KARACHI, Nov 25: Sindh Governor Mohammedmian Soomro promulgated on Monday the Sindh Local Government (Eighth Amendment) Ordinance 2002 which shall come into force at once and shall be deemed to have taken effect on July 1, 2002.

In the Sindh Local Government Ordinance, 2001, in section 1, in sub-section (3), for the proviso, the following shall be substituted:-

“Provided that the order of the governor in section 120-D (6) shall remain in force as notified.”

In the said Ordinance, in section 2, in clause (xxvii-b), for the words “the expenditure charged upon the provincial consolidated fund”, the word “Monies” shall be substituted.

In section 55, the world “District” shall be omitted.

In section 67-A, in clause (c), the semi colon and the word “and” shall be substituted by full stop.

(6) In section 107, in sub-section (1), for the words “Taluka Fund, Town Fund and Union Fund”, the words “Taluka, Local Fund, Town Local Fund and Union Local Fund shall respectively be substituted.

(7) In section 108, for the word “Officer”, the word “Official” shall be substituted.

(8) In section 110, in clause (b), for the words “Union Fund” the words “Union Local Fund” shall be substituted.

(9) In section 111 - (i) In sub-section (2), for the word “respective” the article “a” shall be substituted; (ii) Sub-section (3) shall be omitted and the existing sub-sections (4), (5), (6), and (7) shall be re-numbered as sub- sections (3), (4), (5), and (6) respectively and in sub-section (4) as so re- numbered for the words: local Government, the word “Nazim” shall be substituted,

(10) In section 112- (i) for the existing sub-sections (5), (6), (7), (8), and (9), the following shall be substituted:

(5) A budget shall not be approved if- (a) the sums required to meet estimated expenditures exceed the estimated receipts; and (b) the constraints specified in section 119 have not been complied with.

(6) No other business shall be taken up by a Council during the budget session.

(7) In case a budget is not approved by a council before the commencement of the financial year to which it relates, the concerned Local Government shall spend money under various heads in accordance with the budgetary provisions of the preceding financial year for a period not exceeding thirty days on prorata basis;

Provided that a local government shall not spend funds or make commitments for any expenditure, under any demand for Grant or Appropriation, in excess of eight per cent of the amount budgeted in the preceding year within the thirty days period.

(8) the budget shall be prepared, approved and authenticated by the Government for the full year. In case the budget is not passed within the extended period as specified in sub-section

(9) After approval by the Council, the respective Nazim shall authenticate by his signature a Schedule specifying the- (a) grants made or deemed to have been made by the District, Taluka, Town or Union council; and (b) the several sums required to meet the expenditure charged upon the District Fund, Taluka, Town or Union local Fund.” (ii) After sub-section

(11), the following new sub-section shall be added:-

“(12) At any time before the expiry of the financial year to which a budget relates, a revised budget for the year shall be prepared by a local government and approved by its council.” (iii) In sub-section (11), for the word “office” the word “Official” shall be substituted.

11. In the said Ordinance, in section 114: (i) for sub-sections (1), (2), and (3) the following shall be substituted:- “(1) The accounts of the receipts and expenditure of Local Government shall be kept in such form and in accordance with such principles and methods as the Auditor-General of Pakistan may, with the approval of the President, prescribe. Provided that the accounts of receipts and expenditure of Taluka (Town), Municipal Administration, and Union Administration shall be kept in such form and in accordance with such principles and methods as the Government may prescribe, till such time as adequate capacity is developed to conform to the national accounting system prescribed by the Auditor-General of Pakistan. (2) The following arrangement for maintaining of accounts shall be followed: (a) the District Accounts Officer (or a Treasury Officer where a DAO does not exist) shall maintain the accounts of each District Government; (b) the Taluka or Town Accounts Officer and Union Accountant shall maintain the accounts of the Taluka or Town Municipal Administration or the Union Administration as the case may be; and (c) the District Accounts Officer, Taluka or Town Accounts Officer and the Union Accountant shall perform pre-audit of all payments from the Funds of the District, Taluka or Town and Union, as the case may be, before approving the disbursements of monies. (ii) The existing sub-sections (2), (3) and (4) shall be re-numbered as sub-sections (4), (5) and (6) and in sub-section (6) as so re-numbered for the words, bracket and figure “sub-section (3)”, the words, bracket and figure “sub-section (5)” shall be substituted.

