(1) The accounts of every Panchayat shall be audited annually in such manner as may be prescribed.
(2) The audit shall be carried out by such officer as the Administrator may appoint in this behalf, and that officer shall, within one month of the completion of the audit, forward copies of the audit report to the prescribed authority and the Panchayat.
(3) The prescribed authority may, after considering the report and after making such further inquiry as it may consider necessary, disallow any item which appears to it contrary to law and surcharge the same on the person making or authorising the illegal payment, and shall—
(a) if such person is a member of the Panchayat, proceed against him in the manner specified in sub-sections (2) and (3) of section 52; and
(b) if such person is not a member of the Panchayat, obtain the explanation of the person and direct such person to pay to the Panchayat the amount surcharged within a specified period;
and if the amount is not paid within the specified period, the prescribed authority shall cause it to be recovered as an arrear of land revenue and credited to the Panchayat Fund.
(4) Any person aggrieved by an order of the prescribed authority under sub-section (3) may, within thirty days of the date of the order, prefer an appeal to the Administrator whose decision on such appeal shall be final.
Audit 230 G of 1—3.
220 THE GAZETTE OF INDIA EXTRAORDINARY [PART II Adtninisuation Report.
Power to call for Proceedings, Default in performance of duty by Panchayats.