(1) The accounts of every panchayat shall be audited annually in such manner as may be prescribed.
(2) The audit shall be carried oat by such officer as the Administrator may appoint in this behalf and that officer shall, within one month of the completion ot the audit, forward copies of the audit report to the prescribed authority and to the concerned 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 to be contrary to law and surcharge the same on the person making or authorising the making of the illegal payment, and shall—
(a) if such pirson is u member of the panchayut proceed against him in the manner specified in section 66;
(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 ord.-r of the prescribed authority under subsection (3), may within forty-five days of the date of the order, prefer an appeal to the Administrator whose decision on suuch appeal shall be final.
Audit.