12. In the said Ordinance, in section 115- (i) for sub-sections (1), (2) and (3), the following shall be substituted:- “(1) The Auditor General of Pakistan shall, on the basis of such audit as he may consider appropriate or necessary, certify the accounts, compiled and prepared by the respective Accounts Officials of the local government for each financial year, showing under the respective heads the annual receipts and disbursements for the purposes of each local government and shall submit the certified accounts with such notes, comments or recommendations as he may consider necessary to the respective Nazim: Provided that the audit of the Taluka Municipal Administration, Town Municipal Administration and Union Administration shall be conducted by the Local Fund Audit Department in the prescribed manner till such time as adequate capacity is developed to conform to the national audit system notified by the Auditor-General of Pakistan. (2) The Nazim shall cause the Audit Report to be submitted the respective Council and the Council shall refer it for examination to its Accounts Committee. (3) The Auditor-General in the case of District Government and Director Local Fund Audit in the case of Taluka, Town and Union Administration, as the case may be, shall have authority to audit and report on the accounts of stores and stock kept in any office of a local government. (4) The Auditor-General in the case of District Government and Director Local Audit in the case of Taluka, Town and Union Administration, as the case may be shall-

(a) audit all expenditure from the local government Fund to ascertain whether the monies shown in the accounts as having been disbursed were legally available for, and applicable to, the service or purpose to which they have been applied or charged and whether the expenditure conforms to the authority which governs it:

(b) audit all transactions of a local government relating to Public Accounts;

(c) audit all trading, manufacturing, profit and loss accounts of a local government; and

(d) to audit all receipts which are payable into a Local government Fund and to satisfy himself that all such receipts which are payable into a local government Fund have been properly and correctly deposited and rules and procedures relating to such receipts have been fully observed. (ii) the existing sub-section (4) shall be re-numbered as sub-section (5) and the sub-section (5) as so re-numbered, the words and colon “The Auditor-General shall have the authority”, the words and commas “The Auditor-General in the case of District Government and Director Local Fund Audit in the case of Taluka, Town and Union Administration, as the case may be, shall have the authority-” shall be substituted; (iii) in sub-section (5) as so re-numbered- (a) in clause (e), for the words “District Government”, the words “a local government” shall be substituted; and (b) in clause (d), for the words “officer in charge of any office or department”, the word “officials” shall be substituted: (iv) for sub-sections (5) and (6), the following shall be substituted:- “ (6) Upon request of a Nazim, the Auditor-General in the case of District Government and Director Local Fund Audit in the case of Taluka, Town and Union Administration, as the case may be, shall cause a special audit of that local Government’s accounts to be undertaken and shall forward his report to the Nazim who shall cause the name to be submitted to respective Council for necessary action. (7) The Auditor-General in the case of District Government and Director local Fund Audit in the case of Taluka, Town and Union Administration as the case may be, shall have access to all the books and documents pertaining to the accounts and may also examine any public servant or premises of the local Government concerned: (8) The Auditor-General in the case of District Government and Director Local Fund Audit in the case of Taluka, Town and Union Administration, as the case may be, shall perform functions and exercise power in relation to audit of the accounts of the companies, authorities, bodies or corporations owned or managed by a local government.” 13. In the said Ordinance, section 115-A shall be omitted and section 115-B shall be numbered as section 15-A. 14. In the said Ordinance, for section 116, the following shell be substituted:- “116 (1) A council may levy taxes, cesses, fees, rates, rents, tolls, charge, surcharges and levies specified in the Second Schedule: Provided that the Government shall vet the tax proposal prior to the approval by the concerned Council: Provided further that the proposal shall be vetted within thirty days from the date of receipt of the proposal failing which it would be deemed to have been vetted by the Government.”—APP