The auditor shall - (a) state in the first paragraph of the report the date on which the audit was taken up, the date when it was completed the period covered by the audit and in case of test audit months of accounts selected for detailed audit;
(b) give in the opening paragraph of Part II of the report on the accounts of a Municipal Board or District Board a statement of assets and liabilities indicating the financial position of the Board with a brief resume of its financial condition. Fixed assets, such as land, buildings, plant and machinery, shall be excluded from the statement, and only liquid assets, such as cash balance in hand or in the Treasury or Bank, investments, advances and outstanding rents, rates and such liabilities as unspent balance of earmarked grants or revenues, contributions payable, deposits and unpaid bills, shall be included therein;
(c) state whether money borrowed on the security of allocated revenues or received as a grant from Government or other sources for any specific purpose has been expended on such purpose;
(d) state where a sinking fund has been prescribed, whether it is being properly kept up;
(e) state whether all advances and investments by the local authority are fully secured;
(f) state in detail all loans contracted by the local authority and also state whether the prescribed provision has been made for the repayment of the principal and interest out of the revenues of the local authority;
(g) certify where separate accounts for any undertaking have to be maintained, whether they have been so maintained and whether the accounts present a true and correct view of the results of the undertaking for the period under audit;
(h) certify as to the correctness of the annual accounts;
(i) give at the end of the report a brief resume of the matters dealt with in the report and conclude with an opinion on the state of the accounts as a whole;
(j) append to the report :--
(1) a statement showing the arrears of taxes at the end of the year and the two preceding years in the case of local authorities which impose taxes;
(2) a statement of accounts for the year showing:--
(a) under the head "receipts" -
(i) the revenue from direct taxes, 8/18
(ii) the revenue from indirect taxes,
(iii) income from properties,
(iv) income from miscellaneous sources,
(v) Government grants,
(vi) extraordinary items of revenue, and
(vii) debts, deposits and advances, and
(b) under the head "expenditure" -
(i) ordinary expenditure,
(ii) capital expenditure,
(iii) extraordinary expenditure, and
(iv) debts, deposits and advances.
(3) in the case of local authorities receiving grants from the Government, statements, in such forms as may be laid down by the State Government from time to time,-
(i) showing the gross expenditure, amount disallowed and the net amount admitted for grant under several heads,
(ii) setting forth items disallowed for Government grant with reasons therefor,
(iii) giving figures of receipts under several heads,
(iv) containing miscellaneous objections which do not affect Government grant.
(4) a comparative statement showing figures of receipts and expenditure as estimated in the Budget (including revised sanction, if any) and as actually spent during the financial year, and
(5) a review of the previous audit reports --both Parts I and II-- with special notice of the important objections which have not been disposed of (objections of a minor nature shall be detailed in an appendix and enclosed with the report).