Panchayat:Repo18/Law Manual Page0628

and in the case of District Panchayat, in the office notice board of Block Panchayat and Village Panchayats coming under the jurisdiction of such District Panchayat.

(3) Copies of the audit report and the decision of Panchayat thereon may, after publication be issued to applicants by realising fixed fees.

16. Audit in various institutions of Panchayat.— The Auditor shall have the power to inspect the records, registers and accounts kept in any institution of a Panchayat, by visiting there and the matters revealed in such inspection shall be included in the audit report.

17. Special Funds.- Accounts of the receipts and expenditure of any fund kept by the Panchayat separately from the Panchayat Fund, shall be subjected to audit.

18. Grant of remission.— Notwithstanding anything contained in these rules, the auditor may, considering the special circumstance of the money transaction, recommend the Panchayat, to write off any amount, not exceeding Rs. 500 (Rupees five hundred only) that is certified by the auditor to be collected from any person.

19. Special Audits.— The Performance Auditor or an Officer authorised by the Government may, after conducting a preliminary enquiry on any suspected case of defalcation, loss of money, wasteful expenditure, false accounting or misappropriation of money at any time, suggest for an extraordinary audit of the accounts of any Panchayats for a specified period for a specific purpose and in such case the Local Fund Audit Director shall, as per the directions of Government, arrange a special audit and the Auditor shall submit copy of the report of such audit to the Panchayats, Performance Auditor and the Government.

20. Audit closed shall not be re-examined.—An Audit in which final report was submitted shall not, except in the case of special audit, be put to re-examination.

21. Rectification of irregularities and defects.- (1) The Panchayat shall, within two months after the receipt of the copy of the audit report and taking decision thereon by the Panchayats, rectify the irregularities and defect referred to therein and shall give a rectification report, regarding the action taken by the Panchayat on the report, to the Auditor and copy thereof to the Performance Auditor and to the Government.

(2) The Auditor shall, after the receipt of the rectification report or after the expiry of the time limit fixed for its receipt, take further action on the audit report in accordance with the provisions and procedures contained in the Kerala Local Fund Audit Rules, 1996.

(3) The audit and other matters related thereto of a Panchayat not referred to in the Act or in these Rules shall be conducted in accordance with the provisions, conditions and procedures of the Kerala Local Fund Audit Act, 1994 (14 of 1994) and the rules made thereunder.

LIABILITY FOR LOSS, Etc.

22.Liability for loss, wasteful expenditure and misappropriation of money and liability for misconduct or wilful negligence.-(1) Over and above the liability of the officers and employees including the Secretary for causing loss to the Panchayat, by failing to act in accordance with the Act or Rules or by acting in contravention of the Act or Rules, the President, Vice-President, Standing Committee Chairman, Members or Secretary shall, if by misconduct or wilful default causes loss or wasteful expenditure or misappropriation of the Panchayat fund or the fund provided by Government for the charges of the Panchayat or causes the same to happen, be liable for such loss, wasteful expenditure or misappropriation and the Government shall take action under section 253 to recover such loss.

(2) Of the liabilities under Section 253,-