Audit Department

Department Hierarchy History of Department Department's Working Other Departments


Department's Hierarchy


             The Audit Department is under the direct control of Sh. S.k Bindal, Examiner cum Deputy Controller(Local Audit. The Department has a strength of Six Auditors .


History

            The Municipal Corporation, Chandigarh came into being with effect from 10.7.1994 vide Act No.45 of 1994 on the pattern of Punjab Municipal Corporation, Act, 1976. Audit is an instrument of Financial Control, acting as a safeguard on behalf of the Govt. against extravangenance carelessness of fraud on the part of the Govt. Servants in realization and utilitisation of money and other assests. The Local Audit Department came into existence the day local bodies were created in the states through legislation. The main purpose of the audit is to bring to the notice of the Administration lacunae in the rules and regulations and to suggest whatever possible ways and means for the execution of Plans and Projects with greater expenditure, efficiency and economy. Local Audit Department is under the administrative control of the Finance Department, Chandigarh Administration and is responsible for the audit of accounts of various local funds (including Municipal Corporation) of which it is either the statutory Auditor or the audit of which has been entrusted to it under the subordinate legislation or by virtue of Administrative instructions. Examiner, Local Audit Accounts, is the statutory Auditor for day to day examination of the accounts of the Municipal Corporation as laid down under section 176 to 180 of Punjab Municipal Corporation Act, 1976 (extended to union Territory Chandigarh) Act ,1994.



Working of the Department

            Audit functions of the Corporation warrants Pre-Audit/Post Audit of monthly salary bills and arrear claims of more than 6000 regular and work charged staff of Municipal Corporation. The audit has to check the correctness of monthly deduction of provident fund alongwith contribution from the Municipal Corporation fund and trace amount of deductions and contributions in respect of each Corporation employee in Provident Fund Ledgers and Provident Fund Liability Register. The correctness of interest earned and allowed in respect of each account has also to be checked in audit at the close of each year. Admissibility of various advance such as House Building, Conveyance and provident Fund advances sanctioned to the employee of Municipal Corporation have to be checked in detail with reference to Govt. instructions and provisions of Rules.

              Municipal Corporation, Chandigarh has seven Engineering Divisions. All the work bills of the contractors have to be checked by audit in detail. The duty of seeing that the bills of contractors have been prepared in accordance with the approved estimates, recorded measurements and sanctioned rates . First of all, Accounts Branch is responsible for the initial check of these bills. Before submission to Audit Branch, the work bills have to be checked by the Accounts Branch completely with reference to sanctions, rates measurements Books, Material at Sight Register/Stock Register, Tenders and Tender Register and completion Report etc., are to be made available to audit by the Accounts Branch, when the same is requisitioned by Audit.

              Nearly 6000 vouchers which include salary bills, work bills, recoupments bills permanent advances bills and various kinds of other bills are received in audit for pre-audit during month. Since all these bills of Temporary advances, Provident fund, Income Tax bills and contingent bills etc alongwith related records are checked in detail, involves considerable time and lengthy process to check bills. Serious objections, embezzlements, losses detected in audit are reported to the Examiner immediately for taking appropriate action.

              The scope of the audit of receipt is to see tha t there is no leakage of revenue, no demands have been omitted and that all possible sources of revenue have been tapped. Income realized is to be checked and thereafter entered in the cashbook and deposited in the bank on the same day or on the next working day in case the income was received late during the day. Remissions of taxes have to be looked into thoroughly by the Auditors and have to ensure that no improper and irregular remissions have been allowed.

              Audit has to see that the stock account of the Corporation stores has been properly maintained and that articles are traced in the receipt column in the stock register at the time of passing the bills in which payments are claimed and simultaneously the accuracy of issue entries made after the last purchase is also checked in audit.

              Under the provision of section 172(2) of the Act ibid day-to-day examination and audit of the Corporation account is to be conducted and a monthly report thereon is to be furnished to the Municipal Corporation, Chandigarh. In order that the statutory provisions of the Act are complied with, the Additional Examiner (Local Audit) of the Corporation has to ensure that the revenue receipt are checked regularly and prepared by the Corporation office in Form. After completing audit of monthly account for March, all subsidiary registers which are not put up for monthly checks are taken up for audit. All these registers are to be reviewed and arrears of taxes and fee scrutinized. Annual audit & inspection report of the accounts of Municipal Corporation Chandigarh is prepared after the close of each financial year and submitted to the Corporation for its compliance.

              The Joint Secretary is the Head of Department and Finance Secretary is the Administration Secretary of the Local Audit Department. The Chief Auditor-cum-Additional Examiner being incharge of Resident Audit scheme of Municipal Corporation shall also be the Financial Advisor of the Corporation and shall be available to the Administration for advice on all financial matters involving economy, improvement in accounts and such other accounts matters in which his advice may be sought by the Administration. He would seek guidance from the Examiner Local Fund Accounts on doubtful points.


Municipal Corporation Chandigarh
New Delux Building, Sector 17
Chandigarh