Rs)CREDIT (Rs)123456 APPENDI X – VIII (See Rule 5(9)(4)) REGISTER OF TEMPORARY ADVANCE Sl. NoKind of AdvancesHead of A/C or Account CodeTo whom sanctionedSanction No& DateAmount SanctionedDate of PaymentVouc her No& DateLedger FolioAmount paidREMARKS1234567891011 APPENDIX – IX (See Rule 5(9) (5)) MONEY ORDER / CHEQUE / BANK DRAFT RECEIVED REGISTER Sl. NoFrom whom ReceivedPurpose for which r eceiv edMO/ Cheque / BD No & DateAmountIni tial of DDORemarks1234567 APPENDIX – X (See Rule 5(9)(6)) REGISTER OF CHEQUE BOOK Sl. NoName of Ba nkCheque Book NoNo of Cheque LeavesFirst & Last Cheque NoDated Initials of Accountant12345 APPENDIX – XI (See R ule 5(9) (6)) CHEQUE ISSUE REGISTER DateTo whom Issu edPurposeChe que No & DateAmountSignature of DDOCash Book /LFRemarks12345678 APPENDIX – XII (See Rule 5(9) (7)) Register of Remittance into Bank/Treasury RemittancesSl .NoPart icul ar of TransactionsCha ll an No/ Letter No & DateCash Book /Ledger Folio NoHead of Accounts/Account Code NoAmount (R s) TreasuryBankI niti als of AccountantREMARKS12345678910 APPENDIX – XIII (See Rule 5(9)(9)) REGISTER OF MONEY ORDER / POSTAL ORDER/ BANK DRAFT DISP ATCHED Sl. NoPurpose of DispatchedTo whom issuedMO/POBD No & DateAmountSignature of DDOREMARKS APPENDIX – XIV (See Rule 5(9) (10) STOCK REGIST ER Sl No P artic ular sCash Book/ Ledger Fol ioOp ening Balanc eFrom wh om r ec ei v edBill No & DateQuantity Receiv edRat e A m ou n tTot al (4+7)S ig of Store OfficerDate of IssueTo whom IssuedQuanti ty IssuedInitial of Receipie ntClosing B alanc e (10-14)Signatur e of Stor e Offic erRem arks1 23456789101112131415161718 APPENDIX – XV (See Rule 5(9) (11)) RECEIPTS AND PAYMENTS ACCOUNTS FOR THE MONTH OF _________ (Amount in Rupees) Head of A/ c or A/c codeRECEIPTSCURRE NT YEARPREVIO US YEARHead of A/ c or A/c codePAYMENTSCURRE NT YEARPREVIO US YEARTo opening Balances1. By Expenses(a) C ash in Hand(a) Establishment Expenses(b) B ank Balance(i) Salaries (Chairman & M emb ers)(i) In Current Accounts(ii) Salaries (Officers & Staff)(ii) In Deposit Accounts(iii) Allowances & Bonus(iii) In Saving Account s(iv) Payment by Professional& Other Services(b) Travelling Expenses(i) Foreign Travels(ii) Domestic Travels(c) Overtime Allo wances(d) Medical & Health Care Facilities(e) Other Est ablishmen t Charg es(i) Tuition Fees(ii) LTC(f) Contribution to Provident Fund(g) Contribution to Other Funds(h) Staff Welfare Exp enses1 16To Grants Received2. By Administrative Expenses(a) Fr om GOI(a) Purch ases(b) From State Govt.(b) Labour & Processing Charges(c) Fr om Other Sources (Grants(c) Electricity & Powerfor Capital & R evenue Expdr should(d) Water Chargestobe shown separately(e) Insurance2 (f) Repair & MaintenanceTo Loan taken(g) Rent, Rat e & Taxes(a) Fr om Bank(h) Vehicle ru nning & main tenance3 (b) From Other Sources(i) Postage, Telephone andTo Income on Investment fromCommunication Charg es(i) Earmark/Endow Fund(j) Printing & Stationery4 (ii) Own Fund s(k) Expenses on Semin ar/WorkshopTo Sales(l) Subscription Expenses(a) Sale of Assets(m) Expense on Fees(b) Sale of Publications(n) Au dit Fee/Legal Free(c) Sale of Investment/Deposits(o) Hospitality Expenses5 (d) Other (Specify)(p) Prov. For bad & doubtful debtTo Gains(q) Bad Debt Written Off(a) on Sale of Assets(r) Advertisement & Publicity(b) on Sale of Publications17 (s) Others (to be specified)(c) on Sale of Investment/Deposits3. B y Investment and D eposit made6 (d) Other (Specify)(a) Investment18 (b) Deposits Head of A/ c or A/c codeRECEIPTSCURRENT YEARPREVIOUS YEARHead of A/c or A/c codePAYMENTSCURRENT YEARPREVIOUS YEAR7To Gif ts4. (II) By Advances to StaffTo Fees/Fines/Charges(a) HBA(a) Services(b) Motor Car/Computer A dvance(b) Seminar/Conferences(c) Scoot er/Motor Cycle Advance(c) C onsultancy(d) Other Advances (to be specify)(d) Fees charged by the Board(II) By Contingent Advances8 (e) Others (Specify)(a) Advance to PWDTo Interests(b) Adv. To Suppliers/Contractors(a) Cash B alan ce at Bank(c) Other Advances (to be specify)(b) Investments/Deposits(III) By Other Adjustment or(c) Loans & Advances to employeesRemittances9 (d) Others (Specify)(a) GPF/CPF recovered f romTo R ecoveries from StaffDeputationists(a) HBA/MCA/SCA/CA(b) License FeeA dvance paid to Deputationists(c) Postal Life Insurance(c) Principal amount of Loans & Advances(d) HBA10 (d) Others (Specify)(e) Motor/Computer AdvanceTo Contributions(f) Scooter/Motor Cycle Ad v.(a) H ealth Care Scheme(g) Other recoveries/Adjustment(b) CPF/GPF(c) In surance Scheme19 & 2011 (d) Others (Specify)5. By ContributionsTo Remittance R eceip ts(b) Pension & Leave Salary(a) License Fee(c) Other Contributions (to be(b) HBA/HUDCO/LICspecified)(c) MCA/SCA/CA21(d) SGEGIS/CGEGIS6. Repayment of Loans(e) Insurance7. B y Expdr on Fixed A ssets and(f) SurchargeCapital Work-in-Pro gress(g) GPF(a) Land12 (h) Others (Specify)22 (b) Building(s)To Debt/Deposit Receipts(c) Furnitures & Fixtures(a) R ecovery of Contingent Advance(d) Mechinery & Equipments(i) Advance to PWD(e) Motor Vehicles(ii) Advance to Suppliers(f) Books & Publications(iii) Others (Specify)23 (g) Any Others(b) Other Deposits24Loss on Sale of Assets(i) Security Deposit25Miscellaneous/Other Exp endit ure(ii) Earnest Mo ney Deposit13 (iii) Others (Specify)8. By Closing Balances14Miscellaneous Income(a) C ash in Hand15A ny Other (Specify)(b) Bank Balance (i) In Current Accoun ts (ii) In Deposit Accounts (iii) In Saving A ccountsTOTALTOTAL APPENDIX – XVI (See Rule 5(9) (12) REGISTER OF MONTHLY ACCOUNTS OF RECEIPTS AND PAYMEN TS (EXPENDITURE) HEAD OF ACCOUNTS/ACCOUNT CODE NO : RECEIPTS Obj ect HeadAPR ILMAYJUNEJULY AUGUST SEPTEMBE R OCTOBER NOVEMB ER DECE MBER JANU ARY FEBRU ARY MAR CHTO T AL FOR THE YE AR1234567891011121314TOTAL EXPENDITURE Obj ect HeadAPR ILMAYJUNEJULY AUGUST SEPTEMBE R OCTOBER NOVEMB ER DECE MBER JANU ARY FEBRU ARY MAR CHTO T AL FOR THE YE AR1234567891011121314TOTAL APPENDIX – XVII (See Rule 5(9) (13)) BILL RE GISTER Sl. NoParticular of BillBill No & DateBill AmountDat e of Dr aw al/ EncashmentRemarks123456 APPENDIX – XVIII (See Rule 5(9) (14)) REGISTER OF FIXED ASSETS Sl. NoName of AssetsSl.No./Model etc of t he AssetLedger FolioVr. No & DateAmountID No. assigned to the Asset/Parinted on the AssetDate of DisposalReason of dispo salType of DisposalAmount involvedSignature of Store OfficerRemarks12345678910111213Note : Separate pages will be assigned for each class or category of asset. APPENDIX – XIX (See Rule 5(9) (16)) INVEST MENT REGISTER Sl. NoName of Financial Insti tution /BankName Of BranchCash Book/LFType of Deposit/ InvestmentNo & DateAmount DepositedDat e of MaturityMaturity ValueEncashment Voucher No & DatePrincipal Interest REMARKS12345678910111213 APPENDIX – XX (See Rule 5(9) (16)) LEDGER FOR INVEST MENT EncashmentSl. NoParticular of TransactionCash Book folioTo whom investedOpe ning BalanceAmount Deposited /InvestedTot al amo unt deposited Principal AmountInt erest ReceivedNet amount deposited during the month (5-6)Total deposits to the end of the month (4+8)1234 567891011 APPENDIX – XXI (See Rule 5(9) (17)) REGISTER OF BANK INT EREST (RECEIPTS & PAYMENTS) RECEIPTSEXPENDITURE/PAYMENTSDateName of BankBank A/c NoNa me of Scheme/Fund against which interest was accruedCash Book/LFOpe ning BalanceInterest AmountTotal interestDateCash Book/LFPurpose of paymentAmount PaidClosing BalanceRemarks1234567891011121314 APPENDIX – XXII (See Rule 18(4)) ANNUAL ACCO UNTS Name of Loc al aut hori ty: Name/ purpose of grantOpening balanceNo. & date of sanction orderAmount of grantDetails of t ra nsf er creditPeriod of utilizationTotal Name of work for whi ch utilizedAmount expendedUnspent ba lance of grantRemarks (extension of period of utilization/ diversion of purpose lapsed grant etc. may be specified)1234567891011 ExecutiveAuthority APPENDIX – XXIII (See Rule 18(4)) ANNUAL ACCO UNTS Name of Local Authority: Purpose of loanNo and date of sanction or derAmount of loanDetails of transfer creditOpening balance if anyTotalAmount utilized during the yearUnspent balance1 2345678 ExecutiveAuthority APPENDIX – XXIV (See Rule 19(13)) OBJECT IO N STAT EMENT Vouch er No. DateParticulars of PaymentO bj ection or Suggestion (with si gnature and date of the Auditor)Last date fixed by the auditor for return of the audit objection statemen tReply of Local authority/ Local fund (with signature, date and designation)Note of admission or f resh remarks by th e au ditorFurther remarks of t he l ocal A uthority/ L ocal FundFinal remarks of the Auditor(1)(2)(3)(4)(5)(6)(7)(8) AuthorisedOfficer/Auditor APPENDIX – XXV [See Rule 20(1)] Charge/Surcharge Proceedings 1.Name of Local Authorit y : 2.Year of audit report : 3.Dat e of a udit : 4.Name of personnel in the audit batch : 5.Details of paras on which charge/surcharge action is proposed : (1)Para No. : (2)Name of Auditor who detected the loss : (3)Amount involved : (4)Person respon sib le with address : (5)Reaso n f or fi xing the resp on sibili ty on him : Authorised Officer/Auditor APPENDI X – XXVI [See Rule 20(3)] Charge Notice Office of the Chief Controller of Accounts Accounts & Treasuries, Mizoram, Aizawl No …………… ……………… …Dated ………… ………………. To Sri ………………… …………………………………….. ……………………………………………………………. Sub:- Report on the audit of accounts of ………………………………………….. for the year …………… Loss sustained to the funds Charge Notice – Issued Ref:- 1. Sir/Madam This is to invite your attention to the audit observations in paragraph number ………………………..… of the audit report of ………………………………… for the year …………………………………. Issue in the reference cited and to state that a sum of Rs. …………………………………………. has been lost to the funds of the ………………………………………..…………….. on account of your negligence or misconduct or f ailure of duty. Extracts of the relevant objections in the audit report are enclosed for ready reference. You are held responsible f or the said loss for t he reasons stated below and hence the amou nt involved is recoverable from you. You are, therefore, requested to remit the sum of Rs. …………………………………. (Rs. ……………………………………………………………. onl y) to the credit of …………… ……………………….. ……………………………. and t o inti mate th e details thereon to thi s office or to state why the amount of Rs. ……………………………. should not be charge on you in exercise of the powers conferred under Section (10) of the Mizoram Local Fund Account & Audit Act, 2006. You are al lowed a period of two mont hs f rom the date of receipt of thi s notice to i ntimate the detai l s of remittance or to file statement of explanation, faili ng which the said amount will be charged on you. Receipt of this notice may be acknowledged. Yours faithfully, Di rector of Local Funds Audit Memo No. _________________________________ Dated ________________________________ Copy to : 1. …………………………………………………… 2. …………………………………………………… 4. (The Executive authority) …………………….. (He is required to forward a report on the clearance of the objections on expiry of the peri od of 2 months mentioned above). Director of Local Funds Audit APPENDIX – XXVII [See Rule 20(7) & Rule 22] Office of the Chief Controller of Accounts Accounts & Treasuries, Mizoram, Aizawl No …………… …………Dated ………… ………………. Charge Certificate I, ……………………………., Director of Local Funds Audit, Mizoram, hereby certif y under section 10 of the Mizoram Local Fund Accounts & Audit, Act, 2006 as follows:- During the year …………… ……….. ………. the ……………………… ……. has sustained a loss of duty on the part of Sri/Smt…………………………. who held the post of …………………… (now working as …………………….) and hence. Sri/Smt…………………… is held responsible f or the said loss of Rs……………….. (Rs …………………………. only). The details of the above loss of Rs ………………….… are given in paras ………………….. and ………………….. of the audit report of …………………………. for the year ……………….……… issued by the ……………… in reference No ………………… dat ed …………….. in this office notice No………….……… dated ………….. Sri/Smt ……………. was requested to remit the said amount of Rs ………………………… to the credit of ……………………. and to intimate the details thereon to this office wi thin two mont hs or to st ate withi n two months why the am ount sho ul d not be charged agai nst him/ her i n exercise of the powers conferred under section 10 of the Mizoram Local Fund Accounts & Audit Act 2006. The above notice was served on him/her by registered post with acknowledgement due along with the extracts of the relevant objections in the audit report and he/she has acknowledged the receipt of the notice on ………………………. that intimation regarding the remittance of the said amount of Rs. ……………….. to the credit of ………….. has not been received so far. But intimation regarding the remittance of Rs. ………………… involved in paras ………………. only have been received so far. The explanation dated ………………….. f urnished by Sri/Smt ……………………… to the charge notice in respect of paras ……………………….. has been considered in detail and found to be not acceptable. A sum of Rs. ……………….. (Rs ……………….. only) details of which ar e poi nted o ut in paras…………………. of the audit report of …………………….. is thus charged on Sri/Smt …………… ……. the then ………………. of ………….. (n ow workin g as ……………….) Sri/Smt …………………. is liable to remit the amount to the credit of ………………. within one month from the date of receipt of this certificate, failing which the matter should be forwarded to the Tribunal in exercise of the powers conf erred under section 10 of the Mizoram Local Fund Account & Audit Act, 2006. Dated at Aizawl the ………. day of ………………….. 20 …………. Di rector of Local Funds Audit To Sri/Smt ………………………………………………………………….. …………………………………………………………………………… Recei pt of this Certif icat e may kindl y be ac knowledged. Copy to: 1. 2. Di rector of Local Funds Audit APPENDIX-D The Mizoram Gazette EXTRA ORDINARY Published by Authority Regn. No. NE-313(MZ) 2006-2008Rs. 2/- per issue VOL – XXXIX Aizawl, Tuesday 27.7.2010 Sravana 5, S.E. 1932, Issue No. 257NOTIFICATIONTHE MIZORAM AUTONOMOUS DISTRICT COUNCILS FUND RULES, 2010 [Approved by the Governor of Mizoram on 06/7/2010] No. C.31030/3/2005 – DCA, the 14th July, 2010 : In exercise of the powers conferred under sub- paragraph (2) of paragraph 7 read with Paragraph 22BB of the Sixth Schedule to the Constitution of India, the Governor of Mizoram is pleased to make the following rules, namely :- PART – I GENERAL CHAPTER – I PRELIMINARY 1.(1)These Rules may be called the Mizoram Autonomous District Councils Fund Rules, 2010. (2)They s hall come into force at once. 2. In these rules, unless the context otherwise requires. (1)“Autonomous District” means an area where the sixth schedule to the Constitution of India is in operation; (2)“Bank” mea ns a branch of the State Bank of India; (3)“Chief Executive Member” means the Chief Executive Member of the Executive Committee of t he District Council constituted under the Mizoram Autonomous Districts (Constitution and conduct of Business of the District Council) Rules, 1974; (4)“Constitution” mea ns the Constitution of India; (5)“Council” means the District Councils of the Lai, Mara and Chakma. (6)“District Fund” mea ns the Fund for a Council constituted under the provision of paragraph 7 of the sixth Schedule to the Constitution and the term “Fund” shall be construed accor dingly; (7)“Examiner of Local Accounts” means the Exa miner of Local Accounts, Mizoram; (8)“Finance and Accounts Officer” means the Officer recruited under the provision of the District Council Rules for the Office of the District Council; (9)“Government” means the Government of Mizoram; (10) “Governor” mea ns The Governor of Mizora m; (11) “Member-in-charge of the Financial Affairs” means the member of the Executive Committee of the District Council entrusted with the management of financial affairs of the Council under Rule 32(2) of part 111 of the Mizoram Autonomous Distr icts (Constitution and conduct of Business of the District Councils) Rules 1974; (12) “Secretary” means Secretary to the Executive Committee of the Autonomous District Council; (13) “Treasury” means any Treasury in the State of the Mizoram and includes a Sub-Treasury. 3. (1)The District Council Fund is constitut ed for every Council under sub-paragraph (1) of paragraph 7 of the Sixth Schedule to the Constitution of India, to which shall be credited all moneys received by the District Council in accordance with the provisions of the Constitution. The fund shall accordingly comprise all r eceipts realized by the District Council under the provisions contained in the Sixth Schedule to the Constitution including the Grant-in-aid received from the Government and taxes levied or other revenues or receipts realized under the laws, rules or regulations framed by the District Councils under paragraphs 3, 4, 6, 8, 9 and 10 of the Sixth Schedule to the Constitution. (2)The Fund shall also include any liquid assets, surplus Revenue, Customary Receipts, cash balance or Bank Balance, etc. acquired by the District Council from the previous administrators of the locality or area and revenue or receipt accruing to the administration before the Constitution of the District Council but realized thereafter. 4. Any matter which is not covered by or under these rules shall be referred to the Governor and his decision thereon shall be final. GENERAL PRINCIPLES AND METHODS OF ACCOUNTS 5. Period of Accounts : The a nnual accounts of the C ouncils shall r ecord all transa ctions which take place during a financial year running from 1st April of a year to 31st March of the next year. The accounts of a year may be kept open upto 20th June in the following year for completion of the various accounting processes. Adjustments may also be made after the closure of the year owing to mispostings and misclassification coming to notice after the 31st March should not, however, be treated as pertaining to the pr evious financial year even though the accounts for that year may be kept open for the purposes mentioned above. 6. (1)Main Divis ion of Accounts :- The accounts of t he council sha ll be kept in following t wo part s:- (a) Par t I – Distr ict Fund of the Council; (b) Par t II – Deposit Fund. (2)In part 1 of the Accou nts, there shall be two main divisions, namely:- (a) Revenue Account :- Revenue Receipt Heads (Revenue account) and Expenditure Heads (Revenue Account). The first Division, viz, ‘Revenue Account’ shall deal with the proceed of taxation and other receipts classed as revenue, and expenditure met there from. It shall also include the gran ts and contr ibutions r ec eived fr om the Government, and also gr ants and contributions made by the Cou ncil. (b) Capital Account :- Public Debt, Loans consisting of section for receipt heads (Capital Account) a nd Exp enditur e Heads (C apital Acc ount) and Public Debt, Loans a nd Advances. (3)The second division shall deal with expenditure met usually from borrowed funds with the objects either of increasing concrete assets of a material and permanent character or reducing recurring liabilities. It also includes receipts of a capital nature intended to be applied as a set off to capital expenditure. (4)The section “Public Debt” a nd “Loans and Advances etc.” of the second division shall comprise Loans received and their repayments by the Council and Loans and Advances made (and their recoveries) by the Council. (5)In part II of the Accounts, the transactions relating to Deposit including Contributory Provident Fund and other Funds a nd Adva nces s hall be rec orded. The tr ansactions under ‘Debt’, ‘Deposit’ and ‘Advances’ in this part are such, in respect of which the Council incurs a liability to repay the moneys r eceived or has a claim to recover the amount paid, toget her wit h t he repaymen t of t he f or mer (Dep os it s) and t he r ecover ies of t he la tt er (Advance). 7. (1)Within each of the divisions/sections mentioned in the preceding paragraph, the tra nsactions shall be divided int o Major Heads of Acc ounts which shall be divided into Minor heads, each of which shall have a number of Subordinate Heads. The classification of Accounts shall be such as given in t he List of Major Heads of Accounts. In all acc ount records, the Major and Minor Heads shall be arranged in the exact order shown in the list of Major and Minor Heads of Acc ounts as shown in ANNEX URE-A. The Classification prescribed (including the Code Number assigned up to the Major Heads) should be strictly followed. (2)The Major Heads of Accounts genera lly cor resp ond to ‘fu nctions’ of the C ouncil, such as the different services like ‘Agriculture’, ‘Public Works’ etc. provided by the Council, while the Minor Heads subordinate to them identify the ‘programmes’ undertaken to achieve the objectives of the function represented by the Major Heads. A ‘Detailed Head’ may be termed objective classification. On the expenditure side of the accounts, the detailed heads are primarily meant for item-wised control over expenditure and to indicate the nature of expenditure on a scheme or activity or organization in terms of input such as ‘pay and allowances’, ‘Other charges’ etc. Any other detailed head (other than the standard detailed heads) may b e opened wit h the approval of t he Accounta nt Gener al (Accounts and Entitlement), Mizoram etc. 8. EXPENDITURE ON PUBLIC WORKS: Expenditure on Public Works, wher e the works ar e under the administrative control of the Public Works Dep artment of t he District C ouncil, shall be classified in acc ounts, acc ording to t he following principles:- (a)Expenditure on the construction of Council’s building for administrative and Office purposes and other buildings which exclusively relate to functions under ‘General Service’ as distinct from that on the constructions of buildings for functional purposes like Schools etc. will be accounted for under the ma jor Head “-2059 Public Works: (iii) Construction of buildings.” (b)Expenditure on the construction of buildings for purely functional purposes, such as, Schools etc. will be acc ount ed for under the r elevant Ma jor Head closely connected with functions, such as, “2202-General Education,” “2203-Technical Education,” “2204-Sports and Youth Services,” “2205-Art and Culture.” (c)Expenditure on maintenance and repairs of all Council buildings, whether for administrative Office or functional purposes, will, however, be accounted for under the Major Head – “2059-Public Works: (v) Maintenance and Repairs to buildings.” (d)Expenditure on roads and bridges, being in the nature of communication services, will be accounted under the Major Head: “3054-Roads and Bridges etc.” NOTES – Allocation of expenditure between R evenue and Capital Heads will be done under the orders of the District Council. 9. CONTRIBUTIONS MADE BY OR TO COUNCIL: Contributions/Grants made by the council to Town Committees, Village Committees etc. or vice versa shall be debited as expenditure or shown as receipts (as the case may be) under the head of account closely connected with the object for which the Contribution/Grants are made. 10. REFUND OF REVENUE: Refund of revenue shall, as a general rule, be taken in reduction of the revenue receipts. The r efund of revenue may be accounted for under separate detailed head “Deduction-Refunds” under the respective Major/Minor heads. 11. CLASSIFICATION OF TRANSACTIONS UNDER CIVIL ADVANCE: Moneys advanced for miscellaneous purposes under special authority and recoverable in cash and sums overpaid on vouchers other than those for service-payments shall be adjusted under the head ‘F-Civil Advances’. This Head shall cover items which are, from their inception, “debts due to the District Council, recoverable either in cash or by deduction from pay and allowances. 12. MUNICIPAL RATES AND TAXES: This should be classified under the detailed head, ‘Rent, Rates and Taxes,’ under the functional Major Head, if the same is paid by the Department. If the sa me is paid by the Public Works Wing, the payment may be debited to “2059-Public Works: (V) Maint enance and Repairs etc.” 13. ACCOUNTING FOR RECOVERIES OF OVERPAYMENT: The recoveries of overpayments s hall be posted direct under receipt or service-head concerned in the Compilation Book in the following manner. T his rule should conform to the provisions of clause 3.10 of General Directions on the revised list of ‘Major and Minor Heads of Accounts.’ (a)Recoveries relating to overpayments in the current-year-These recoveries, whether made in cash or from payment vouchers, shall be taken as a reduction of expenditure by posting these as minus expenditure under the head previously overcharged; and (b)Recoveries relating to overpayments in the current year or years-These shall be credited to the departmental receipt-hea d concerned as r eceipts of the Department or in case of Departments not having a corresponding receipt-head, to the Major head:0070-Other Administrative Services-Ot her Receipts. 14. ACCOUNTS OF COMMERCIAL UNDERTAKINGS: Wher e any Undertakings of the Council are conducted on commercial lines, the essential for malities of c ommerc ial acc ounts s hould, if t he Cou ncil so des ires, be str ictly obser ved. In such cases, separate commercial accounts of the Undertakings shall be kept outside the r egular Council accounts. T he heads of accounts should be common t o the Council accounts. 15. WORKING EXPENSES OF COMMERCIAL DEPARTMENT S: As a general rule, all expenditure pertaining to any Department including a Commercial Department should be recorded only on the expenditure side of the accounts. PART – II LOCATION AND CUSTODY OF MONEY AND PAYMENT TO THE DISTRICT FUND CHAPTER – I 16. (1)All moneys pertaining to the District Fund shall be held in the Treasury in the Personal Ledger Accounts of the District Council. (2)Accounts of the District Fund at the Treasury will be kept as a Deposit account, the transaction being booked under the head: K-Deposit and Advances-(b) Deposit not bearing interest; 8443-Civil Deposits; 120-Deposits of Autonomous Districts and Regional Funds (Assa m, Meghala ya and Mizor a m). (3)Moneys shall be paid in as pr ovided in Rule 20 and drawn out from the Treasury by cheques signed by the Secretary. The District Council Fund shall not be allowed to overdraw the balance of its credits without obtaining beforehand a loan or contribution to cover the overdraft. 17. All dues of t he District Council s hall be paid int o District Fund held in t he Tr easury throu gh the District Council Office. 18. Save as otherwise expressly provided in these rules, the following rules shall be observed by the Cashier who is requir ed to receive and handle ca sh:- (a)The Cashier shall keep t he Cash Book in the for m pres crib ed in Appendix-I, in which he shall enter all sums received and payments made by him on account of the Council. When a grant is made to t he Counc il by the Government, the Secr etary shall dr aw the a mount by transfer credit to the District Fund maintained in the Treasury and bring the amount to account in the Ca sh Book. (b)All monetary transactions shall be enter ed in the Ca sh Book as they occur and attested by the Secretary with full dated signature in token of his check. (c)The Cash Book shall be closed daily and complete checked. The Secretary shall verify the totaling of the Cash Book and give his full signature against each item of entry in token of acceptance. (d)At the end of each month, the Secretary shall verify the cash balance in the Cash Book and record a signed and dated certificate to that effect specifying the ver ified cash balance both in words and figures in his own handwriting under his full and dated signature. The closing cash ba lance at the end of each mont h should also be analysed in a footnote or in the remarks column of the C ash Book to show the details (inc lu ding dates) of r eceipt or drawal of the cash in hand. (e)When Council moneys in the custody of the Cashier a re paid into the Treasury, the Secretary making such payment shall compare the Treasury Officer’s receipt on his Pass Boo k and the original c opy of t he challan wit h the entr y in the Cash Book befor e attesting it, and sa tisfy himself tha t the amounts ha ve been actually cr edited into the Treasury. (f)An era sure or over-writing of an entr y onc e ma de in the cash book is strictly pr ohibited. If a mistake is discovered, it shall be corrected by drawing the pen through the incorrect entry and inserting the correct one in r ed-ink between the lines. The S ecr etary sha ll attest by his full and dated si gnatur e against each such corr ection. (g)The Cashier who handles Council money shall not, except with the special sanction of the District Council, be allowed to handle in his official capacity money which does not belong to the Council. Where under any special sanction the Secretary deals with both Council and non-Council money, the latter shall be kept in a cash book separate from the Council money and the transactions relating to the non-Council money shall be accounted for in a separ ate set of books and kept entir ely out of the Council a cc ount. (h)The employment of peons to fetch or carry money shall be discouraged. When it is absolutely necessary to employ such person for this pur pose, a reliable person of proven trustworthiness shall only be selected and, in all cases, when the money to be handled is large, the Member-in-charge of Financial Affairs shall take sufficient precautions for the safe escort of the money to and from the Treasury/Bank. (i)Council money in the custody of the cashier shall be kept in a strong cash chest secured by two locks of different patterns. The keys of one lock will remain with the cashier and the key of the ot her lock with the Secr etary or a ny ot her of ficer to be d esignated by th e Secretary in writing. Both the custodians of the keys shall b e jointly and severally responsible for the contents of the chest, which shall not be opened unless both the custodia ns are present. (j)A Bill Register in the form at Appendix-II shall be maintained in which all bills of all kinds, on the basis of which money would be drawn from the Treasury by cheques, should be entered. The Secretary, while signing the bills should attest each entry in the Bill Register. (k)All financial transactions shall be expressed in whole rupees. Fractions of a rupee for paise fift y and less sha ll be ignor ed and those for mor e tha n pa ise fift y rounded to the next higher rupee. Note – 1.In case it is consider ed necessary to employ armed guards, the Member-in-charge of Financial Affairs may apply for the same to the Deputy Commissioner/Sub-Divisional Offic er (Civil). Note – 2.The duplicate keys of the cash chest may be placed under the seal of the Council in the Custody of the Treasury Officer, each in a separate sealed packet. A duplicate key register should be ma intained and once a year, in each April the key must be sent for examination and r eturned under fresh seal to the Treasury Officer, a note being kept in the register that they ha ve been found cor rect. CHAPTER – II PAYMENT OF MONEY TO DISTRICT FUND 19. All receipt due t o the C ouncil collected by a ny officer or employee of the Council authorised to collect such r eceipts sha ll pass thr ough the C ashier who shall enter them in the cash book. The cashier s hall fur nish a receipt in the for m pr escribed in Appendix III du ly count ersign by t he Secretary to the officer of employee from whom the money is received. 20. All money of account of District Fund shall be remitted in full with the least possible delay into the Treasur y a nd s hall on no account be appr opriated towar ds any expenditure. W here th e Treasury and the Council office are at the same place, the collections of each day shall be deposited not later than the fir st day following that on which the Tr easury is opened f or business. In other cases, the collections shall be remitted at such intervals as may be necessary but under no circumstances should the amount left in the custody of the cashier exceed the security furnished by him. The Secretary or such other authorized officer shall satisfy himself daily that the rules are being observed. In any circu mstances in which the cash balance in hand happens to be comparatively in excess of the cashier’s security, the Secretary or such other authorized officer will make special arrangement for the safe custody of the entire cash in hand. 21. (1)All money paid into the Treasury to the credit of the District Fund shall be accompanied by the pass Book of the Council and the pr escribed Treasury challan in triplicate. The second part of the challan shall be retained by the Treasury Office and the original or counterfoil shall be receipted by the Treasury Officials and brought back to the Council office by the person s ent with the remittance. (2)When a remittance is to be made to the Treasury, a line shall be drawn across the Register and the various money column shall be totaled. If any money is received after the remittance for the day has be made t o the Treasury, it shall b e entered below the total, but the date in column – I shall be the actual date of receipt and not of remittance, and the money shall be kept in the chest. 22. Ea ch r emittance made to the Tr easur y should be entered in Cash Boo k in the pa yment side a nd shown as paymen t into T reasur y. In cha llan f or r emittance b y the cashier shall be recorded t he name of the Council on account of which the money is r emitted to the Treasury, details of the notes and coins of which the remittance is composed and the head of account under which the amount is deposited. 23. When the payment has to be made from the District Fund to the State or Union Government or to any local Fund whose funds are lodged in the Treasury or vice versa, it is not necessary that the money is a ctually drawn in cash from the Treasury and the a mou nt is paid to the concer ned Government. A cheque or voucher, as the case may be, should be used in such cases, in which it should be specified that the amount is to be paid by transfer credit. All payments to the District Fund should be supported by a r eceipt stamped, when necessary, by the authorized officer of the District Fund. 24. (1)With remittance shall be sent the pass Book of the Council upon receipt of the money by the Treasury. Both sides of the Pass Book shall be written up-to-date by the Treasury, with dated initial of the Treasury Officer against each entry and the book be returned to the Coun ci l Off ic e. (2)The Secretary or such other authorized Officer under whose custody the Pass Book is kept shall examine the Pass Book from time to time and shall immediately call for the attention of the Treasury Officer to any discrepancy that may a ppear between the debits a nd credits shown in the pass book and those shown in the Accounts of the Council’s Office. 25. The pass book will be supplied ex-gratis by the Treasury. It is not a Council Account Book but simply a copy of the account kept in the Treasury of the moneys paid in and taken out by the Council, and must, therefore, always be written up only by the Treasury establishment by whom the original account is kept. 26. No entry marks shall under any circumstances be made in the pass book by any of the officials connect ed wit h or working i n the C ouncil Office. At the close of each month, t he balance in t he Pass Book shall be struck and the amount written in both figur e and words, and signed by the Treasury Officer. 27. Council dues or other money r eceivable on the account of the Council may ordinarily be realized in legal tender and in coins or notes only. Precautions must be taken by the receiver to ensure that no cou nt erfeit co i ns or not es ar e recei ved. 28. (1)The officer receiving money on behalf of the Council must give the payer a receipt in the prescribed printed form. This rule applies to all moneys received either for credit to the Cou ncil or for deposit or for any other purpose, except, however, to money withdrawn from the Treasury for disbursement of pay, allowances, advances etc. to Council employees or for payment of contingent and other charges to private parties. (2)The receipt issued by the cashier under Rule 19 to any officer or employee of the Council authoris ed t o collect any receipt or other money due to the Council sha ll be countersigned by t he Secr etary who shall satisfy himself t hat the amount has been properly enter ed in the Cash Book either dir ect ly or thr ough a subsidiary Register of the cash book. The seal of the Council should be affixed to such receipt before it is issued. (3)As an exception to the preceding sub-rule, the Member-in-charge of Financial Affairs may, in special cases, permit receipt to be countersigned by an Officer subordinate to the Secretary. Similarly, receipts may be signed by a subordinate officer to be authorized in this behalf by the Secretary when he is out on tour. In both cases, however, the r eceipt shall be signed by such authorized officer for the Secretary who shall be responsible for checking the counterfoils of receipts with the entr ies in the Cash Book and in the subsidiary Registers thereto, if any. (4)Wher e money is realized not in cash but b y recovery from a bill payable by the District Council, full particulars of the deduction shall be set forth in the bill and a receipt may be granted only if specially desired by the payer, the fact of recovery having been made by deduction from the bill being clearly recorded on the receipt. (5)All receipts must be written in figures and in words. 