Section 24 of The Kalakshetra Foundation Act, 1993
- (1)The Foundation shall maintain proper accounts and other relevant records and prepare an annual statement of accounts including the balance sheet in such form as may be approved by the Comptroller and Auditor-General of India.
- (2)The accounts of the Foundation shall be audited by the Comptroller and Auditor-General of India and any expenditure incurred by him in connection with such audit shall be payable by the Foundation to the Comptroller and Auditor-General of India.
- (3)The Comptroller and Auditor-General of India and any person appointed by him in connection with the audit of the accounts of the Foundation shall have the same rights, privileges and authority in connection with such audit as the Comptroller and Auditor-General of India has in connection with the audit of the Government accounts, 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 the Foundation.
- (4)The accounts of the Foundation as certified by the Comptroller and Auditor-General of India or any person appointed by him in this behalf together with the audit report thereon shall be forwarded annually to the Central Government and that Government shall cause the same to be laid before each House of Parliament.
Summary
- The Foundation must keep accurate financial records and prepare a yearly balance sheet and statement of accounts.
- The form of these accounts must be approved by the Comptroller and Auditor-General of India.
- The Comptroller and Auditor-General audits the Foundation's accounts, and the Foundation has to pay any costs associated with this audit.
- The auditors have the same strong powers they use for government audits, meaning they can demand to see all books, vouchers, and papers, and can inspect the Foundation's office.
- The final audited accounts and the audit report must be sent to the Central Government, which then presents them to both Houses of Parliament.
Practical examples
FAQ
1. Who is responsible for auditing the Foundation's accounts?
The accounts are audited by the Comptroller and Auditor-General of India.
2. Who pays for the audit?
The Foundation must pay any expenditure incurred by the Comptroller and Auditor-General in connection with the audit.
3. Can the Foundation refuse to show certain financial documents to the auditor?
No, the auditors have the right to demand the production of all books, accounts, vouchers, and papers.
4. What happens to the audit report once it is finished?
It is sent to the Central Government, which must then lay the report before each House of Parliament.
Test yourself
Q1.Under Section 24 of The Kalakshetra Foundation Act, 1993, who determines the approved form for the Foundation's annual statement of accounts and balance sheet?
Q2.Under Section 24 of The Kalakshetra Foundation Act, 1993, how is the cost of the official audit handled?
Q3.Under Section 24 of The Kalakshetra Foundation Act, 1993, what action must the Central Government take after receiving the certified accounts and audit report?
Q4.Connecting Section 24 to Section 19 of The Kalakshetra Foundation Act, 1993, who initially prepares the annual statement of accounts that the Comptroller and Auditor-General later audits?