The Haryana Accountability of Public Finances Act, 2019
(Haryana Act No. 12 of 2019)
Last Updated 25th January, 2021 [hl726]
LEGISLATIVE HISTORY ▼ |
Haryana Government
Law And Legislative Department
No. Leg. 12/2019. - The following Act of the Legislature of the State of Haryana received the assent of the Governor of Haryana on the 8th March, 2019 and is hereby published for general information :- An Act to provide for accountability in the financial administration of the State by way of an efficient and effective system to facilitate accountability through appropriate accounting and [internal auditing system] of accountable and auditable entity and for matters connected therewith or incidental thereto. Be it enacted by the Legislature of the State of Haryana in the Seventieth Year of the Republic of India as follows:- 1. Short title and commencement. - (1) This Act may be called the Haryana Accountability of Public Finances Act, 2019. (2) It shall come into force on such date, as the State Government may, by notification in the Official Gazette, specify. 2. Definitions. - In this Act, unless the context otherwise requires,-(a) "accountable and auditable entity [subject to the internal audit]" means all the Departments, Boards, Corporations, Co-operative Societies, Universities, local authorities, statutory bodies, public institutions, and other authorities established, controlled or financed by the State Government, Non-Government Organizations which receive grant-in-aid or contribution from State Government and all those entities that receive public monies from the State Government in any form including organizations which receive funds from the consolidated fund of the State;
(b) "account officer" means any person, including those outsourced or hired, who has been assigned the work to maintain the accounts of income and expenditure including financial book-keeping of an accountable and auditable entity;
(c) "audit officer" means any person, including those outsourced or hired, who has been assigned the work to verify the accounts of income and expenditure including financial book-keeping of an accountable and auditable entity [subject to the internal audit];
(e) "authority" means an officer responsible for adherence to the provisions of this Act for each accountable and auditable entity;
(g) "local authority" means a municipal corporation, municipal council, municipal committee, Town Improvement Trust, Gram Panchayat, Panchayat Samiti or Zila Parishad constituted under the relevant law for the time being in force;
(h) "local fund" means-
(i) revenues administered by accountable and auditable entity which by law or rule having the force of law come under the control of State Government, whether in regard to proceedings generally or to specific matters such as the sanctioning of budget, sanction for creating or filling up of particular post or the rules relating to leave, pension etc.;
(ii) the revenue of any accountable and auditable entity which may be specially notified by the State Government;
(i) "[internal performance audit]" means an independent examination of a program, function, operation or the management systems and procedures of an accountable and auditable entity whether such entity is achieving economy, efficiency and effectiveness in the employment of available resources;
(k) "[internal pre-audit]" means detailed examination of financial documents to ensure that all information is correct before the transaction is conducted;
(l) "prescribed" means prescribed by rules made under this Act;
(m) "[internal special audit]" means an audit of accounts pertaining to a specified item or series of items requiring thorough examination;
(n) "[internal system audit]" means an approach to evaluate and improve the effectiveness of a system in order to verify that the individual elements within the system are effective and suitable in achieving the stated objectives including Business Process Re-engineering;
(o) "State" means the State of Haryana;
(p) "State Government" means the Government of the State of Haryana in the administrative department;
(q) "[internal test audit]" means an audit to check transactions of a particular type of expenditure and receipt during a specified period;
(r) "University" means a University established or incorporated by an Act of the State Legislature and shall include University established under Central Act receiving grant-in-aid or contribution from State Government for any purpose.
[3. Internal audit of accounts. - Notwithstanding anything to the contrary contained in this Act and without prejudice to the powers and functions of the Comptroller and Auditor General (Duties, Powers and Conditions of Service) Act, 1971 (Central Act 56 of 1971), it shall be lawful to conduct an internal audit of accountable and auditable entity and to recover the cost of internal audit in respect of such accountable and auditable entity in such manner, as may be prescribed.] [4. Separation of State Internal Audit and State Accounts Wing. - (1) There shall be an Internal Audit Wing and Accounts Wing headed by the Director, Internal Audit and Director, Accounts respectively who shall work under the supervision of Administrative Secretary to Government, Haryana, Finance Department. (2) The manner of internal audit and maintenance of accounts of each accountable and auditable entity or of any specific entity shall be such, as may be prescribed.] [5. ***] [6. ***]
OLD LAW ▼ |
(i) public funds deposited in the various bank accounts;
(ii) interest thereon;
(iii) utilization as on date and future expenditure plan;
(iv) any other detail, as may be prescribed.
(3) The State Government may withhold release of funds to any accountable and auditable entity which fails to furnish mandated financial statement on expiry of three months from the end of financial year. (4) The State Government shall take necessary action to recover the loss, as identified by the audit officer in such manner, as may be prescribed. (5) The authority shall check that the public funds provided to any accountable and auditable entity for a specific purpose are spent in the financial year, failing which the State Government may initiate examination into the economy, efficiency and effectiveness with which the resources have been utilized and after giving an opportunity of being heard, may -(i) call for an explanation for non-utilization within the financial year;
(ii) call for explanation for the delay;
(iii) withdraw the funds allocated by the State, along with interest incurred on such funds and deposit the same in a bank account designated by the State Government:
Provided that the funds withdrawn above may be released by the State Government on submission of a request by the accountable and auditable entity along with a concrete action plan for utilization: Provided further that no funds shall be withdrawn contrary to the provisions of the Constitution of India or any other law for the time being in force.] [7A. Effect of issues establishing or governing accountable and auditable entity. - This Act shall be in addition to and shall not be in derogation of any issue establishing or governing the accountable and auditable entity subject to internal audit under this Act.] [8. Power to make rules. - (1) The State Government may, by notification in the Official Gazette, make rules to carry out the purposes of this Act. (2) In particular and without prejudice to the generality of the foregoing power, the State Government may make rules providing for: -(a) the manner to conduct internal audit and to recover the cost of internal audit under section 3;
(b) the manner of internal audit and maintenance of accounts under sub-section (2) of section 4;
(c) the form and manner for preparing and presenting the accounts for internal audit under sub-section (1) of section 7;
(d) the manner for recovery of loss under sub-section (4) of section 7;
(e) any other matter which has to be or may be prescribed by rules made under this Act.