29. (1)The form of receipt shall be such as prescribed in Appendix-III. No receipt except those issued in the prescribed for m sha ll be valid. (2)The r eceipt forms shall be bound in books of suitable sizes. Pages of each such book shall be consecutively machine numbered. The book shall also be serially numbered by the machine. Each receipt shall be in duplicate for use with carbon paper. The carbon copy shall be retained in the issuing office and the origina l issued. (3)A register of Receipt Book shall be maintained by the Cashier in form in Appendix-IV. Immediately after receipt of blank receipt books, each such book shall be carefully counted and exa mined t o ensure that the for ms contained in each are in order and complete in all respects and the r esult recorded in a conspicuous place in the book over the signature of the Secr etary. Any dis crepa ncy noticed shall be recor ded at once in the Regist er of Receipt Boo k in t he remark column. (4)The r eceipt Books shall be kept in the persona l custody of t he S ecr etary or a resp onsible officer authoriz ed by him in wr iting. Ther e s hall be one receipt Book only in us e a t a t ime and no Receipt Book sha ll be issued unless the counterfoils of the previous book ar e returned from record. This may, however, be relaxed at the discretion and on the responsibility of the Secretary, e.g. in case where it may be found convenient to issue more than one book at a time. For facility of the receiving officer it may be necessary to issue a Receipt Book in advance before the counterfoils of the previous one are received. Each issue of a Receipt Book shall be recorded in the Register of Receipt Books and supported by the dated signature of the person (with designation) to whom the Book is issued. (5)Used-up R eceipt Book shall always be kept in the personal custody of the Secretary. (6)The Stock of unused Receipt Book shall be verified p hysically at the end of the year by the Secretary and a certificate indicating the results of the physical verification recorded in the Register of Receipt Books. 30. No Offic er may issue duplicat e or cop ies of r eceipt grant ed f or money on the gr ound that the original have been lost. If any necessity arises for such document, a certificate may be given that on a specified day, a certain sum on a certain accounts was received from a certain person. This provision ext ends only to the issue of duplicates on the ground that the origina l have been lost and does not apply to cases authorized by the rules or by special orders of the Council in which duplicates have to be prepared and tendered with originals. 31. (1)The C ouncil sha ll maintain an ‘ Assess ment Demand’ and ‘Bill Collect ion a nd Remiss ion Register’ in forms in Appendix V and VI r espectively containing a list of all persons liable to pay rate, tax, cess or fee, and the amount to be paid by them in respect of each such rate, tax, cess or fee. Subject to the provisions of these Rules, the detailed procedure to be adopted with regard to the money realized ma y be prescribed by the Member-in-charge in consultation with the Acc ountant General (Account & Ent itl ement) and with the a pprova l of the Governor. (2)The proced ur e so prescribed s hall, inter a lia, pr ovide f or definite r esponsibilit ies of officers concerned to ensure that – (i) demands are made as revenue falls due; (i i) steps are taken with a view to effecting pr ompt r ealization of all r evenue, regu lar or occasional; and (iii) proper records are kept to show in respect of all items of revenue, recurring or non- recurring, the assessment made, the progress of recovery and the out-standing debts due to the Council. PART – III WITHDRAWAL OF MONEY FROM THE DISTRICT FUND CHAPTER – I PROCE DURE FOR WITHDRAWAL 32. Save as other-wise provided in these Rules, no money shall be withdrawn from the District Fund except by cheque on the Treasury, signed by the Secretary. 33. No money should be withdrawn from the Fund, unless it is required for immediate disbursement. It is not per missible to draw advance from the Fund either for the execution of works, the completion of which is likely to take considerable time, or to prevent the lapse of budget allotments. 34. Claims a gainst t he District Cou ncil sha ll or dinar il y be discha rged by chequ es drawn upon the Treasur y. 35. (1)When any person not in the employment of the Council claims payment for work done, service rendered or articles supplied, such claims shall, unless there are express order of the Council to the contrary, be submitted to the Secretary through the Finance and Accounts Officer or any other officer under whose immediat e order the service was done or the equivalent was given for which the payment is demanded. (2)Every Bill or claim for payment, which has been presented in the first instance to the Secr etary of the C ouncil or any duly authoris ed officer shall be submit ted to the Accountant who shall check and examine it, and if found correct and in or der, initial it in to ken of corr ect ness a nd submit it for or der, thr ough the Finance and Account Off icer t o the Secretary or such other duly authorised officer. If payment of the bill so pr esented is to be made, a payment order shall be endorsed on the body of the bill or claim document. The payment order shall, except as otherwise provided, run as follows : “Pay Rs. ______ (Rupees ____________________) only” and the amount having been expressed both in words and figures, the order shall be signed by the Secretary or such other authorised officer. 36. All claims for grant-in-aid, contributions etc. to local bodies, customary, charitable or educational institutions and other non-Council bodies or persons as sanctioned by the Council shall be pr esent ed t o the S ecr etar y. The detailed rules regu lating the pa yment or grants-in-aid shall be pr escr ibed b y the M ember-in-char ge, F inancia l Aff air s in consultation with the Acc ountant General (Accounts & Entitlement) and with the approval of the Governor. 37. (1)Bills for claims against the Council, save as otherwise provided in these rules, shall be prepared in the Council office and shall be passed for payment by the Secretary in accordance with these rules and then the charges will be paid by cheques drawn on the Treasur y or out of cash obtained from the Treasury by such chequ es. (2)If the bill is to be paid out of the imprest or permanent Advance, the Secretary or such other authorised officer shall, before signing the payment order, see the bill stamped with the words “paid in cash” in a conspicuous type, and shall then make it over to the cashier for payment. If the Bill is to be paid by cheque, it shall be made over to the cashier, and shall be stamped “paid by Cheque No …………..” in a conspicuous type. In the later case the amount shall be entered, as soon as the cheque is signed, in the appropriate column of the Cash Book of the Counci l. (3)Every payment ma de, either in cash or by cheque, shall be covered by a receipt stamped, if necessary, duly signed by the person to whom the money is due and to whom it has a ctually been paid. Such a receipt signed by another person or by a Council employee is invalid. (4)All claims which are preferred and accepted should be paid at the earliest possible date. If a bill is presented and payment is not made within a month of its presentation or if the claim is contested, it shall be entered in the “Register of the Outstanding Claims” as per proforma given below : Sl. No.Date Particulars Amount Of BillReasons for with- holding paymentPay- mentAmount pa idBalance outstanding as on 31st MarchRemarks(1) (2)(3)(4)(5)(6)(7)(8)(9)(5)This Register is required for ascertaining the unpaid demands for which provision has to be made in the next year’s budget, and at the close of the year, unpaid amounts shall be shown in the column ‘balance’ and be carried forward to the Register of the next year. To ensure a complete record of the liabilities in cases where bills may not have been presented, all orders for supplies or works other t han those f or whic h for ma l agr eements ha ve been made and pa rticulars of which are enter ed in t he R egister of works sha ll be ent er ed in an Or der Book to be maintained in form in ANNEXURE – C. (6)In cases where cash or cheque for payment to third parties is made/obtained by a Drawing Officer by pres entation of bills in the Tr easury and when it is again r emitt ed to Treasur y/Bank for obta ining dema nd draft in favour of the th ird pa rty, the entr ies in the Cash Book should r elate to the cash or cheque received by the Drawing Officer on presentation of the bill at the Treasury (on the receipt side of the Cash Book). The Demand Dr aft, when r eceived, should be ent ered in a “ Register of Valu ables” and its disposal watched through the Register. The receipt of the Demand Draft and the payment to the third party through the Demand Draft need not be entered in the Cash Book as the transactions would already appear in the Cash Book in the manner indicated above. 38. The salary, establishment and traveling allowances charges shall be drawn on the basis of bills, which shall b e cha rged in the Ca sh Book wit hout fu rther details. NOTE :- Payments due to the contractors may, if so desired by them, be made to their banks instead of dir ect to the contractors, provided that t he Secretary obtains – (i)an authorisatio n from t he contractors in the f or m of a legally valid document, such as, power of attorney of tr ansfer deed, conf erring author it y on the ba nk to receive payment; (i i)the contractor’s own acceptance of the correctness of the amount made out as being due to him by the Council or his signature on the bill or other claims preferred against the Council before settlement of the account or claim b y payment to the said Bank. While the receipt given by Bank will constitute a full and sufficient discharge for the payments, contractors would, wherever possible, be induced to pr esent their bills duly r eceipted and discharged thr ough th eir bankers. Nothing her ein conta ined s hould operate to cr eat e i n fa vour of the Bank and right of equities vis-à-vis the Council. 39. The Secretary shall, at the time of making payment to non-officials, communicate the fact with the address of the payees to the Income-Tax Officer concerned, if the payee is an Income-Tax payer and if the amount of each payment is not less than 250/- 40. (1)Arrears claims :- Save as provided in rule 136 of the Central Treasury Rules/Rule 32 of the Central Government Account (Receipt and Payments) Rules 1983, any claim of a Government servant, which is preferred within two years of its becoming due shall be settled by Drawing and Disbursing Officer Finance and Accounts Officer, as the case may be, after usual checks as per provision of rule 82 of General Financial Rules. (2)No cla ims against t he Gover nment, other t ha n those by one depa rtment aga inst anot her or by a State Government, not preferred within a year of their becoming due can be presented without any authority from the District Council, provided that such claims not exceeding Rs. 500/-, if presented within three years of their becoming due, may be paid without pre- check by the Accountant General (Accounts & Entitlement); provided further that this rule shall not apply to the following categories of such claims. (a) claims on account of pensions, the payment of which is regulated by rule 396 of the Central Treasury Rules (CTR); (b) claims on acc ount of pay a nd allowances of such non-ga zett ed Government s ervants whose names are not required to be shown in the pay-bills under rule 220(s) of the CTR; (c) claims on account of interest on Government securities; and (d) Any other class of payments which are governed by special rules or orders of the Government (as per provision of rule 135 of Central Treasury Rules). 41. The following instructions with regard to the preparation and form of bills shall be observed :- (a)Printed for ms of b ills in Englis h sha ll be adopted a s fa r a s possible, but when, for a ny circumstances a bill in a local language is unavoidably necessary, a bilingual form shall be used. (b)If, in any case, the use of a bill purely in a local language becomes una voidable, a brief abstract shall be kept in English under the signature of the Secretary stating the amount, the name of the payee and the nature of the payment. (c)All bills shall be filled in and signed in ink, entries and signature may also be made with ballpoint pens when clear and legible. The amount of each bill shall be expressed in whole rupees and written in words as well as in figures. (d)While passing the bill, the Drawing Officer should also write in red ink across the bill in wor ds at right angles to the type a little sum in excess of t hat for which it is passed, thus, under ‘rupees thirty only’ will mea n that the bill is for a sum not less than Rs. 30/- but less than Rs. 31/- and similarly, “under rupees eight hundred on ly” will mean that is for not less than Rs. 800/- but less than Rs. 801/- (e)All corrections and alterations in the total of a bill shall be attested with full and dated signature by the Secretary as many times as such corrections and alterations are made. (f)Erasures and overwriting in any bill are absolutely for bidden and must be avoided. If any corr ect ion be necessary, the incor r ect entry shall be cancelled neatly in red ink and the corr ect entr y inserted. Each su ch correction or any int erpolation d eemed necessar y sha ll be authoris ed by the Secretary setting his initial with date against each. (g)The full accounts classifications shall be recorded on each bill by the Secretary, the classification in the budget being taken as a guide. (h)When bills are presented on account of charges incurred under any special orders, the orders sanctioning the charge shall be quoted on the bill and copy of the order attached to the bill. (i)Dates of payment shall, when possible, be noted by the payees in their acknowledgements in sub-vouchers, acquittance rolls etc. If, for any reason, such as illiteracy or the presentation of receipts in anticipation of payment to be noted by the payee, t he dates of actual payment shall b e noted by the Secretary on the documents under his full signature with date, either separately for each payment or by groups, as may be found convenient. 42. No person exc ept the Secr etar y is author ised t o dra w on t he Counc il fu nd without special orders of the Council. 43. (1)The Drawing Officer shall send a specimen of signature to the Treasury Officer and the Bank through the Deputy Commissioner/Sub-Divisional Officer duly attested by the latter. When the Drawing Officer makes over charges of his Office to another, he shall likewise send specimen of signature of the relieving Officer to the Treasury Officer/Bank concerned. (2)Specimen signature, when forwarded on a sheet of paper other than the forwarding letter itself must be duly attested by the Officer signing the forwarding letter. 44. Cheques shall be drawn on forms in cheque books supplied by the Treasury Officer. 45. The Treasury Officer shall supply a cheque book only on the receipt of the printed requisition form which is inserted in each book towards the end and never more than one cheque book shall be issued on a single requisition. The requisition must be signed by the Secretary. 46. The S ecr eta ry shall notify t o the Treasury upon which he draws the number of each chequ e book, which, from time to time he brings into the use and the number of cheques it contains. 47. A Register of Cheque Books shall be maintained by the Secr etary in form in Appendix-IV. Cheque Boo ks s hall, on r eceipt, be car efu lly exa mined b y the S ecr etar y who shall count t he number of for m contained in each and record a certificate of count on the fly-leaf. 48. Each cheque book must be kept under lock and key in the pers onal custody of the Secretary. The cheque book in use be ma de over to the Cashier whenever required but it shall be returned before the off ice is closed for t he da y. The Off icer i n whos e custody it is to rema in shall satisf y himself periodically that all unused cheques are in the book and that none has been surreptitiously extracted. T he Officer, when relieve, shall take a receipt for the exact number of cheque books and blank cheque-leaves made over to the relieving Office. 49. The loss of cheque book or a blank cheque form shall be notified promptly to the Treasury Officer. 50. All cheques shall have written across them in words at right angles in red ink to the type a sum of little in excess of that for which they are granted; thus “under rupees thirty” only will mean that the cheque is for a sum of not less than Rs. 30/- but less than Rs. 31/- and similarly “under rupees eight hundred only” will mean that it is for not l ess than Rs. 800/- but less t han Rs. 801/-. The a mount of each cheque should, as far as possible, be expressed in whole rupees and shall be written in words as well as in figures. The fractions of a rupee, when unavoidable, may be written in figure after the words stating the number of whole rup ees; but in the event of there being no fraction of a rupee, the word “only” would be inserted after t he number of whole rupees and care should be taken to leave no space for interpolation as in the following examples :- “Rupees twenty six only,” “Rupees twenty five and thirty paise,” no abbreviation, such as, “eleven hundred; or “ one t housand” or “one hundr ed” is per mis sible. NOTE :- 1. In dra wing or cashing a chequ e it should be r eme mber ed that a common for m of fraud consists in altering the word “one” into “four” by pre-fixing and “f” changing the “e” into “r ” t he figur es being easily alter ed to cor resp ond. The word “twenty” writt en ca relessly can als o easily b e changed int o “seventy”. The drawer of a chequ e in which these words occur should, therefore, so write them to make the fraud impossible and the Treasury Officer should examine the words and corresponding figur es wit h specia l car e. NOTE :- 2. All cheques should be written and signed in good ink only. 51. (1)Ch equ e drawn in favour of Council employees and depa rtments in sett lement of C ounc il dues shall always be crossed “Account payee only-not nego tiable.” (2)In the absence of a specific request to the contrary from the payee, cheques drawn in favour of cor porate bodies, fir ms or pr ivate persons sha ll a lso be cr ossed. Subject t o any instruction received from the payee, a cheque shall be crossed “……….. & Co.” with the addition of the words “Not negotiable” between the crossing. Where the payee is believed to have a banking account, further precautions shall be adopted, wher e possible, by crossing sp ecially (instead of by general crossing……. & Co.) by quoting the na me of the bank through which the payee will receive payment a nd by addition the words “Account payee only-Not negotiable.” This rule shall apply to all cases where the use of crossed cheque is pr escr ibed. 52. Every chequ e made in fa vour of person who is not in service of the Cou ncil, ma y at his r equest be made “payable to bearer.” 53. As a general rule, cheques shall not be issued for sums less than Rs. 10/- 54. All corrections and alterations in cheques shall be attested by the Drawing Officer with his full signature with date. 55. (1)Ch equ e shall be payable at a ny time within three mo nt hs after the month of issue. T hus, cheque bearing a date any time in January is payable at any time upto 30th Apr il. (2) After the expiration of the above period, Payment shall be r efused at the Treasury, and the person in whose favour the cheque was drawn shall, therefore, have to bring it back to be redated. No fresh cheque shall be issued. The lapsed cheque shall simply be redated and the alterations dated initialed by t he S ecr etary or such other author ised off icer whos e du ty would be to sign the chequ e. A note of the fact of r edating shall be entered in the Cash Book against the original transaction and upon the cou nt erfoil of the chequ e itself. The alt eration shall in no way aff ect the accounts, and no further entr ies shall be made i n the Ca sh Book. 56. When it is necessary to cancel a cheque, the cancellation must be recorded on the counterfoil. If the chequ e is in the dr awer’s possession, the Treasury Officer should be promptly requ est ed to stop payment of the cheque, and on ascertaining that the payment has been stopped, shall make the necessary entry in his accounts. 57. (1)If the Secr etar y is informed that a chequ e drawn by him has been lost, he shall addr ess the Treasury Officer drawn on forwarding for signature a certificate in the following form : “Certified that Cheque No…………..dated…………for Rs…………… reported by …………. ( the Dr awing Off icer to ha ve been dr awn by him on this Treasury in favour of ………….. has not been paid, and will not be paid if presented hereafter.” (2)The Secretary, on receipt of the certificate duly signed by the Treasury Officer, shall treat the original cheque as cancelled and issue another in lieu of the lost cheque. 58. If a cheque is issued by the Council in payment of a ny sum due by the Council and that cheque is honoured on presentation to the Council’s bankers, payment shall be deemed to have been made. (i)If the cheque is handed over to the payee or his authorised messenger, on the date it is so handed over; or (i i)If it is posted to the payee in pursuance of a request for payment by post, on the date on which the cover containing it is put into the post. Note – 1.The provision of clause (ii) above apply mutatis mutandis to the payments made by the Council by Postal Money Order or by any other recognized mode of remitting money by post. Note – 2.Cheques marked as “not payable” before a particular date shall not be charged to the accounts until the date on which they become payable. 59. The Secretary shall r ecord on the reverse of the counterfoil of each cheque the amount of the next chequ e drawn and of the total of drawings during t he month, a nd car ry forward their t otal to t he next counterfoil. This will enable him, from time to time, to exercise an independent check on the postings of his Cash Book. CHAPTER – II PROCEDURE FOR PAYMENT OF CLAIMS 60. Subject to as hereinafter provided in this rule, a Council employee entrusted with the payment of money shall obtain for every payment he makes, including repayment of sums previously lodged with the Council, a voucher setting forth full and clear particular of the claim and all information necessary for its proper classification and identification in the accounts. As far as possible, the particular form of voucher applicable to the case shall be used. Supplier of stores and other private persons should be encouraged to submit their bills and claims in the prescribed forms. Every voucher s hall bear or have attached to it an acknowledgement of the payment, signed by the person by whom or in whose behalf the claim is put forward. This acknowledgement shall be taken at the time of payment. A note of t he date and mode of payment, whether by cash, cheque, by remittance, or by Postal Money Or der, sha ll be recor ded on the vou cher. Note-1. Voucher includes a bill paid. Note-2. Bill is a statement of claim against the Council containing specification of the nature and the amount of claim. Note-3. In the case of articles received by Value payable post, the cost of the value payable cover together with the invoice or bill showing the details of the items paid for, may be accepted as voucher. The Secretary should endorse a note on the cover to the effect that the payment was made through the Post Office and this also covers charges for money order commission. Note-4. In the case of receipts furnish by individuals on behalf of firms, the Secretary shall be responsible for making sure that the person signing the receipt has authority to bind the fir m. 61. Except as otherwise provided, every voucher shall bear a pay order signed and dated by the Secretary specifying the amount payable both in words and figures. This order must be signed by hand and in ink. 62. All paid vouchers must be marked “paid” or “cancelled” so that they cannot be used a second time. Stamps, if any, affixed to sub-vouchers mus t also be ca ncelled so that they may not be us ed again. 63. Office copies of vouchers and acquittances shall be filed and retained carefully in the off ice concerned. 64. (1)All sub-vouchers to bills must be cancelled in such a manner that they cannot be subsequently used for pr esenting fraudulent claims or other fraudulent pur poses. (2)The provisions of rule 86 with r egard to cancellation and destruction of sub-vouchers relating to contingent expenditure shall apply generally to sub-vouchers in respect of other classes of payment unless it is otherwise decided by the District Council. 65. (1)Subject to such special orders as the Council may issue in any individual case, the responsibility for an overcharge shall rest primarily with the Secretary and it is only in the event of culpable negligence on the part of the Secretary that the question of recovery from him may be considered. (2)The responsibility for the effective check and control of the accounts of the District Council, bot h in r espect of revenue and expenditur e, rests on the Secretary. The S ecr etary may entrust to trustworthy officers of various departments as Disbursing Officers on his behalf. (3)The S ecr eta ry shall be resp onsible not only f or t he f inan cial r egularity of t he transaction of the District Council but also for the maintenance of accounts of t he transactions correct ly and in accordance wit h the ru les in for ce. 66. The Secretar y may entrust the immediate executive control of the accounts of the District Council and the District Fund to the Finance and Accounts Officer but may not be divested himself of their administr ativ e control. The Fi na nce a nd Acc ounts Officer sha ll b e resp onsib le f or the pr oper observance of the procedure prescribed by or under these rules and for the punctual submission of all accounts and returns required by Government and the Accountant General. The items of work to be handled by the Finance and Accounts Officer are shown in Annexure – ‘B’. 67. (1) Bills for monthly pay and fixed allowances of Council employees may be passed at any time for 5 (five) days ahead of the last wor king day of the month and shall be due for payment on the la st working day of the mont h by the la b our of which such pa y and allowances are earned. (2)The forms on which claims for pay, allowances, etc. are to be prepared and the detailed procedure to be observed in the preparation and passing of such claims shall be regulated by the provision in Rule 74 to 79. 68. (1)The dut y f or ma king pr oper deduct ions to be ma de from pay bills on account of Provident and other Funds, if any, shall devolve on the Secretary. (2)The Procedure to be followed in making such deduction a nd the detailed rules prescribing the nature of Provident and other Funds applicable to the Council employees and other cognate matters including the r ecords to be maintained therefore are to be laid down by the District Council in consultation with the Account General (Accounts & Entitlement) and with the approval of the Governor. 69. (1)When the pay of the Council employees is attached by any order of a Court of Law, it is the duty of the Secretary to see that the proper deduction is made in satisfaction of such order from the bill pay of the Council employee concerned. (2)The cost, if any, of remittance to a court, of money realized under its attachment order shall be deducted from the amount realized and the net amount remitted to the court. (3)The recovery should be made in cash while making the disbursement of pay and recorded in the Attachment Register maintained by the Drawing Officer. 70. The last payment of pay or allowances shall not be made to, or in respect of a Council employee finally quitting the service of the Council by retirement, resignation, dismissals, death or otherwise, or placed u nder suspens ion, until the S ecr etar y has sa tisfied himself b y referenc e t o t he r elevant recor ds, t hat ther e is no demand out standing against him. 71. Pay and allowances can be drawn for the day of the employee’s death, the hour at which death takes place having no effect on the claim. NOTE :-“date” for the purpose of this rule should mean a Calendar day beginning and ending at midnight. 72. (1)Pay and other allowances claimed on behalf of a deceased Council employee may be paid without the production of the usual legal authority – (a) to the extent of Rs. 100/- under orders of the Secretary after such enquiry into the right and title of the claimant as may be deemed sufficient. (b) for the excess over Rs. 100/- under the orders of the District Council on execution of an indemnity bond with such sureties as it may require, if it is satisfied of the right and title of t he claimant a nd cons iders that undue delay and ha rdship would be ca used by insisting on the product ion of letters of a dminis tration. (2)In any case of doubt, payment shall be made only to the person producing the legal authorit y. Note-1. The form of indemnity bond mentioned in this rule shall be prescribed by the District Council in consultation with the Accountant General (Accounts & Entitlement) a nd with the approval of the Governor. T he sureties accepted for joining in such bond must be of proven f inancial ability to meet the obligations undertaken. Note-2. The provisions of Rule 80 apply in this case too. 73. Save as hereinafter provided, pay and allowances may be paid only upon the personal receipt and not otherwise, except under the special authority, in each case of the Executive Committee. The Council employee may be allowed to r eceive payment through a messenger duly authorized by him to receive the money on his account and in such a case the Council accepts no responsibility in respect of money, cheque or draft that may be handed over to the messenger. The actual payee should give a proper receipt signed by himself in addition to the authorization in writing under his separ ate sig na tur e. 74. (1)Bills of pay, fixed allowances and leave salaries shall be prepared separately for permanent and temporar y est ablis hment. The instructions print ed on the f orm being car efully observed, the na me of every substantive and offic iating or temporary incumbent shall be shown against each post, and against each tempora ry post shall be not ed t he sanct ion ther eto. If the pa y is drawn for portion of a month on ly, the r ate of pa y and t he number of days for which it is claimed shall be indicated against the name of the Council employee in the body of the bill. (2)The for m of pa y bill of an establishment shall be su ch a s in App endix VII a nd that of Members/employees whose appointment, promotion, leave, tra nsfer etc. are notified in the State Gazette shall be such as in Appendix VIII. (3)The various sections comprising the establishment shall be shown separately, the description of each section as well as the number of sanctioned posts included therein being prominent ly wr it ten in red ink at the top. NOTE : All fixed allowances, if any, should be drawn in the same pay bill. 75. The entries in all the money columns of the bill shall be totaled separately under each section and the total writt en in red ink. The totals must be checked by the Secretary himself. 76. If any employee/employees was/were absent during the month either on special duty or suspension or with or without leave other than casual leave, or when a post is left vacant, whether any officiating arrangements ha ve or have not been made, the bill for the month shall be supported by an absentee statement showing the complete chain of the arrangements, if any. Not e:- The for m of the Absentee Statement shall be such as prescribed in Appendix-IX. 77. (1)Arrear s of pa y, fixed allowanc es or leave salary shall be drawn not in the ordinary monthly bill, but in a separate bill, the amount claimed f or each mont h being ent ered sepa rately, with quotation of the bill from which the charge was omitted or withheld or on which it was refu nded by ded uction, or any sp ecial order granting a new allowance or a n incr ease in pay. A note of the arrear bill shall invariably be made in the original bill for the period, to which the claim pertains over the dated initials of the Secretary in order to avoid the risk of the arrears being claimed over again. (2)Subject to the condition laid down in Rule 41, arr ear bills can be paid at any time and may include as many items as are necessary. 78. Bills for traveling allowance, other than permanent or fixed allowance, if any, shall be prepared and present ed to the Secretary in accordance with the following rules - (a)The bill shall be prepared in the form prescribed in Appendix X or XI as the case may be, the instructions in the form being strictly observed. When a circuitous route is taken, the reason for doing so must invariably be sta ted in the bill. (b)When actual expenses are drawn, full details should be furnished in the traveling allowances b ill. F or the purpos e of dr awing t he allowances on account of a fa mily or t he higher mileage allowance (now in terms of Kilograms) a certificate must be furnished by the Council employee, of the number and relationship of the members of his family for whom the allowances are claimed. No other details in these or other cases need be furnished, but every claim for the cost of carriage of personal effects, horses and conveya nc e s hould be supported by a certificate t o the e ffect that the expens e incur red was not less than the sum claimed. (c)All traveling allowances bills must bear a certificate of the Secretary in the following form – “Certified that I have satisfied myself that the amounts included in the bills drawn one month/ two months/three months previous to this date, with the exception of these detailed below, of which the total amount has been refunded by deduction from this and their receipt taken in the original bill or in a separate aquittance roll.” 79. (1)The S ecr etar y is personally r esp onsib le f or the amount drawn by c heque on account of a bill passed by him until he has paid it to the persons entitled to receive it and obtained a legally valid acquittance. (2)If for any reason, payment cannot be made within the course of the month, t he amount drawn for the payee shall be refunded to the Treasury and his pay or allowances may be drawn a new when the occasion for making the payment arises : Provided that if in the opinion of the Secretary this restriction is likely to operate inconveniently, the amount of undisbursed pay or allowances ma y, at his option, be retained for any period not exceeding three months, but this concession shall not be availed of unless the Secretary is satisfied that proper arrangements can be made for the safe custody of the sums retained. NOTE :- Acquittance Rolls should invariably be signed, stamped “Paid” and preserved carefully for the periods prescribed and produced for inspection whenever demanded by the Acc ountant General (Audit), or Examiner of L ocal Accounts. CHAPTER – III CONTINGENT CHARGES 80. (1) The term “Contingent Charges” or “Contingencies” used in this chapter means and includes all incidental and other expenses which are incurred for the management of an off ice as a n off ice or for the technical working of a depa rtment, other than t hose which, under prescribed rules of classification of expenditure, fall under some other head of expen ditur e, e.g. “works”, “tools” and “plants”, etc. (2)The Rules of pr ocedure prescribed in this Chapter shall apply primarily to contingencies, but miscellaneous expenditure which is not classed as contingencies, is also subject to these rules, except in so far as it may be governed by any special rules of procedure prescribed in other cha pters of this p art or by any departmental regu lations. 81. The Secr etary shall exercise the same vigila nce in respect of contingent expenditur e as a person of ordinary prudence maybe expected to exercise in spending his own money. He shall be responsible for seeing that the items of expenditure are of obvious necessity and are at fair and reasonable rates. The Secretary is further responsible for seeing that the rules regarding the preparation of bills are observed, that the money is either requir ed for immediate disbursement or has already been paid from the Permanent Advance, that the expenditur e is within the available appropriation and that all steps have been taken with a view to obtaining and additional appropriation, if the original appropriation has either been exceeded or is likely to be exceeded. 82. (1)All charges actually incurred must be paid and drawn at once, and under no circumstances may they be allowed to stand over to be paid from the grant of another year. (2)No money shall be drawn from the Treasury unless it is required for immediate disbursement. It is not permissible to draw money from the Treasury in anticipation of demands or to prevent the lapse of budget grant. 83. No pay of any kind a nd no a ddit ion to pa y shall be cha rged as co ntingent expenditur e exc ept in cases of the following :- (i)Labourers enga ged on manual labour and paid daily or monthly wages; (i i)Sweepers and grass cutters. 84. Contingent charges incurred on account of the wages of labourers engaged on manual labour and paid at daily or monthly rates shall be supported by a certificate signed by the Secretary to the eff ect tha t labourers were actually entertained and paid. 85. In the case of all others whose pay is drawn on contingent bill, a certificate in the following form shall be furnished by the Disbursing Officer :- “Certified that all the employees whose pay has been charged in this bill were actually entertained in Council Services during the period concerned.” 86. The following rules for the prevention of the fraudulent use of sub-vouchers or other papers connected with the accounts shall be observed by the Secretary in the matter of cancellation and destruction of sub-voucher and the other c onnected papers : (a) Unless in any case it is distinctly provided otherwise by a ny rule or order, no sub-vouchers or other papers connected with the accounts may be destroyed until after a lapse of three years, but in any case no sub-voucher should be destroyed before audit by settlement of objections raided by the Acc ountant General (Audit) or the Examiner of Local Accounts. (b)All sub-vouchers should be kept in the saf e custody of the Distr ict Council Office. 