|State Audit Department|
State Audit Department(Local Fund Audit Department) was formed in Travancore in 1942. The Department was reorganized in GPR Dis.29061/56/Fin dated 17/04/57 w.e.f 01/05/1957 and three zones i.e South Zone with H.Q at Thiruvananthapuram, Central Zone with H.Q at Ernakulam and North Zone with H.Q at Kozhikode were formed. The Kerala Local Fund Audit Service was constituted vide G.O (P) No.638/P.D (Rules) dated 03/10/1960. The Kerala Local Fund Audit Subordinate Service was constituted in G.O (P) No.639/PD dated 03/10/1960. The Department was again reorganised in G.O (Ms) No.733/79/Fin dated 13/08/1979 and classified the the department into Head Office, District Offices and Functional Audit Offices from 01/09/1979 and the zonal system was abolished.
The Kerala Local Fund Audit Act, 1994 (Act 14 of 1994) was notified in the notification No.11671/Leg.A2/93/Law dated 11/05/1994(published in Gazette Extra Ordinary No.446 dated 11/05/1994). In G.O (P) No.51/04/Fin dated 22/01/2004, Finance Department has notified the commencement of the LFAD Act with effect from 15/01/1996.
The Kerala Local Fund Audit Rules, 1996 was notified vide G.O (P) No.180/96/Fin dated 09/02/1996 (S.R.O 176/96 published as Extra Ordinary Gazette No.222 dated 12/02/1996)
The basic function of the Department is the audit of accounts of institu tions under its audit control by virtue of Kerala Local Fund Audit Act 1994. (A) Proper management of the corpus of the various Charitable Endowments vested with the Director of Local Fund Audit in his capacity as the Treasurer of Charitable Endowment is also done by this Department. Matter relating to the financial administration of local bodies and other auditee institutions referred to this Department by Government are also being attended to and remarks offered.
As per Section 4 of the Kerala Local Fund Audit Act 1994 , the audit of accounts of local authorities and Local funds included in the Schedule to the Act has to be conducted by the Director of Local Fund Audit in the manner provided by or under the Act. The Kerala Local Fund Audit Rules 1996 (B) framed for implementing the provisions in the Act were issued in G.O (P) No.180/96/Fin dt.9.2.1996. The power to issue charge and surcharge certificates for the recovery of losses sustained by the local fund institutions as disclosed in audit is vested with the Director of Local Fund Audit vide Section 16 of the Kerala Local Fund Audit Act 1994 and Rule 20 of the Kerala Local Fund Audit Rules 1996.