Local Fund Audit Department
About the Department
Functions
The
basic function of the Department is the audit of accounts
of institutions under its audit control by virtue of Kerala
Local Fund Audit Act 1994. (A) Proper management of the
corpus of the various Charitable Endowments vested with
the Director of Local Fund Audit in his capacity as the
Treasurer of Charitable Endowment is also done by this Department
. Matter relating to the financial administration of local
bodies and other auditee institutions referred to this Department
by Government are also being attended to and remarks offered.
Programmes
As
per Section 4 of the Kerala Local Fund Audit Act 1994 ,
the audit of accounts of local authorities and Local funds
included in the Schedule to the Act has to be conducted
by the Director of Local Fund Audit in the manner provided
by or under the Act. The Kerala Local Fund Audit Rules 1996
(B) framed for Implementing the provisions in the Act were
issued in G.O (P) No.180/96/Fin dt.9.2.1996. (link)The power
to issue charge and surcharge certificates for the recovery
of losses sustained by the local fund institutions as disclosed
in audit is vested with the Director of Local Fund Audit
vide Section 16 of the Kerala Local Fund Audit Act 1994
and Rule 20 of the Kerala Local Fund Audit Rules 1996.
Achievement and success stories
of the Department
i)
As per the charge/surcharge proceeding action has been taken
to collect a sum nearly Rs. 1.05 crores which would have
been loss of the local bodies during the year 2002-2003.
Effective steps are being taken to intensify the realisation
of loss occurred to local bodies and other institutions
under the audit control of the Local Fund Audit Department
through charge/ surcharge actions.ii) Details of misappropriation
cases detected during the year 2002-2003(up to 12/2002)are
furnished below.
Total number of cases detected (upto 12/2002) - 61
Total amount involved - Rs.29,32,118.50
During the year 2002-03, the department has collected a
sum of Rs. 19,72,966.00 towards Audit charges.
Special
features
But
this Department is well placed to play an important role
in ensuring optimum value for money to the State Government.
The approach of the Department maximises the benefit from
our core audit work, which is designed to assess whether
the scarce resources and valuable public money has been
spent wisely and properly.As per section 9(1) of the Kerala
Local Fund Audit Act 1994, the auditee institutions shall
present the annual accounts relating to a financial year
within four months from the close of the financial year
concerned. But it has come to the notice of the Department
that several institutions have not submitted the annual
accounts within the statutory time limit. Due to the non
receipt of the annual accounts within the stipulated time
and shortage of staff in the Department the target of audit
could not be achieved in full. Please see the details of
audit of accounts actually done as on 31.10.2001 (link)
9.The
Enactments / Ordinance /Legislation Pertaining to the Department
i)
The Kerala Local Fund Audit Act 1994 (Act 14 of 1994). (link)
ii)The Kerala Local Fund Audit Rules 1996 (issued in G.O.(P)No.180/96/Fin.
dt.9.12.1996) (link).