87. (1)The Secr etar y shall draw money fr om the Treasury by mea ns of chequ e for Contingent Cha rges wit hin the amou nt a llott ed in the bu dget a ft er obtaining sanct ion of the competent authority as named in rules 129 and 130; provided that a bill for any amount over rupees five hundr ed shall be countersigned by the Member-in-char ge of Financial Affa irs. (2)The bill shall be prepared in the Form as prescribed in Appendix XII. 88. A register of contingent expenditure shall be kept by the Secretary whose full signature with date shall be enter ed against the date of Payment of each item. 89. The standard form of the C ontingent R egister will be prescribed by the Member- in-c harge of Financial Affairs in consultation with the Director of Accounts and Treasuries, Government of Mizoram. The actual details such as the number of column to be opened, the sub-heads and detailed heads, etc. as may be required for the purpose of control (generally the budget heads should be (followed) may be settled by the Council to suit the conditions of the District Council Office. 90. As each payment is made, entries must be made in the Contingent Register, of the date of Payment, the name of payee and the number of sub-vouchers in the three columns to the left and amount in the proper column. 91. To enable the Secretary to watch the progress of the expenditure under each detailed head as compared with the appropriation for it, a pr ogressive total of all the columns must be made monthly immediately after the monthly total, so as to include all payments under each head, as also any charges adjusted by book transfer from the commencement upto the end of the last month of the financial year concerned. 92. (1)When it is necessary to draw money for contingent expenses, as for example, when the Permanent Advance begins to run short, or when a transfer of charge takes place, and in any case at the end of each month, a red ink line shall be ruled across the page of the register or registers, the several columns added up and several totals posted in the bill. The Secretary shall carefully scrutinize the entries in the register or registers with the sub- vouchers, initial them, if this has not already been done, and sign the bill which will then be dated and numbered and passed for payment by drawing the amount by cheque from the Treasur y. (2)The heads of contingent expenditure may be entered in manuscript in the bill and the totals posted against them; provided that full details of the charges must be entered in the bill, except when they ar e given in the sub-voucher. CHAPTER – IV PERMANENT ADVANCE 93. (1)Permanent Advances ma y be granted to the S ecr etar y for the pur pose of meet ing c ertain class or classes of expenditure, the amount of advances being fixed by the District Council according to his requirements. (2)As these advances involve the per manent retention of money outside the Fund, they must not be larger than the amount absolutely essential. (3)The Secretary is responsible for the safe custody of the money placed in his hands and he must at all times be ready to pr oduce the total amount of the money in vouchers or/and in cash whenever demanded by the Member-in-charge of Financial Affairs or by the Acc ountant General (Audit) or the Examiner of Local Accounts. 94. (1)The per manent advance is intended to provide, on the responsibility of the Secretary, for emergent petty advances of all kinds. (2)The Secretary is responsible for the proper accounting of all payments initially met out of Permanent Advance, strictly in the order of occurrence and as soon as they take place, thr ough the medium of the P er manent Adva nc e Account Regist er and the Ca sh Book. He is further responsible for the timely r ecoupment of a ll sums spent out of Permanent Advance. [see also Rule 91] (3)The Permanent Advance may be rec ouped, whenever nec essary, and it must a lwa ys be recouped on the last working day of the month by drawing money for the expenditure already incurred from the Fund in Accordance with the rules regulating contingent charge. CHAPTER – V CONTRACT 95. Exc ept in cases of piece works or petty pur chase, the r ecognized system of ca rrying out wor k and purchasing or carrying materials otherwise than by the employment of daily la bour is contract work. All such works shall be done after inviting tenders in most open and public manner and executing agreements in writing, which should be previously and definitely express ed, and also should state the quantity and quality of the work to be done, the specifications to be c omplied, the conditions to be observed, the security to be lodged, the terms upto which the payments will be made, and the penalties exacted with any provisions necessary for safeguarding the property entrusted to the contractor. Not e-1. Pi ece-wor k is t hat for which a rate on ly is agr eed upon without ref erenc e t o t he total quantity or the qualit y to be done within a given period. Note-2. The Monetary limit upto which the purchas e may be treated as ‘petty’ shall be fixed by the Council. 96. (1)The Chief Ex ecutive Member shall execut e agreement/instruments on behalf of the District Council relating to any matter with the affairs of the District Council. (2)The term on which the agreement/instrument will be executed shall be prescribed by the District Council in consulta tion wit h the Accountant General (Audit) a nd wit h the approval of the Governor. CHAPTER – VI PAYMENT FOR PURCHASE OF STORES [NOTE :- In this Chapter the term ‘Store’ is used to indicate all articles and materials required for the Council and coming into a Council Officer’s possession, for various purposes, and includes stationery, furniture, machinery, tools and plants, etc.] 97. Subject to such general or special rules or subsidiary instructions as may be issued by the District Council and without prejudice to the generality of the provisions contai ned in Part VII, the provisions of C hapters III and IV ant e shall apply generally to payments for stor es purcha sed b y the District Council i n acc ordance wit h depa rtmental regu lations. 98. As a general rule, payment for supply is not permissible unless the stores have been received and survey ed. 99. (1)Bills in support of payment for purchase of stores shall be accompanied by a certificate that the articles detailed in the vouchers have been actually received a nd entered in the Stock Register, that their quantities are correct and their quality good, that their rates paid are not in excess of accepted or market rates and that suitable notes of payment have been made in the indents and invoices concerned to prevent double payment. (2)The authority, unless it is a general one, under which the purchase is made shall also be quoted. NOTE :- The certificate prescribed in this rule, usually styled as the store-certificate, is a very important one and must be signed by the Secretary. CHAPTER – VII WORK S EXPENDITURE 100. The rules in this Chapt er shall apply to expenditures on special services connected with the construction, repair and maintena nce of buildings, roads and other works undertaken or owned by the Council. 101. For every wor k ther e should be a duly sanctioned detailed estimate. 102. A detailed record of the expenditur e r elating to each sanctioned work should be kept in a register in the Form as prescribed Appendix XIII. 103. (1)As a general rule, subject to such exceptions as may be authorized by the District Council, where the work is done departmentally, the wages of labourers engaged shall be drawn on Muster Rolls s howing the na mes of la bour ers. The da ily attendance and absenc e of labourers and fines, if any, inflicted on them must be so recorded as to prevent any tampering with, or unauthorised additions to the entr ies onc e made. (2)Subject to as provided above, the Muster Rolls may be kept in such form and in accordance with such methods as may be prescribed by the Member-in-charge of Financial Affairs in consultation with the Accountant General (Accounts & Entitlement). 104. The Payment made on Muster Rolls must be made by the Secretary or any other officer authorised for the purpose who would certify to the payment individually or by groups. The amount paid on each data shall be noted in words as well as in figures at the foot of the Muster Roll. 105. (1)Unless in any case the District Council direct other wise, payments for all wor ks done otherwise tha n by daily la bour and for all supplies shall be made on the basis of measurements recorded in the measurements. Books kept for the purpose. Claims for such payment shall be prepared as far as possible by the claimants themselves in authorised for ms of bills and vouchers and no payment other than an advance payment be authorised unless the correctness of the claim in respect of quantities and rates as well as the quality of the work done or supplies made have been accepted and all calculations carefully checked by the Secretary or any other officer as may be authorised by the Secretary with the approval of the Executive Committee. In case of works done departmentally through daily labourers, the measurement of wor ks done should also be recorded in the Measurement Book when the items of work are susceptible of measurement. (2)Subject to such general or special instructions as may be issued by the District Council, Measurement Books shall be kept in such for m and according to such met hods as may be prescribed by the Member-in-charge of Financial Affairs in consultation with the Acc ountant General (Accounts & Entitlement). 106. A stock Register of Measurement Books shall be maintained in the form as prescribed in Appendix XIV. 107. (1)As a general rule and subject to such exception as ma y be authorised by the District Council, no payment can be made to a contractor, except for the work actually done or supplies actually received. Subject to such general or special order as may be issued by the District Council in this behalf, advances, if any, made to contractors during the execution of work shall invariably be recovered from their bills for the value of work done or supplies made before final payment is made, which must in no case be permitted without detailed measurement. (2)The detailed rules prescribing the ter ms and conditions under which advance payments may be made in exceptional cases shall be laid down by the Council in consultation with the Accountant General (Accounts & Entitlement) and with the approval of the Governor. 108. A Contractor’s Ledger in the Form as prescribed in Appendix XV shall be maintained, if any advance is paid or if any material is issued to c ontra ctors for execution of wor ks. 109. Separate Contingent Bill shall be prepared for expenditure r elating to “works” duly supported by sub-voucher. The na me of work as given on the sanctioned estimate should be noted conspicuously on each sub-voucher as well as in the bill itself. 110. Without prejudice to the generality of the rules in this Chapter, the detai l procedur e to be observed by the Secretary in making payments for works expenditure and the form of bills and vouchers on which such payments ar e to be made may be pres cribed b y the M ember-in-c harge of Fina ncial Affairs in consultation with the Accountant General (Accounts & Entitlement) and with the approval of the Governor. CHAPTER – VIII REFUNDS OF REVENUE 111. Refu nd of r evenu e ca n be dr awn only on the dema nd and on t he r eceipt of the person entitled to receive them aft er product ion of pr oper author ity. 112. Every r efund sha ll be noted against the original credit in the office acc ounts or other docu ments in which the moneys received are entered, in detail and a certificate of such a note having been made must be given in all vouchers for refunds. NOTE : T he not es against t he or igina l dema nd or r ealization is ess ential to make the ent ertainme nt of a double or err oneous cla im impossible. 113. (1)Bills for payment of money from the Council Fund on account of refunds of revenue shall be prepared in the form as in Appendix XVI. The Secretary shall fill up the requisite columns of the form and sign the certificate at the foot and shall also verify the credit by means of the particulars furnished in the appropriate columns and affix his signature in the releva nt column in token of his having done so. (2)Refunds may in all cases be sanctioned by the Member of the Executive Committee in charge of the department concerned. PART – IV DEPOSITS CHAPTER – I GENERAL 114. Ea rnest money rec eived fr om contractors and any other deposit should be account ed f or as deposits and recorded in a separate Register styled as ‘Register of Deposits’ in the Form as in Appendix XVII. 115. (1)At t he end of every quarter a certificate must be r ecorded in the Register of Deposits by the Secretary, that he has personally examined the register carefully and that the entries are ma de with th e utmost ca r e and regula rity. (2)In cases where the earnest money is tendered in the shape of Inter est Bearing Securities, a separ ate register styled as ‘Register of D eposits In Int erest Bear ing Securit ies’ s hall be maintained in the For m as in Appendix XVIII. CHAPTER – II REPAYMENTS OF DEPOSITS 116. (1)Refu nds of deposit s can be made u nder the orders of the Secr etary. (2)A person claiming refund of a deposit must produce the receipt given to him at the time the original deposit was made. The Secretary shall compare the receipt with the entr y on the receipt side of the register of deposits and, if found correct, he will take the payees’ receipt, pass payment order and record it at once under his initials, on the repayment side of the Register against the par ticular receipt. (3)Releas e of Int erest Bearin g S ecur it ies s ha l l b e made afte r r ecor ding a releas e or der i n t he Register of Interest Bearing Securities under the signature of the Secretary and after obtaining the full signature of the depositor against the entry in the Register. 117. (1)The pa yment or der should be given by the Secr etary on the original r eceipt which should be used as voucher. (2)As a safeguard against fraud, the Secretary shall enter the name of the payee after the words “passed for payment,” thus, “Passed for payment to……………… CHAPTER – III LAPSED AND CONFISCATED DEPOSITS 118. (1)In the accounts of March each year, the following classes of items of the Council deposit accounts received by the way of Security Deposit from the Contractor or others and the sums that are received which are not the property of the District Council and have been place with the Council authorities for a temporary purpose only shall be credited to the head “Deposit Received” of the Council in the Abstract Register of Receipts and shall be entered on the debit side of the Deposit Ledger/Register as Lapsed Deposit :- (a) Original deposits not exceeding three rupees remaining outstanding for the whole accou nt year; (b) Balance not exceeding three rupees in respect of item partly cleared during the year then closing; and (c) Balances uncla imed for more tha n three comp leted years. (2)For the purpose of sub-rule (1) above, the age of a repayable item or a balance of it, is to be reckoned as dating from the time when the balance becomes first payable. 119. Deposits credited to a District Council Fund under Rule 118 or confiscated under the pr ovisions of an agreement or bond may be repaid by the Secretary on ascertaining that - (a)the item was rally received; (b)it was credited to the District Council Fund as lapsed or confiscated, and (c)the claimant’s identity and title to the money are certified by the Secretary or a ny other authorised Officer. PART – V BUDGET AND FINANCIAL CONTROL CHAPTER – I PREPARATION OF BUDGET ESTIMATES ETC. 120. The r esponsibility for the preparation of the statement of estimated r evenue and expenditure as well as any supplementar y estimates or dema nds for excess grant lies with the Member- in- char ge of Financia l Affa ir s. 121. (1)The annual Budget for the coming year and the supplementary Demand for the current year will be prepared by the Member-in-charge of Financial Affairs and shall be placed before the District Council on the date fixed by the Council within 31st March of a year. The Budget should conform to the system of classification generally followed by Government or as may be advised by the Accountant General (Accounts & Entitlement and Audit) from time to time. No expenditure should, however, be incurred before the budget is passed by the Council. The budget as passed by the Council must be adhered to subject to the provisions of these rules. Soon after these are passed, five copies each of Budget Estimates, Supplementary Demands passed by the Council shall be supplied to the Accountant General and the Examiner of Local Accounts by the Secretary, free of cost. (2)Expenditure on a new item for which no specific provision has been made in the budget shall not be incurred without the previous sanction of the Executive Committ ee of the Council. Approval of the Council to such expenditure shall be obtained through Supplementary Demand in due course. (3)In preparing the Budget, care should be taken to see that the grants/contributions received from Government are utilized only for the purpose for which these were given by Government. Any deviation considered necessa ry would require prior approval of the Government. Any unspent balance not utilized within the financial year of its sanction, the Grant by the Government must be surrendered. NOTE :- Budget provision is no authority for incurring any expenditure which requires the sa nction eit her of the Secr etar y or the Member-in-c harge of the Financia l Affairs or of the Executive Committee of the Council. The fact of a charge which requires special sanction having been inclu ded and passed in the Budget is no authority for it. 122. The M ember-in-char ge of Financial Affa irs has got the full power to sanction r e-a ppropr iation from one head to another within the same grant in the sanctioned Budget. 123. (1)Annual Financ e Accounts and Appropriation Acc ount s shall be prepa red by the M ember- in-charge of the Financial Affairs of the Council in such form as may be pr escribed by the Comptroller and Auditor General of India, who, after obtaining approval of the Executive Committee, shall forwarded the same to the Accountant General (Audit), by the 30th June, each year. These accounts duly test-checked locally by the Accountant General (Audit), together wit h connected audit report shall be submitted to the Governor who shall cause them to be laid before the District Council. (2)After the Reports of the Comptroller and Auditor General of India are laid before the Councils as provided in paragraph 7(4) of the Sixth Scheduled to the Constitution of India, action-taken-notes on the said Reports shall be submitted by the District Councils t o the Governor of the State. The Governor shall give such directions as considered necessary in Public inter est to the District Cou ncils. 124. If any money has been spent on any service during the financial year in excess of the amount granted for that service and for that year the Member-in-charge of the Financial Affairs shall present to the Council a demand for such excess. A copy of the excess grant when passed shall be submit ted t o the Acc ountant Gener al (Audit) a nd to the Examiner of Loca l Accounts b y the Secretary. CHAPTER – II LOANS AND INVESTMENTS 125. If the District Council decides on the recommendat ions of the Member-in-charges of Financial Affairs to raise a loan in furtherance of a scheme initiated by the Council, the resolution shall requir e the concur renc e of at least two-thirds member s of the Council. The prior advice and the approval of t he Governor shall be obtained in all such cases. The responsibilities for repayment according to the stipulated terms and conditions shall, in all cases, devolve on the Department for Financial Affairs, which shall maintain a ‘Register of Loans’ in the form prescribed for t he purpose by the Member-in-charge of Financial Affairs in consultation with the Accountant General. 126. (1)The District Council may, on the recommendation of the Executive Committ ee and with the approval of the Governor, authorize investments of surplus funds of the District Council in the manner profitable to the District Council and consistent with the safety of the money invested. Usually the investment should be made in the recognized forms of Gover nment securities. (2)The r esponsibilities for maintaining the Investment Register (in the form prescribed by the Member-in-charge of Financial Affairs in consultation with the Accountant General) and for ensuring timely recovery of the interest accrued in each case shall rest with the Department for Financial Affa ir s. 127. LOANS AND ADVANCES TO COUNCIL EMPLOYEES. The District Council shall, with the approval of the Governor, frame rules regulating the grant of loans and a dva nces admissible, if a ny, to the Council employees. If a ny loans a nd adva nces are granted to the employees i n accordance with the rules framed as above, detailed records to watch recovery of s uch loa ns a nd advances s hall be ma intained by the Council i n suc h for ms as ma y be prescribed in consultation with the Accountant General. PART – VI CHAPTER – I FINANCIAL POWERS 128. Subject to the provisions of the Mizoram Autonomous District Councils Grants-in-aid Rules, and the Autonomous District Councils Constitution and Conduct of Business Rules, all financial powers in respect of expenditure shall be exercised by the Executive Committee of the District Council. 129. (1)Subject to the provisions of the Mizoram Autonomous District Councils Grant-in-Aid Rules and the Autonomous District Council’s Constitution and Conduct of Business Rules the Chief Executive Member shall have the following powers in regard to all the departments :- (a) Provided that there is no infringement of any statutory rules or rules having the force of law, to appoint, promote, suspend, reduce, dismiss, transfer and to grant leave and pension to Council Employees. (b) to fine employees for gr oss mis conduct, insubordination, inefficienc y a nd other like causes and also to remit fines imposed by itself/its subordinates. The power of r evis ion may be ex erc ised also in cases of fines imp osed under la w on private parties for breach of conduct and other causes. (c) to sanction leas es and contracts upto Rs. 1,00,000/- (Rupees one lakh) only. (d) to sanction any item of expenditure within budget upto 1,00,000/- (Rupees one lakh) only. (e) to sanction estimate of public works including additions, alterations and repairs upto Rs. 2,00,000/- (Rupees two lakhs) only. (f) to sanction excess over estimates of Public Works, if the excess does not exceed 10% (ten percent) of the original estimate. (g) to write off any debt or dues owing to the Council upto a maximum of Rs. 5,000/- (Rupees five thousand) only. (h) to write off the value of store or other articles borne on the Stock Registers upto the value of Rs. 5,000 (Rupees five thousand) only. (i) to confirm the sale and settlement of land, to suspend land revenue on account of fa ilur e of c rops or ot her cala mity accor ding to rules and to wr it e off the purcha se- pr ice of la nd, the pr oceeds of which have not b een realiz ed. (2)The District Council shall prescribe the cases, if any, wher e the powers delegated to the Chief Executive Member shall be exercised with the concurrence of the Department of Financia l Affa ir s of the Cou ncil. CHAPTER – II LAPSE OF SANCTION 130. A sanction for any fresh charge shall, unless it is specifically renewed, lapses if no payment in whole or part has been made during a period of twelve months from the date of issue of sanction : Provided t hat – (a)When the period of currency of the sanction is specified in the sanction itself, it shall lapse on the expiry of such period. (b)When there is a specific provision in a sanction that t he expenditure would be met from the budget provision of a specified financial year, it shall lapse at the close of that financial year. (c)In the case of purchase of stores, a sanction shall not lapse if tenders have been accepted or orders ha ve been placed within the period of one year of the date of issue of that sanction, even if the actual payment in whole or part has not been made during the said period. (d)A sanction in respect of an allowance sanctioned for a post or for a class of Council employees, but not drawn by the officer or officers concerned, shall not lapse. CHAPTER – III RESIDUARY PROVISIONS 131. Ca ses may ar is e for which no pr ovisions ha ve been ma de in thes e Rules. In suc h cases the provisions of General Financial Rules, Centr al Treasury Rules and Subsidiary Orders made t here under and as a mended from time to time or t he orders issued by the Government, as the case may be, will apply mutatis mutandis. PART – VII STORES CHAPTER – I GENERAL 132. Some Departments of the Council e.g. the Council Public Wor ks, Forest, Agriculture, etc. may obtain large qua ntit y of st or es for consumpt ion, manufa ctur e or other purposes. The Depar tmental Officers entrusted with the use or consumption of these stores shall be responsible for maintaining corr ect recor ds and preparing cor rect r eturns in resp ect of these st or es entrusted to them. 133. All materials received should be examined, counted, measur ed or weighed, as the case may be, when delivery is taken and they should be kept in-charge of a Council employee who would be required to give a certificate that he actually received the materials and recorded them in his appropr iate stoc k Register (a nd also Measurement Books where thes e are maintained). 134. When materials are issued from Stock for Departmental use, manufacture or sale, etc. the Council employees-in-char ge of t he st ore should see that the requ isition or indent in proper for m has b een made by a properly authorised person examine it carefully with r eference to any orders or rules for the issue of stor es and sign it after making suitable alterations under his dated initials, in the descr ipt ion a nd quant ity of materials if he is u nable to comp ly wit h the r equ is iti on i n full. The requisition or indent should be returned at once to the requisitioning Officer for signature. When materials are issued, a written acknowledgement should be obtained from the person to whom they are deliver ed or dispatched, fr om a duly authoris ed agent. CHAPTER – II STOCK ACCOUNTS 135. (1)All qua ntities of stor es inclu ding tools a nd plants rec eived in or issued from Stock should be entered in the Stock Account under t he respective heads on the dates the transaction takes place, and balance struck every mont h which should correspond with the quantities in stock at the clos e of each month. (2)The detailed rules for the maintenance of Stock Account of different classes of materials shall be prescribed by the Executive Committee in consultation with the Accountant General (Audit). 136. The balance in stock should be half-yearly verified physically to see whether the balance in hand represents the quantities, any discrepancy, and the book balance set right under orders of the competent authority. PART – VIII CONDITIONS OF SERVICE AND OTHER COGNATE MATTERS CHAPTER – I 137. All questions regarding pay and allowances (including Traveling Allowances), leave, joining time and addition to pay of Council employees, as also their conditions of service and other cognate matters will be regulated by such rules as may be laid down by the District Council with the previous appr oval of the Governor, provided that until the promulgation of a new set of rules for the purpose set forth above, the provisions of the rules in the Fundamental Rules and Supplementary Rules as adopted by the Government of Mizoram and amended from time to time together with the Government decisions thereon shall mutatis mutandis a pply in the case of all employees of the Council, provided further that the District Council may with the previous approval of the Governor, make such modifications of the rules in the Fundamental/Supplementary Rules and Government decisions as it deems proper in the matter of their application to the cases of Council employees. Copies of the or ders of the District Council authorizing a ll such modifica tions shall be submitted t o Accountant General (Audit) in duplicate. 138. The provisions of rule 137 do not apply to those Council employees who may be appointed either under special agreements laying down their conditions of service or on deputation from the ser vice of the Government of India or Government of Mizora m. 139. The District Council shall exercise the powers of State Government under the Fundamental Rules and the Supplementary Rules. 140. The Dis trict Cou ncil shall, with the appr oval of the Governor , fr ame rules regu lating the r etir ement benefits admissible, if any, to the Council employees; Provided that until such Rules are made by the District Council under this rule, retir ement benefits and ancillary matters relating to the Council employees shall be regulated by the relevant rules applicable to officers and staff under the Government of Mizoram, presently applied. 141. (1)Early in March each year, a detailed statement of the permanent establishments existing on the 1st Mar ch shall b e prepa red in suc h for m and in such ma nner a s pr escribed in Appendix XIX and kept on record in the C ouncil Office. (2)A Register of Service Books shall be maintained in such forms and in such manner as prescribed in Appendix XX and kept on record in the District Council Office. 142. (1)The Ser vice Books s hould be taken-up annually, sa y, in April or May f or verifica tion by Head of the Office, who after satisfying himself that the services of the Council employees concerned a re corr ectly recor ded i n each Service B ook, should record in the Service Book a Certificate in the following form over his signature :- “Service verified upto………… (date) from (the record from which the verification is made). (2)The Head of the Officer in recording the annual certifica te of verifica tion should, in the case of any portion of service that cannot be verified from office r ecords, distinctly state that for the excepted periods (naming them) a statement in writing by the Council employee as well as a record of the evi dence of his contemporar ies is attached to the Book. (3)The Head of the Office should also invar iably recor d necessary pa rticulars in regard to temp orar y and of ficiating service. (4)When an officer is transferred from one office to another, the Head of the Office under whom he was originally employed shall record in the Service Book under his signature the result of the verification of service with refer ence to pay bills and acquittance rolls in respect of the whole period during which the officer was employed under him before for war ding t he Ser vice Book to the offic e wher e his ser vices ar e trans fer red. (5)T he t er m ‘S ervic e Bo ok’ i nc lu des ‘S ervi ce Roll. ’ (6)The for ms of S ervice Book and S ervice Roll shall be pr escr ibed by the Member- in-char ge of Financial Affairs with reference to the forms in the State Government offices. (7)Service Books must be kept in the custody of the officer in which the Council employees are serving and transferred with them from office to office. The Service Books should not be returned to the employees on retirement, resignation and discharge from service even in cases wher e he might be paid f or it already. (8)Every Council employee shall be required to subscribe his signature against the entries made in his Services Book once in a year and it is his duty to see that his Service Book is properly kept up and the entries made therein are correct. (9)Personal certificat es of character shall not, unless t he Council so dir ects, be enter ed in the Services Book, but if the Council employee is reduced to a lower substantive appointment the case of the reduction should always be briefly stated, e.g. ‘Reduced for inefficiency’, ‘Reduced owing to revision of establishment,’ etc. (10) Every period of suspension from employment and every other interruption in service shall be noted, wit h fu ll details of its du ration b y a n entry wr itt en across the page and attest ed by the Head of the Office or other attesting Officer. Head of the Office should take sufficient mea sur es t o see t ha t entri es a re made wit h regu la rit y. (11) Wh en a Cou nc i l emp loyee is t ransferr ed, whet her p er manent ly or temp or ar il y, from one office to another, the necessary entry of the nature of the transfer shall be made in the Service B ook whic h after being duly verified t o da te and attested by the Head of Off ice shall be transmitted to the Head of Office to which the Council employee has been tra nsferred, who will thence for ward the book maintained in his off ice. 143. A Register of Lands, Buildings a nd other properties belonging to the Council shall be ma intained by the Secretary in the Form as in Appendix XXI. 144. INTERNAL AUDIT The Cou ncil may, with the approva l of the Gover nor and in consultation wit h the Accountant General (Audit), prescribe a suitable syst em of internal audit. 145. EXPENDITURE INCURRED ON SCHEMES The Council shall maintain a separate set of records to show the Schemes sanctioned and undertaken, the expenditure incurred thereon and the result achieved. 146. AUDIT OF THE ACCOUNTS OF THE DISTRICT COUNCIL The Accounts of the District Council will be subject to audit by the Accountant General (Audit) on behalf of Comptroller and Auditor General of India and by the Examiner of Local Accounts. 147. Audit objections and Inspection Reports issued by the Accountant General (Audit) or the Examiner of Local Acc ounts shall be replied to and settled exp editiously. CHAPTER – II CONSOLIDATION AND SUBMISSION OF ACCOUNTS 148. (1)The accounts under different hea ds shall be maintained separately under each budget head in a ‘General Ledger’ in Form as in Appendix XXII. This Ledger shall be kept in two volumes – one for Receipt transactions and the other for Expenditure. Accounts in respect of diff erent Depa rtments shall be recorded in separate pages in the Ledger. (2)In addition to the General Ledger, a Control Ledger shall also be maintained in form as in Appendix XXIII to record total transactions under all budget heads in a month as recorded in the General Ledger. 149. (1)The Accou nts of the Council sha ll be mainta ined a nd submitt ed to the Ac countant G eneral (Audit), Mizoram in the form conforming the Heads of Accounts prescribed in the ‘List of Major and Minor Heads of Accounts.’ (2)The monthly accounts r elating to expenditure on entrusted functions, if any, shall be compiled by the Council and submitted to the Accountant General (Accounts and Entitlement), within 10th of the following month. CHAPTER – III AGENCY FUNCTIONS 150. Wher e the execution of any function is entrusted by the Gover nment under sub-paragraph (2) of Paragraph 6 of the Sixth Schedule to the Constitution of India, to any District Council, the concerned C ouncil will frame, to ma intain and submit to the Account G en eral (Accounts & Entit lement), such acc ounts in var ious for ms as may be pr escribed by the Account G eneral (Accounts & Entitlement). CHAPTER – IV REPEAL AND SAVINGS 151. The Mizora m Autonomous District Councils (District Fund) Rules, 2006 is hereby repealed; Provided that notwithstanding such repeal, anything done or any action taken under the repealed Rules shall be deemed to have been done or taken under the corresponding provision or provisions of these Rules. APPENDIX – I[Se e R ul e 18 (a )] Cash Book of District Council For the month of ………….. 19 …….. Receipts ExpenditureA mountAmountDatePa rticulars (full details with reference to receipt no. etc.)Cash (Rs.)Try. (Rs.)Impr est.( Rs.)Total (Rs.)Classifi- cationLedger DateParticulars (full details of payments)Cash (Rs.)Try. ( Rs.)Impr est. ( Rs.)Total ( Rs.)Classifi- cat ionLedg er folio12345678910111213141516APPENDIX – IIBill Register of the Office of the …………………… [See claus e (J) of R ule 18]AMOUNT OF THE BILLS (DETAILS HEAD OF ACCOUNTS E TC .)Bill No. & DateParticu- lars of billPay of Establish- mentDear- ness allow- ancesHouse rent and other allow- ancesContin- g enc i esGr oss amountDeduc- tionsNet AmountDated initial of the officer signin g the billNo. & date of c heque drawn at the TreasuryAmount r ec ei ved f rom the TreasuryDate of signing acknow- ledge- ment wi th initial ofthe of fi c ersi g ning thebillDate of r ec ei pt fr om TreasuryDate of entry in the Cash BookInitial ofth e Of f ic erin-charge of the CashAmount disbursed in………… month of drawal 2nd month 3rd monthB a- lanceR e- marksAPPENDIX – III[ See rule 19 and 29(1) ]RECEIPTBook No……………………………………………………………. Receipt No ……………………………….……………….. Date …………………………………………. Received from …………………………………………………………………………………….….. Rupees ……………………………………………………………………. (Rupees …………………………………………………………………………………………….…..) in cash on account of ………………………………………..