Kerala Local Fund Audit Act, 1994 (Act) has vested KSAD with necessary powers and responsibilities to verify and ensure the accountability of institutions managed or financially supported by the Government of Kerala. Kerala Local Fund Audit Rules, 1996 (Rules) provide for the manner of conducting the audit, form and contents of the audit reports, procedure for charge and surcharge etc.
As per sub-sections 4 (1) & 4 (2) of the Act, the Director of KSAD is entrusted with the audit of accounts of the Local Self Government Institutions included in the Schedule to the Act. In addition, institutions notified by the Government from time to time, institutions to be audited by other enactments/rules as well as those ordered to be audited by the Honourable Kerala High court also come under the purview of the audit by KSAD. In addition, approval of pay fixation/certification of last pay of employees of LSGIs, verification and certification of pensionary claims of Municipal Employees, employees of Development Authorities, Corporations, Devaswom Boards and Hindu Religious and Charitable Endowment Institutions, Universities, Kerala State Housing Board, Kerala Medical Council, State Institute of Languages, etc., is also done by the Kerala State Audit Department. The Director of KSAD also functions as the Treasurer of Charitable Endowments of Kerala State.
The primary functions of KSAD are given below:
i. Audit of accounts and issue of Audit Reports of the Institutions under its audit control by virtue of the Kerala Local Fund Audit Act, 1994.
ii. Discharge the functions as treasurer of Charitable Endowments.
iii. Matters relating to financial administration of Local Bodies and other Auditee Institutions referred to the Department by Government from time to time are also being attended to and remarks offered thereon.
iv. The Director shall send to the Government annually a Consolidated Audit Report of the accounts audited by him during the previous year containing such particulars which he intends to bring to their notice and the Government shall within a period of three months after the receipt of the same cause it to be laid before the Legislative Assembly.
v. To take charge and surcharge actions against the persons /body of persons, held responsible for the losses detected in audit and included in Audit Reports. (Vide section 16 of The Kerala Local Fund Audit Act, 1994 and Rule 20 of The Kerala Local Fund Audit Rules, 1996.)
vi. Approval of pay fixation of Grama, District Panchayat Employees/ Municipal Employees/ Employees of Cultural Institutions, Universities, Devaswom Boards, Housing Board, Library Council, etc.
vii. Verification and recommendation of pensionary claims of Municipal Employees/ Employees of Kerala State Housing Board / Kerala Medical Council / Cultural Institutions/ Universities/ Devaswom Board, Library Council, etc., and other institutions in which such verification / recommendation / certification are to be done as per existing rules / orders.
viii. Certification of last pay and qualifying service in respect of Grama/District Panchayat employees
The Director, KSAD or the person delegated by him shall include in the Audit Reports, a statement of:
i. every payment which appears to him to be contrary to law;
ii. the amount of any deficiency or loss which appears to have been caused by the negligence or misconduct of any person;
iii. cases of misappropriation or mis-utilization of the local fund;
iv. the amount, if any, received which is required to be brought into account but has not been brought into account by any person; and
v. any other material impropriety or irregularity which he has observed in the accounts.