CHAPTER VII: FINANCE, ACCOUNTS AND AUDIT

 

  1. Authority Fund: (1) There shall be formed a fund to be known as the “Authority Fund’ which shall vest in the Authority and shall be utilized by the Authority in connection with its functions under this Act including the payment of salaries and remunerations to the members, officers, servants, experts and consultants of the Authority.

(2)  To the credit of the Authority Fund, shall be credited–

(a)  all moneys received from Government;

(b)  all moneys received from Federal Government or any international agency or any other body by way of grants, loans, advances or otherwise;

(c)  all fees, rates and charges received by the Authority under this Act;

(d)  all moneys received by the Authority from the disposal of lands, buildings and other properties movable and immovable;

(e)  proceeds from the self financing schemes of urban development and environmental sanitation; and

(f)   all other sums receivable by the Authority.

(3)  Authority Fund will have two separate heads namely “Urban Development” and “Water Supply and Sanitation”.

(4)  The Authority may keep in current account of any scheduled bank such sums as may be prescribed and any amount in excess of the said amount shall be invested in Government securities, Government sponsored saving schemes or in such manner as may be determined by the Government.

Explanation– For the purpose of this sub-section Government, includes Federal Government.

(5) In case of deficit revenue of the Authority, the Government shall provide, from its own revenue or from any other source, such sum as may be necessary for the efficient performance of the functions of the Authority.

  1. Rates and fees: (1) With the previous consent of the Government, adequate funds may be raised by the Authority from time to time, to meet the cost of its schemes by imposing rates, fees and other charges.

(2)  The rates, fees and other charges for water supply, sewerage and drainage schemes shall be such as to provide sufficient revenues–

(i)  to cover the operating expenses including taxes, if any, and interest to provide adequate maintenance;

(ii)  to cover repayment of loans; and

(iii)  to finance the normal year to year extension of any of such schemes and to provide a reasonable portion of the cost of future major expansion of such schemes.

  1. Fees on tube wells:(1) The Authority shall have the exclusive right to use ground water resources within the area.

(2)  No person shall, without the permission of the Authority install a tube well, for commercial purposes, at such places within the area, as may be notified in the official Gazette by the Authority.

(3)   The Authority may levy rates on the persons or bodies who have installed or may install tube wells for commercial purposes, within its jurisdiction.

  1. Accounts: The Authority and its agencies shall maintain proper accounts and other relevant records and prepare annual statement of accounts in such form as may be prescribed.
  2. Budget: (1) The Authority shall prepare, in such manner and at such time as may be prescribed, a budget in respect of the next ensuing financial year showing the estimated receipts and expenditure of the Authority and each of its Agencies and shall submit the budget to the Government for approval.

(2)  If the Government fails to approve the budget, with or without modifications, within thirty days of its receipt, the budget prepared by the Authority shall be deemed to be the approved budget of the Authority.

  1. Audit:The accounts of the Authority and each of its agencies shall be audited annually by such duly qualified Auditors or Government Audit Agencies or both as may be appointed by the Authority and each agency respectively, with the approval of Government. The Authority shall also make necessary arrangements for pre-audit or concurrent audit of account.