……… ………………………………………………………………………… by cheque. Reference to Cash Book entry : Page No ……………………………….. Signature and designation of issuing officer Countersigned Secretary, Executive Committee, ………………………………… District Council. APPENDIX – IV[See Rule 29(3) and 47] Register of Receipt Bo oks/ Cheque Bo oks Balance quant ity of receipt books in stockSig na tu re of SecretarySl. No. of entry DateSerial No. of each receipt/cheque bo ok r ecei v ed in stock (give each bo ok)Seria l N o. of Receipt/ cheq ue i n the booksSig na tu re of Secr eta ryD at e of issuedTo whom issuedSig nat ure of pers on to whom issuedDa te of recei pt of counterfoil of cheque book/ use d receipt book newused1234567891011APPENDIX – V[Se e R ul e 31 (a )] Assessme nt Register for the year, 19…..) Assessment nature ofAssessment ac cor ding to th eSerial No.Name of the Tax payerHouse Numb er of the Tax payerAnnual value of hol ding s/ total taxes, income etc . TaxAmount Tax AmountAddi tional column. Numb er of ta xes TotalRemar ks1234567891011APPENDIX –VI[See Rules 31(a)] Dema nd and C ollection R egister for th e yea r, 19………. Rem is si on Suspensi on, if anyTotal Amount du e ( 4- 5-6)Total amount collection with No. and date of r eceiptBalance at the end of th e yea rSerial No.Name of Tax pa yerReference to Sl. No. in the Register of AssessmentArrear DemandCurr ent DemandArrear DemandCurr ent DemandArrear DemandCurrent DemandDemand BillArrear DemandCurr ent DemandArrear DemandCurrent DemandTotal R em arks123456( a)6(b)7(a)7( b)89(a)9( b)10 (a)10(b)10 (c)11APPENDIX –VIIP AY BILL FOR M[SEE RULE – 74(2)]Detail pay bill of Permanent / Temporary Establishment of the ……………… …………………………………. District Council, for the mo nth of …………………….……… 19 ………………. ………………………………………………………………………….. For use by Audit Authorit ies. 1234567891011Sl. No.Nam e of incumbent of Designation DesignationPAYDPTotal of Pay + DPSpl. PayD.A.S.C.A.H.R .APPRs.Rs.Rs.R s.Rs.R s.Rs.R s. 1213141516171819202122WAF.A.Grants TotalGPFIMP DAGPF (R)No. of insttI/FS/FHBA (P)No. of insttRs.Rs.Rs.Rs.Rs.Rs.Rs.Rs.Rs.23242526272829303132HBA (I)No. of insttHUDCONo. of instt HUDCO (Int) No. of insttUC (H BA)No. of in sttP. TaxNo. of insttRs.Rs.Rs.Rs.Rs.33343536Total Deducti onNet amountDNIRemar ksN.B. 1. Held-over amount should be entered in the appropriate columns (8), (4), (5), (6), (7)r (8) as the case may be ignored in totaling. Leave salary, the amount of which is not known should similarly be entered in red ink in column (8) at the same rate as pay if he had remained on. 2. In the remarks column (20) should be recorded all unusual permanent events such as deaths, retirement, transferred and first appointments which find no place in the increment certificates or absentee statement. 3. When an increment claimed operates to carry a Government servant over an efficiency bar, it should be supported by a declaration that the Government servant in question is fit to pass the bar. 4. Names of Government servants in inferior service as well as those mentioned in Rule 268 may be omitted from Pay Bills. 5. A red line should be drawn right across the sheet after each section of the establishments and under it the total of columns (4) (5) and (9) for the section should be shown in red ink. 6. In cases where the amount of leave salary is based on average pay, a separate statement showing the calculations of average pay duly attested by Drawing Officer should be attached to this bill. 7. The names of men holding posts substantively should be entered in order of seniority as measured by substantive pay drawn and below those will be shown the post-left vacant and the men officiating in the vacancies. 8. Officiating pay should be recorded in the section of the bill appropriate to that in which the Government servant officiates transit pay should be recorded in the same section as that in which the duly pay of the Government servant after transfer is recorded. APPENDIX – VIII[See rule 74 (2)] District Council …………………………………. Pay bill of officer ………………………………. Name of office …………………………………. Audit No. __________ Head of:-Voucher No. of List for Council of …………… Service 19 ……………….. Monthly rate Amount Received for the month of 19 pay as Allowances as Allowances as Allowances as Total claim Less fund and other reduction as details on Reverse Rs. P Income tax in Rs. Paid for insurance [attested copy premium receipt (attached)] Net amount payable (in words) Rupees ………………………….STATIONCOUNTERSIGNED Twenty pai se receipt stamps for sum exceeding Rs. 20 Signature of The ___________________ 19 ____________ Controlling Officer (Signature and Officia l Designation )Rs. PRs. P Passed for Rupees ( ) FOR USE IN ACCOUNTANT GENRAL’S OFFICE Admitted ……………………………………………………….. Objected ………………………………………………………… AuditorsSuptd.Accountant Ge neral The …………. 19 ………. Secretary Executive Committee, District Council DEDUCTIONS Unconvenate :-Rs.P Service Family Pension Fund Do Bengal and Madras Postal Insurance Bengal Christian Family Pension Fund Hindu Family Annuity Fund General Family Pension Fund Installment of Loa n or Advance Income Tax @ on Rs ………………… Retrenchment notified by Accountant Signature of Officer Note :- The period for which the Fund subscription was due should be specified when it differs from the period for which pay is drawn. Note :- The Government of India exercise no supervision over the management of the Hindu Family Annuity and Bengal Christian Family Pension Funds, and is in no way responsible for their solvency. Note :- When the salary is drawn for the first time in any District either on transfer or return from leave, a certificate should be appended giving the date and hour of making over and receiving charge. A last pay certificate should also be annexed, in respect of newly appointed officers; the Medical Certificate prescribed in Fundamental Rule 10 should be appended. An increase or charged rate of salary should not be drawn, unless the bill on which it is drawn in either pre-audit or is accompanied by the Accountant General’s authority for the increased rate. APPENDIX – IXABSENTEE STATEMENT FORM(SEE RULE – 76)Offi ci at i ng of ficer _____ ___ (if any) _______________Nam e of A bsent eeActual rate of payDesignation on & rate of payNature of absence ______ kind f rom to perio dR at e of abse ntee allowances per monthTo be filled up by audit officeNameSubsta ntive po stSubsta ntive payOfficiating pay(t o be filled by audit officer)1234567891011121314Date …………….. 19 ………………. NOTE : 1. In column 4 should be stated full (half quarter) pay, ‘without pay’, ‘deputation’, ‘officiating’, …………….’ In transit’, ‘transferred to ………………’, ‘suspended’ etc. the date for each being specified as far as possible in column 6 and 7. In case of suspension it should be noted whether or not the period counts for pension. 2. The statement should be divided off into sections corresponding to sections in the bill, only those attachments effecting one section being shown together. 3. If the leave salary noted in Column 8 differs from that based on the rare of pay noted in the last establishment return, particulars of the calculation should be given in manuscript attached to the first bill in which the leave salary is drawn. If the calculation involved pay drawn outside the officer’s substantive section. Reference to the vouchers in which sums were drawn should also be given. 4. All charges in the scales of the permanent establishment due to retirements, transfers, death and consequent new appointment and increase and decrease of scale are shown. The number of in any months the fact should be recorded. APPENDIX – XFORM OF TRAVELLING ALLOWANCES BILLRULE – 78 (1)Travelling Allowance Bills of CERTIFICATESCertified that I have satisfied myself that the amounts included in bill 1. month previous to this date, with the exception of 2. months those detail below (which is the total amount 3. months has been refunded by deduction from this bill) have been disbursed to the officers therein named and their receipts in the Aquittance Roll. (Head Office) Passed for Rs. ________Controlling officer Dated ………….20……….. Per Rupees (in word/Figures) Accountant Secretary, Executive Committee, District Cou ncil * One line to be used and others scored outFor use by Audit Authorities Admitted Rs …………………….. Objected Rs …………………….. For reasons stated ………….. Auditor. Sudt.Head of Service chargeableVoucher No. ………………………………………. List of payment of 20 …………………………. Travelling Allowance bill of the Establishment of ……………………………… for the month of ………………………….. 20 ………………… 12345678910111213NameDesignation and HeadquarterAc tual payDate and hours where necessary vide instruc tions on the back of the bill journeys and halt.Route Purpose of journeyKi nd of journey, i.e. by R oad, B oa t, Steamer or Rail - (mail or ordinary)No. of kilometersMileage by r oad or boat or actual ex pen s esAll allowances claimed Daily Allowanc esRailway and steamer f ar es Class/ Amount single or one and half or one and three- fourthsTotal of each lineRemarksINSTRUCTIONS FOR PREPARING THE TRAVELLING ALLOWANCE BILLS1.Journey of different kinds, and journeys and halts should not be entered on the same line. Only one kind of alles should, therefore, be filled in on the same line and its amount carried out separately into last money column. 2.Hours of journey should be mentioned only – 1) When, for an absence from Headquarters of not more than two consecutive days, daily allowance is claimed for two days. 2) When mileage of actual expenses in lieu thereof are claimed. 3) When both railways or steamer fare and daily allowance are claimed in respect of journey by rail or steamer immediately proceeded or followed by a journey by road or by halt. 3.Number of kilometers traveled should be entered in all cases of journeys by road or boat. 4.Permanent traveling conveyance and horse allowances should be drawn along with the pay of the officer and not on Travelling Allowance Bill. 5.Fraction of a Kilometer in the total of a bill for any one journey for each person should not be charged for. 6.When the first item of traveling allowance to any Officer is a half the date of commencement of that halt should be stated in the Remark Column. Details of actual expenses. APP ENDI X – XI[SEE RULE – 78 (1)]District Council Schedule In lieu of Assam Schedule III (Section – 1) From No. 5 Travelling Allowance Bill of Officers. District ………………….. Travelling allowance bill of Shri ……………………………………………. Office ………………………………………… Salary ………………………………………… Headquarters ……………………………………. Head of service chargeableVoucher No. of ……………………….. list of Payment for ………………… 20…………… RouteRailway fare steamerDistance traveled by road/boat of Trolley From ToFor which mileage is admissibleStationHour of departureStationHour of departureSingle Class (Specific Class)1/2 Class (Specific Class)Actual expensesDay haltAt the rate…per KilometerAt the rate of per KilometerAt the rate of per KilometerAt the rate of per Kilometer123456789101112For which daily allowance is admissibleAt full ratesAt half rates 163 (a) supplementary rulesDate of last visit (when required by the Controlling Officer) Purpose of each visitRemarks1314151617296 CERTIFICATECertificate that no traveling allowances have been charged in this bill for journeys performed by any means of locomot ion belonging to Gove rnment or loca l fund or on state (63 service Rules) and that no tents carried at the expenses of Government have been used for private purpose during the period for which the above allowances are drawn . Received Contents Please pay to …………………………………………… Signature of the Officer who trav elled. To avoid corre spondence it is requested that such of the appended certificates are necessary may be signed separately in the appropriate cas e.A. For Officers suppl ied with EL EPHANT : Certified that I had ………………………………….. for which hire is deducted from the bill (Appendix XIII) to fundamental Rules and Supplementary Rules. Signature …………………….……………………………………………. B. For Officers attending departmental Examination : Certified that this is the 1st , 2nd and 3rd time that traveling allowances has been charged for appearing in the same standard of this departmental examination was obligatory (120 Supplementary Rules). Signature ……………………………………….…………………………. Note :- The fact that a particular subject is not taken up during the officer’s first appea rance does not entitle him to charge traveling al lowance on his third appearance on the ground that the subject is nes one. Signature of the Officer who travelled C. Court Certificate : Certified that I receive d nothing from the Court etc. N.B. :- Certificate of the Court should be attached (142 Supplementary Rules). SIG NAT URE 297 INSTRUCTION FOR PREPARTING TRAVELLING ALLOWANCE BILL 1. Journey of different kinds and journey and halts should not be entered on the same line. 2. Number of Kilo meters t ravelled should be entered in all cases of j ourn eys by ro ad or boat. 3. Permanent travelling, conveyance and horse allowances should be drawn along with the pay of officers and not in travelling allowances bills. 4. Fraction of kilometers in the t otal of bi ll for an y one journe y should not be charged for . 5. When the first item of traveling allowance to any officer is a halt, the date of commencement of that halt should be stated in ‘Remarks’ column. 6. Totals of colu mn 13 & 14 will not be of the kil omet ers travelled but of the da ys con cerned. 7. Tra velli ng al lowan ce bi ll may, if desir ed to en faced for payment t o a Ban ker of Agent an d submi tted for collect ion th rough s uch Ban ker or Agent; t his will obvi ate the necessit y of the offic er’s attendance i n pers on or by messenger as pay ment may then be made direct to the Banker or Agent . _____________________________________________________________________________________________ Railway and steamer faresRs. P Memo allotmentRs. PPassed (Column 6 & 7) Kil ometers byfor(date) Road at ……………. Paise per20………20…….. kilometer (Column 10) Kilometers by road at ………….. paise per k il ometer (ColumnExpe ndit ure in-District Officer - 13) …………… days for whichcludi ng this bi ll daily allowances is claimed (Column 9, 14 & 15) at ………… Actual Expenses (Column 8) Total …………………………………. Single ……………………………….. Deduct …………..…. Permanent traveling allowance …………… Doubl e. Days [72 S.R.] Deduct rent due to Govt. [under 164 S.R.] for days a t … ……… …. Net cl ai msBalance _______________________________________________________________________________________________________ Rupees ……………………………. Dated ………………………………Controlli ng Officer _____________________________________________________________________________________________ Pay rupees ……………………… Secretary, Dated …………………………….. Executive Commi ttee, ………………………. District Council. _______________________________________________________________________________________________________ FOR USE IN COMPTROLLER’S OFFICEDistance accepted, rates and calculation checked and found correct. Entered in the Audit Register. Admitted Rs. …………………………..Objection to Rs. …………………. Auditor ………………. Auditor …………………for reason stated Superintendent …………………. 298 APPENDIX – XIIForm of Bill for Contingent Charge s(See rule 87)District CouncilBi ll for co ntingent the ……………….. for the month ofChargesVoucher no. of list of payment for 19…..HEAD OF SERVICESerial No. sub-vouchersDetailed head of charges with description where necessary and quotation of authority for charge requ iring speci al san ctio n.A mo u ntDetails of expenditurePolice Rewards (To outsider)Reward to outsiders and Jutots (Administration of justice)Diet and conveyance of under, trial prisoners (Lock-ups)Diet of patients (Medica l and Pu bl ic health)Rewards for the destruction of wild animals (Miscellaneous)Hospital Expenses of wounded persons (Administration of Justice)Process serving charges (General Administration of Justice)Medical st oresJob (Contract) works. Serial No. of Sub- voucherDetailed head charge (with description where necessary) and quotation of authority or charges requiring special sanctionAmountDet ailed of ExpenditureBrought forwardRs. P.Rs. P.Allowances to District and Village Officers (Centr al Administration). Charges for enforcement to Town and Village (petty establishment)Demarcation of boundaries and jungle clearing (Land Revenue)Rates and Ta xes (n on- vot ed) El ection charges (Lo cal bodies) pay and contingency works Repairs-repairs works R epairs-Rates and Taxes.Rs. P.Rs. P.Other miscellaneous contingencies Leveries and Warm cloting, partition charges (Land Revenue), Record Room charges.Rewards under the grazing rules (Outsiders), Seeds, Plants, Manure Petty Estt.) Food of impounded cattle (Cattle pound) Total other miscellaneous contingencies.Total Rupees (In words)Details should be furnished in the space provided below each head and when this space is not sufficient, use this column, when this column is insufficient, the details may be furnished in a separate sheet of paper which should be attached to the bill. 1.I certify that the expenditure charged in this bill could not, with due regard to the interests of the public service. I certify that to the best of my knowledge and behalf the payments entered in this bill have been duly made to the parties entitled to receive them, with the exceptions noted below which exceed the allowance of the payment advance and will be paid on receipt of the money drawn on this. Vouchers for all items of expenditure above Rs. 25/- in amount and all works bills are attached to this bill save those noted below, which will be forwarded as soon as the amounts have been paid. I have, as far as possible, obtained vouchers for other sums and I am responsible that they have been destroyed, or so defaced or mutilated that they cannot be used again. 2.Certifie d that all the articles det ailed in the vouchers attach ed to the bill and in those retained in my Office have been accounted for in the stock Register. 3.Certified that the purchases billed for have been received in good order, that their quantities are correct and their quality good, that the rates paid are not in excess of the accepted and the market rates and that suitable notes of payment have been recorded against the indents and invoices concerned to prev ent double payments. Appropriation for the current year ………………………………………………………………. Expenditure included in this bill …………………………………………………………………… Amount of works – bill annexed …………………………………………………………………… Received contents balance available ……………………………………………………………. Signature and Designati on Drawing Officer Dated ………………. 19 ………….. This Certificate is required when proper store accounts of materials and stores purchased are required to be maintained. _____________________________________________________________________________________ Pay Rs ………………………..…….. (In words) and figure ……………………………. Examined Accounted Secretary, Executive Committee, District Council _____________________________________________________________________________________ For use by A udit Au thoriti es . Noted on page ……………………………………………………… of P/C / Audit Register Admitted Rs. ………………………………………………. Objected to Rs. …………………………………………………….. for reasons stated below :- Auditor. Superintendent. APPENDIX – XIII(See rule 102) District Counci l Register of Works Name of workNo. and date of sanctionMonthParti culars of ex pendit ur eCharges of the m onthTot al char ges upt o dat eSignature of the Secretary12345APPENDIX – XIV(See rule 106) Stock R egister of Measurement Books Serial No.DateSerial N o. of each M.B. recovered in stoc k (gi ve one line for each Book)Signature of SecretaryDat e of issueTo whom issuedSignatu re of person to wh om issuedD at e of receipt of u sed up BooksBalance quantity of M.B’si n stockNew UsedS igna ture of Secr et ary1234567891011APPENDIX – XV(See rule 108) Contractor ’s Ledger Sl. N o of ItemsName of WorkDateParticulars of Adva nce paid (including issue of Materials)Amo unt of Advance (includi ng V alue of Materials)R efer enc e to Voucher/ Entry in Stock RegisterDate of Adjustment of the AdvanceAccount of Adv anc e Adj ust ed (includi ng Value of Materials)Refer enc e to Vouchers from Recov eries have been affectedBalance12345678910APPENDIX – XVI[See rule 113 (1)] Bil l for Refun d of Rev e nue Distri ctRefund of RevenueVoucher N o. Head of service char g eableDeduct refunds (name of Revenue Head)List of payme nt for 19…………. In whose name cr editedOn what account creditedAmount realizedDate of payment into the curre nt a cc ountAmount in which included and head on which creditedSecretary’s signature in toke n of verification of treasuryName of payeesAmount t o be ref und ed Tot al (i n words ) R upees12345678(1) Certifi ed t hat this ord er of refu nd ha s be en registered and not e d ag ai nst the original rec eipt entry i n the departm ent amou nt unde r i nitial s an d previous order for r efund of t he same sum has not been issued. (2) Pa ssed f or payment u nde r secti on gi ve n in – Received pa yment ………… …………….……………………………………………………….………………… Secr et ary, E xecut ive C o mmitt ee,for use in Accountant General’s Office District CouncilRefund not in final statement Cl ai mant’s sig nat ure …………………………. Pay Rupees ………………………… ( )Obje ct edSupt.A dmitt ed Auditor The 19…….. Cashier/ Accountant Secretary of the Executive Committee, District Council Not e : In the cases where refunds of f ines are per mitted to be made direc t from Treasur ies of Sub-Treas uries ot her tha n those a t whic h they were credi ted, th e entry in col umn 5 sh ould i nclu de t he nam e of t he Treasury or Sub-Tr eas ury in whi ch t he amo unt w as credite d and c olum n 6 sho uld be fill ed up by th e Tr eas ury O fficer at the Hea dquar ters (Not Sub -Treasury) . Chair man …… …………………… ……… . Distri ct Council APPENDIX – XVII(See rule 114) De posit Le dger / Regist er Na me …………………… …… . Deposit refunded t o theDeposit received from the ……………………. deposi t or or, laps ed to re venue d eposi tor Name Particulars No. of Amount Total Date Particulars No. of items in pass book if rec eived in cash of No. of voucher if by deducti on from billsAmount Total Amount remaining at deposi tor s cr edit afte r ea ch transaction1234567891011APPENDIX – XVIII[See rule 115 (2)] Reg ist er of I nt eres t Bea rin g Sec ur i ti es Sl . N o.Name of PartyDate of DepositParti culars of securities receiptsDated Signature of the SecretaryNo. & Date of rel ea s e ord erDated Signature of SecretaryDated Si gnat ure of the partyR emarks123456789APP END IX – X IX[See rule 141 (1)] ESTABLISHMENT RETURN FORMFORM ‘A’Or ders of Competent authority creating the po stDa te of a ppoi ntment of present incumbe nt to t he post wit h indi cat ion of na ture of appointment (e.g. officiating, provisional or permanent)N ame of sanctioned postDat e of incumbent’s birth by Christian eraSerial No. of post in ea ch classN ame of postPay of p o stPay of p rese nt incumbent (total of ea ch sanctioned)Date of last i ncr eme ntRemarks (including n ote of efficiency bar wh ere applicable)12345678910C ompar ed with Se rvic e Book and fo und c orrect. Signature of the Head of Office APPENDIX – XX[See rule 141 (2)] REGISTER OF SERVICE BOOKOffice of the …………………………………………….. Proforma …………………………………………………. Sl.Name of the employeeDesignationDate of appoi ntm entDate of birthDate of sup eran nuationInitial of the Head of OfficeIni tial of t he i nspecti ng Auditor12345678Note :-(i) Column 7 should be initiated by the Head of Office in token of having done the verification. (ii) Column 8 should be initiated by t he Inspecting Auditor in token of having done the verification. (i ii ) The reg ister s hould contain suf ficient page s (inner s heets) t o co ve r a number of y ears, say 20 to 25 . APPENDIX – XXI(See Rule 143) Regi ster of Land an d B uildings and other propertie sDisposalSl . No. of entryDate of acquisitionParticulars of propertyPri ce paidWh ere place d or situatedDate Manner of disposalAmount realized, if soldSignature of SecretaryRemarks12345678910APPENDIX – XXII[See Rule 148 (1)] General Led gerReceiptAccording to the classif icationExpe nditureunder budget heads Item-wiseDateBrief ParticularsAmountC.B. FolioProgressive Total12345APPENDIX – XXIII[See Rule 148 (2)] Control LedgerReceiptGroup of ItemsExpe nditure( as per Budget)MonthBr ief ParticularsAmountProgressive Total1234ANNEXTURE - A[See Rule 7 (1)] HEADS OF ACCOUNTS FOR DISTRICT COUNCILP ART I : DI STR I CT F UND OF T HE COUNC IL( A) RE CE IPT HEAD (REVE NUE ACCOUNT )Maj or H eadMinor HeadDetailed Heads123I. Taxes onTaxes on profession Trade, Callings (i) Share received from the State Income andand EmploymentGovernment on Taxes on profession, ExpenditureTrade, Callings and employment. (ii) Direct collection of taxes on pro fession, tra de, c al lings and employment. Maj or H eadMinor HeadDetailed Heads123(iii) Collection of professional Tax. (iv) Trade license fees. Income Tax Deducted at Source(i) Income Tax collection. (ii) Deduct-amount paid to Income Tax Department II. Land andLand Revenue / Tax(i) Ordinary Revenue. Revenue(ii) House Tax (iii) Conversion of annual land into periodi c p atta (iv) Premium for settled land. (v) Share from Income from Elakas. Othe r Receipts(i) Income from cattle pounds and grazing fees. (ii) Receipt from Survey and Demarcation fees. (iii) Other Miscellaneous receipts. III. Stamps andCourt fees realized in stampsSal e procee ds of C ourt fe e stamps. Registration feesOthe r Receipts.Sal e of other s tamps. IV. Taxes onShare of Motor Vehicles TaxShare of Motor Vehicle Tax received Vehiclesreceived from Govt.from Government. Othe r ReceiptsTaxes on carts, cycles and boats. V. InterestInterest on Loans and Advances to Interest on Loans and Advances to ReceiptDistrictDistrict Council Employees. VI. StationeryStationery Receipts(i) Sale of Stationery. and Pri nti ng(ii) Sale of Forms, Rules etc. Othe r Receipts(i) Any other receipts. VII. PublicRents(i) Rents received from the employees. Worksfor occupation of Council Buildings. (ii ) Recoveries f rom Centra l and State Government. (iii) Rents for other residential and non residential buildings. Maj or H eadMinor HeadDetailed Heads123Othe r Receipts(i) Income from Motor Workshop. (ii) Receipts on account of lapsed deposit fines f or bad works. (iii) Other items. VIII. OtherService and Service fees(i) Certifying fees, Administrative(ii) Application fees. Services. A. Admi ni strationFine and forfeitures(i) Fines and confiscations imposed of Justicerealized by Judicial Officers of the District Council. B. Other ServicesOthe r Receipts(i) Income from Members’ Hostels. (ii) Income from District Council lakes. (iii) Other miscellaneous receipt. IX. EducationTuition and other fees(i) Tuition fees. (ii) Examination fees. Othe r ReceiptsOther Re cei pts X. Pu bl ic Health,Receipts f rom Rural Water(i) Water tax and water connecti on Sanitation andSupply Schemescharge under Rura l Water Supply Water SupplyScheme. (ii) Service fees, fines etc. Othe r ReceiptsOther Re cei pts XI. Other GeneralGrants-in-aid from non-Govt.(i) Receipts from District Council Markets Economicbodi es(ii) Rent from Bazar Stalls. Ser vices(iii) Share from other Markets. (iv) Taxes/Tolls on entry of goods into marke ts. Othe r Receipts(v) Other Receipts. XII. FisheriesRentsReceipts from auction of Fishing rights. License fees, fines etc.Receipts from license fees, fines etc. Sale of Fi sh, fish seeds etc.Recei pts from sal e of fi sh, fish seeds etc. Othe r ReceiptsOther receipts. XIII. ForestSale of timber and other forest(i) Royalty on timber and other forest producepro duce. (ii) Sale proceeds of timer, fire woods, bamboo, c ane, tha tch, pati nds bark etc. (iii) Receipts from sale of coups, mashals. Maj or H eadMinor HeadDetailed Heads123(iv) Receipts from drift and waif wood, confiscated forest produce. Othe r Receipts(i) Share of elephants mahal, fees for elephant hunting operation, receipt from elephant grazing permit. (ii) Rent of District Council elephant. (iii) Recei pts from mi nor minerals of the Forest De par tment. (iv) Receipt on account of Forest offences (v) Share from private forest. (vi) Hammer registration and renewal. (vii) Misc. forest receipts. XIV. Mines andMineral concession fee, Rents and (i) Royalty on Major minerals. mineralsRoyalti es.(ii) Royalty on Minor Minerals. (iii) Share from Gove rnment on mineral receipt. XV. Roads andTolls on Roads(i) Ferry receipts and sale proceeds of Bridges.Ferry Ghats. (ii) Tolls and passengers and goods. Other receipts.Recei pts that par take the scope of the above two items. XVI. Roads andRoad Transport servies.(i) Income from Road Transport. Transport(ii) Share from Govt. Road Transport. Services. XVII. Grants-in-aid1. Land SurveyGrants for land survey under Hills plan. From State2. ForestsGrants for Hill development Scheme Government(Forest). 3. Social Security and Welfare(i) Grants for constructi on of Cultural Club, Children Park, Play grounds etc. (ii) Grants for self-help Schemes, model V illag e Sch emes, B eautifi cati on Schemes, etc. 4. Roads and Bridges.(i) Grants for construction, repairs, Maintenance of major and minor bridges roads etc. (ii) Grants for Rural Communication. 5. Public Health, Sanitation andGrants for construction of Wa ter Water Supply.supply Schemes, sanitation, drainage. Maj or H eadMinor HeadDetailed Heads1236. Education(i) Grants for Primary Education. (ii) Grants for Middle education. 7. AgricultureGrants for land reclamation and other agriculture schemes. 8. Minor IrrigationGrants for minor irrigation schemes. Other grantsGrants for meeting the normal expenditure of the District Council. (B) REVENUE – EXPENDITURE HEADS1. District CouncilDistrict CouncilPay and allowances of the Chairman, Dy. Chairman and Members of the District Council. SecretariatPay and allowances “Other Expenditure”. ElectionExpenditure on election to District Council 2. ExecutiveSalary of Executive Members.Pay and allowances of the Chief MembersExecutive Member and Members of the Exe cuti ve Commit tee. Discreationary grants by Executive Discreationary grants by Chief Executive Members.Member and other Executive Members. 3. Admi ni strationJudicial Courts(i) Pay and allowances of the Judicial of JusticeOfficers and establishment of the Judicial Department. (ii) Other Charges. 4. Land RevenueDirection and Admini stra tion.(i) Pay and allowances. (ii) Other Charges Survey & Settl ement operati on(i) Pay and allowances. (ii) Other Charges Land Records.(i) Pay and allowances. (ii) Other Charges Other Expenditures.(i) Fee dings charges of impounded Cattles. (ii ) Expenditure on eviction charg es. 5. Stamps &Cost of Stamps.(i) Value of Stamps purchased from Registration.Government. (ii) Discount to vendors. 6. InterestInterest on State Govt. Loans.(i) Interest on Loans from Government. payment.(ii ) Interest on contributory pro vident fund. Maj or H eadMinor HeadDetailed Heads1237. Secretariat(i) Pay and allowances. GeneralSecretariat.(ii) Other Charges Services. 8. Stationery &Council Press.(i) Pay and allowances. Printing(ii) Other Charges 9. Public Works.Direction and Admini stra tion.(i) Pay and allowances. (ii) Other Charges (iii) Expenditure on construction of buildings. (iv) Expenditure on construction of approach Road to Buildings. Maintenance & Repair.Expenditure on the maintenance and repairs to Buildings. Furni shing public Works Shops.Cost of furniture and other Services Expenditure on Vehicle & Workshop, Establishment of P.W.D. 10. Pe nsi on &Superannuation & retirement(i) Pension paid to District Council Otherallowances and gratuities.Employees. Retirement(ii) Gratuities paid to District Council Benefits.employees. Contri butions to P ension &Contributions to Pension & Gratuities Gra tui tie s.paid to other Govt. Department. Contributions to contributoryDistrict Council’s share of Contribution provident Fund.to Contributory provident Fund. 11. Education.Direction and Admini stra tion.(i) Pay and allowances of the Executive Staff & Establishment of the Education Department. (ii) Allowances for Education Board. (iii) Contingencies. InspectionPay and allowances of Inspecting Staff. District Council Primary Schools.(i) Pay and allowances. (ii) Other Charges Assistance to Non-District Council Grants-in-aid for Primary Education. Primary Schools. Pre-Primary Educati on.(i) Pay and allowances. (ii) Other Charges Promotion of Modern Language & Contribution towards, literary, Literaturehistorical & Cultural activities. Welfare(i) Grants to Text Book Committee. (ii ) Expenditure on Sports & G ames . Maj or H eadMinor HeadDetailed Heads12312. Art & CulturePromotion of Art and Cul ture(i) G rants to Cultural Institutions. (ii ) Mai nte nance & Preservation of ancient monuments, relics etc. Other mi sc. works(iii) Other works. 13. Public Health,Other Rural Water Supply(i) Construction of Water Supply Sche mes. Sanitation &Schemes(ii) Expenditure on sanitation, drainages Water Supplyet c. (iii) Other works. 14. UrbanAssistance to Urban Development (i) Grants to Urban Development DevelopmentOrganisationOrganisations. (ii) Grants to Municipalities & Town Committees for general purposes. (iii) Other works. 15. Information &Direction & Administration.(i) Pay and allowances. Publ icity.(ii) Other charges. Publ icity(i) Grants for publication of Newspapers and Magazines. (ii) Other works. (iii) Cost of publicity films & Operational charges. 16. Social SecuritySocial Welfare.(i) Construction and maintenance of chi ldren Park s, pl aygrounds e tc. (ii) Expenditure on materials purchased for recreation education. (iii) Pay & Allowances of Shais. (iv) Grants for construction of Cultural Clubs, Children Parks, Playgrounds etc. (v) Grants for Self Help Schemes, Model Village Schemes. (vi) G ra nts to Villa ge C ommittee fo r General Purposes. Other grants for specific purposes will be classified under functional Major Heads. (vii) Other wor ks. Other Expendi tur e(i) Other expenditure. 17. Relief onGratuitous ReliefRelief to victims of Natural Calamities. Account of Natural Calamities. Maj or H eadMinor HeadDetailed Heads12318. Other GeneralOther Expendi tur e(i) Expenditure of improvement of EconomicMarkets. Ser vices(ii) Pay & allowances of Bazar Supervision. (iii) Other charges. (iv) Expenditure on election to bodies other than District Council. (v) Other ch arges. 19. Agriculture.Direction & Administration.(i) Pay & allowances. (ii) Other charges. Agricul tur al Educati on.Stipends for Agricultural Students. Other Expendi tur e(i) Land reclamation. (ii) Other works. 20. Soil ConservationMinor Irriga ti on Sche mes.(i) Expenditure on land reclamation & Minorand minor irrigation schemes. Irrigation(ii) Other works. 21. FisheriesDirection & Administration.(i) Pay & allowances. (ii) Other charges. Inland Fisheries(i) Expenditure on improvement of Fisheries. (ii) Other works. 22. ForestDirection & Administration.(i) Pay & allowances. (ii) Other charges. Forest Conservation(i) Expenditure on improvement of Forests. (ii) Hills Dev. Schemes (Forest). (iii) Survey & Demarcation of Reserve Forests. (iv) Other works. Plantation Schemes,(i) Forest Plantation works. Communications and Building(ii) Constructi on, rep air & maintenance of Departmental Buildings & forest boundary che ck gates. 23. Roads &District and other Roads(i) Construction of Roads & Bridges. Bridges(ii) Maintenance and repair of roads, bridges, foot paths. (iii) Other works. Maj or H eadMinor HeadDetailed Heads12324. Road Tra nsportDirection & Administration(i) Pay and allowances of Driver, servicesHandyman & other staff. (ii) Other charges. Worki ng Expenses(i) Managemen t. (ii ) Operation. (iii) Repairs and maintenance. (iv) Other expenditure. 25. RuralDirection and administration(i) Pay and allowances of employees. Development Rural C ommunication(i) Construction of Jeep Roads (ii ) C onstructi on of Boats (iii) Maintenance of Roads in the interiors. (iv) Maintenance of Ferr is. (v) Other work s. 26. IndustryPromotion of small scale(i) Grants-in-aid to small scale IndustriesIndustries Units. Worki ng Expenses(i) Expenditure on Industrial Demonstration. (ii) Other Expenditure. 27. Ani malDirection & Animal HusbandryPay and allowances of Officer and staff. Husbandry & Veteri naryPromotion of Animal Husbandry(i) Expenditure on purchase of & Veterinar yimproved breed of cattle. (ii) Grants-in-aid to Cattle Farmers. (iii) Other Expenditure. 