Article 243J of CoI : Article 243J: Audit of accounts of Panchayats.

Explanation using Example

Example 1:

Scenario: In the state of Maharashtra, the state legislature passes a law requiring all Panchayats to maintain detailed financial records of their income and expenditures. This law also mandates that these accounts must be audited annually by a certified auditor appointed by the state government.

Application: The Panchayat in a small village called "Ganeshpur" receives funds from the state government for building a new community center. According to the law, the Panchayat must keep a detailed account of how these funds are spent, including receipts, invoices, and other financial documents. At the end of the financial year, a certified auditor visits Ganeshpur to review these accounts and ensure that the funds were used appropriately. The auditor's report is then submitted to the state government for review.

Example 2:

Scenario: In the state of Karnataka, the state legislature enacts a law that requires Panchayats to use a standardized accounting software provided by the state government for maintaining their financial records. The law also stipulates that the accounts must be audited every six months.

Application: The Panchayat in the town of "Lakshmipur" receives funds for various development projects, including road construction and water supply improvements. The Panchayat uses the standardized accounting software to record all financial transactions related to these projects. Every six months, an auditor appointed by the state government reviews the accounts to ensure compliance with the law. The auditor finds that the Panchayat has properly documented all expenditures and that the funds have been used for their intended purposes. The audit report is then shared with the state government and made available to the public for transparency.