Section 58
Audit of accounts
of Local Authorities Ordinance, 1996
—
(1)
The Auditor General or other auditor appointed by the local authority on the recommendation of the Auditor General shall, throughout the financial year, inspect and examine the accounts of the local authority, and the local authority shall, by the Treasurer or other officer authorized by the local authority, produce and lay before the auditor all books and accounts of the local authority together with all vouchers, papers, contracts and documents relating thereto.
(2)
It shall be the duty of the auditor on or before the thirtieth day of June in each year to submit to the local authority in respect of the preceding financial year an annual report on the accounts of the local authority for such year and to certify therein whether or not—
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(a)
the accounts of the local authority were in order;
(b)
separate accounts of all commercial undertaking had been kept;
(c)
the accounts presented a true and correct view of the financial position of the local authority and of the commercial undertakings;
(d)
due provision had been made for redemption and repayment of all moneys borrowed by the local authority;
(e)
the amount set aside for depreciation and renewal of the assets of the local authority were adequate; and
(f)
all the requirements of the auditor had been complied with.
(3)
The auditor in his annual report may state his opinions and observations upon all questions arising out of the certificate given by him under subsection (2), and may in such report draw attention to all cases in which it may appear to him that the provisions of this
Ordinance or any other written laws have not been carried out or that any acts, matters or things have been performed or carried out without due authority.
(4)
The audited accounts together with the auditor’s report shall be laid before the local authority at its next ensuing ordinary meeting and thereafter submitted to the Majlis Mesyuarat Kerajaan
Negeri for its examination and approval to be laid before the Dewan
Undangan Negeri.
(5)
The auditor shall be paid by the local authority such remuneration as may be agreed between him and the local authority.