28. Community Development.Direction and Administration(i) Pay and allowances of Officers and staff. (ii) Construction of Community Hall, Pl aygrou nds. (iii) Purchase of Musical Instruments. (iv) Other Expenditure. C – CAPITAL ACCOUNTS (RECEIPTS AND DISBURSEMENT)(Transactions classed as Capital by the Council under the provision of note below Rule 8) The Expenditure on Capital Outlay shall be classified with relevance to the functions and objects in the Revenue Accounts and the code number assigned to the Capital Major Head should be double of the code number assigned in the Revenue Section and the detailed heads along with their number followed as far as practicable. Additional detailed heads may be opened, if necessary, to suit with the objectives of the expenditure. For instance, the expenditure under Capital Outlay of ‘Forest & Conservation’ shall be assigned Major Head of ’44 Forest & Conservation’, that of ‘Roads and Bridges’, that of Road Transport Services’, ‘48 Road Transport Services’, and so on. Receipt under this Major Head of Account other than revenue of the Council will be credited to the works concerned under this major Head of Account and will be taken as reduction of expenditure. D – PUBLIC DEBT :-(a) Internal Dept of the Council (b) Loans and Advances from the Sate Government (c) Other Loans an d A dvances. PART – IIE – DEPOSIT FUND S(i)Savings Deposits (ii) Provident Funds (iii) Pension Funds (iv) Insurance Funds (v) Other Funds F – ADVA NCES(i)Council Advan ces (ii) Civil Advances (iii) Other Advances Sd/- Commissioner / S ecretary District Council Affairs Deptt., Govt. of Mizoram …………………… APPENDIX – E [An extract from ‘The Mizoram Municipalities Act, 2007(Act No. 6 of 2007)] RULE 90(1)The Municipal accounts as contained in the annual financial statement shall be examined and audited by an Auditor appointed in that behalf by the State Government. (2)The Executive Council shall submit such further accounts to the Auditor as may be required by h i m. (3)The Au dit or so appoint ed may - (a) require, by written notice, the pr oduction before him or before any officer subordinate to him of any document which he considers necessary for the proper conduct of the audit. (b) require, by written notice, any person accountable for, or having the custody or control of, any docu ment, cash or ar ticle to appear in person befor e him or befor e any off icer subordinate to him. (c) require any person so appearing before him to make or sign a declaration with respect to such document, cash or article or to answer any question or prepare and submit any statement, and (d) cause phys ical ver ification of any stock of articles in cou rse of exa mination of accounts. (4)The Auditor may, after giving the person concerned on opportunity of being heard, disallow any item of a cc ounts contrar y to the pr ovisions of t his Act, and surcha rge the a mou nt of a ny illega l payment o n the person making or authorizing it, and charge against any person resp onsib le therefore the amount of any deficiency or loss incurred by the negligence or misconduct of such person or any amou nt which ought to ha ve been, but is not, brought int o acc ounts by such person, and shall, in ever y such case, certify the amount due from such person. Provided that any person aggr ieved by a n order of payment of c ertified sums ma y appeal to the State Government whose decision on such appeal shall be final. (5)Any person who willfully neglects or refuses to comply with the requisition made by an Auditor shall, on conviction by a court, be punishable with fine which may extend to one hundred rupees in respect of each item included in the requisition. RULE 91(1)As soon as practicable after the completion of the audit, but not later than three months thereafter, the Auditor shall prepare the report on the accounts audited and examined, and shall send such report to the Chairman and a copy ther eof to the Director of Local Bodies of the Government of Mizoram or such other officers as the State Government may direct. (2)The Auditor shall include in his report a statement showing : (a) ever y payment which appears to him to be contrary to law, (b) accounts of any deficiency or defalcation or loss which appears to have been caused by the gross neg ligenc e or misconduct of any person. (c) the account of any sum r eceived, which ought to ha ve been, but ha ve not been, brought into any account by any person. (d) any other materia l impropriety or irregular ity which may be observed in the accounts. APPENDIX – F (An extract from ‘Mizoram Grants-in-aids to Village Councils Rules 2007) Rule 8.Audit and Accounts : (1) The accounts shall be audited by Auditor appointed by t he State Government or Accountant General. (2) The Village Co uncil shall su bmit all acco unts to be aud ited to the Dist rict Level Controlling Authority within a stipulated time as called for. Audit will be conducted in the Office of the District Level Contro lling Officers concerned. The auditor if felt necessary can visit the Village Council for physical inspection. (3) The auditors shall specify all cases in respect of - (a) Irregular, illegal or improper expenditure. (b) Failure or omission to recover money or other properties belonging to the Village Councils. (c) Loss or waste money or other property thereof. (d) State whether such expenditure, failure, omission, loss or waste was caused in consequent of Breach of Trust of misapplication of mo ney or other property belonging to the Village Council or of any other misconduct on the part of Village Council or any other persons. (4) Auditor shall submit the reports and audited account showing the exact state of financial affairs of the Village Councils to the State Government failing which grants shall not be realized by the State Government. APPENDIX – G [An extract from ‘The Mizoram Societies Registration Act, 2005(Act. No. 13 of 2005)] Rule 16.Books of accounts and audit : (1) Every society shall keep at its registered office proper books of accounts in which the follo wing shall be entered accurately - (a) all sums of money received and the source thereof and all sums of money expended and the object or purpose for which such sums are expended; (b) the asset s and liabil it ies o f t he societ y. (2) Every society shall have its accounts audited once a year by a duly qualified auditor and have a balance sheet prepared by him. The auditor shall also submit a report showing the exact state of the financial; affairs of the society. Three copies of the balance sheet and the report shall be certified by the auditor. (3) Explanation :- “A duly qualified auditor” means a chartered accountant within the meaning of the Chartered Accountant Act, 1949 or a person approved by the Register in this behalf. (4) For contravention of any of the provisions of this section every officer in default shall, fro m the date the default is detected, be punishable with fine which may extent to twent y rupees for each day the default continues. ANNEXURE-INo.B.14020/2/06 – RFS/113 GOVERNMENT OF MIZORAM OFFICE OF THE REGISTRAR, FIRMS AND SOCIETIES MIZORAM : AIZAWL Dated Aizawl, the 21st November, 2007 N o t i f i c a t i o n In exercise of the powers conferred by Explanation Clause of Sub-section (2) of Sect ion 16 of the Mizoram Societies Registration Act 2005, the Registrar of Firms & Societies, Government of Mizoram is pleased to approve the Auditors of the Department of Accounts & Treasuries, Government of Mizoram as duly qualified Auditors for the purpose of sub-section (2) of Section 16 o f the Mizoram Societies Registration Act, 2005 with immediate effect and until further orders. Sd/- (LALBIAKTLUANGA KHIANGTE) Registrar, Firms & Societies Government of Mizoram Aizawl. Memo No. B.14020/2/06-RFS/113 Dated Aizawl, the 21st November,2007 Copy to : 1. P.S. to the Governor of Mizoram. 2. P.S. to the Chief Minister of Mizoram. 3. P.S. to the Ministers/Minister of States, Mizoram. 4. P.S. to Speaker/Deputy Speaker of Mizoram. 5. P.S. to the Chief Secretary to the Government of Mizoram. 6. All Administrative Depart ments. 7. All Heads of Departments. 8. Controller, Printing & Stationery with 6 (six) spare copies for publication in the Gazette with a require to furnished at least 20 (Twenty) copies of the Gazette so published. 9. The Deputy Examiner of Local Accounts Government of Mizoram, Aizawl. 10. The Joint Commissioner of Taxes, Taxation Department, Mizoram, Aizawl. 11. The Deputy Co mmissioner of Taxes (Admn) Taxation Department, Mizoram, Aizawl. 12. The Deputy Commissioner of Taxes (E) Taxation Department, Mizoram, Aizawl. 13. The Ass ist ant Commissio ner of Taxes, Aizawl North/Sout h/Lunglei Zone. 14. The Superintendent of Taxes Champhai/Kolasib/Vairengte/Serchhip/Mamit/ Sa iha/Lawngt lai/Melbuk 15. Guard File. Registrar, Firms and Societies Government of Mizoram, Aizawl ANNEXURE-IINo.G.25012/52/96-F.APF GOVERNMENT OF MIZORAM FINANCE DEPARTMENT (APF BRANCH) O F F I C E M E M O R A N D U MDated Aizawl, the 10th July, ’97 The Auditors of the Local Audit Wing in the Directorate of Accounts & Treasuries, Govt. of Mizoram are acting as Local Audit Department and conducting from time to time audit of the accounts of local bodies, institutions etc. They are also entrusted to conduct internal auditing o f t he accounts of receipts and expenditure of the Government Department offices and development schemes. The Auditors normally check the initial accounts being maintained in the executing offices to see that the system and procedure in accounting on financial matt ers as per the Rules and Regulat io n are e nforced. They have not been so far empowered to conduct inspection of the physical achievements of the Departments. In some cases, proper maintenance of accounts does not necessarily ensure the corresponding actual physical achievements for the purposes for which expenditure had been incurred. To enable the Auditors to act as adviser and to suggest appropriate improvement in financial management, maintenance and observance of office procedure and financial propriety, it is felt necessary to empower the Auditors to inspect and verify the physical achievements of the Departments, whenever felt necessar y. It is, therefore decided that henceforth the Local Auditors are empowered to inspect and verify the physical achievements of the Departments, for which the accounts are examined and audited, whenever necessary. The Auditors in their audit reports should reflect their findings of the financial and physical aspects as far as practicable for further appropriate action by Government. Sd/- (HAUKHUM HAUZEL) F ina nce Co mmissio ner, Govt. of Mizoram. Memo No. G.25012/52/96-F/APF/ Dated Aizawl, the 10th July ’97. Copy to :- 1) Secretary to Governor, Govt. of Mizoram, Aizawl. 2) P.S. to Chief Minister, Govt. of Mizoram, Aizawl. 3) P.S. to Ministers/Minister of State, Govt. of Mizoram, Aizawl. 4) P.S. to Speaker/Deputy Speaker, Govt. of Mizoram, Aizawl. 5) P.S. to Chief Secretary, Govt. of Mizoram, Aizawl. 6) P.A. to Finance Commissioner, Govt. of Mizoram, Aizawl. 7) All Administrative Departments. 8) Secr etary, MPSC. 9) All Head of Departments. He is requested to inform all his subordinate officers. 10) Director, Accounts & Treasuries for information and necessary action. 11) Accountant General (Audit) Mizoram etc. Shillong. Sd/- (HAUKHUM HAUZEL) F ina nce Co mmissio ner, Govt. of Mizoram. ………………… ANNEXURE-IIINo. G.11023/4/2008 – FCC GOVERNMENT OF MIZORAM FINANCE DEPARTMENT (F inan ce Comm issi on and Proj ect Moni tori ng Cell ) Dated Aizawl, the 18th June 2010 To, The Exami ner of Local Accounts, Office of the Chief Controller of Account, Chanmari, Aizawl Subject :-Audit of Local Bodies Si r, As you m ay be aware, the 13th Finance Commission in its report at Para 10.161 (II) required the State Government to put in place an audit system for all local bodies. To fulfill this recommendation, your Annual Report on the Local Fund Audit must be placed before the State Legisl ature alongwith the report of the C & AG. In the context of Mizoram, the local body means the Village Council, Aizawl Municipal Council, LADC/MADC/CADC and SHDC. Further, the municipality is exp ected to adopt accr ual basis of accounting while other Local Bodies may adopt cash base accounting system. Therefore, I am directed to request you to take initiative for audit of the above m entioned Local Bodi es st arti ng from th e curr ent fisc al yea r. The concer ned Nodal Depar tm ent m ay al so be cons ult ed. Copy of the report of the 13th Fina nce C om missi on is en cl osed for y our r eady r ef er ence. Yours faithfully, Enclose : As above Sd/- (VANLALNGHAKA) Additional Secretary & Mem ber Secretary of HLMC Finance Department (FC & MC) Memo No. G.11023/4/2008 – FCC : Dated Aizawl, the 18th June, 2010 Copy to : 1) Principal Secretary, GAD, for information and necessar y action. 2) Secretary, LAD, for information and necessary action. 3) Secretary, UD & PA Department, for information and necessary action. 4) Secretary, DCA, for inform ation and necessary action. 5) Dir ector, LAD, for information and necessar y action. 6) Director, UD & PA Department, for information and necessary acti on. (VANLALNGHAKA) Additional Secretary & Mem ber Secretary of HLMC Finance Department (FC & MC) ANNEXURE-IVNo. G.11023/4/2008 – FCC GOVERNMENT OF MIZORAM FINANCE DEPARTMENT NOTIFICATION Dated 1st June 2011 1.Whereas the Thirteenth Finance Commission of India in its report at paragraph 10.121 and 10.161 recommended that the State Government must put in place an audit system for all the local bodies; 2.And whereas the Thirteenth Finance Commission further recommended that the Technical Guidance and Supervision over the audit of all the local bodies shall be entrusted to the Comptroller & Auditor General of India, and his Annual Technical Inspection Report as well as the Annual Report of the Examiner of Local Fund Accounts must be placed before the State Legislative Assembly; 3.And whereas the Accountant General (Audit) of Mizoram vide his letter No.AG-MIZ/Local Bodies Audit/2011-12/33, dated 31.05.2011, in response to the request made by the State Government pursuant to the recommendations of the Finance Commission vide No.G.11023/4/2008-FCC, dated 18.06.2010, requested the State Government to issue formal notification for entrusting the responsibility of technical supervision and guidance over the audit of all the local bodies within the State of Mizoram to the Comptroller & Auditor General of India (that is the Accountant General (Audit) of Mizoram); 4.Now, therefore, the Governor of Mizoram is pleased to entrust the Technical Guidance and Supervision over the audit of all the local bodies within the State of Mizoram to the Comptroller & Auditor General of India (that is the Accountant General (Audit) of Mizoram) with immediate effect and until further order. The Governor of Mizoram is further pleased to empower him to conduct the Annual Technical Inspection/Audit under the provisions of section 20 of the C & AG (Duties, Powers and Conditions of Service) Act, 1971. Over and above the audit of the C & AG, the Examiner of Local Fund Accounts will be remained statutory auditor for the audit of the accounts of the local bodies. 5.The scope of the Technical Guidance and Supervision by the Comptroller & Auditor General of India (that is the Accountant General (Audit) of Mizoram) should be broadly as under : (i)The audit methodology and procedures for audit of the accounts of Village Councils, Urban Local Bodies and any other local bodies audit by the Examiner of Local Fund Accounts will be as per the audit guidelines/standards prescribed by the Comptroller and Auditor General and various Acts / Statutes enacted by the Government. (ii) The nature, extent and scope of audit including form and contents of the report of Examiner of Local Fund Accounts will be as per the guidelines given by the Accountant General and various Acts / Statutes enacted by the Government. (iii) The Examiner of Local Fund Accounts will prepare annual audit plan under intimation to the Accountant General, indicating the particulars of the Local Bodies that would be audited during the year. (iv) The Accountant General would conduct test-check of some of the units audited by the Examiner of Local Fund Accounts, in order to provide technical guidance. The report of the test-check conducted by the Accountant General would be sent to the Examiner of Local Fund Accounts for pursuance of action taken by the Local Bodies. The Examiner of Local Fund Accounts will pursue the compliance of such paras in Accountant General’s inspection report in the same manner as if these are his own reports. (v) Accountant General will monitor the quality of the inspection reports issued by the Examiner of Local Fund Accounts by calling for some of the reports for his scrutiny. The Examiner of Local Fund Accounts will furnish returns in such form as may be prescribed by the Accountant General for the purpose of monitoring. (vi) Copies of issued Audit Reports in respect of 5% of Local Bodies should be forwarded by the Examiner of Local Fund Accounts to the Accountant General for advice on system improvements and the Accountant General would make suggestions for improvement of existing manuals etc. followed by the State Audit Department. (vii) Irrespective of the money value of the objections, any serious irregularities noticed such as system defects, serious violation of rules, frauds noticed by Examiner of Local Fund Accounts will be intimated to the Accountant General. By Order, etc Sd/ LALMALSAWMA Finance Secretary Government of Mizoram ANNEXURE-VNo. G.11023/4/2008 – FCCGOVERNMENT OF MIZORA MFINANCE DEPAR TMENT(FC & MC)Dated Ai zawl, the 24th June 2011 CORRIGENDUMIt is hereby notified to all concerned that Notification No. G.11023/4/2008 – FCC dated 1-6-2011 Para 4 may be read as :- “Now therefore the Governor of Mizoram is pleased to entrust the Technical Guidance and Supervision over the accounts and audit of the Local bodies within the State of Mizoram to the Comptroller and Auditor General of India under the Section 20 (1) of the Comptroller and Auditor General (Duties, Powers and conditions of Service) Act 1971, with immediate effect. The responsibility of Certification of accounts and the statutory audit of the Local bodies shal l however rest with the Examiner of Local Funds Accounts who will continue to function under the administrative control of the Finance Department.” Sd/- LALMALSAWMA Finance Secretary to the Govt. of Mizoram Finance Department (FC & MC) Memo No. G.11023/4/2008 – FCC : Dated Aizawl, the 24th June, 2011 Copy to : 1) Secretary to Governor. 2) P.S. to Chief Minister. 3) P.S. to Speaker/Deputy Speaker. 4) P.S. to all Minister/Minister of State/Parliamentary Secretary 5) P.S. to Chief Secretary, Government of Mizoram. 6) Accountant General (Audit) Mizoram. 7) All Adm inistrative Depar tme nts. 8) All the District Commissioner. 9) All Head of Departments. 10) ELFA, CCA office for necessary action. 11) C.E.O. Aizawl Municipal Council. 12) E.S. LADC/MADC/CADC. 13) Development Officers, SHDC. 14) Controller, Printing and Stationery with 6 (six) spare copies for publication in the O.G. 15) Guard File. (Dr. P.C. LALAWMPUIA) Under Secretary to the Govt. of Mizoram Finance Department ANNEXURE-VIIMMEDIATE No. G.11023/4/2008 – FCC GOVERNMENT OF MIZORAM FINANCE DEPARTMENT Finance Commission & Monitoring Cell Dated the 7th June 2011 To The Examiner of Local Fund Accounts, Office of the Chief Controller of Accounts Mizoram : Aizawl Subj :Audit of Local Bodies Sir, Kindly refer to the telephone conversation we had on 06.06.2011 regarding the audit of the Local Bodies. As per our discussion on the subject, the same of which was also discussed with the Senior Deputy A.G., audit may be conducted at once by selecting the Local Bodies (Village Councils/AMC, etc) at random. Audit reports on 5% of the randomly selected and audited local bodies will be sent to AG for his Technical Inspection as per the provisions of this Department’s notification of even number dated 03.06.2011. Your audit reports shall be laid in the next session of the Legislative Assembly while the Technical Inspection Report of the AG on the basis of 5% of reports submitted to him by you should also be laid in the State Legislature. As you would be aware, time available for completion of the whole process is seriously limited, and the need to expedite the process needs not be exaggerated. In this context, I am directed to request you to kindly undertake the audits as a time bound programme so that the conditions laid down by the XIII-FC are fully fulfilled. Yours faithfully, Sd/- (Dr. P.C. LALAWMPUIA) Under Secretary to the Government Finance Department Memo No. G.11023/4/2008-FCC: Dated the 7th June, 2011 Copy to: 1. Sr. Deputy Accountant General (Audit), Dinthar, Aizawl 2. Chief Controller of Accounts 3. CEO, Aizawl Municipal Council for information and necessary action 4. Director, LAD with a request to give full co-operation to the ELFA (Dr. P.C. LALAWMPUIA) Under Secretary to the Government Finance Department F O R M NO. 1 INTIMATION OF AUDIT (Reference Para 9.6) MOST IMPORTANT & IMMEDIATE GOVERNMENT OF MIZORAM OFFICE OF THE CHIEF CONTROLLER OF ACCOUNTS ACCOUNTS & TREASURIES MIZORAM : AIZAWL Dated Aizawl, the ………….. O R D E RNo……………………………………. The following Auditors are detailed to conduct Audit of Accounts of the ………………………….. for the period fro m ……………. to ……………… under the supervision Shri………………, Account & Treasuries with effect from Dt…………. 1. Shri ………………………………., Auditor, Accounts & Treasuries 2. Shri ………………………………., Assistant Auditor, Accounts & Treasuries 3. Shri ………………………………., Assistant Auditor, Accounts & Treasuries 2. It will facilitate work and reduce subsequent correspondence if previous audit objections duly noted at Form-4 enclosed herewith are taken up promptly for settlement. 3. It is, therefore, requested to render all possible help and to prepare and make available in advance a ll t he re lated/relevant documents t hat ma y be required by t he Audit Part y and to complete the audit of accounts within the stipulated period. 4. Receipt of this intimation may kindly be acknowledged. Director, Local Fund Audit, Accounts & Treasuries Mizoram, Aizawl Memo No……………………………………………….. Date ……………………………… Copy t o :- 1. The Accountant General (Audit), Mizoram, Aizawl for information and necessary action. 2. The Secretary to the Government of Mizoram, Finance Department, Aizawl for information and necessary action. 3. The Director, ………………………….. 4. The ……………………………………. 5. All person concerned for information and necessary action. Deputy Director/Assistant Director, Local Fund Audit F O R M No. 2 (Reference Para 9.19.1(b)(ii) & 10.4) IRREGULARITIES IN PAYMENT AND ADJUSTMENT VOUCHERS (TO BE DISPOSED OF FINALLY BEFORE THE NEXT AUDIT) VoucherSl. No NoDateAmountParticularsNature of objections and instructions123456Signature of Audit Officer F O R M No. 3 (Reference Para 9.19.1(b)(ii) & 10.4) IRREGULARITIES & OMISSIONS IN ACCOUNTS AND REGISTERS (OTHER THAN THOSE DETAILED IN FORM No. 2) WITH INSTRUCTIONS AND SUGGESTIONS FOR FUTURE GUIDANCE Sl. NoSub. Vr No & Date/ Page NoParticulars of TransactionAmountObjectionInstructions/ Suggestions123456Signature of Audit Officer F O R M No. 4 (Reference Para 9.14) FOR IMMEDIATE ATTEN TION Preliminary Objection Statement on the accounts of the ………………….. for the period from ………………… to ………………………. Date of Transactions and No. of VouchersPar ticulars of TransactionObjection or SuggestionsReply of Local Autho rityNotes of ad miss io n or further remarks by Audit OfficerF ina l R e ma r ksof Audit Officer123456Time & Date of submission by Audit Officer Sig. of Audit OfficerReceived on…. Initial………. Designation….Received on…. Initial………. Designation…..Received on…. Initial………. Designation…..Received on…. Initial………. Designation….. Signature of Audit Officer F O R M No. 5 (Reference Para 9.19.2) (To be put up to the next Audit) UNSETTLED AUDIT OBJECTIONS OF PREVIOUS AUDIT REPORTS Sl. NoReference of Audit ReportOutstanding Para No.No. of Paras outstandingRe ma r ks12345 Signature of Audit Officer F O R M No. 6 (Reference Para 9.34) REGISTER OF SEIZED RECORDS (TO BE MAINTAINED IN THE HEADQUARTER OFFICE) Sl. N oName of Seized account s with periodName & Designatio n on of the Officer who seized the recordsDate of Seizur eDate of receipt of seizure list, keys etc., in the Directorat eSignatur e of the Audit OfficerDate of release of seizur e list, keys and formal receiptSignatur e of the officer receiving back the seizure list, keys and formal receiptNo and Date of the or der of the Directo rRemark s12345678910Signature of Audit Officer NOTE :- It is necessary to inspect the seized records by any authority while it is still under seized, the fact of such inspection(s) should be briefly recorded in the remarks column. F O R M No. 7 (Reference Para 9.13) EMBEZZLEMENT REGISTER Embezzlement report received from theSl. NoStationsName and the accounts and period of auditParticulars Accounting Authority onAudit Officer on123456Name of Audit Officer investigating the embezzlementDate of receipt of fu rther report from Accounting authority/Audit OfficerResult of investigation of Final result of the embezzlement caseRemarks78910 Signature of Audit Officer F O R M No. 8 [Reference Para 10.14.2 (9)] UTILIZATION AND UNSPENT BALANCES OF GOVERNMENT GRANTS/OTHER GRANTS Sl. NoName of AccountsPeriod of AuditAmount SanctionedAmount SpentUnspent BalanceRemarks1234567Signature of Audit Officer F O R M No. 9 [Reference Para 9.19.1(b) (ii)] DEFALCATION/MISAPPROPRIATIONS OF GOVERNMENT GRANT/OTHER FUNDS Sl. NoName of AccountsPeriod of AuditAmount SanctionedAmount SpentUnspent BalanceAmo unt of defalcation/ misappropriationRemarks1234567Signature of Audit Officer F O R M No. 10 (Reference Para 9.41) PROGRESS REGISTER OF AUDIT REPORTS AND AUDIT CERTIFICATE Sl. NoDistrictName of the Au dit Officer Conducting AuditName of AccountsPeriods/Date up to which previously auditedPeriods/Date upto which now auditedDate of completion of Audit1234567Date of submission of draft audit report by the Audit OfficerDate of passing the audit ReportDate of Despatch to Accounting AuthorityDate of receipt of replie s from the Accounting AuthorityDate of final disposalRemarks8910111213 Signature of Audit Officer F O R M No. 11 [Reference Para 9.19(i)] STATEMENT SHOWING DRAFT AUDIT REPORT SUBMITTED DURING THE MONTH……………. Sl. NoName of the accounts and period of AuditDate of commencement of the AuditDate of completion of AuditLetter No & Date forwarding the draft audit reportRemarks123456Signature of Audit Officer F O R M No. 12 [Reference Para 9.19(i)] STATEMENT SHOWING DRAFT AUDIT REPORTS PENDING AT THE END OF THE MONTH……………. Sl. NoName of the accounts and period of AuditDate of commencement of the AuditDate of completion of AuditExplanation for delay in submissionRemarks123456Signature of Audit Officer F O R M No. 13 (Reference Para 9.46) STATEMENT SHOWING THE TENTATIVE PROGRAMME OF NEXT MONTH OF THE AUDIT OFFICER FOR THE MONTH OF……………. Sl. NoName of Audit OfficerName of accounts proposed to be auditedPe riod of AuditTotal expected ti meProposed date of commencementAnticipated date of completionProposed place of AuditRemarks123456789 Signature of Audit Officer F O R M No. 14 [Reference Para 9. 40(iii)] DEMAND NOTE FOR AUDIT FEES RECOVERABLE FROM ACCOUNTING AUTHORITY GOVERNMENT OF MIZORAM OFFICE OF THE CHIEF CONTROLLER OF ACCOUNTS ACCOUNTS & TREASURIES MIZORAM : AIZAWL No…………………………………………………………………..Dated Aizawl, the ………… To, The ……………………………. ………………………………… Subject :Demand Note of Audit Fees recoverable fro m Accounting Authority. Sir, With reference to subject cited above, I have the honour to state that your accounts for the period from ……………..to……………is to be audited by the Audit Party by this Department with effect from………………….to……………….. 2.As per provision of Para …………of the Mizora m Audit Manual, you are inform to pay the required Audit Fees for conducting audit by this Depar tment. 3.You are, t herefore, requested to deposit a n amount of Rs………….. (Rupees……………….) only in fa vour of Chief Controller of Accounts, Accounts & Treasur ies, into the Treasury through Challans as Audit Fees under the appropriate Head of Accounts on or before ……………as per details shown in Form No. 15 enclos ed herewith. 4.Copy of the challan(s) ma y be furnis hed to the undersigned for necessary recor d. Enclosed : For m No. 15 Yours faithfully, Director, Local Fund Audit, Accounts & Treasuries. F O R M No. 15 [Reference Para 9.40(iii)] DETAILED CALCULATION OF AUDIT FEE Name of OfficeName of the Accounting Authority and period of AuditNo. of Working DaysRate per dayTotal Amount of Audit FeeRemarks123456Signature of Audit Officer F O R M No. 16 [Reference Para 9.19(i)] STATEMENT SHOWING THE AUDIT REPORTS ISSUED DURING THE MONTH OF…………….. Sl. NoName of Audit OfficerName of AccountsPeriod of AuditDate of CompletionDate of issue with issue No.Rema rks1234567Signature of Audit Officer F O R M No. 17 (Reference Para 11.1.6) REGISTER OF GRANTS-IN-AIDS SANCTIONED TO VARIOUS INSTITUTIONS DURING THE YEAR…………….. Sl. NoName of DepartmentName of Insti tutionB y whom sanctioned and sanctioning Letter No & DateParticulars of the Grants with conditions, if anyPeriod for which sanctionedAmount SanctionedRemarks12345678Signature of Audit Officer F O R M No. 18 [Reference Para 10.14.2(11)] STATEMENT SHOWING THE DRAWAL AND UTILI ZATION OF GRANTS-IN-AID FOR THE PERIOD FROM…………….. Sl. N oBy whom sanctione d and S/letter No & DateParticular s of the Grants-in- aidsAmount Sanctione dA mo un t drawnTv. No & Da te or Chequ e No & DateAmoun t Spent or utilizedUnspen t balance till the close of the period of auditBala ncerefunded tothesanctioningauthorityRemark s12345678910 Signature of Audit Officer F O R M No. 19 [Reference Para 9.40(iv)] REGISTER OF AUDIT FEE REALISED Name of OfficeNo. of Working DaysAmount of Annual turn overRate per dayTotal amount of Audit FeeName of Treasu ry with Challan No & DateRemarks1234567Signature of Audit Officer F O R M No. 20 [Reference Para 9.19(i)] STATEMENT SHOWING TIME TAKEN IN THE AUDIT Name of accounts (Entered the name of office audited)Date on which t aken upDate of completion of auditNumber of days taken up to date or to end of auditPeriod for which auditedRemarks123456Signature of Audit Officer F O R M No. 21 [Reference Para 11.1.5(i)] ANNUAL PROGRESS REGISTER Sl.NoCategory of AccountsNo. of Accounts as per previous P/RNo. of new accounts added during the yearNo. of accounts deleted during the yearTotal No. of Accounts123456Signature of Officer-in-Charge of P.R Signature of Director, Local Fund Audit F O R M No. 22 (Reference Par 12.3.7) REGISTER OF GOVERNMENT GRANTS Sl.NoNo and Date of Santioning LetterPurpose and condition of grantsAmount of grant sanctionedAmount ReceivedDate of Receipt123456Tv.No & Date/ Cash/Cheque/Draft/Telegraphic TransferFrom whom receivedAmount UtilizedUnspent amount till the close of the period of AuditBalance refunded, if any, with rema rksSignature of the Accounting Authority789101112 F O R M No. 23 Reference Para 9.10) SPECIMEN FORM FOR AUDIT REQUISITION AUDIT REQUISITION No………………….Dated …………………… Subject : Supply of information for conducting the audit of …………….. (Name of the Accounting Authority) for the period from ……….… to ……………. (Period to be covered by Audit). Please provide the following information relating to accounts of your office :- (Strike off whichever is inapplicable) 1.Name o f the Head of Department, DDO and staff responsible in maintaining the account along with their time period. 2.Complete list of auditable documents/records, Balance Sheet, Income & Expenditure, Receipts and Payments along wit h Schedules and other connected records. 3.Reco nciliat ion o f Acco unts wit h Accountant General or other Authority. 4.Detail of Budget allocation and expenditure incurred against budget allocation for the period cover under audit. Sanctioned o f Expenditure or Head-wise allocation of fund and expenditure may be furnished. 5.Details of Loans and Advances received from Government/HUDCO/LIC dur ing the period of audit. 6.Details of GPF Advance and NRW sanctioned along with sanction orders. 7.Cadre-wise sanctioned strength of the staff in various wings and position of actua l posting/deployment against cadre strength. 8.Det ails of staff emplo yed on Deput ation with pa yment of Pension & Leave Sa lar y Co ntribut ion to the Government . 9.Details of Contract Employees with sanction orders. 10. Details of Muster Rolls engaged with sanctioned orders. 11. Total Nos. of Service Books maintained in the Department/Office. 12. Number of vehicles maintained in the Department/Office along wit h their Log Book. 13. Details of Contract and Agreements entered into with various agencies during the period under audit. 14. Details of Grants-in-Aid received from Government/Other Agencies with sanction orders. 15. Loans, if any, taken from Government/other Inst itutions : 16. Loans given to third parties and their recoveries : 17. Advances given to Officers and Staff : 18. Income generated by way of Departmental charges like – fees, fines, rent etc. 19. Income generated fro m other sources like sale of tender and other miscellaneous income during the period under audit (specifying the nature of income) 20. Fixed Assets acquired during the year. 21. Details of Demand and Collection of Taxes. 22. Name of Schedule banks where accounts of Head of Office are operated during the period under audit along with pass books/bank statements of each bank. 23. Bank Reconciliation Statement at the end year under audit. 24. Details of Professional Tax along with deposit challans. 25. List of Advance Payments paid and adjusted/regularized during the year. Head of Department or Office/DDO/Executive AuthorityAudit OfficerNote :- Auditable accounts may consist of various books of accounts, vouchers, supporting documents and Registers, etc., it is the duty of Audit Officer to submit further requisitions according to the merit of the case. While checking accounts it should be kept in mind that all relevant information should be completely and clearly recorded and pointed out in the POS/Work sheet or Rough papers so as to avoid re-examination of the same audit objection. FORM No. 24 [Reference Para 9.21(ii)] S P E C I M E N F O R M F O R D R A F T A N N U A L A U D I T R E P O R T TABLE OF CONTENTSPREFACE ( i)Brief details of report to be prepared under the Rules or relevant Act and its presentation to the Authority concerned. (ii)Particulars of Officers served in the Local Authority along with their time period. This may be ment ioned in Local Authority wise. EXECUTIVE SUMMARY/OV ERVIEW A synopsis o f t he important finding s contained in the report is prese nted in this summar y or overview. CHAPTER – I 1.1Introduction 1.2Financial Position of the Local Authority 1.2.1Autonomous District Council 1.2.1.1Lai Autonomous District Council 1.2.1.2Mara Autonomous District Council 1.2.1.3Chakma Autonomous District Council 1.2.2Aizawl Municipal Council 1.2.2.1Chief Execut ive Officer, Aizawl Municipal Council 1.2.2.2Lo cal Co uncils under Aizawl Municipal Co uncil 1.2.3Shinlung Hills Development Council 1.2.3.1Nodal Depart ment/Office 1.2.3.2SHDC Office 1.2.4Village Councils 1.2.4.1Nodal Depart ment/Office 1.2.4.2Village Councils in Distr ict-wise CHAPTER – II This Chapter shall comprise Local Authority-wise audit observations relating to irregularities other than Works, Store and Stock Accounts, detected during each audit. CHAPTER – III This Chapter shall comprise Local Authority-wise audit observations relating to Works, Store and Stock Accounts detected during each audit. CHAPTER – IV Position of old observations (latest position of old audit observations). S l. Period of AuditPara No.Present posit ion w ith br ief detail1234CHAPTER – V This Chapter shall contain Local Authority-wise detail of record not submitted (Non- submission of audit records). CHAPTER – VI This Chapter shall contain Appendices referred to in the various audit observations. F O R M No. 25 (Reference Para 2.4.9) SPECIMEN FORM FOR SURPRISE VERIFICATION OF CASH AND BOOK BALANCES 1.Date and Time of Verification : 2.Name of Department/Office : 3.Name of DDO with Designation & Period : 4.Name of Accountant wit h Designation & Period : 5.Name of Cashier with Designation & Period : 6.Position of Sec urity Dep osit to be furnis hed b y Cashier : 7.Checking of Cash Book :(i) Whether Page Nos. of Cash Book have been verified or not : (ii) Whether Transactions have been entered as soon as they occurred : (iii) Whether Daily Closing of Cash Book have been done regularly : (iv) Whether entries made on the payment side of the Cash Book have been initiated by the DDO in token of ch eck ed : (v) Whether Bank Account No. with name of Bank, if any, have been recorded on the Cash Book : (vi) Whether instructions regarding corrections and overwriting have been followed : (vii) Whether Monthly verification of Cash Balances have been done regularly : 8.Preparation of Bank Reconciliation Statement : 9.CLOSING BALANCE OF CASH BOOK : Cash Book …………….. Page No ………… .as on …………………… : Rs ………………………. (If there are more than one Cash Book, it may be recorded in separate Sheet) 10.Actual Cash-in-hand : (i) Cash : Rs…………….. (Denomination-wise list may be prepared by Auditor) (ii) Cash Certificate : (iii) Cheque Not yet encashed : Cheque No…………….. Dt……………… Amount ………………….. (Particulars of cheques & Certificate may be completely recorded) 11.Position of Bank Account : (i) Permission for opening Bank Account :……………………………….. (ii) Name of Bank : ………………………………….. Bank Account No. ………………………… (iii) Nature of Bank A/C : Sav ing/Curr ent Account. (iv) Closing Balance as on ………………………………… : Rs ……………………………. (If there are more than one Bank A/C, it may be recorded in separate Sheet) 12.Difference in Cash Book & Bank A/C including Cas h-in-hand, C ash Certificates and Cheques not encahsed but entered on receipt side in the Cash Book = Rs …………………… 13.Reason of Difference : …………………………………………………………………………. 14.Investment Account : (i) Name of Bank ……………………………………….. (ii) Certificate No. …………………………….. (iii) Nature of Investment : (a) Deposit at Call Receipt (b) Fixed Deposits (c) Others (iv) Deposit Amount ……………………… (v) Maturity Value and Date of Maturity ………………….. 15.Bank Inter es t : (i)Inter est accrued up to the date of Verification : Bank A/C No…………….. = Rs ………………. (ii)Whether interest have been reflected in the Cash Book : (iii) Whether any amount have been utilized out of interest accrued : …………………. (iv) If so, permission for utilization of Bank interest by competent authority : …………………… (Photo copies of a ny docu ments which is co nsidered necessar y may be collected) 16.Books of Accounts/Accounting Records : Whether the following Registers have been maintained or not : (i)Stock Register (ii) Cheque Issue Register (iii) Bank Inter est Register (iv) Investment Register (v) Any other r ecords which ar e co nsider necessary 17.Procedure followed in keeping of Ches t Keys : 18.Checking of Service Books : 19.Other Observations : Signature of Auditor who conducts verification

The Mizoram Gazette EXTRA ORDINARY Published by Authority RNI No. 27009/1973 Postal Regn. No. NE-313(MZ) 2006-2008Re. 1/- per pageVOL - XLIII Aizawl, Friday 4.7.2014 Asadha 13, S.E. 1936, Issue No. 340 STATE ELECTION COMMISSION MIZORAM ***** NOTIFICATIONNo. B. 11011/21/2014-SEC/ADC,the 4th July, 2014.WHEREAS,in pursuance of the Notification vide No. B.11011/18/2014/ADC, dt. 12.6.2014 issued by the State Election Commission under sub-rule (1) of Rule 151 read with sub-rule (1) of Rule 158 of the Chakma Autonomous District Council (Constitution, Conduct of Business etc.) Rules, 2002 as amended, By-Election to fill casual vacancy of 2- Bora pansury-II MDC Constit uency of Chakma Autonomous District Council has been held on 2nd J u l y, 2014; and WHEREAS, the result of election in the said By-Election has been declared by the Returning Officer on 4th July, 2014; NOW, THEREFORE, the State Election Commission hereby notifies the name of the member elected in r espect of 2-Borapansury-II MDC Constituency as below:- S/NName of MDCName of the electedParty ConstituencyCandidateAffiliation (if any) 1.2-Borapansury-IIGyana SankarINC By order, etc Sd/- H. DARZIKA Secretary State Election Commission Mizoram Published and Issued by the Controller, Printing & Stationery, Mizoram Printed at th e Mizoram Govt. Press, Aizawl. C-500.

