ACCOUNTS AND AUDIT
53 Accounts to be kept cite [+]
The local authority shall cause proper books and accounts to be provided and true and regular records to be entered therein of all transactions of the local authority and such books and accounts shall be open at all reasonable times and for reasonable periods to the inspection of any Councillor with the prior consent of the Mayor or President.
54 Financial year cite [+]
(1) For the purposes of this Act the financial year shall be the twelve months ending on and including the thirty-first day of December of each year.
(2) The accounts of the local authority shall, as soon as may be, be balanced for the preceding financial year and an annual statement of account of the Local Authority Fund shall be prepared.
(3) Copies of such annual statement signed by the Commissioner of the City of Kuala Lumpur, Mayor or President, as the case may be, shall be laid before the local authority not later than its first ordinary meeting in the month of May following or at any time thereafter as allowed by the local authority.
(4) Such annual statement shall be prepared in such form and shall contain such information as may be required by the State Authority.
55 Annual estimates to be passed and approved cite [+]
(1) The local authority shall not later than the tenth day of November of each year pass detailed estimates of the revenue and expenditure of the local authority for the next financial year.
(2) Such estimates shall be in such form as may be required by the State Authority and shall be passed at a special meeting of the local authority.
(3) A copy of the draft estimates shall be delivered to each Councillor not less than seven days before the date fixed for such meeting.
(4) Subject to the provisions of this Act, the local authority may in its discretion pass, modify, reject or add any item in such draft estimates.
(5) After the Budget has been passed by the local authority it shall be forwarded to the State Authority not later than the twentieth day of November and shall be considered by the State Authority not later than the thirty-first day of December of that year and the State Authority may reduce or reject any item of expenditure appearing therein.
(6) The summary of the Budget as approved by the State Authority shall be published in the Gazette and the local authority shall be bound thereby.
56 Supplementary estimates cite [+]
(1) Where additional financial provision is required in any year the local authority may from time to time pass supplementary estimates showing the sources out of which any additional expenditure incurred by it may be met.
(2) Subject to the provisions of this section, the provisions of section 55 shall apply to any supplementary estimates in like manner as they apply to the annual estimates:
Provided that the supplementary estimates shall be considered by the State Authority not later than six weeks after the date of receipt thereof.
57 No expenditure to be incurred unless included in the estimates cite [+]
No local authority shall incur any expenditure which has not been included in the approved estimates except with the sanction of the State Authority.
The local authority may transfer all or any part of the moneys assigned to one item of annually recurrent expenditure to another item of annually recurrent expenditure appearing under the same head of expenditure in the summary of the Budget as approved and published in the Gazette under subsection 55(6).
59 Form of estimates cite [+]
The annual and supplementary estimates and the summaries thereof shall be prepared in such form and shall contain such detailed information as the State Authority may require.
60 Audit of accounts cite [+]
(1) The Auditor General or other auditor appointed by the State Authority on the recommendation of the Auditor General shall, throughout the financial year, inspect and examine the accounts of the local authority, and the local authority shall, by the Treasurer or other officer authorized by the local authority, produce and lay before the auditor all books and accounts of the local authority together with all vouchers, papers, contracts and documents relating thereto.
(2) It shall be the duty of the auditor on or before the thirty-first day of October in each year to submit to the local authority in respect of the preceding financial year annual observations on the accounts of the local authority for such year and to certify therein whether or not-
(a) the accounts of the local authority were in order;
(b) separate accounts of all commercial undertakings had been kept;
(c) the accounts issued presented a true and fair view of the financial position of the local authority and of the commercial undertakings;
(d) due provision had been made for redemption and repayment of all moneys borrowed by the local authority;
(e) the amount set aside for depreciation and renewal of the assets of the local authority were adequate; and
(f) all the requirements of the auditor had been complied with.
(3) The auditor in his annual observations may state his opinions upon all questions arising out of the certificate given by him under subsection (2), and may in such observations draw attention to all cases in which it may appear to him that the provisions of this Act or any other written law have not been carried out or that any acts, matters or things have been performed or carried out without due authority.
(4) The audited accounts together with the auditor's observations thereon shall be laid before the local authority at its next ensuing ordinary meeting and shall be published in the Gazette.
(5) A copy of the statements and accounts shall be forwarded to the State Authority which shall cause it to be laid on the table of the State Legislative Assembly and, in the case of the City of Kuala Lumpur, of the House of Representatives.
61 Power to take evidence cite [+]
(1) For the purpose of any examination under the provisions of this Act an auditor may require by notice in writing to that effect any officer of the local authority or any other person to produce such records, minutes, books and documents in his possession or under his control and to give such information or explanation as may be necessary for the proper performance of his duties under this Act.
(2) Any person who, without reasonable excuse, refuses to produce any record, minute, book or document or to give any information or explanation shall be guilty of an offence and shall on conviction be liable to a fine not exceeding two thousand ringgit or to a term of imprisonment not exceeding one year or to both and to a further fine not exceeding one thousand ringgit for each day during which the offence is continued after conviction.
62 Remuneration of auditor cite [+]
The auditor shall be paid by the local authority such remuneration as may be agreed.