(1) The Authority shall maintain proper accounts and other relevent records and prepare an annual statement of accounts including the balance. sheet in such form as the State Government may specify.
(2) The accounts of the Authority shall be subject to audit annually by the Director, Local Fund Audit Department and any expenditure incurred by him in connection with such audit shall be payable by the Authority to the Director, Local Fund Audit Department.
(3) The Director, Local Fund Audit Department and any person appoint- ed by him in connection with the audit of accounts of the Authority shall have the same rights, privileges and authority in connection with such audit as the Director, Local Fund Audit Department has in connection with the audit of the accounts of a local authority and, in particular, shall have the right to demand the production of books, accounts, connected vouchers and other documents and papers and to inspect, the office of such Authority.
(4) The accounts of the Authority as certified by the Director, Local Fund Audit Department or any other person appointed by him in that behalf, together with the audit report thereon, shall be forwarded annually to the State Government.