The Mizoram Gazette EXTRA ORDINARY Published by Authority RNI No. 27009/1973 Postal Regn. No. NE-313(MZ) 2006-2008Re. 1/- per pageVOL - XLIII Aizawl, Monday 7.7.2014 Asadha 16, S.E. 1936, Issue No. 341 NOTIFICATION No. G. 24011/2/2009-F.APF, the 2nd July, 2014. In exercise of the powers conferred by Section 16 of t he Mizoram Loca l Funds (Accou nts and Audit) Act, 2006 (Act No. 8 of 2006), the Governor of Mizoram is pleased to amend the Mizoram Local Funds (Accounts and Audit) Rules, 2012 (hereinafter referred to as the Principal Rules) notified vide No. G. 24011/2/2009-F. APF dated 8th February, 2013 and published in the Mizoram Gazette Extraordinary Issue No. 61 dated 8th February, 2013 namely : 1.Shor t Title and (1) These Rules may be called the Mizoram Local Funds (Accounts Commencement and Audit) (Amendment) Rules, 2014. (2) They shall come into force from the date of their publication in the Mizoram Gazette. 2. Amendment of In sub-rule (27) of Rule 19 of the Principal Rules, the words ‘Mizoram Sub-Rule (27) Audit Manua l, 2011’ shall be substituted with the wor ds ‘Mizoram of Rule 19 Audit Manual so compiled.’ By order, etc. F. Vanlalruata, Secretary to the Govt.of Mizoram, Fina nce Dep art ment.Published and Issued by Controller, Printing & Stationery Department, Government of Mizoram Printed at the Mizoram Government Press, Aizawl. C/50

NOTIFICATION Wher eas the Government o f Mizo ram is fully co mmit t ed to ro ot o ut co rrupt io n in all it s fo rms and at all levels which has been one of the main agenda to achieve a good governance for the people of Mizoram and whereas the Government despite its deep earnesty to enact the Lok Ayukta Bill could not do so due to reasons beyond its control; Whereas after the passage of the Lok Pal and Lok Ayukta Act, 2013 (Act No. 1 of 2014) by the Parliament and by virtue of section 63 of the said Act, the State government is under obligation to establish a body to be known as Lok Ayukta within one year from the date of commencement of the Act and the Government of India has notified 16.1.2014 as the effective date for implementation of the Lok Pal and Lok Ayukta Act, 2013; And whereas, the Government of Mizoram has drafted the Mizoram Lok Ayukta Bill 2014 and held wide consultations with various NGOs, Political parties and prominent citizens and on t he strength o f the resolution adopted by the consultations, a drafting committee consisting of various stakeholders, prominent citizens and academicians besides Government officials was constituted which scrutinized and improved the Bill from various inputs and suggestions and made the Bill ready for its introduction in the Legislat ive Assembly; And whereas t he Government o f Mizoram has decided that the Bill be published in the Mizo ram Gazette inviting further comments, suggestions for improvement or objections if any on the provisions of t he Bill from the public; and it is her eby informed that such comments, suggestio ns o r o bject io ns if any shall be submitted to the Secretary to the Government of Mizoram Law & Judicial Department Room No.014 & 015 New Secretariat Complex, Khatla within a period of one month (30 days) from the date of publication of this Bill in the Gazette; Accordingly, the Mizoram Lok Ayukta Bill, 2014 is hereby published as follows, namely :- The Mizoram Lok Ayukta Bill, 2014 The Mizoram Gazette EXTRA ORDINARY Published by Authority RNI No. 27009/1973 Postal Regn. No. NE-313(MZ) 2006-2008VOL - XLIII Aizawl, Tuesday 5.8.2014 Sravana 14, S.E. 1936, Issue No. 398 Chapter-I PRELIMINARYSections 1.Short Title a nd extent of the Act 2.Definitions Chapter II ESTABLISHMENT OF LOKAYUKTA3.Body of Lokayukta 4.Constitution of Selection and Sear ch Committee 5.Appointment of Chairperson & Members 6.Term of the Chairperson and Members 7.Sala ry and Allowances of Cha irperson and Members 8.Chairperson and Members – Ba r from r e-employment 9.Member taking Char ge of Chairperson 10. Appointment of Secretary to the Lokayukta, Dir ector of Inquiry and Prosecution, Officers and Staff of Lokayukta Chapter III CONSTITUTION OF DIRECTORATE OF INQUIRY,INVESTIGATION ANDPROSECUTION11. Constitution of Directorate Chapter IV EXPENSES OF LOKAYUKTA12. Expenses of Lokayukta Chapter V JURISDICTION IN RESPECT OF INQUIRY13. Jurisdiction in r espect of Inquiry 14. P ending ca ses 15. Constitution of Bench 16. Distribution of Business 17. Transfer of pending case 18. Refer ence to Chairperson Cha pter VI PROCEDURE IN RESPECT OF PRELIMINARY INQUIRY AND INVESTIGATION19. Procedure in respect of Preliminar y Inquir y and Investiga tion 20. Inqu iry int o the C onduct of Person other than the Accused. 21. Furnishing of information and Documents 22. Sanction not necessary 23. Filing of Case 24. Transparency in Lokayukta organiza tion- 2 - Ex-398/2014 Chapter VII POWERS OF LOKAYUKTA25. Powers of Loka yukta 26. Sear ch and Seizure of Documents, 27. Exercise of powers of Civil C ourt 28. Utilization of Service of Officer/Agency of the Government 29. Atta chment of Property 30. Confirmation of Attachment by Special Court 31. Transfer or Suspension of Public Servant 32. Power for P reserva tion of Documents 33. Delegation of Power Chapter VIII CONSTITUTION OF SPECIAL COURT34. Constitution of Special Court 35. Proc edure for letter of Request Chapter IX COMPLAINT AGAINST CHAIRPERSON, MEMBERS AND OFFICIALS OFLOKAYUKTA36. Complaint a gainst Chairperson, Members a nd Officials of Lokayukta 37. Complaint Against officials of Lokayukta Chapter X ASSESSMENT OF LOSS AND RECOVERY THEREOF BY THE SPECIAL COURT38. Assessment of loss and recovery thereof by the Special C ourt Chapter XI FINANCE, ACCOUNTS AND AUDIT OF LOKAYUKTA39. Fina nce, Accounts and Audit of Lokayukta 40. Provision of Fund 41. Maintenance of Accounts 42. Furnishing of Returns and Statements Chapter XII DECLARATION OF ASSETS43. Declaration movable & immovable of Assets 44. Failure to Declare Assets or giving misleading informa tion Chapter XIII OFFENCES AND PENALTIES45. Offences and P ena lties 46. Offences by Society, Association or Trust- 3 -Ex-398/2014 Chapter XIV REPORT TO GOVERNOR & MISCELLANEOUS47. Repor t to Governor 48. Protection of Public Servant Against things done in good faith 49. Protection of Loka yukta or Officials of Lokayukta 50. Chairpersons, Members and Official to be public servant 51. Bar of Civil Court jurisdiction 52. Provision of Legal Assistant 53. Provision to have overriding effect 54. Act not in derogation of other laws 55. Power to punish for cont empt 56. Whistle Blower Protection 57. Power to make Rules 58. Power to make Regulations 59. Rule and Regulation to be laid b efore the Assembly 60. Power to remove difficulties.- 4 - Ex-398/2014 THE MIZORAM LOKAYUKTA BILL, 2014 A BILL to provide for the establishment of a body of Loka yukta for the State of Mizoram to inquire into allegations of corruption against certain public functionaries and for matters connected therewith or incidental thereto. WHEREAS the Constitution of India established a Democratic Republic to ensure justice for all; WHEREAS the Government’s commitment to clean and responsive governance has to be reflected in effective bodies to contain and punish acts of corruption; NOW, THEREFORE, it is expedient to enact a law to provide for pr ompt and fair investigation and prosecution in cases of corruption. BE it enacted by Mizoram Legislative Assembly in the Sixty-fifth Year of the Republic of India as follows, namely :— CHAPTER –I PRELIMINARY1 . Short Title, extent and commencement (1) This Act may be called the Mizoram Lokayukta Act, 2014. (2) It extends to the whole of Mizor am.. (3) It shall come into force on such date as the Government may, by notification in t he Official Gazette, appoint. 2.DEFINITIONS:(1) In this Act unles s the context other wis e r equir es,— ( a) “Action”means any action including administrative action taken by way of decision, recommendation or finding or in any other manner and includes willful failure or omission to act and all other express ions relating to such action shall be cons trued accordingly. (b) “Bench” means a Bench of the Lokayukta; ( c) “Cha irperson” means the Cha irperson of the Lokayukta; ( d) “Competent a uthorit y”, in relation to— (i) the Chief Minister, means the Governor of Mizoram; (ii) a member of t he C ou ncil of M inis t er s a nd Pa r lia ment a r y S ecr et a r ies mea ns t he Chief M i ni s t er ; (iii) a member of State Legisla ture ot her than a Minister means t he Spea ker ; (iv) an officer in the Department of the State Government means the Minister in charge of the Department under which such 0fficer is serving; (v) a chairperson or members of any body, or Board or cor poration or authority or company or society or autonomous body (by whatever name called) established or constit uted under an Act of Par liament or of a State Legisla ture or wholly or par tly fina nced by the Government of Mizoram or controlled by it, means the Minister in charge of the administrative Department of such body, or Board or corporation or authority or company or society or autonomous body; ( vi) an officer of any b ody or Board or corpora tion or authority or company or society or autonomous body (by whatever name called) establis hed or constituted under an Act of Parliament or of a State Legislature or wholly or partly financed by the State Government or controlled by it , means the head of such body or Boa rd or corporation or a uthorit y or company or society or autonomous body;- 5 -Ex-398/2014 ( e) “Complaint” means a complaint, in a pla in paper alleging tha t a public servant ha s committed an offence p unishable under the Pr evention of Corruption Act, 1988; (f) “Cor ruption” includes anything made punishable under Prevention of Corr uption Act, 1988 or under the Indian Penal Code (Act 45 of 1860 ) (g) “Government” means the Government of Mizoram (h) “Investigation” means an investigation defined under clause (h) of section 2 of the Code of Criminal Procedure, 1973; ( i)“Judicial Member” means a Judicial Member of the Lokayukta appointed as such; ( j)“Lokayukta” means the body establis hed under section 3; ( k) “Member” means a Member of the Lokayukta; ( l)“Minister” means Minister of the State Government of Mizoram but does not include the Chief Minister; ( m) “Notification” means notification published in the Official Ga zette a nd the expression “notify” shall be construed accordingly; (n) “Preliminary inquir y” means an inquiry conducted under this Act by the Lokayukta before proper investigation; (o) “Prescribed” means prescribed by rules made under this Act; (p) “Public servant” means a person r eferred to in clauses (a) to (g) of sub-section (1) of section 14 but does not include a public servant in respect of whom the jurisdiction is exercisable by any court or other author ity under the Army Act , 1950, the Air Force Act, 1950, the Navy Act, 1957 and the Coast Guard Act, 1978; (q) “Rules” means rules made under this Act; (r ) “Regulations” means regula tions made under this Act; (s) “Schedule” means a schedule appended t o this Act; (t ) “Search Committee” means a body of persons constituted under sub-section (3) of section 4 of this Act. (u) “Special Court” means the court of a Special Judge appointed under sub-section (1) of section 3 of the Prevention of Corruption Act, 1988; (v) “State” means State of Mizoram; ( w) “Whistleblower” means any person who pr ovides factual informa tion with substance a bout corr uption in a public authority or is a witness or victim in a case of cor ruption before the Loka yukta or who faces the treat of (i) Professional harm, including but not limited to illegitimate tr ansfer, denial of promotion, denial of appropria te perquisites, departmental proceedings, discrimina tion or (ii) physical harm, or (iii) is a ctually subjected to any harm; because of either making a compla int to the Lokayukta under this Act, or by any other legal action aimed at p reventing or exposing curruption. (2) The words a nd expressions used herein and not defined in this Act but defined in the Prevention of Corruption Act, 1988 and the Indian Penal Code shall have the meanings respectively assigned to them in that Act. CHAPTER -II ESTABLISHMENT OF LOKAYUKTA3 . Body of Lokayukta: ( 1) As from the commencement of this Act, there shall be established in the St ate of Mizoram, by notification in the Official Gazette, a body to be called the “Lokayukta” who would have administrative, financial and functional independence from the government. ( 2) The Lokayukta shall consist of—- 6 - Ex-398/2014 (a) a Chairperson, who is or has been a Chief Justice of the High Court or a Judge of the High Court or a person qualified to be a High Court Judge or a person who fulfils the eligibility specified in clause (a) or ( b) of sub-section ( 3); and ( b) such number of members, not exceeding thr ee including the Chair person, out of whom one shall be Judicial Member: ( 3) A person shall be eligible to be appointed,— ( a) as a Judicial Member if such person (i) is qualified to be a High Court Judge, or (ii) has a va st knowledge of law and experience in judicial matters or cou rts; ( b) as a Member other than a Judicial Member, if he is a person of impeccable integrity, outstanding ability having specia l knowledge and expertise of not less than t wenty years in the matters relating t o anti-corruption policy, public administr ation, vigilance, finance including insurance and banking, law, and management; (c ) A person appointed as chair person or member of Lokayukta shall, before entering upon his office, make and subcr ibe before the Governor, an oath or affirma tion in the for m as pres cribed/ set ou t in the Schedule. ( 4) The Chairperson or a Member sha ll not be— (i) a member of Parlia ment or a member of the Legislature of any State or Union territ ory; (ii) a person convicted of any offence involving mora l turpit ude; (iii) a member of any Autonomous District Council, Villa ge Council or Municipality; (iv) a person who has been removed or dismissed from service of the Union or a State, and shall not hold any office of trust or profit (other than his/her office as the Cha irperson or a Member) or been affiliated with any political party or carry on any business or practice any profession and accordingly, before he/she enters upon his office, a person appointed as the Chairperson or a Member, as the case may be, shall, if— (a) he holds any office of trust or pr ofit, r esign from such office; or ( b) he is carrying on any business, sever his connection with the conduct and mana gement of such business; or ( c) he is practicing any profession, cease to practice such profession. 4 . Constitution of Selection and Search Committee: ( 1) The Chairperson and Members shall be appointed by the Governor after obtaining the recommendations of a Selection Committee consisting of— ( a) the Chief Minister—Chairperson; (b) the Speaker of the Legisla t ive Assembly—Member; ( c) the Leader of Opposition or Leader of Opposition Group in the Legislative Assembly— M emb er ; ( d) the Chief Justice of the Gauhati High Court or any Judge nominated by him—Member ( 2) No appointment of a Cha irperson or a Member sha ll be invalid merely by reason of a ny vaca ncy in the Selection Commit tee. ( 3) The Selection Committee shall for the pur poses of selecting the Chairperson and Members of the Lokayukta and for preparing a panel of persons to be considered for appointment as such, cons titute a Search Commit tee cons isting of at least five persons having special knowledge and expertise in the matters relating to a nti-cor ruption policy, public administration, vigila nce, policy making, finance including insura nce and banking, law, and ma nagement, or in any other matter which, in the opinion of the Selection Committee, may be useful in making selection of the Chairperson and Members of the Lokayukta. Provided that not less tha n fifty percent of the Members of the Sear ch Committee shall be from amongst the persons belonging to the Scheduled Castes, the Scheduled Tribes, Other Backward Classes, Minorities and women a s the ca se may be ;- 7 -Ex-398/2014 (4) The Selection Committee shall follow the procedure pr escribed in the Rules for selecting the Chairperson and Members of the Lokayukta. (5) The term of the Search Committee r eferred to in sub-section ( 3), the fees a nd a llowances paya ble to its members and the manner of selection of panel of names shall be such as may be pr escr ibed. 5 . Appointment of Chairperson and Members: The Governor shall take or cause to be taken all necessary steps for the appointment of a new Chairperson and Members at least three months before the expiry of the term of such Chairperson or Member, as the case may be, in accordance with the procedure laid down in this Act. 6 . Term of the Chairperson and Members: The Chairperson and every Member shall, on the recommendations of the Selection Committee, be appointed by the Governor by warra nt under his ha nd and seal and hold office as such for a term of five years or till attaining the age of 70 year s whichever is earlier from the date on which he enters upon his office ; Provided that he may— ( a) by writing under his hand address ed to the Gover nor, resign his office; or ( b) be r emoved from his office in the manner provided in this Act. 7 . Salary and Allowances of Chairperson and Members: The salary, allowa nces and other conditions of service of— ( i) the Chairperson sha ll be the same as those of the Chief Justice of the High Court; ( ii) other Members shall be the same as those of a Judge of the High Court: Provided that if the Chair person or a Member is , at the time of his/her appointment, in receipt of pension (other than disabilit y pension) in r espect of any previous service under the Government of India or under the Government of a State, his sa lary in respect of service as the Chairperson or, as the case may be, as a Member, be reduced— ( a) by the amount of that pension; and ( b) if he has, before such appointment, received, in lieu of a por tion of the pension due to him in resp ect of such pr evious service, the commuted value thereof, by the amount of that portion of the pension: Provided fur ther that the salary, allowances and pension payable to, a nd other conditions of service of the Chairperson or a Member shall not be va ried to his disadvanta ge after his appointment. 8 . Chairperson and Members –Bar from re-employment: ( 1) On ceasing to hold office, the Cha irperson and every Member shall be ineligible for— ( i)re-a ppointment as the Cha irperson or a Member of the Lokayukta; ( ii) any diplomatic assignment, appointment as administrator of a Union territory and such other assignment or appoint ment which is r equired by law to be made by the Governor by warrant under his hand and seal; ( iii) further employment to any other office of profit under the Government of India or the Government of a State; ( iv) cont esting a ny election of President or Vice President or Member of either House of Parliament or Member of a State Legislature or Autonomous District Council or Municipalit y or Village Council or Panchayat within a period of five years fr om the date of relinquishing the post.- 8 - Ex-398/2014 (2) Notwithstanding anything contained in sub-section ( 1), a Member shall be eligible to be appointed as a Chairperson, if his total tenure as Member a nd Chair person does not exceed five years. Explanation .— F or the purposes of this section, it is hereby clarified tha t where the Member is appointed as the Chairperson, his/her term of office shall not be more than five year s in aggregate as the Member a nd the Chairperson. 9 . Member taking Charge of Chairperson: ( 1) In t he event of occurrence of any vacancy in the office of the Chairperson by reason of his /her death, resignation or otherwise, the Governor may, by notification, authorize the senior-most Member to act as the Chairperson until the appointment of a new Chairperson to fill such vacancy. ( 2) When the Cha irperson is unable to dischar ge his/her functions owing to absence on leave or otherwise, the senior-most Member available, a s the Governor may, b y notification, authorize in this behalf, shall discharge the functions of the Chairperson until the date on which the Chairperson resumes his/her duties. 10. Appointment of Secretary to the Lokayukta, Director of Inquiry and Prosecution, Officers and Staff of Lokayukta: ( 1) There shall be a S ecretar y to the Lokayukta in the rank of Secretary to the State Government, who shall be appointed by the Cha irperson from a panel of names sent by the Government. (2) There shall be a Director of Inquiry and Prosecution not below the rank of the Additional Secr etary to the State Government or equivalent, who sha ll be a ppointed by the Lokayukta. ( 3) The appoint ment of officers and staff of the Lokayukta shall be made by the Lokayukta. Provided that the Governor may by rule require that the appointment in respect of any post or posts as may be specified in the rule, shall be made after consultation with the State Public Service Commission. ( 4) Subject to the provisions of any law made by the State Legislature, the conditions of service of secr etary and other officers and staff of the Lokayukta shall be such as may be specified by regulations made by the Lokayukta for the purpose: Provided tha t the regulations made under this sub-section shall, so fa r as they relate to sala ries, a llowances, leave or pensions, require the approva l of the Gover nor. CHAPTER- III CONSTITUTION OF DIRECTORATE OF INQUIRY/INVESTIGATION ANDPROSECUTION11. Constitution of Directorate: ( 1) The Lokayukta shall, by notification, constitute Directorate of Inquiry/ Investigation and Prosecution headed by the Director for the purpose of prosecution of p ublic s ervants in relation to a ny complaint before the Lokayukta under this Act: Provided that till such time the Directorate is constituted by the Lokayukta, the State Government shall make available s uch number of officers and other sta ff from such of its Depa rtments including Anti Corruption Bureau (ACB) as may be required by the Lokayukta, for conduct ing prosecution under this Act. ( 2) The Director shall, after having been so directed by the Loka yukta, file a case in accordance with the findings of the investiga tion report, before the Specia l Court. All necessary steps shall be taken by the Public P rosecutor appointed by Lokayukta for Pr osecution of t he offence punishable under the Prevention of Corruption Act, 1988. ( 3) The report under sub-section ( 2) shall be deemed to be a report, filed on completion of investigation, referred to in section 173 of the Code of Criminal Procedure, 1973. ( 4) For the purposes of assisting the Lokayukta in conducting a preliminary inquiry or investigation under this Act, the officers of this Directora te shall have the same powers as ar e conferred upon the Lokayukta under section 27.- 9 -Ex-398/2014 CHAPTER –IV EXPENSES OF LOKAYUKTA12. Expenses of Lokayukta The administrative expenses of t he Lokayukta, including all salaries, allowances a nd pensions paya ble to or in r espect of the Chairperson, Members or secr etary or other officers or staff of the Loka yukta, shall be charged upon the Consolidated Fund of State and any fees or other moneys t aken by the Lokayukta shall form part of that F und. CHAPTER –V JURISDICTION IN RESPECT OF INQUIRY13 . Jurisdiction in respect of Inquir y: (1) Subject to the other provisions of thisAct, the Lokayukta shall inquire or cause an inquiry to be conducted into any matter involved in, or arising from, or connected with, any allegation of cor ruption ma de in a compla int or in a case initiated on its own motion in r espect of the following, namely:— ( a) any person who is or had been a Chief Minister, Speaker and Deputy Speaker; ( b) any other person who is or had been a Minister of the State; ( c) any person who is or had been a Member of the State Legislature; ( d) all officers and employees of the State, from a mongst the public servants defined in sub-clauses ( i) a nd ( ii) of cla u s e ( c) of section 2 of the Prevention of Corruption Act, 1988 when ser ving or who had served, in connection with the affairs of the State; ( e) all officers and employees referr ed to in clause ( d) or equivalent in a ny body or Boar d or corporation or authority or company or society or trust or autonomous body (by whatever name called) established by an Act of Pa rliament or of a State Legislature or wholly or partly financed by the State Gover nment or controlled by it when serving or who had been such officer or employee. ( f) any person who is or has been a director, manager, secretary or other officer of every other society or a ssociation of persons or trust (whether registered under any law for the time being in force or not), by whatever na me called, wholly or partly financed or aided by the State Government and the annual income of which exceeds such amount as t he State Government may, by not ification, specify; ( g) any person who is or has been a director, manager, secretary or other officer of every other society or a ssociation of persons or trust (whether registered under any law for the time being in force or not) in receipt of any donation from the public and the annual income of which exceeds such amount as the State Gover nment may by notifica tion specify or from any foreign source under the Foreign Contribution (Regulation) Act, 2010 in excess of ten lakhs rupees in a year or such higher amount as the Central Government may, by notification, specify; Explanation. —For the purpose of clauses ( f) and ( g), it is hereby cla rified that any entity or institution, by whatever na me called, corporate, society, trust, associa tion of persons, partnership, sole proprietorship, limited liability partnership (whether registered under any law for the time being in force or not), shall be the entities cover ed in t hose clauses: Provided tha t any person r eferred to in t his cla use shall be deemed to be a public servant under clause ( c) of section 2 of the Prevention of Cor ruption Act, 1988 and the provisions of that Act shall apply accordingly. ( 2) Notwithstanding anything conta ined in sub-section ( 1), the Lokayukta shall not inquire into any matter involved in, or arising from, or connected with, any such allega tion of corruption aga inst- 10 - Ex-398/2014 any Member of the State Legislature in respect of anything sa id or a vote given by him in the State Legislature or any committee thereof covered under the provisions contained in clause (2) of article 194 of the Constitution. ( 3) The Lokayukta may inquire into a ny act or conduct of any person other than those referred to in sub-section ( 1), if such p erson is involved in the act of abetting, br ibe giving or bribe ta king or conspira cy relating to any allegation of cor ruption under the Prevention of Corr uption Act, 1988 against a person referred to in sub-section ( 1): Provided tha t no pr osecution under this Act shall be initiated against the person serving under the Central Government without obtaining approval from competent a uthorit y of Central Government. ( 4) No matter in respect of which a complaint has been made to the Lokayukta under this Act shall be referred for inquiry under the Commissions of Inquiry Act, 1952. Explanation .—For the r emoval of doubts, it is hereby decla red that a complaint under this Act shall only relate to a period during which the public servant was holding or serving in that capacity. 14. Pending cases: Any matter or proceeding relating to allegation of corruption under the Prevenction of Corruption Act, 1988 pending before any agency or a uthorit y prior to commencement of this Act shall s tand transferred to the Lokayukta excepting cases pending before the court. 15. Constitution of Bench: ( 1) Subject to t he provisions of this Act, — ( a) the jurisdiction of the Lokayukta may be exercised by benches thereof; ( b) a bench may be cons tituted by the Chairperson consisting of such number of Members as the Chair person may deem fit; ( c) where a bench consists of t he Chairperson, such b ench shall be presided over by the Chairperson; ( d) where a bench cons ists of a Judicial Member, a nd a non-Judicial Member, not being the Chairperson, such bench shall be presided over by the member who is senior to the other; ( e) the benches of the Lokayukta shall ordinarily s it at Aizawl a nd at such other places as the Lokayukta may decide. ( 2) Notwithstanding anything contained in sub-section ( 1), the Chair person shall ha ve the power to constitute or reconstitute benches from time to time. ( 3) If a t any s tage of the hearing of any ca se or matter it appears to t he Chair person or a Member that the ca se or matter is of such nature that it ought to be heard by a bench consisting of all the Members, the case or matter may be transferred by the Chairperson or, as the case may be, referred to him for transfer, to such bench as the Chairperson may deem fit. 16. Distribution of Business: Wher e benches are constit uted, t he Chairperson may, from time to time, by notification, make provisions as to the distr ibution of the business of the Lokayukta amongst the benches and also provide for the matters which may be dealt with by each bench. 17. Transfer of pending case: On an application for transfer ma de by the complainant or the public servant, the Chairperson, after giving an op portunity of b eing heard to the complainant or the public servant, as the case may be, may transfer any case pending before one bench for disposal to any other bench.- 11 -Ex-398/2014 18. Reference to Cha irperson: If the Members of a bench consisting of a n even number of Members differ in opinion on any point, they shall state the point or points on which they differ, and make a reference to the Chairperson who shall either hear the point or points himself and such p oint or points shall be decided by him. CHAP TER-VI PROCEDURE IN RESPECT OF PRELIMINARY AND INVESTIGATION19. Procedure in respect of Preliminary Inquiry and Investigation: (1) The Lokayukta shall, on its own motion or on r eceipt of a complaint , first decide whether to proceed in t he matter or close the same and if the Lokayukta decides to proceed further, it shall order the preliminary inquiry aga inst any public servant by its Inqu iry Wing or any agency (including any sp ecial investigation agency) to ascertain whether there exist a prima fa cie case for proceeding in the matter. ( 2) During the preliminary inquiry referred to in sub section ( 1), the Inquir y Wing or any agency shall conduct a preliminary inquir y and on the ba sis of material, information a nd documents collected, submit within seven da ys from the date of r eceipt of the reference, a report to the Lokayukta. ( 3) A bench consisting of at least two Members of the Loka yukta shall consider every report received under sub-section ( 2) fr om the Inquir y Wing or any a gency and aft er giving an opportunity of being heard to the public servant, decide as to whether there exists a prima facie case, and make recommendations to proceed with one or more of the following actions, namely:— ( a) investigation by any agency (including a ny special investigation agency); ( b) any appropr iate act ion aga inst the concerned public servants by the competent author ity; ( c) closure of the proceedings against the public servant. ( 4) Every preliminary inquiry referred to in sub-section ( 1) shall ordinarily be completed within a period of 7 (seven)days fr om the date of receipt of the compla int. ( 5) In case the Lokayukta decides to proceed to investigate into the complaint, it shall direct any investigation agency (including any special agency) to carry out the investigation as expeditiously as possible and complete the investigation within a period of six months fr om the date of its order: Provided that the Lokayukta may extend the said period by a further period not exceeding three months at a time for the reasons to be recorded in writ ing. ( 6) Notwithstanding anything contained in section 173 of the Code of Criminal Procedure, 1973, any investigation a gency (including any special a gency) shall, in respect of cases referred to it by t he Lokayukta, submit the investigation repor t to the Lokayukta. ( 7) A bench consisting of at least two Members of the Loka yukta shall consider every report r eceived b y it u nder s u b-s ect ion ( 6) from any investigation agency (including any special agency) and may, decide as to— ( a) file charge-sheet or closure report before the Special Court against the public servant; ( b) any appropr iate act ion aga inst the concerned public servants b y the competent author ity. ( 8) The Lokayukta may, after taking a decision under sub-section ( 7) on the filing of the chargesheet, direct – ( a) its prosecution Wing to initiate prosecution in the Special Court in r espect of the cases investigated by the investigation agency (including any special agency); or ( b) any other a gency in respect of the cases investigated by such agency on the direction of Loka yukta to obtain its approval and thereafter initiate prosecution in the Special C ourt and forward a copy of char ge-sheet filed by it under this clause to the Lokayukta for the purp oses of superintendence .- 12 - Ex-398/2014 (9) The Lokayukta may, during the preliminary inquiry or the investigation, as the case may be, pass appropr iate orders for the safe custody of t he documents r elevant to the preliminary inquiry or, as the case may be, investigation, as it deems fit. ( 10 ) The Lokayukta may retain the original r ecords and evidences, which are likely to be required in the process of preliminary inquiry or investigation or conduct of a case by it or by the Special Court. ( 11 ) Save as otherwise provided, the ma nner and procedure of conducting a preliminar y inquir y or investigation (including such material and documents to be made available to the public servant) under this Act, shall be such as may be specified by r egulations. 20. Inquiry into the conduct of person other than the accused: If, at any stage of the proceeding, the Lokayukta— ( a) cons iders it necessary to inquire into the conduct of any person other than the accused; or ( b) is of opinion that the reputation of any person other than a n accused is likely to be pr ejudicially affected by the pr eliminar y inquir y, the Loka yukta shall give t o that person a reasonable opportunity of being hear d in the preliminary inquiry and to produce evidence in his defence, consistent with the principles of natur al justice. 21. Furnishing of Information and Documents: Subject to the provisions of this Act, for the pur pose of any pr eliminary inquiry or investigation, the Lokayukta or the investigating authority, as the case may be, may require any public servant or any other person who, in its opinion, is able to furnish information or produce documents relevant to such preliminary inquiry or investigation, to furnish any such information or produce any such document. 22. Sanction not necessary: ( 1) No sanction or appr oval of any authority shall be requir ed by the Lokayukta for conducting investigation by any agency in respect of the ca ses investigated by such agency on the direction of t he Loka yukta, under section 197 of the Code of Cr iminal Procedure, 1973 or section 19 of the Prevention of Corruption Act, 1988, as the case may be, for the purpose of making preliminary inquiry by the Inquiry Wing or investigation by any agency into any complaint against any public serva nt or for filing of any charge sheet or closure report on completion of investiga tion in r espect thereof before the Special Court under this Act. ( 2) A Special Court may, notwithstanding anything contained in section 197 of the Code of Criminal Procedure, 1973 or section 19 of the Prevention of Cor ruption Act, 1988, on filing of a charge sheet on completion of investigation, by the Lokayukta or any officer author ised by it in this behalf, take cognizance of offence commit ted by any public servant. ( 3) Nothing contained in sub-sections ( 1) and ( 2) shall apply in r espect of the persons holding the office in pursuance of the provisions of the Constitution and in respect of which a procedure for removal of such person has been specified therein. ( 4) The provisions contained in sub-sections ( 1), ( 2) and ( 3) shall be without prejudice to the generality of the provisions contained in article 311 and sub-clause ( c) of clause ( 3) of Article 320 of the Constitution. 23 . Filing of Ca se: Wher e after the conclusion of t he investigation by any agency, the findings of the Lokayukta disclose the commission of an offence under the Prevention of Corruption Act, 1988 and Indian P enal Code relating to corruption by a public servant referr ed to in clause ( a) or clause ( b) or clause ( c) or clause (d) or clause (e) or clause (f) or clause (g) of sub-section ( 1) of section 13, the Lokayukta may file a case in the Special Court and sha ll send a copy of the report together with its findings to the competent authority.- 13 -Ex-398/2014 24. Transparency in Lokayukta organization: The Lokayukta shall maintain complete transparency in its functioning and shall ensure that full r ecords of any investigation or inquiry conducted under this Act after its conclusion is made public by being pu t on a public web site. The Lokayukta will also ensure effective implementation of Section 4 of the Right to Information Act , 2005 for transparency within Lokayukta except for items those covered under Section 8 of the Right to Information Act, 2005. CHAPTER- VII POWERS OF LOKAYUKTA25. Powers of Lokayukta: The Lokayukta shall, notwithstanding anything contained in any other law for the time being in force, have the powers – (a ) to initiate suo moto appropriate action under this Act against any public servant who is alleged to have involved in any act of corruption; (b) to exercise superintendence over day to day works of the Lokayukta and give direction to the investigating officers for the smooth and proper investigation and after completion of the investigation; (c) to prosecute the accused before the special court, and also to recommend punishment of dismissal, r emoval or reduction in rank a nd also impose recovery of the loss caused to the public against the erring public servants after giving them full apportunities of b eing heard. The recommendation sha ll be executed by the appointing authority of the Government within 6(six) months. In the event of non-execution on the part of the concerned department the reason for non- execution is to be laid before the Mizoram State Assembly. While recommending any action Lokayukta will duly consider distinction between bonafide action and an action with mala fide intention, and also judgement of error with and without ill-motive; (d) to ensure the integrity of its functionaries and impose on defaulters punishment either of dismissal, removal or reduction in r ank as found deemed fit; ( e) to ensure proper prosecution of cases before Court est ablished by competent author ity; (f) to compound the offence of corruption either(i) by seizing and confiscating all the assets and properties which are known a nd admitted that they have been accumulated by means of corr upt practices b y the erring public servant; or (ii) by making an order compelling thereby the defa ulting public serva nt to recover the entire amount of loss to the public treasury within a specified time. 26. Search and Seizure of Documents, Articles and Retention thereof: ( 1) If the Lokayukta has reason to believe that any document or articles as the case may be which, in it s opinion, sha ll be useful for, or relevant to, any investigation under this Act, are secr eted in any place, it may authorise any agency to whom the investigation has been given to sear ch for and to seize such documents/ articles as per the provision of Cr Pc. ( 2) If the Loka yukta is satisfied that any document or article seized under sub-section ( 1) may be used as evidence for the purpose of any preliminary inquiry or investigation or trial under this Act and tha t it shall be necessa ry to r etain the document or article in its custody or in the custody of such officer as may be authorised, it may so retain or direct such authorised officer to retain such document or article till the completion of such preliminary inquiry or investigation or trial. Provided that wher e any document or article is requir ed to be retur ned, the Lokayukta or the authorised officer may return the same after retaining copies of such document or seized article duly authentica ted.