48.
| (1) The administration by a Village Council of the communal fund and of the property vested in, or used or occupied by, the Council, shall be further subject to such rules of procedure as may be made under section 52 for prescribing-
| | (a) the form in which estimates and budgets shall be prepared; | | |
| | (b) the period within which, and the manner in which, the approval of the Minister1 or of the Assistant Commissioner shall be obtained in any matter connected with a budget, which requires such approval under the provisions of this Ordinance ; | | |
| | (c) the steps to be taken in any matter connected with a budget, in the event of its being disapproved by the Minister1 or the Assistant Commissioner ; | | |
| | (d) the form in which books of accounts shall be kept by a Village Council; | | |
| | (e) the form of the periodical statement of accounts which shall be prepared by a Village Council; | | |
| | (f) the manner in which, the intervals at which, and the persons by whom, the books, accounts, documents and other records of a Village Council, the works of construction, maintenance or repair undertaken or executed by a Village Council, and the lands and buildings vested in or used or occupied by a Village Council shall be inspected ; and | | |
| | (g) the mode of giving notice, within the village area, of the financial proposals of a Village Council, and of publishing the periodical statements of accounts. Audit of accounts. | | |
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| (2)
| | (a) The accounts of every Village Council shall be inspected and examined once at least in every year, and shall be audited annually by the Auditor-General or an officer authorized by him (hereinafter referred to as the auditor) ; and the Village Council shall pay to the Government, as a contribution towards the cost of such inspection, examination and audit, a fee according to such rates as may from time to time be determined by the Minister of Finance's | | |
| | (b) For the purposes of any inspection, examination and audit of accounts under this subsection, the Auditor-General or authorized officer may, by notice in writing, require the production before him of any book, deed, contract, account, voucher, and any other document and papers which he may deem necessary, and may require any person holding or accountable for any such book, deed, contract, account, voucher, document, or papers to appear before him at any such inspection, examination and audit or adjournment thereof, and to make and sign a declaration in respect of any matter relating thereto. Every such declaration shall be free of stamp duty. | | |
| | (c) If any person neglects or refuses to produce any book, deed, contract, account, voucher, document, or papers within thirty days of his being required so to do, or to make or sign any declaration when required so to do under this subsection, he shall be guilty of an offence, and liable on conviction to a fine not exceeding one hundred rupees and to a further fine not exceeding fifty rupees for each day during which the offence is continued after he has been convicted of such offence. | | |
| | (d) In auditing the accounts of a Village Council under this subsection, the auditor shall disallow every item of the accounts which is contrary to law, and surcharge the same on the person making or authorizing the making of the illegal payment, and shall charge against any person the amount of any deficiency or loss incurred by the negligence or misconduct of that person and any sum which ought to have been, but is not, brought into account by that person and shall in each case certify the amount due from such person and communicate his decision in writing to such person through the Commissioner of Local Government. The communication shall be transmitted by the Commissioner of Local Government to such person by registered post, and if so transmitted shall be deemed to be received by such person at the time when the letter containing the decision would be delivered in the ordinary course of post, and in proving that such letter was posted it shall be sufficient to prove that such letter was properly addressed and put into the post: | | |
| | (dd) Where any item of the accounts of a Village Council relating to any expenditure authorized by a resolution of the Council is disallowed by the auditor as being contrary to law under paragraph (d) of this subsection, the Chairman of the Council and every other member of the Council who voted in favour of such resolution, shall each be deemed to be a person who made or authorized the making of the payment for the purposes of that paragraph. | | |
| | (e) Before making any surcharge or disallowance against any person, the auditor shall afford an opportunity to such person to be heard or to make any representation with regard to the matter which he may think fit, and shall, in the event of his making such surcharge or disallowance, furnish such person in writing, on application being made to him for that purpose, with the reasons for his decision in respect of such surcharge or disallowance. | | |
| | (f) Any person aggrieved by any surcharge or disallowance made under this subsection may, within thirty days after the date of the decision of the auditor being communicated to him, appeal therefrom to the Minister : | | |
| | (g) The Minister shall decide every appeal under this subsection according to the merits of the case, and may by order direct the recovery from the appellant of the whole or any portion of the amount surcharged or disallowed, if he thinks fit to do so ; and if he finds that any surcharge or disallowance has been lawfully made, but that the subject-matter thereof was incurred in such circumstances as to make it fair and equitable that the surcharge or disallowance should be remitted, the Minister1 may by order direct that the same shall be remitted, but that the amount of the costs and expenses which may have been incurred by the auditor in the enforcing of such surcharge or disallowance, or any portion thereof, shall be recovered from, such person. | | |
| | (h) Every sum certified to be due from any person by the auditor as aforesaid shall be paid by such person to the Commissioner of Local Government within fourteen days after the decision of the auditor has been communicated to such person, unless there is an appeal against the decision ; and if such sum is not so paid and there is no such appeal, it shall be the duty of the Commissioner of Local Government to recover the sum due from such person in the manner specified in paragraph (ha) or paragraph (hb). | | |
| | (ha) If any sum referred to in paragraph (h) is not paid within the time allowed therefor by that paragraph to the Commissioner of Local Government by the person from whom it is due, such Commissioner may make an application-
| | | (i) where such sum exceeds seven hundred and fifty rupees, to the District Court, and |
| (ii) where such sum does not exceed seven hundred and fifty rupees, to the Court of Requests, |
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| | (hob) Where the Commissioner of Local Government is of the opinion in any case that recovery from any person of any sum referred to in paragraph (h) by seizure and sale of such person's immovable property is impracticable or inexpedient, or where the full amount of such sum has not been so recovered such Commissioner may issue a certificate containing particulars of the amount due from such person and the name and last known place of business or residence of such person to a Magistrate having jurisdiction in the place in which such person resides. The Magistrate shall thereupon summon such person before him to show cause why proceedings for the recovery of the amount due should not be taken against such person, and if no sufficient cause is shown by such person, the amount due shall be deemed to be a fine imposed by a sentence of the Magistrate on such defaulter for an offence punishable with a fine only or not punishable with imprisonment, and may be recovered accordingly. | | |
| | (i) Any amount directed to be recovered from any such person by any order made by the Minister1 under this subsection may forthwith be recovered by the Commissioner of Local Government in the same manner as any sum certified by the auditor is recoverable under the provisions of this subsection. | | |
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| (3) Every sum paid or recovered under this section, other than any sum paid or recovered as costs and expenses incurred in the enforcement of any disallowance or surcharge, shall be credited to the communal fund of the Village Council. |
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Sri Lanka Consolidated Acts