Regulation 118 — Audit Regulations 2020
Original Rule Text
118. Audit under Section 14, 19, 20 of the Act where applicable
The Comptroller and Auditor General may undertake the audit of Panchayati Raj institutions and urban local bodies under Section 14 of the Act where such bodies are financed by grants or loans from the Consolidated Fund of India or of any State or Union Territory having a legislative assembly and are auditable under the provisions of this Section of the Act. In such cases, the relevant Regulations for such audits shall apply. These Regulations, to the extent relevant, shall also apply in cases where audit of Panchayati Raj institutions and urban local bodies is entrusted to the Comptroller and Auditor General under Section 19 or Section 20 of the Act.
What This Means
The CAG can audit Panchayati Raj institutions and urban local bodies under Section 14 of the Act when these bodies receive grants or loans from the Consolidated Fund. Additionally, if audit of local bodies is entrusted to the CAG under Section 19 or Section 20, the relevant regulations for those types of entrusted audits also apply. This regulation establishes multiple legal pathways for CAG audit of local bodies.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Section 14: CAG can audit local bodies that receive grants/loans from Consolidated Fund
- 2Consolidated Fund includes both India and State funds
- 3Section 19/20 entrustment: relevant regulations for those sections apply to local bodies too
- 4Multiple legal pathways exist for CAG to audit PRIs and ULBs
- 5These Regulations apply 'to the extent relevant' for all such audits
Practical Example
A district panchayat in Madhya Pradesh receives Rs 50 crore under the 15th Finance Commission grant from the Consolidated Fund of India. Under Section 14 of the CAG's Act, the AG (Audit) can audit how this grant was utilized. Separately, if the state government entrusts all panchayat audits to the CAG under Section 20, the entrustment regulations (110-115) also become applicable.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Does Section 14 audit cover only the grant amount or the entire panchayat accounts?▼
Can a local body be audited under both Section 14 and Section 20 simultaneously?▼
Are all local bodies receiving Finance Commission grants automatically under CAG audit?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.