- 14 - Ex-398/2014 27 . Exercise of powers of Civil Cour t: (1) Subject to the provisions of this section, for the purpose of any preliminary inquiry and investigation, the Lokayukta shall have a ll the powers of a civil cour t, under the Code of Civil Procedure, 1908, while trying a suit in respect of the following matters, namely:— ( i) summoning a nd enforcing the attendance of any person a nd examining him on oath; ( ii) requiring the discovery and production of any document or article ( iii) receiving evidence on affidavits; ( iv) requisitioning any public record or copy thereof from a ny court or office; ( v) issueing commissions for the examination of witnesses or documents/ articles Provided that such commission, in case of a witness, shall be issued only where the witness, in the opinion of the Lokayukta, is not in a position to attend the proceeding befor e the Lokayukta; and ( vi) such other matters as may be prescribed. ( 2) Any proceeding before the Lokayukta shall be deemed to be a judicial pr oceeding within the meaning of section 193 of the Indian Penal Code. 28. Utilisation of Service of Officer/ Agency of the Government: ( 1) The Lokayukta may, for the purpose of conducting any preliminary inquir y or investigation, utilise the services of any officer or organisation or investigation agency of the State Government or the Central Gover nment including Centr al Bureau of Investiga tion (CBI). ( 2) For the purpose of preliminary inquiry or investigating into any matter pertaining to such inquiry or investigation, any officer or organization or agency whose services are utilised under sub- section ( 1) ma y, subject to the direction and control of the Lokayukta,- ( a) summon and enforce the attendance of any person and examine him; ( b) require the discovery and production of any document; and ( c) requisition any public record or copy thereof from any office. ( 3) The officer or organization or a gency whose ser vices a re utilised under sub-section ( 2) shall inquire or, as the case ma y be investigate into any matter pertaining to the preliminary inquiry or investiga tion and submit a report thereon to the Loka yukta within su ch period as may be specified by it in this behalf. 29. Attachment of property: ( 1) Wher e the Lokayukta or any investigation officer author ized by it in this behalf, ha s reason to believe, the reason for such belief to be recor ded in writing, on the basis of material in his possession, that— ( a) any person is in possession of any proceeds of corruption; ( b) such person is accused of having committed an offence r elating to corr uption; and ( c) such proceeds of offence are likely to be concealed, transferred or dealt with in any manner which may r esult in frustr ating any proceedings relating to confiscation of such proceeds of offence, he ma y, by order in writing, provisionally attach such property for a period not exceeding ninety days from the date of the or der. (2) The Lokayukta shall, immediately after attachment under sub-section ( 1), forward a cop y of the order, along with the material in his possession, referred to in that sub-s ection, to the Special Court, in a sealed envelope, in the manner as may be prescribed and such Court may ext end the order of a ttachment and keep such material for such period a s the Cou rt may deem fit. ( 3) Every order of attachment made under sub-s ection ( 1) s ha ll cease to ha ve effect a fter the expiry of t he period specified in that sub-section or after the exp iry of the period as directed by the Special Court under sub-section ( 2). ( 4) Nothing in this section s hall pr event the person inter ested in the enjoyment of the immovable property attached under sub-section ( 1) or sub-section ( 2), from such enjoyment. - 15 -Ex-398/2014 Explanation. —For the purposes of this sub-section, “person interest ed”, in relation to any immovable property, includes all persons claiming or entitled to claim a ny interest in the property. 30. Confirmation of attachment by Special Court: ( 1) The Lokayukta, when it pr ovisionally attaches a ny property under sub-section ( 1) of section 29 shall, within a period of thirty days of such atta chment, direct its pr osecution wing to file an application stating the facts of such atta chment before the Special Cour t and make a pr ayer for confirmation of attachment of the property till completion of the proceedings against the public servant in the Special Court. ( 2) The Special Court may, if it is of the opinion t hat the property provisionally attached had been acquired through corrupt means, make an order for confirmation of attachment of such property till the completion of the proceedings a gainst the public servant in the Special Court. ( 3) If the public serva nt is subsequently acquitted of the charges framed against him, the property, subject to the orders of the Special Court, sha ll be r estored to the concerned public servant along with benefits from such pr operty as might have accrued during the period of attachment. ( 4) If the public servant is subsequently convicted of the charges of corruption, the property and the proceeds thereon relatable to the offence under the Prevention of C orruption Act, 1988 shall be confiscated and vest in the Government free fr om a ny encumbra nce or leasehold interest excluding any debt due to any bank or financial institution. Explanation. —For the purposes of this sub-section, the expr essions “bank”, “debt” and “financial institution” sha ll have the meanings r espectively assigned to them in clauses ( d), ( g) and ( h) of section 2 of the Recovery of Debts due to Banks and Financial Institutions Act, 1993. ( 5) Without prejudice to the provisions of sections 29 and 30, where the S pecial Court, on the basis of prima facie evidence, has reason to believe or is satisfied that the assets, proceeds, receipts and benefits, by whatever name called, have ar isen or procur ed by means of corruption by the public serva nt, it may authorize the confiscation of such assets, proceeds, receipts and benefits till his acquittal. ( 6) Wher e an order of confiscation made under sub-section ( 1) is modified or annulled by the High Court or Supreme Court or where the public servant is acquitted by the Special Court, the assets, proceeds, r eceipts and benefits, confiscated under sub-section ( 1) shall be returned to such public servant, and in case it is not possible for any reason to r eturn the assets, proceeds, receipts and benefits, such public servant shall be paid the pr ice thereof including the money so confiscated with t he interest at the ra te of five per cent. per annum thereon calculated from the date of confiscation. 31. Transfer or Suspension of Public servant: Where the Lokayukta, while making a preliminary inquiry into allegations of corruption, is prima facie satisfied, on the basis of evidence available, that— ( a) the continuance of the public servant referred to in clause ( d) or clause ( e) or clause (f) of sub-section ( 1) of section 14 in his post while conducting the preliminary inquiry is likely to affect such preliminary inquiry adversely; or ( b) such public servant is likely to destroy or in any wa y tamper with the evidence or influence witnesses, then, the Lokayukta may recommend to the State Government for transfer or suspension of such public servant from the post held by him till such period as may be specified in t he order. 32. Power for Preservation of Documents: The Lokayukta may, in discharge of its functions under this Act , issue appropriate directions to a public servant entrusted with the preparation or cu stody of any document or record—- 16 - Ex-398/2014 (a) to protect such document or recor d from destruction or damage; or ( b) to prevent the public serva nt from altering or secreting such document or record; or ( c) to prevent the public servant from transferring or alienating any assets allegedly acquired by him through corrupt means. 33. Delegation of P ower: The Lokayukta may, by general or specia l order in writing and subject to such conditions and limitations as may be specified therein, direct that any administrative or financial power conferred on it may also be exercised or discharged by such of its Members or officers or employees as may be specified in the or der. CHAPTER-VIII CONSTITUTION OF SPECIAL COURT34. Constitution of Special Court: (1) The State Government shall constit ute such number of Special Courts as recommended by the Loka yukta, to hear and decide the cases ar ising out of the Prevention of CorruptionAct, 1988 or under this Act. (2) The Special Courts constit uted under sub-section (1) sha ll ensur e completion of each t rial within a period of one year from the date of filing of the case in the Court: Provided that in case the trial cannot be completed within a period of 12 months, the Special Court shall record r easons thereof and shall make all efforts to complete the tr ial within another period of six months. 35 . Procedure for letter of Request: (1) Notwithstanding any thing contained in this Act or the Code of Criminal Procedure, 1973 if, in the course of a pr eliminar y inquiry or investigation into an offence or other proceeding under this Act, a n application is made to a Special Court by an officer of t he Loka yukta authorized in this behalf that any evidence is required in connection with the preliminary inquiry or investigation into an offence or proceeding under this Act and he is of the opinion that such evidence ma y be available in any place in a contra cting State, and the Special C ourt, on being satisfied that such evidence is required in connection with the preliminary inquiry or investigation into an offence or proceeding under this Act, may issue a letter of request to a cou rt or a n authority in the cont racting State competent to deal with such request to— (i) examine the facts and cir cumstances of the case; (ii) take such steps as the Special Court may specify in such letter of request; and (iii) forward all the evidence so taken or collected to the Special Court issuing such letter of request. (2) The letter of request sha ll be transmit ted in s uch manner as the Government may prescribe in this behalf. (3) Every statement recorded or docu ment or thing received under sub-section (1) shall be deemed to be evidence collected during the cour se of the preliminary inquiry or investigation. CHAPTER – IX COMPLAINT AGAINST CHAIRPERSON,MEMBERS AND OFFICIALS OFLOKAYUKTA36. Complaint against Chairperson, Members and Officials of Lokayukta: (1) The Lokayukta shall not inquire into any complaint made against the Chairperson or any Member.- 17 -Ex-398/2014 (2) Subject to the provisions of sub-section (4), the Cha irperson or any Member shall be removed from his office by order of the Governor on grounds of misbehavior after the Supreme Court, on a reference being made t o it (i)by the Governor; or (ii) by the Governor, on a petition signed by at least two-third members of Mizoram Legislative Assembly, has, on an enquiry held in accordance with the procedure prescribed in that behalf, reported that the Chairperson or such member, as the case ma y be, ought to b e removed on such ground. (3) The Governor may suspend from office the Chair person or any Member in resp ect of whom a reference ha s been made to the S upreme Cour t under sub-section (2), on receipt of t he recommendation or interim order ma de by the Supreme Court in this regard until the Governor has passed orders on receipt of the fina l report of the Supreme Court on such reference. (4) Notwithstanding anything contained in sub-section(2), the Governor ma y, by or der, remove from the office, the Chairperson or any Member if the Chairperson or such Member, as the case may be,— (a ) is a djudged an insolvent; or (b) engages, dur ing his term of office, in any paid employment outside the duties of his office; or (c ) is, in the opinion of the Governor, unfit to continue in office by reason of infirmity of mind or body. (5) If t he Chair person or any Member is, or becomes, in any way concerned or interested in any cont ract or agreement made by or on behalf of the Government of India or the Government of a State or participates in any way in the profit thereof or in any benefit or emolument arising there from otherwise than as a member and in common with the other members of an incorporated compa ny, he shall, for the purposes of sub-section (2), be deemed to be guilt y of misbehaviour. 37.Compla int a ga inst officia ls of Lokayukta: (1) Every compla int of allegation or wrong doing made against any officer or employee or agency associated with the Lokayukta for an offence punishable under t he Prevention of Corruption Act, 1988 shall be dealt with in accorda nce with the p rovisions of this section. (2) The Lokayukta shall complete the inquiry into the complaint or allegation ma de within a period of thirty days from the date of its receipt. (3) While making an inquiry int o the complaint against any officer or employee of t he Lokayukta or a gency engaged or associated with the Lokayukta, if it is prima fa cie satisfied on the basis of evidence available, that— (a) continuance of such officer or employee of the Lokayukta or agency engaged or associated in his post while conducting the inquiry is likely to affect such inquiry adversely; or (b) an officer or employee of the Loka yukta or agency engaged or associated is likely to destroy or in any way tamper with the evidence or influence witnesses, then, the Loka yukta ma y, by order, suspend such officer or employee of the Lokayukta or divest such agency engaged or associated with t he Loka yukta of all powers and responsibilities her eto before exercised by it. (4) On the completion of the inquiry, if the Lokayukta is sa tisfied that there is p rima fa cie evidence of the omission of an offence under the P revention of Corruption Act,1988 or of any wrong doing, it shall, within a period of fifteen days of the completion of such inquiry, order to prosecute such officer or employee of the Lokayukta or such officer, employee, a gency engaged or associated with the Lokayukta and initiate disciplinary proceedings against the official concerned: Provided that no such order shall be pa ssed without giving such officer or employee of the Lokayukta, a reasonable opportunity of being heard.- 18 - Ex-398/2014 CHAPTER - X ASSESSMENT OF LOSS AND RECOVERY THEREOF BY THE SPECIAL COURT38. Assessment of Loss and Recovery thereof by the Special Court: If a ny public servant is convict ed of a n offence under the Pr evention of Corruption Act, 1988 by the Special Cour t, notwithstanding and without prejudice to any la w for the time being in force, it may make an assess ment of loss, if any, caused to the public exchequer on account of the actions or decisions of such public servant not ta ken in good fa ith and for which he stands convict ed, and may order recovery of such loss, if possible or qua ntifiable, from such public servant convicted: Provided that if the Special Court, for reasons to be recorded in writing, comes to the conclusion that the loss caused was pursuant to a conspira cy with the beneficia ry or beneficia ries of actions or decisions of the public servant so convicted, then such loss may, if assess ed and quantifiable under this section, also be recovered from such beneficiary or beneficiaries proportionately. CHAPTER XI FINANCE,ACCOUNTS AND AUDIT OF LOKAYUKTA39.Finance, Accounts and Audit of Lokayukta: The Lokayukta shall prepare, in such form and at such time in each financial year as ma y be prescribed, its budget for the next fina ncial year, showing the estimated receipts and exp enditur e of the Lokayukta and forward the same to the Government of Mizora m for in formation. 40 . Provision of Fund: The Government of Mizoram may, after due appropr iation made by Mizora m State Legisla tive Assembly by law in this behalf, ma ke to the Lokayukta gr ants of such sums of money as are required to be paid for the salaries and allowances payable to the Chairperson and Members and the administrative expenses, including the salaries and allowances and pension payable to or in respect of officers and other employees of the Lokayukta. 41. Maintenance of Accounts: (1) The Lokayukta shall mainta in proper accounts and other relevant recor ds and prepar e an annual statement of accounts in such form as may be prescribed by the Government of Mizoram in consulta tion with the Accountant General of Mizoram. (2) The accounts of the Lokayukta shall be audited by the Accountant General of Mizora m at such intervals as may be specified by him. (3) The Accountant General of Mizoram or any person appointed by him in connection with the audit of the accounts of t he Loka yukta under this Act shall have the same rights, privileges and authority in connection with such audit , as the Accountant General of Mizoram generally has, in connection with the audit of the Government a ccounts and, in particular, s hall have the r ight to demand the production of books, accounts, connected vouchers and other documents and papers and to inspect any of the offices of the Lokayukta. (4) The accounts of the Lokayukta, as certified by the Accountant General of Mizoram or any other person appointed by him in this behalf, together with the audit report thereon, shall be forwarded annually to the State Government and the State Gover nment s hall cause the same to b e laid b efore Mizoram Legislative Assembly. 42. Furnishing of Returns and Statements: The Lokayukta shall furnish to the State Government, a t such time and in such form and manner as may be pr escribed or as the State Government may request, such returns and statements and such par ticular s in regard to any matter under the jurisdiction of the Loka yukta, as the State Government may, fr om time to time, require.- 19 -Ex-398/2014 CHAPTER – XII DECLARATION OF ASSETS43. Declaration of movable & immovable Assets: (1) Every public servant shall make a declaration of his assets and liabilities in the manner as may be pres crib ed. (2) A public servant shall, within a period of thirty days from the date on which he makes and subscribes an oath or affirmation to enter upon his office, furnish to the competent authority the informa tion r elating to— (a ) the assets of which he, his spouse and his dependent children are, jointly or severa lly, owners or beneficiar ies; (b) his liabilities and that of his spouse a nd his dependent children. (3) A public servant holding his office as s uch, at the time of the commencement of this Act, shall furnish information relating to such assets and lia bilities, as referred to in sub-section (2), to the competent authority within six months of the coming into force of this Act. (4) Every public servant shall file with the competent authority, on or before the 31st July of every year, an annual return of such a ssets a nd liabilities, as referred to in s ub-section (2), as on the 31st March of that year. (5) The information under sub-section (2) or sub-section (3) and annual return under sub-section (4) shall be furnished to t he competent authority in such form a nd in such manner as ma y be pr escr ibed. (6) The competent authority in respect of each Department sha ll ensu re that all such statements are published on the website of such Department by 31st August of that year.Explanation .—For the purposes of t his section, “dependent children” means sons and daughters who have no separate means of earning and a re wholly dependent on the public servant for their livelihood. 44 . Fa ilure to Decla re Assets or giving misleading infor mation: If a ny public serva nt willfully or for reasons which are not justifiable, fails to— (a) declare his assets ; or (b) gives misleading information in respect of such a ssets a nd is found to be in possession of assets not disclosed or in respect of which misleading infor mation was fur nished, then, such assets shall, unless otherwise pr oved, be presumed to be long to the public servant a nd shall be presumed to be assets acquired by corrupt means: Provided tha t the competent author ity may condone or exempt the public servant from fu rnishing informa tion in respect of assets not exceeding such minimum value as may be pr escr ibed. CHAPTER – XIII OFFENCES AND PENALTIES45. Offences and Penalties: (1) Notwithstanding anything contained in this Act, whoever makes any false and frivolous or vexa tious complaint under this Act shall, on conviction, be punished with imprisonment for a term which may extend to one year and with fine which may extend to one lakh rupees. (2) No C ourt, except a Special Court s hall take cognizance of an offence under sub-section (1). (3) No Special Court shall take cognizance of an offence under sub-section (1) except on a complaint made by a person against whom the false, frivolou s or vexatious complaint was made or by an officer authorized by the Lokayukta.- 20 - Ex-398/2014 (4) The prosecution in relation to an offence under sub-section (1) shall be conducted by the pu blic pr osecutor a nd all expens es connected with such prosecution shall be bor ne by the S ta te Government. (5) In case of convict ion of a person [being an individual or society or associa tion of persons or trust (whether registered or not)], for ha ving made a false complaint under this Act, such person shall be lia ble to pay compensation to the public servant against whom he made the false compla int in addition to the legal expenses for contesting the ca se by such public servant, as t he Specia l Cou rt may determine. (6) Nothing contained in this section shall apply in case of complaints made in good fa ith.Explanation. —For the purpose of this sub-section, the expr ession “good faith” means any act believed or done by a person in good fa ith with due care, caution and sense of responsibility or by mistake of fact believing himself justified by law under section 79 of the Indian P enal C ode. 46. Offences by Society, Association or Trust: (1) Wher e any offence under sub-section(1) of section 45 has been committed by any society or association of persons or trust (whether registered or not), every person who, at the time the offence was committed, was directly in charge of, and was responsible to, the society or association of persons or trust, for the conduct of the business or affairs or activities of the society or association of persons or trust as well as such society or association of persons or trust shall be deemed to be guilty of the offence and shall be liable to be pr oceeded against and punished accordingly: Provided tha t nothing contained in this sub-section shall render any such person liable to any punishment provided in this Act, if he proves that the offence was committed without this knowledge or that he had exercised all due diligence to prevent the commission of such offence. (2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been commit ted by a society or association of persons or trust (whether registered or not) and it is proved that the offence has been commit ted with the consent or connivance of, or is attr ibutable to any neglect on the part of, any director, manager, secretary or other officer of such society or association of persons or trust, such dir ector, ma nager, secretary or other officer sha ll also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly. CHAPTER - XIV REPORT TO GOVERNOR & MISCELLANEOUS47 . Repor t to Governor : It shall be the duty of the Lokayukta to present annua lly to the Governor a report on the work done by the Lokayukta and on receipt of such report the Gover nor sha ll cause a copy thereof together with a memorandum explaining, in respect of the cases, if any, where the recommendation of the Loka yukta was not accepted, the reason for such non-a cceptance to be laid before the Mizoram Legislative Assembly. 48 . Pr otection of Public Servant aga inst things done in good faith: No suit, prosecution or other legal proceedings under this Act shall lie against any public servant, in r espect of anything which is done in good fait h or int ended t o be done in the discha rge of his official functions or in exercise of his powers. 49 . Pr otection of Lokyukta or officia ls of Loka yukta: No suit, pr osecution or other legal proceedings shall lie aga inst the Lokayukta or against any officer, employee, agency or any person, in resp ect of anything which is done in good faith or intended to be done under this Act or the rules or the regulations made thereunder.- 21 -Ex-398/2014 50 . Chairperson, Members and Offcials to be public serva nts: The Chairperson, Members, officers and other employees of the Lokayukta shall be deemed, when acting or purporting to act in pursuance of any of the provisions of this Act, to be public servants within the meaning of section 21 of the Indian Penal C ode. 51 . Bar of Civil Court jurisdiction: No civil court shall have jurisdiction in respect of any matter which the Lokayukta is empowered by or under this Act to determine. 52. Provision of Legal Assistance: The Lokayukta may consider to every person against whom a complaint has been made before it, under this Act , legal assistance to defend his ca se before the Lokayukta, if such assistance is requ est ed for. 53. Provision to have overiding effect: The provisions of this Act shall have effect notwithstanding anything inconsistent there with cont ained in any enactment other than this Act or in any instrument having effect by virtue of any enactment other than this Act. 54 . Act not in derogation of other laws: The provisions of this Act shall be in addition to, a nd not in derogation of any other laws for the time being in force. 55. Power to punish for contempt The Lokayukta shall have and exercise the same jurisdiction powers and authorit y in respect of contempt of itself as a High court has and may exercise, and for this purpose, the provisions of the Contempt of Courts Act, 1971 (Central Act 70 of 1971) shall have the effect subject to the modification that the references therein to t he High Court shall be construed as a reference to the Lokayukta as the case may be. 56. Whistle Blower Protection: For the protection of complainant under this Act, section 20 of the Anti-Cor ruption, Grievance Redressal a nd Whistleblower Protection Act, 2011 shall and that the word ‘Lokpal’, wherever it occurs in that section, shall be construed as Lokayukta. 57. Power to make Rules: (1) The State Government may, by notification in the Official Gazette, make rules to ca rry out the provisions of this Act. (2) In p articular, 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 form of compla int referred to in cla use (e) of sub-section (1) of section 2; (b) the term of the Search Committee, the fee and allowances payable to its Members and the manner of selection of panel of names under sub-section (5) of section 4; (c ) the post or posts in respect of which the appointment shall be made a fter consulta tion with the Sta te Public Service Commission under the pr oviso to sub-section (3 ) of section 10; (d) other matters for which the Lokayukta sha ll have the powers of a civil court under clause (vi) of sub-section (1) of section 27; ( e) the manner of sending the order of attachment along with the material to the Special Court under sub-section (2) of section29; (f) the manner of transmitting the letter of request under sub-s ection (2) of section 36;- 22 - Ex-398/2014 (g) the form and the time for preparing in each financial year the budget for the next financial year, showing the estimated receipts and expenditure of the Lokayukta under section 40; (h) the form for maintaining the a ccounts a nd ot her r elevant r ecords and t he for m of annual statement of accounts under sub-s ection (1) of section 42; (i) the form and manner and the time for prepa ring the returns and statements along with particulars under section 43; (j) the form and the time for preparing an a nnual return giving a summary of its activities during the previous year under sub-section (5) of section 44; (k) the for m of annua l return to be filed by a public servant under sub-section (5) of section 44; (l) the minimum value for which the competent author ity may condone or exempt a public servant from furnishing information in respect of assets under the proviso to section 45; (m) any other matter which is to be or may be prescribed. 58 . P ower to ma ke R egu lations: (1) Subject to the provisions of this Act and the rules made thereunder, the Lokayukta may, by notification in the Official Gazette, ma ke regulations to carr y out the provisions of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such regulations may provide for all or any of the following matters, namely:— (a ) the conditions of service of the secretar y and other officers a nd staff of the Lokayukta and the matters which in so far as they r elate to salaries, allowances, leave or pensions, require the approva l of the Gover nor under sub-section (4) of section 10; (b) the place of sittings of benches of the Lokayukta under clause (f) of sub-section (1 ) of section 16; (c ) the manner for displaying on the website of the Lokayukta, the status of all compla ints pending or disposed of along with recor ds and evidence with reference there to under sub-section (10) of section 20; (d) the manner and procedure of conducting preliminary inquiry or investigation under sub- section (11)of section 20; ( e) any other matter which is requir ed to be, or may be, specified under this Act. 59. Rule and Regulation to be laid before the Assembly: Every rule and regulation made under this Act sha ll be laid, as soon as may be after it is made, before the Mizoram Legislative Assembly, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expir y of the session immediately following the session or the successive sess ions aforesaid, the House agrees in making a ny modification in the rule or regulation, or the House a grees that the rule or regula tion should not be made, the rule or r egulation shall thereafter have effect only in such modified for m or be of no effect, as the case may be; so, however, that a ny such modification or annulment shall be without pr ejudice to the validity of anything previously done under that r ule or regulation. 60. Power to remove difficulties: (1) If a ny difficulty a rises in giving effect to the provisions of t his Act , the Government of Mizoram may, by order, publish in the Official Gazette, make such provisions not inconsistent with the provisions of this Act, a s appear to be necessary for removing the difficu lty: Provided tha t no su ch order shall be made under t his section aft er the expiry of a period of t wo years from the commencement of this Act. (2) Every order made under this section shall be laid, as soon as may be after it is made, before the Mizoram Legislative Assembly.- 23 -Ex-398/2014 Schedule[See Sec 3 (3) (c)] I _________________________ having been appointed Chairperson (or a Member) of the Mizoram Lokayukta do swear in the name of God that I will bear Solemnly affirm true faith and allegiance to the Constitution of India as by law established, t hat I will duly and fa ithfully and to t he best of my a bility, knowledge and judgment perfor m the duties of my office without fea r or favour, affection or ill will. Published and Issued by the Controller, Printing & Stationery, Mizoram Printed at the Mizoram Government Press, Aizawl C-50- 24 - Ex-398/2014

The Mizoram Gazette EXTRA ORDINARY Published by Authority RNI No. 27009/1973 Postal Regn. No. NE-313(MZ) 2006-2008Re. 1/- per pageVOL - XLIII Aizawl, Thursday 10.7.2014 Asadha 19, S.E. 1936, Issue No. 342 NOTIFICATION No. G. 24011/2/2009-F.APF, the 2nd July, 2014. In exercise of the powers conferred by the provision of Article 166 of the Constitution of India, the Governor of Mizora m is pleased to notify the Mizoram Audit Manual, 2014 to be used in accordance with Sub-Rule (27) of Rule 19 of the Mizoram Local Funds (Accounts & Audit) Rules, 2012 in the State of Mizoram. By order, etc. F. Vanlalruata, Secretary to the Govt.of Mizoram, Fina nce Dep art ment.Published and Issued by Controller, Printing & Stationery Department, Government of Mizoram Printed at the Mizoram Government Press, Aizawl. C/50

