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Article 243Z requires that accounts of Municipalities be audited at least once a year, and the State Legislature may make provisions for audit and maintenance of accounts.
- True
- False
Answer: False
Municipal audit provisions: (a) Correction: Article 243Z deals with disqualifications for Municipality membership; audit provisions are in Article 243Z-1, not 243Z, (b) Article 243Z-1 (74th Amendment): (i) Audit requirement: Accounts of Municipalities shall be audited at least once a year, (ii) State Legislature power: State Legislature may make provisions for audit, maintenance of accounts of Municipalities, (iii) Audit authority: Audit may be conducted by State CAG, local fund audit department, or other authorized agency as per State law, (c) Applications: (i) Financial accountability: Annual audit ensures Municipality funds used for intended purposes, detects irregularities, (ii) Transparency: Audit reports laid before Municipality, State Legislature for public scrutiny, (iii) Capacity building: Audit findings inform training, system improvements for Municipality financial management, (d) Challenges: (i) Audit capacity: State audit departments may lack resources to audit all Municipalities annually, (ii) Follow-up: Ensuring audit findings lead to corrective action, recovery of misused funds, (iii) Awareness: Municipality members, citizens need awareness about audit process, rights to access audit reports, (e) Illustrates accountability architecture: Article 243Z-1 institutionalizes financial accountability for Municipalities; effective audit requires capacity, follow-up, public engagement to ensure funds used for urban development.