The Mizoram Gazette EXTRA ORDINARY Published by Authority RNI No. 27009/1973 Postal Regn. No. NE-313(MZ) 2006-2008Re. 1/- per pageVOL - XLIII Aizawl, Thursday 10.7.2014 Asadha 19, S.E. 1936, Issue No. 343 NOTIFICATION No.B.12017/21/ll-SWD, the 25th June, 2014.In a ccordance with the Guidelines of the Integrated Child Protection Scheme (ICP S) C hapter IV: Service Delivery Struct ure Section 1.5, the Governor of Mizor am is p leased to constit ute Block Level Protection Commit tee with the following members with immediate effect a nd until further orders : AIZAWL DISTRICT1. DARLAWN BLOCKChairpersonBDOBDO, Darlawn Member SecretaryICDS FunctionaryCDPO, Darlawn ICDS In-charge from District Child Protection Unit (DCPU)Legal-cum-Pr obation Officer, Aizawl DCPU MembersRepresentative from HealthMedical Officer, Darlawn CHC Repr esentative from Educa tion BRC Coordinator, SSA, Dar lawn Respected Community Member President, Jt. YMA , Dar lawn Civil Society Representa tivePresident, Block MHIP Chairperson(s), Village Level Child Pr otection Committee 1.Darlawn2. N. Ser za wl3.Chhanchhuahna 4.Sailutar5. Ratu6.Lungsum 7.New Vervek8. Damdiai9.T hingsa t 10. Sakawrdai11. Vaitin12. Khawpuar 13. N. Khawdungsei 14. Upper Sakawrdai 15. Tinghmun 16. Zohmun17. Mauchar18. Pa lsa ng 19. Sa wleng20. Kepr a n21. E. Pha ileng 22. P ehla wn23. Khanpui24. Lailak 25. Hmunnghak26. Khawruhlian27. Sunhluchhip 28. Zokhawthiang 2. AIBAWK BLOCK ChairpersonBDOBDO, Aibawk Member Secretary1CDS FunctionaryCDPO, Aibawk ICDS In-charge from District Child Protection Unit (DCPU)Probation Officer (IC),Aizawl DCPU MembersRepresentative from HealthMedical Officer, i/c Referral Hospital, Falkawn - 2 - Ex-343/2014 Repr esentative from Educa tion BRC Coordina tor, Aibawk Respected Community Member President,Chhimphei Group YMA Civil Society Representa tivePresident, Block II- MHIP Chairperson(s), VLCPC 1Hualngohmun2Thingdawl Melriat 3Kelsih 4Falkawn5Muallungthu6Tachhip 7Aiba wk8Sateek9Phulpui 10 Maubuang11Thiak12Sumsuih 13 Hmuifang14Lamchhip15Chawilung 16 Chamr ing17Sailam18Sialsuk 19 Sa mlukhai20Lungsei 3. TLANGNUAM BLOCK ChairpersonBDOBDO,Tlangnuam Member SecretaryICDS FunctionaryCDPO, Tlangnuam In-charge from District Child Protection Unit (DCPU)Social Worker -I, Aizawl DCPU MembersRepresentative from HealthDirector, Health a nd Family Welfare Repr esentative from Educa tionDepu ty Distr ict Project Coor dinator, SAA Respected Community M ember Vic e-Pr es ident, C YM A Civil Society Representa tiveVic e-Pres ident , MHIP Gener al Headquar ter Chairperson(s), VLCPC 1Muthi2Sihphir Vengthar3Na us el 4Selesih5Sihphir6Tanhril 7Tuirial8Sairang9Hlimen 10Sihhmui11Melthum12Lungleng-I 13Saikhamakawn14Samtlang 4. THINGSULTHLIAH BLOCK ChairpersonBDOBDO, Thingsulthliah Member SecretaryICDS FunctionaryCDPO,Thingsulthliah In-charge from District Child Protection Unit (DCPU)Social Worker -II, Aizawl DCPU MembersRepresentative from HealthMedical Officer, CHC,Thingsulthliah Repr esentative from Educa tionCRC Coordinator, SSA Thingsulthliah Respected Community Member President,Joint YMA Thingsulthliah Civil Society Representa tivePresident, MHIP Thingsulthliah Diakkawn Chairperson(s), VLCPC 1Tawizo2Maite3Seling 4Keifang5Rulcha wm6Thingsulthliah 7Tlungvel8Saitual9N. Lungpher 10Tualbung11Ruallung12Buhban 13Lenchim14Phulmawi15Darlawng 16Sihfa17Sesawng18Dilkhan 19Baktawng20Mualpheng 5. PHULLEN BLOCK ChairpersonBDOBDO, Phullen Member SecretaryICDS FunctionaryCDPO, Phullen In-charge from District Child Protection Unit (DCPU)Probation Officer (NIC), Aizawl DCPU MembersRepresentative from HealthHead Teacher,Govt. Primary School -I, Phullen Repr esentative from Educa tion Head Teacher,Govt. Primary School-I, Phullen Respected Community M ember Pres ident, YMA, Phu llen Civil Society Representa tivePres ident, M HIP Phu llen Chairperson(s), VLCPC 1Zawngin2Suangpuilawn3Lamherh 4Vanbawng5N.Khawlek6Luangpawn 7Phuaibuang8Khawlian9NE Tlangnuam 10Daido11Phullen12Tha nglailung MAMIT DISTRICT 1. REIEK BLOCK ChairpersonBDOBDO, Reiek Member Secretary1CDS FunctionaryCDPO, Reiek In-charge from District Child Protection Unit (DCPU)Probation Officer (NIC), Mamit DCPU MembersRepresentative from HealthMedical Offic er, PHC Reiek Repr esentative from Educa tionBRC Coordinator, SSA Reiek Respected Community Member President, Khuangchera Group YMA Civil Society Representa tivePres ident, M HIP Sub -Headqu arter, R eiek Chairperson(s), VLCPC 1Reiek2Rawpuichhip3Rulpuihlim 4Dapchhuah5Tuahzawl6Chungtlang 7W. Lungdar8Lungphun9N. Kanghmun 10Bawlte11E. Phulpui12Darlung 2. WEST PHAILENG BLOCK ChairpersonBDOBDO, W. Phaileng Member SecretaryICDS FunctionaryCDPO, W. Phaileng In-charge from District Child Protection Unit (DCPU)Probation Officer (IC), Mamit DCPU MembersRepresentative from HealthMedical Officer, PHC W. Phaileng Repr esentative from Educa tionBRC Coordina tor, SSA W. Phaileng Respected Community Member President, Da mpa Group YMA Civil Society Representa tivePresident, Block MHIP W. Phaileng Chairperson(s), VLCPC1 W. Phaileng 2Lallen3Phuldungsei4Pukzing 3. ZAWLNUAM BL OCK ChairpersonBDOBDO, Zawlnuam Member Secretary1CDS FunctionaryCDPO, Zawlnuam In-charge from District Child Protection Unit (DCPU)Legal-cum-Pr obation Officer, Mamit DCPU MembersRepresentative from HealthMedical Officer, PHC Zawlnuam Repr esentative from Educa tionBRC Coordinator, S SA Zawlnuam Respected Community Member President,Langkaih Group YMA Civil Society Representa tivePresident, MHIP Zawlnuam Block Chairperson(s), VLCPC 1Zawlnuam2Mamit3Zawlnuam Thuampui 4Zawlnuam Borai 5Bungthuam6Lu imawi 7Kanhmun8Zawlpui9Chuhvel 10Sa ikhawthlir11Sihthia ng12Vawngawnzo 13Suarhliap14Hriphaw15Zamuang 16Rengdil17Kawrthah (S)18Kawrthah (N) - 3 -Ex-343/2014 19Tuidam20Kawrte21Bunghmun 22Serhmun23Darlak24Tuipuibari 25Phaizawl26Dampui27Mualthuam 28Thinghlun KOLASIB DISTRICT l.THINGDAWL BLOCK ChairpersonBDOBDO, Thingdawl Member SecretaryICDS FunctionaryCO,Thingdawl ICDS In-charge from District Child Protection Unit (DCPU)Probation Officer (NIC), Kolasib DCPU MembersRepresentative from HealthMedical Officer, Kawnpui PHC Repr esentative from Educa tionSDEO, Kawnpui Respected Community Member President, Joint MHIP, Thingdawl Civil Society Representa tivePresident, MUP Kolasib Sub- Headqua rter Chairperson(s), VLCPC 1Thingdawl2Bualpui3Kawnpui-1 4Kawnpui - II5Hor toki6Zanlawn 7Serkhan8Lungda i9Nisapui 10Lungmuat11N. Chaltlang12Bukpui 13Thingthelh14N. Himen15Khamra ng 16Mualkhang17Kolasib Towna)Kola sib Vengthar b)New Dia kka wnc)Diakka wnd)College Veng e)Pr oject Vengf)Venglaig)Hma r Veng h)Tumpuii)Saidan/Tuithaveng j)Rengtekawn 2. BILKHAWTHLIR BLOCK ChairpersonBDOBDO, Bilkhawthlir Member SecretaryICDS FunctionaryCDPO,Bilkhawthlir In-charge from District Child Protection Unit (DCPU)Probation Officer (IC),Kolasib DCPU MembersRepresentative from HealthMedical Officer, PHC Bilkhawthlir Repr esentative from Educa tionSDEO, Bilkhawthlir Respected Community Member President, Jt.YMA Vairengte Br anch Civil Society Representa tivePresident, Jt.YMA Bilkhawthlir Chairperson(s), VLCPC 1Phainuam2Saihapui ‘V’3N. Chhimluang 4Saiphai5Saipum6N. Chawnpui 7Bilkhawthlir ‘N’8Bilkhawthlir ’S’9Phaisen 10Buhchangphai11N. T hinglian12Bukva nnei 13Saihapui ‘K’14Builum/Bawktlang 15Pangbalkawn 16S. Chhimluang17. Meidum18. Vair engte - I 19. Vair engte - II20Bairabi CHAMPHAI DISTRICT1. KHAWBUNG BLOCK ChairpersonBDOBDO, Khawbung Member SecretaryICDS FunctionaryCDPO Khawbung ICDS In-charge from District Child Protection Unit (DCPU)Probation Officer (IC), Champhai DCPU MembersRepresentative from HealthMedical Officer, PHC, Khawbung - 4 - Ex-343/2014 Repr esentative from Educa tionCoordinator, BRC Khawbung Res pected Community M ember Vice President, Tuipuiral Group YMA, Khawbung Civil Society Representa tivePresident, MHIP, Khawbung Chairperson(s), VLCPC 1Zawngtetui2Bua ng3Khuangleng 4Bulfekzawl5Hrua ikawn (Old) 6Hruaikawn (New) 7Sesih8Leisenzo9Bungzung 10Vanzau11Dungtlang (Old)12Dungtlang (New) 13Leithum14Sazep15Lianpui 16Vangchhia17Vaphai18Samthang (Old) 19Sa mtha ng (New) 20Kha wbung ‘S’21Za wls ei 22Chawngtui ‘E’23Fa rkawn24Thekte 25Khankawn26Thekpui27Khuangthing 2. NGOPA BLOCK ChairpersonBDOBDO, Ngopa Member SecretaryICDS FunctionaryCDPO, Ngopa In-charge from District Child Protection Unit (DCPU)Social Worker-1, Champhai DCPU MembersRepresentative from HealthMedical Officer, CHC, Ngopa Repr esentative from Educa tion Coor dinator, BRC Ngopa Respected Community Member President/Vice President, Group YMA, Ngopa Civil Society Representa tivePresident, MHIP, Ngopa Chairperson(s), VLCPC 1Chiahpui2N.E Khawdungsei 3Khawkawn 4Mimbung5Hr ianghmun6Teikhang 7Kawlbem8Tualbung9Ngopa 10 Selam11Lamzawl12Pawlrang 13 Changzawl14 Hliappui15Hliappui ‘S ’ 16 Saichal 3. CHAMPHAI BLOCK ChairpersonBDOBDO, Champhai Member Secretary ICDS FunctionaryCO, Champhai ICDS In-charge from District Child Protection Unit (DCPU) Probation Officer (NIC), Champhai DCPU MembersRepresentative from HealthSMO, Civil Hospital, Champhai Repr esentat ive from Educa tion District Project Co-Ordinator (DPC) RMSA, Champhai Respected Community Member Vice President, Champhai Sub-Headquarters YMA Civil Society Representa tivePresident Joint VC P, Champhai Chairperson(s), VLCPC 1 Vaikhawtlang 2Mur len3Tualcheng4Lungphunlian 5Khuangphah6Hnahlan7N.E Diltlang 8Vapar9Ngur10Kha wbung ‘N’ 4. KHAWZAWL BLOCK ChairpersonBDOBDO, Khawza wl Member SecretaryICDS FunctionaryCDPO, Kha wza wl In-charge from District Child Protection Unit (DCPU)Legal-cum-Probation Officer, Champhai DCPU MembersRepresentative from HealthMedical Officer, CHC Khawzawl Repr esentative from Educa tionSDEO, Khawzawl Respected Community Member President, Khawzawl Group YMA- 5 -Ex-343/2014 Civil Society Representa tiveSecr etary Joint VCP, Khawzawl Chairperson(s), VLCPC 1 Dulte 2Kawlkulh3 Phunchawngzawl 4 Vankal 5Khua len6 Rabung7 Aiduzawl 8Pamchung9 Tualpui10 Ngaizawl 11 Neihdawn12 Arro13 Puilo 14 Chhawrtui15 Hmuncheng16 Chawngtlai 17 Tuipui18 Mualkawi19 Melbuk (Khawnuam) 20 Kelka ng21 Tualte22 Vangtlang 23 Chalra wng ‘New’ 24 Dilkawn25 Zokhawthar SERCHHIP DISTRICT1. SERCHHIP BLOCK ChairpersonBDOBDO, Serchhip Member Secretary ICDS FunctionaryCO. ICDS i/c Chhingchhip Circle In-charge from District Child Protection Unit (DCPU) Pr ob a tion O fficer ( IC), Ser chhip DCPU MembersRepresentative from HealthDistrict Medical Superintendent, JN Hospital, Serchhip Repr esentative from Educa tion SDEO, Serchhip Respected Community Member Vice-President, YMA Sub-Headquarter, Serchhip Civil Society Representa tiveSecr etary, MHIP Sub- Headquarter, Serchhip Chairperson(s), VLCPC 1Baktawng2Buangpui3Bungtlang 4Chhiahtlang5Chhingchhip6Hmuntha 7Hmunzawl8Hriangtlang9Hualtu 10 Keitum11Khawbel12Khumtung 13 Lungpho14Neihloh15New Serchhip 16 Ngentia ng17Rullam18Serchhip 19 Sialhau20Thentlang21Thenzawl 22 Thing lian23Vanchengpui 2. EAST LUNGDAR ChairpersonBDOBDO, East Lungdar Member Secretary ICDS FunctionaryCO. ICDS i/c Biate Circle In-charge from District Child Protection Unit (DCPU) Probation Officer (NIC), S erchhip DCPU MembersRepresentative from HealthMedical Officer, East Lungdar PHC Repr esentative from Educa tionSDEO, N. Vanlaiphai Respected Community Member President, Tuichangral South Group YMA Civil Society Representa tiveChairman, Tuichangral Village Council Association Chairperson(s), VLCPC 1East Lungdar2North Vanlaiphai3 Khawlailung 4Mualcheng5Sailulak6Leng 7Lungkawlh8Lungchhuan9Piler 10Sialsir11Bawktla ng12Chekawn LUNGLEI DISTRICT1. LUNGLEI BLOCK ChairpersonBDOBDO, Lunglei Member Secretary ICDS FunctionaryCircle Officer, Lunglei ICDS - 6 - Ex-343/2014 In-charge from District Child Protection Unit (DCPU) Legal-cum-P robation Officer, Lunglei DCPU MembersRepresentative from HealthMedical Officer, Lunglei CMO Hospital Repr esentative from Educa tion SDEO, Lunglei ‘N’ Respected Community M ember Secr etary, YMA Sub- Headquar ter, Lunglei Civil Society Representa tiveVice President, MHIP, Sub- Head-qu arter, Lunglei Chairperson(s), VLCPC 1Bualpui V2Bualte3Bualte Bawk 4Buknuam5Chengpui6Chhipphir 7Chithar8Dawn9Haulawng 10 Herhse11Hlumte12Hmuntlang 13 Kawmzawl14Lunglei (NT)15Lungmawi 16 Mamte17Matbawk18Mausen 19 Mualthuam S20N.Mualthuam21New Dawn 22 Pachang23Ralvawng24Ramlaitui 25 Runtung26S.Kanghmun27S.Lunglei 28 S.Mualcheng29S.Phaileng30S.Tawipui 31 S.Zote32Sairep33Saza I.B 24 Sekhum35Siallu Cattle Farm36Tawipui N I 37 Tawipui N II38Thaizawl39Thangpui 40 Thangte41Thehlep42Thingfal 43 Thlengang44Thua lthu45Thuampui 46 Vaisam47Valcheng48Vanhne 49 Zotuitlang 2. LUNGSEN BLOCK ChairpersonBDOBDO, Lungsen Member SecretaryICDS FunctionaryCDPO, Lungsen ICDS In-charge from DCPUSocial Wor ker, Lunglei DCPU MembersRepresentative from HealthMedical Officer, C HC, Lungsen Repr esentat ive from Educa tion SDEO, Lungsen Respected Community Member President, YMA Hmar Veng Civil Society Representa tiveVi ce Pres ident, M HIP, Lungsen Chairperson(s), VLCPC 1Andermanik2Balukiasuri3Balungsuri 4Belpei (Matiasora) 5Belt hei6Benga Veng 7Bindiasora8BoraHorinachhuah9Bornasuri 10 Bor segojasor a11 Champasuri12Chawngte L 13 Chhuahthum14 Chhuamkhum15Damlui 16 Dintha r17 Dipblibagh (Kawizau) 18Gulsil 19 Gurusora20 Hmunthar21Hruizam 22 Kalapani23 Kauchhuah24Khangrasuri 25 Khawmawi26 Khojaisuri27Khojoisuri(New) 28 Khojoisur i(Old)29 Kumra ghat30Lalnutui 31 Lamthai I32 Lamthai II33Lamthai III 34 Letisuri35 Lungsen36Mautlang 37 Mua lmu38 Muriskata39New Lungr ang 40 New Balukiasuri 41 New Vuakmual42Ngiautlang 43 Nunsur i44 Pangtlang45Phairuangchhuah 46 Phairuangkai47 Putlungasih48Rangte 49 Rolui50 Rua lalung51S.Chawilung - 7 -Ex-343/2014 52 S.T langkang53 Sa ilen54Saitumkawn 55 Samang56 S a mu ks u r i (Chengkawllui) 57Sedailui 58 Serhuan59 Sihphirtlang60Sihtlang 61 Silkur62 South Lungrang63Sugarbasora 64 Tha nzamasora65 Thekaduar66Thumbasora 67 Tiperaghat II68 Tiperaghat III69Tiperagha t I 70 Tlabung (NT)71 Tuichawng72Tuichawngchhuah 73 Tuisen Bolia74 Tuisen Chhuah75Udaisuri (Toilet) 76 Vairawkai77 Vanzawl78Vuakmual 79 W. Rotlang80 Zawlpui81Zehtet 82 Zohmun83 Zuangzawl 3. BUNGHMUN ChairpersonBDOBDO, Bunghmun Member SecretaryICDS FunctionaryCDPO, Bunghmun ICDS In-charge from District Child Protection Unit (DCPU)Probation Officer (NIC), Lunglei DCPU MembersRepresentative from HealthMedical Officer, PHC, Bunghmun Repr esentative from Educa tionSDEO, Bunghmun Respected Community Member President, YMA, Thor ang Group, Bunghmun Civil Society Representa tivePresident, MHIP, Bunghmun Chairperson(s), VLCPC 1 Bandia sora 2Buarpui3 Changpui4Darngawn 5Dengsur6 Devasuri7Hmundo 8Hnahkhai9 Kawlhawk10 Kawnpui W 11 Kohzai12 Laisawral13 Lokisuri 14 Lungchem15 Machuasora16 Malsuri 17 Mar S18 Mauzam19 New Belkhai (Tuikawi) 20 New Sachan21 New Khawlek22 Phainuam 23 Puankhai24 S. Belkhai25 S. Dampui 26 S. Khawlek27 S. Lungdai28 Sachan 29 Saisen30 Salmar31 Serte 32 Sertlangpui33 Sesawm34 Sumasumi 35 Terabonia36 Thenhlum37 Thingkim 38 Tleu39 W. Bunghmun40 W. Bungtlang 4. HNAHTHIAL ChairpersonBDOBDO, Hnahthial Member SecretaryICDS FunctionaryCDPO, Hnahthial ICDS In-charge from District Child Protection Unit (DCPU)Probation Officer(IC), Lunglei DCPU MembersRepresentative from HealthMedical Officer, Hnahthial Repr esentative from Educa tionSDEO, Hnahthial Respected Community Member President, Joint YMA Committee, Hnahthial Civil Society Representa tivePresident, MHIP, Hnahthial Chairperson(s), VLCPC 1Aithur2Bualpui H3Cherhlun 4Darzo5Denlung6E. Rotlang 7Hnahthial (NT)8Khawhlum9Khawhri 10 Khawnglung11 Kutkawk12Leite 13 Lungpuitlang14 Maudarh15Muallianpui 16 New Nghar chhip17 Old Ngharchhip8Pangzawl - 8 - Ex-343/2014 19 Rawpui20 S. Chawngtui21S. Lungleng 22 S. Vanlaiphai23 Tarpho24Thiltlang 25 Thingsai26 Tuipui (Darzokai) LAWNGTLAI DISTRICT1. LAWNGTLAI BLOCK ChairpersonBDOBDO, Lawngtlai Member Secretary ICDS FunctionaryCO, Lawngtlai ICDS In-charge from District Child Protection Unit (DCPU) Probation Officer(IC), Lawngtlai DCPU MembersRepresentative from HealthDistr ict Medical Superintendent, Civil Hospital La wngtl ai Repr esentative from Educa tion CEO, LADC, Lawngtlai Respected Community M ember Secr etary, LWA Headquarter s, Lawngtla i Civil Society Representa tivePresident, MHIP Sub-Headqua rters, Lawngtla i or Tr ea surers, CYLA Hea dquarter s, Lawngtla i Chairperson(s), VLCPC 1AOC Veng2Bazar Veng3Chandmary I 4Cha ndmary II5Chawnpu6Chawngtelui 7Cha wngte P8College Veng9Council Veng 10 Diltlang S11 Darnamtlang12Hmawngbu 13 Hmawngbuchhuah 14 Hmunlai15Hruitezawl 16 Kawlchaw W17 Lakichhuah18Ka wrthindeng 19 Lawngtlai I20 Lawngtlai II21Lunghauka 22 Mampui23 Hmawngbu L24Ngengpuitlang 25 Ngengpuika i26 Paithar27R. Va nhne 28 Rulkual29 Sa bualtla ng 2. CHAWNGTE BLOCK ChairpersonBDOBDO, Chawngte Member Secretary ICDS FunctionaryCO Chawngte ICDS In-charge from District Child Protection Unit (DCPU) Probation Officer (IC) Lawngtlai DCPU MembersRepresentative from HealthSMO, CHC, Cha wngte Representative from Education Deputy District Project Co-ordinator, SSA Chawngte Respected Community Member President, CYCA Headquarters, Chawngte Civil Society Representa tive President, Chakma Mahila Samiti(CMS) Headquarters, Chawngte ‘C Chairperson(s), VLCPC 1Adubangasora2Ajasora I3Ajasora II 4Ajasora III5Banganpara6Bajeisora 7Betbunya8Bilosor a9Bondukbanga 10 Bor a guisur y11 Boraituli12Borakabakhali 13 Bora pansur y I14 Bora pansur y II15Borkolok 16 Charluitla ng17 Chhotaguisury I18Chhotaguisur y II 19 Chhotapansury20 Damdep I21Damdep II 22 Devasora N23 Devasora S24Dursora 25 Fulsory26 Fultuli27Futsuri 28 Geraguluksury29 Gerasury30Gobasury 31 Golasury32 Gulsingba psor a33Jamersury - 9 -Ex-343/2014 34 Jeruldubasora35 Jerulsury36Kamalanagar I 37 Kamalanagar II38 Kamalanagar III39Kamalanagar IV 40 Ka mtuli41 Kurkuduleya42Kurbalabasora 43 Lokhisury44 Longpuighat45Ludisora 46 Mainabapsora I47 Mainabapsora II48Mandirasora 49 Montola50 Nakdarasora51Nalbunya 52 Parva I53 Parva II54Parva III 55 Rajmandal I56 Rajmandal II57Rengashya 58 Saizawh W59 Silosara60Silsury 61 Simeinasora62 Simeisuri63Udalthana I 64 Udalthana II65 Ugalsury66Ugudasury N 67 Ugudasury S68 Ulusury69Vaseitlang I 70 Vaseitlang II 3. SANGAU BLOCK ChairpersonBDOBDO, Sangau Member Secretary ICDS FunctionaryCDPO, Sangau ICDS In-charge fr om District Child Protection UnitLegal-cum-P robation Officer, Lawngtlai DCPU MembersRepresentative from HealthMedical Officer, PHC, Sa ngau Repr esentative from Educa tionBRCC, SSA Sangau Respected Community Member President, Village Council Associa tion, Sa ngau Civil Society Representa tiveAsst. Secretary, LWA Sub-Headquarter, Sangau Chairperson(s), VLCPC 1Ar chhua ng2Tia ldawngilui3Vawmbuk 4Lungzarhtum5Bu a lp u i NG I6Bualpui NG II 7Siacha ngka wn8Lungpher9Rawlbuk 10 Pa ngkhua11 Sangau I12 Sanga u II 13 Sangau III14 Sentetfiang15 Thaltla ng 16 Cheural17 Lungtian I18 Lungtian II 19 Vartek20 Vartekkai 4. BUNGTLANG ‘S’ BLOCK Member SecretaryICDS FunctionaryCO Bungtlang S ICDS In-charge from DCPUSocial Worker I, Lawngtlai DCPU MembersRepresentative from HealthMedical Officer, PHC Bungtla ng S Repr esentative from Educa tion BRCC SSA Bungtla ng S Respected Community Member President YLA Sub-Headqua rters, Bungtla ng S Civil Society Representa tivePresident LWA Sub- Headquarters, Bungtlang S Chairperson(s), VLCPC 1Bolisor a2Bungtlang S3Chamdur P I 4Chamdur PII5Chamdurtla ng I6Chamdurtlang II 7Chikhurlui8Damlui9Dumzautlang 10 Fa ngfarlui11 Hmunnuam12Jognasury 13 Karlui14 La it la ng15M Kawnpui 16 Mautlang17 Nghalimlui18Ngunlingkhua 19 Pandawnglui20 Saibawh21Sa ikhawthlir 22 Sakulhkai23 T. Dumzau24Tuichawngtlang 25 Tuisentlang26 Vaseikai27Vathuampui - 10 - Ex-343/2014 SAIHA DISTRICT1. SAIHA BLOCK ChairpersonBDOBDO, Saiha Member SecretaryICDS FunctionaryCO Saiha ICDS In-charge fr om District Child Protection UnitProbation Officer (NIC) Saiha DCPU MembersRepresentative from HealthProgramme Manager NRHM S aiha Repr esentative from Educa tion District Co-ordinator, SSA MADC S aiha Respected Community Member Secr etary, MTP Headquarters, S aiha Civil Society Representa tiveCo-ordinator,KHP ECM Assembly, Saiha Chairperson(s), VLCPC 1Phalhrang2Ra wmiba wk3Old Tuisumpui 4Tuisumpui5Riasikah6Tuipui Ferry 7Niawhtlang8Phusa (chhuarlung II)9Lungbun 10 Chhuar lung11 Maubawk Vengthar (Zero) 12 Kawlchaw East 13 Siata14 Ainak15 Saiha Tlangkawn 16 New Saiha17 New Colony18 College Veng 19 Saiha Vengpui 20 Council Veng21 ECM Veng 22 Thingsen23 Meisatla24 Meisavaih 2. TUIPANG BLOCK ChairpersonBDOBDO, Tuipang Member SecretaryICDS FunctionaryCDPO Tuipang ICDS In-charge fr om District Child Protection UnitLegal-cum-Pr obation Officer, Saiha DCPU MembersRepresentative from HealthMedical Officer, PHC, Tuipang Repr esentative from Educa tion Circle Educa tion Officer, MADC, Tuipang Respected Community Member President, MCHP Sub-Headquarters, Tuipang Civil Society Representa tivePresident, MTP Sub-Headqua rter,Tuipang Chairperson(s), VLCPC 1Tuisih2Theiri3Theiva 4Maubawk CH &L 5Serkawr6New Serkawr 7Lata wh (Lehri)8New Latawh9Lodaw 10 Maisa11 Kaisih12Phura 13 Pala14 Tawngkawlawng15Vahai 16 Miepu17 La ki18Ahmypi 19 Khopai20 Chapui21Siasi 22 Mawhre23 Chakhang24Chheihlu 25 Zawngling26 Siatlai27Tuipang Diary Veng 28 Tuipa ng V29 Tuipang L30Bymari 31 Longmasu32 Supha33Khaikhy 34 Lungpuk35 Lope36Leisai The committee shall monitor the implementation of child protection services at Block level. La lrinliana Fanai, Commr. & Secretary to the Govt. of Mizoram, Socia l Welfar e Depart ment.Published and Issued by Controller, Printing & Stationery Department, Government of Mizoram Printed at the Mizoram Government Press, Aizawl. C/50- 11 -Ex-343/2014

The Mizoram Gazette EXTRA ORDINARY Published by Authority RNI No. 27009/1973 Postal Regn. No. NE-313(MZ) 2006-2008Re. 1/- per pageVOL - XLIII Aizawl, Thursday 10.7.2014 Asadha 19, S.E. 1936, Issue No. 344 NOTIFICATION No.A.12018/1/2012-P&AR(GSW), the 27th June, 2014.In exer cise of the powers conferred by the proviso to Article 309 of the Constit ution of India , the Governor of Mizoram is pleased to make the following rules to amend the Mizoram Secretariat Service Rules, 2007 (hereinafter referred to as the Principal Rules) vide No.A.12018/1/94-P&AR(GSW) dt. 21.8.2007 and published in the Mizoram Gazette (Vol.XXXVI) Extraordinary Issue No.218 dt. 27.8.2007, namely:-1 . Short title and commencement. (1) Thes e Rules may be called the Miz or am Secretaria t Service (Third Amendment) R ules, 2 013. (2) They shall come into force from the date of their publication in the Mizor am Gazette. 2 . Amendment of Rule 4 of the Principal Rules: In t he Principal Rules, for Rule 4, the following shall be substituted, namely; “Composition: There shall be 6(six) gr ades in the Mizoram Secretaria t Service, namely:- Sl.No. Grade Post 1Super time Grade ‘A’Secretary 2Super time Grade ‘B’Additional Secretary 3Selection GradeJoint Secretary 4Junior Administra tive GradeDepu ty Secr etary and its equiva lent posts 5Senior Gr adeUnder Secretary and its equivalent p osts 6Junior GradeSuperintendent and its equivalent posts 3 . Amendment of Rule 9 of the Principal Rules: For entries in Rule 9 of the Principal Rules, the following shall be substituted, namely:- “ Appointment to the Service: (i) All appoint ments to the s ervice, after commencement of these rules shall be made a nd notified in the Mizor am Gazette by the Governor and no such appointment s hall be made except in the manner provided in Rule 10(6). (ii) All appoint ments to the service shall be made to the a ppropriate gra des of t he service and not against specific posts. (iii) All appoint ments to the service in the higher gr ades or time scales of pay shall be made only by promotion in accor dance with the appropr iate pr ovisions of these rules”. - 2 - Ex-344/20144 . Amendment of Rule 10 of the Principal Rules: F or ent r ies in su b -r u le (1) (2) (3 ) (4 ) (5 ) a nd ( 6) of t he P rincip a l R ules, t he following s ha ll b e s u bs t it u t ed, namely:- “(1) Supertime Grade ‘A’: Va cancies in this grade shall be filled up by promotion from amongst the members of the Service in Supertime Grade ‘B’ who have completed 25 years regular service from the date of entry into the Junior Grade of the Service. The method of promotion to this gra de shall be by Select ion. (2) Supertime Grade ‘B’: Va cancies in this grade shall be filled up by promotion from amongst the members of the service in the Selection Grade, who ha ve rendered at lea st 5 (five) years regular service in the gra de, failing which officers on regular service in the Selection Grade at least for a period of 1(one) year, but have completed 20(twenty) years regular service calculated from the da te of entry into the Junior Grade of the service. The method of promotion to this grade shall be by Selection. (3) Selection Gr ade: Va cancies in this grade shall b e filled up by promotion from amongst the members of the Service in the Junior Administrative Gra de, who have put in not less than 5(five) yea rs regular service in the gra de, failing which officers in the Junior Administra tive Grade with not less than 2(two) years regular service in the grade, but have completed 15(fifteen) year s of regular service calculated from the date of entry into the Junior Grade of the ser vice shall be eligible for promotion t o this grade. T he method of pr omotion to this grade shall be by selection. (4) Junior Administra tive Gr ade: Va cancies in this grade shall be filled up by pr omotion from amongst the members of the Senior Grade of the service, who have completed 5(five) years regular service in the grade and are included in the panel for promotion to the Junior Administrative Grade, failing which officers in t he Senior Grade with not less than 2(two) yea r s regular service in t he gr ade, but ha ve completed 10(ten) yea rs regula r service calculated fr om the da te of entr y into the Junior Gra de of t he service. Those officers who have not undergone Mid-Career Training as prescribed under the Mizoram Secretariat Service (C ompulsor y) Training Regulations, 2011 will not be eligible for pr omotion to the Junior Administrative Gra de. However, those officers who are not sent for the required training due to lapse on the par t of the Government will not be deba rred fr om promotion. Officers who have joined the Senior Gra de of the service after attaining 57 years of age are not required to attend the Mid-Career Training Course. T he method of pr omotion to this grade shall b e by Selection. (5)Senior Gra de: Va cancies in this grade shall be filled up by promotion from amongst the members of the service in the Junior Grade, who have rendered not less than 5(five) years regular service in the gra de and have undergone Founda tion Course Tra ining or completed Refresher Course Training, as the case may be, as prescribed under Regulation 5 of the Mizoram Secr etariat Service (Compulsory Tr aining) Regulations, 2 011 and are included in the panel for promotion to Senior Grade. The method of promotion to this grade shall be by Selection. However, those officers, who have joined Junior Grade of the service after attaining 56 years of a ge, are not required to undergo the F oundation Course Training or the Refr esher Course Training, as the case may be. (6)Junior Gra de: 50% of the total cadre strength in this grade be filled up by promotion from amongst the members of the Minis terial Service in the grade of Assistant, with not less than 5(five) year s regular service in the grade and ar e included in the panel for pr omotion. The method of promotion to this grade shall be by Selection. The remaining 50% of the posts s hall be filled up by promotion from members of the Ministerial Service in the Grade of Assistant with not less than 5(five) years r egular service in the grade through Limited Departmental Examina tion”. 5 . Amendment of Rule 15 In t he Principal R ules, for Rule 15, the following shall be substituted, namely: “Scale of PayThe scale of pay attached to the various grades of the service shall be as follows- (1) Supertime Grade ‘A’-PB-4 ^ 37400-67000/-+Grade Pay ^ 9500/- (2) Supertime Grade ‘B’-PB-4 ^ 37400-67000/-+Grade Pay ^ 8900/- (3) Selection Grade-PB-4 ^ 37400-67000/-+Grade Pay ^ 8700/- (4) Junior Administra tive Grade-PB-3 ^ 15600-39100/-+Grade Pay ^ 7600/- (5) Senior Gr ade-PB-3 ^ 15600-39100/-+Grade Pay ^ 6600/- (6) Junior Grade-PB-3 ^ 15600-39100/-+Grade Pay ^ 5400/-” 6 . Amendment of Schedule-I of the Principal Rules In the Principal Rules, for Schedule-I, the following sha ll be substituted, namely:- “(1) Secretary (2) Additional Secretary (3) Joint Secretary (4) Deputy Secretary (5) Senior Analyst-cum-Deputy Secretary (6) Joint Director (Trg)ATI (7) Under Secretary (8) Analyst (9) Deputy Director (Administration) (10) Deputy Resident Commissioner, Mumbai (11) Depu ty Director(Trg),ATI (12) Under Secretary, Mizoram Schola rship Board (13) Superintendent (14) Junior Analyst (15) Assistant Resident Commissioner (16) Assistant Director, ATI” 7 . Amendment of Schedule -II of the Principal Rules: In the Principal Rules, for Schedule-II, the following shall be substituted, namely: “SUPERTIME GRADE ‘A’ 1.Secr etary to the Government-2 Sub-Total-2 posts SUPERTIME GRADE ‘B’ 1.Additional Secretary-3 Sub-Total-3 posts SELECTION GRADE 1.Joint Secretary-8 Sub-Total-8 posts JUNIOR ADMINISTRATIVE GRADE 1.Deput y S ecr eta ry-11 2.Senior Analyst-cum-Deputy Secretary- 1 - 3 -Ex-344/2014 3.Joint Director (ATI)- 1 Sub-Total-13 posts SENIOR GRADE 1.Under Secretary-36 2.Analyst-1 3.Deputy Director(Training)-1 4.Deputy Director(Administration)-28 5.Depu ty Resident Commissioner-1 6.Under Secretary, Mizoram Schola rship Board-1 Sub-Total-68 posts JUNIOR GRADE 1.Superintendent-139 2.Junior Analyst-3 3.Assistant Director (ATI)-1 4.Assistant Resident Commissioner-5 Sub-Total-148 posts Total-242 posts RESERVE 1Deputation reserve – 10% of 241- 24 2.Leave reserve and Training reserve 10% of 241 - 24 Sub-total- 48 posts Total Cadre Strength-290 posts” 8.Amendment of Schedule –III of the Principal Rules : (1) In Schedule-III of the Principal Rules, Sl.No. 32& 33 shall be substituted as follows: “32 – Office of the Engineer-in-Chief, P&E 33 – Office of the Engineer-in-Chief, P.H.E”. (2) In S chedule-III, a fter Sl.No.49, the following shall be added, namely:- “50 Office of the Resident Commissioner, New Delhi. 51 Office of the Joint Resident Commissioner, Kolkata. 52 Office of the Deputy Resident Commissioner, Guwahati, Shillong and Silchar. 53 All Offices of Deputy Commissioner. 54 Office of the Chief Engineer, Minor Irrigation. 55 Directorate of Information & Communication Technology. 56 Office of t he Chief Engineer, (S.O), P&E. 57 Office of the Chief Engineer, (M&E),P.H.E 58 Office of t he Mizoram Scholarship Boa rd”. Lalsangpuii, Addl. Secretary to the Govt .of Mizoram, Dept t.of Personnel & Adve. Reforms.Published and Issued by Controller, Printing & Stationery Department, Government of Mizoram Printed at the Mizoram Government Press, Aizawl. C/50- 4 - Ex-344/2014

The Mizoram Gazette EXTRA ORDINARY Published by Authority RNI No. 27009/1973 Postal Regn. No. NE-313(MZ) 2006-2008Re. 1/- per pageVOL - XLIII Aizawl, Thursday 10.7.2014 Asadha 19, S.E. 1936, Issue No. 345 OBITUARY With proformed grief and sorrow, the Govt. of Mizoram has learnt the sad demise of Pu R.L. Chhuanawma, Headmaster, Govt. Middle School, Thua lthu on t he 24.6.2014 at 11:30 AM. Pu R.L. Chhuanawma s/o Pu Lalsawma was bor n on 10 .2.1967. He entered service as Headmaster in t he Deficit Hra ngchalkawn Middle School in the year 1991 and later absorbed in the same capacity as Headmaster on 1.9.2003. He was till recently posted as Headmaster, Govt. Thualthu Middle School and served the Govt. with utmost sincerity and devotion and proved himself to be a conscientious Headmaster. The Govt. of Mizora m places on record its deep appreciation of the valua ble services rendered by Pu R.L. Chhuanawma and conveys its heartiest sympathy and condolence to the bereaved family. R. Lalvena, Secr etary to the Govt. of Mizoram, School Education Department.Published and Issued by Controller, Printing & Stationery Department, Government of Mizoram Printed at the Mizoram Government Press, Aizawl. C/500

The Mizoram Gazette EXTRA ORDINARY Published by Authority RNI No. 27009/1973 Postal Regn. No. NE-313(MZ) 2006-2008Re. 1/- per pageVOL - XLIII Aizawl, Thursday 10.7.2014 Asadha 19, S.E. 1936, Issue No. 346 AFFIDAVITI, Shri. C. Lalhmuchhuaka S/o C.H ualkunga (L),resident of Mission Veng, Mizoram do hereby solemnly affirm and state as follows:- 1.That I am bona-fide citizen of India by birth. 2.That I am workingDriver under PWD Department, Govt of Mizoram. 3.That in my service Book my name has been mistakenly written and r ecorded asLalhmuchhuaka which is incorrect. 4.That I do hereby declare before the Nota ry Public, Aiza wl Mizoram tha t my tr ue and correct name isC. LALHMUCHHUAKA. 5.That in the circu mstances givern above, it is my fer vent plea that cor rection of my name fr om Lalhmuchhuaka toC.LALHMUCHHUAKA. 6.That the contents of this affida vit are true a nd correct to the best of my knowledge and belief, and nothing material has been concealed therein. IN WIT NESS WHEREOF I have hereunt o subscribed my hand and put my signature on this 27th day of February, 2014. Identified my me R.Lalhungliana BA (Hons) LLB Advocate Mission Veng.C.LALHMUCHHUAKA DEPONENT Notarial Registration No. 24/2 Date 27.2.14 R.T hangkanglova, Advocate & Notary Public Aizawl, Mizoram.Signed before me Published and Issued by the Controller, Printing & Stationery, Mizoram Printed at the Mizoram Govt. Press, Aizawl. C-50.

The Mizoram Gazette EXTRA ORDINARY Published by Authority RNI No. 27009/1973 Postal Regn. No. NE-313(MZ) 2006-2008Re. 1/- per pageVOL - XLIII Aizawl, Thursday 10.7.2014 Asadha 19, S.E. 1936, Issue No. 347 NOTIFICATIONNo.B.17011/14/2011-EDN, the 3rd July, 2014.The Governor of Mizoram is pleased to notify the function of Activity Mapping to be performed by the Local Activity i.e. Local Council/Village Council under section 9 of the RTE Act, 2009 for the successful implementation of (Right of Children to Free & Compulsory Education a s below :-Sl. No.Functions devolved under Section 9 of RTE ActFunctions to be performedProvide free and compulsory elementary education to every child: Provided that where a child is ad- mitted by his or her parents or guardian, as the case may be, in a school other than a school established, owned, controlled or substancially financed by funds provided directly or indirectly by the appropriate Gov- ernment or a local authority, such child or his or her parents or guardian, as the case ma y b e, s ha ll not b e ent it led t o ma ke a cla im for reimbursement of expenditure incurred on elementary education of the child in such other school. Ensure availability of neighbourhood school as specified in Section 6.oMaintain list of Governmetn/Govt. aided and private school in their jurisdiction to pro- vide admission to children aged between 6- 14 years. oMaintain list of all children in the jurisdic- tion and develop mechanism to update records of all children aged beteen 6-14 years on annual basis while considering mi- gration of children in an dout of the village. oOn the basis of above to ensure that all chil- dren are in school. o In order to enroll Out of Chool Children (OoSC), persuade all such children and in- teract with their parents to persuade them also. o To facilitate a transparent system for those who opt for 25% admission so that all appli- cations are considered from eligible children. o Where no school as per neighbourhood norm, to raise dermand for the same. o Ensure availability of land for new Primary School and Upper Primary School. o To ensure construction immediately. 1 2 Ensure that the child belonging to weaker section and the child belonging to disadvan- ta ged gr oup ar e not discrimina ted against and prevented from pursuing and completing el- ementary education on any grounds. 3oTo track attendance and regularity of chil- dren from disadvantage group and weaker sections. oTo ensure along with the teacher and SMC an equal participation in all curricular and extra curricular activities.Maintain records of children up to the age of fourteen years residing within its jurisdic- tion, in such manner as may be prescribed.oTo maintain record of birth in the village oTo maintain in prescribed formats informa- tion on all children 0-3 years about name, father, mother name, date of birth, sex, cov- erage by Aganwadi Centre (AWC)/pre school etc. oTo maintain in prescribed formats informa- tion of all children 3-6 years about name, father, mother name, date of birth, sex, en- rollment in school/out of school/special training. oTo maintain record of in and out migrating children if any. oTo maintain details of children with disabil- ity, single parent family, orphans etc as vul- nerable group.4 oensure that admission is not to be denied to anyone. oIf any child is irregular or dropout or is not enrolled, to mobilize tha village community and ensure admission and regular atten- dance. oTo monitor that every child improves his/her learning levels. oTo ensure and assist SMC to monitor admis- sion, attendance and completion of elemen- tary education. oSupport SMC to get admissions in schools in transparent, open and fair manner. oMobilize parent of girls, vulnerable groups and weaker sections to send their child to school. oMake sure that hurdles and problems are removed which may impact admission and attendance like lack of teachers, impact of natural disasters etc. im problems are be- yond their capacity, to take up same with the district. Ensure and monitor admission, attendance and completion of elementary education by every child residing within its jurisdiction. 5 Ex-347/20142 Pr ovide infr astruct ure including school build- ing, teaching staff and learning material. 6oFund received by the SMC has to be super- vised to ensure timely completion and qual- ity for civil works and provisioning of other school infrastructure. oTo take up issues with higher authorities if entitled staff not available or is teacher per- formance/attendance is poor. oTo raise issues to maintain Pupil Teacher Ratio in school.a) Provide special training facility as specified in section 4.oTo maintain record of out of school children. oAlong with the SMC to ensure that all OoSC have been enrolled and are catching up with the regular class. oTo ensure that special training is provided as far as possible in the school, else at near- est safe location and to support the SMC and school in the same. oTo mobilize community so that all the OoSc are sent to special training/school regularly. oTo keep track of all children who migrate in or out the village. oProvide special training support to all chil- dren migrating in to the village. o To mobilize the community to take care of children left behind while migrating.7 Ensure good quality elementary education conforming to the sta nda rds and nor ms specified in the Schedule. 8oTo monitor children attendance and support enrollments/special training of OoSc. oTo ensure any time admission of migrant children. oTo mobilize community for sending children regularty to schools.b) Ensure admission of children of migrant familiesEnsure timely prescribing of curriculum and courses of study for elementary education. 9oTo monitor the working of schools to ensure requisite working days/instructional hours are adhered to, in case of contravention to complain to the controlling officer. o To mobilize community for regular atten- dance of children and frequent parent/ cummunity and schoo interactions for keep- ing track of children’s progress.Monitor functioning of schools within its ju- risdiction, 10oTo monitor maintenance of school building and that the area is used only for the pur- poses of education. o To ensure teacher attendance. o If Local Council/Village Council is dissatis- fied then issues to be raised with SDEO/ DEO.Ex-347/2014 3 oTo meet Headmaster and SMC members of low performing school to monitor school functioning and create community pressure to implement RTE Act. o Check improvement in learning level over time. Published and Issued by the Controller, Printing & Stationery, Mizoram Printed at the Mizoram Govt. Press, Aizawl. C-50.Ex-347/20144 K. Sang thuama, Under Secretary to the Govt. of Mizoram, School Education Department

The Mizoram Gazette EXTRA ORDINARY Published by Authority RNI No. 27009/1973 Postal Regn. No. NE-313(MZ) 2006-2008Re. 1/- per pageVOL - XLIII Aizawl, Thursday 10.7.2014 Asadha 19, S.E. 1936, Issue No. 348 NOTIFICATION No. B.14015/15/2013-SWD, the 4th July, 2014.The Governor of Mizoram is pleased to constitute ‘Quality Inspection Team’ under Social Welfare Department to check various ICDS materials supplied by the successful tenderers a nd to ensure quality of the materials supplied under the ICDS Scheme. T he committee will compr ise the following members:- 1.Director, Social Welfare Department- Chairman 2.Stat e Progr amme Officer (ICDS), Socia l Welfare Depart ment - M ember 3.Depu ty Dir ector (A), Socia l Welfar e Depart ment- Member 4.Depu ty Dir ector (E), Socia l Welfar e Depart ment- Member TERMS OF REFERENCE :- The Qua lity Inspection Team will be responsible for the following tasks: 1)Ensure that the successful tenderers supply the materials of exactly the same make, type, quality, etc., as the sample(s) submitted to the State Purchase Advisory Board (SPAB). 2)Ensure that the successful tenderers supply the materials within the stipulated time and at the designated place as mentioned in the Notice Inviting Tender. 3)No payment for materials supplied shall be released unless the Quality Inspection Team has issued a certifica te to t he effect that the ma terials are in accordance with the approved samples in t erms of quality, make & type and that the quantity is as per the order placed by the Department. 4)The Inspection team is authorized to inspect the materia ls supplied as and when found necessary. 5)The Quality Inspect ion Tea m may seek a nd utilise the ser vices of expert s, wher e such expertis e is required. 6)The team will submit a Quarterly Report to the Government. La lrinliana Fanai, Commr & Secretary to the Govt. of Mizoram, Socia l Welfar e Depart ment.Published and Issued by Controller, Printing & Stationery Department, Government of Mizoram Printed at the Mizoram Government Press, Aizawl. C/50

The Mizoram Gazette EXTRA ORDINARY Published by Authority RNI No. 27009/1973 Postal Regn. No. NE-313(MZ) 2006-2008Re. 1/- per pageVOL - XLIII Aizawl, Thursday 10.7.2014 Asadha 19, S.E. 1936, Issue No. 349 NOTIFICATION No. H. 11019/14/09-JERC, the 7th July, 2014.In exercise of the powers conferred under Section 181 of the Electricity Act, 2003 and all other powers enabling it in this behalf, the Joint Electricity Regulatory Commission for Manipur and Mizoram makes the following Regulations to amend the Joint Electricity Regulatory Commission for Manipur and Mizoram (Grid Code) Regulations, 2010, hereinafter referred to as “ the Principal Regulations” namely: 1.Short title and commencement (1) This Regulations ma y be ca lled the Joint Electricity Regulatory Commission for Manipur and Mizoram (Grid Code) (First Amendment) Regulations, 2014. (2) This Regulations shall extend to the whole States of Manipur and Mizoram and shall apply in relation to all matters fa lling within the jurisdiction of the Commission. (3) This Regulations shall come into force fr om the date of their notifications in the Officia l Gazette of t he concerned Sta tes. 2 . Amendment in Regulation 2 of the Pr incipal Regulations: The sub-regulations (xxxv), (xxxxiii) and (xxxxxvi) of Regulation 2 shall be substituted respectively with the following: (xxxv) “Extra High Voltage (EHV)” or “Extra High Tension (EHT)”means the voltage, which exceeds 33,000 volts under normal conditions subject to the percentage variation allowed by the Central Electricity Regulatory Commission. (xxxxiii)“High Voltage (HV)” or “High Tension (HT)”means the volt age, higher than 440 volt s, but which does not exceeds 33,000 volts, under normal conditions subject to the percentage variation allowed b y the Central Electricity Regulatory Commission. (xxxxxvi)“Low Volt age (LV)” or “ Low Tension (LT )”means t he volt age, which does not exceeds 230 volts at single phase and 440 volts a t three phase under normal conditions subjects, however, to the percentage variation allowed by the Central Electricity Regulatory Commission. - 2 - Ex-349/2014 3.Amendment in Regulation 5 of Principal Regulations: The sub-regulation (3) of Regula tion 5: Grid C ode Regulations is applicable for system dealing with volt age of 3 3 kV and above shall b e substituted with the following: (3) Grid Code Regulations is applica ble for system dealing with voltage a bove 33 kV. By Or der of t he Commission Richard Zothankima, Assistant Secretary.Published and Issued by Controller, Printing & Stationery Department, Government of Mizoram Printed at the Mizoram Government Press, Aizawl. C/50