[22
November 2021] G.S.R. 820(E).-In
exercise of the powers conferred by sub-section (1) of section 44 read with
sub-section (1) of section 71 of the Major Port Authorities Act, 2021 (1 of
2021), the Central Government hereby makes the following rules, namely:- (1)
These rules may be called
the Major Port Authorities (Accounts and Audit) Rules, 2021. (2)
They shall come into force
on the date of their publication in the Official Gazette. (1)
In these rules, unless the
context otherwise requires,-- (a)
"Act" means the
Major Port Authorities Act, 2021 (1 of 2021); (b)
"Audit Officer"
means the Comptroller and Auditor General of India and includes any person
appointed by him in connection with the audit of accounts of the Major Port
Authority; (c)
"books of account"
in relation to a Major Port Authority, includes the records maintained in
respect of- (i)
all sums of money received
or receivable and expended or expendable by the Major Port Authority and
matters in relation to which the receipts and expenditure takes place; (ii)
all sales and purchases of
goods and services by the Major Port Authority; and (iii)
the assets and liabilities
of the Major Port Authority; (d)
"financial year"
means the year commencing on the first day of April; (2)
Words and expressions used
and not defined in these rules but defined in the Act, shall have the meanings
respectively assigned to them in the Act. (1)
The budget estimate of
income and expenditure of each Major Port Authority for the next financial year
shall be prepared by the Chairperson or such employee of the said Major Port
Authority as may be authorised by him in this behalf, in such manner as the
Central Government may, from time to time, specify. (2)
A copy of the budget
estimate so prepared shall be sent to each Member of the Board at least seven
days before the meeting of the Board at which such estimate is to be
considered. (3)
The Board shall consider and
sanction the budget estimate with such changes as it thinks fit at the meeting
fixed for the purpose or at any other meeting to which the consideration of the
budget estimate is adjourned. (4)
The budget estimate
sanctioned by the Major Port Authority under sub-rule (3) shall be forwarded by
the Board of that Major Port Authority to the Central Government not later than
31st day of December of the financial year preceding the financial year to
which the consideration of the budget estimate relate. (5)
The Central Government shall
review the budget estimate and shall return it with or without suggestions to
the Board not later than thirty days prior to the commencement of the financial
year. (6)
Upon receipt of the budget
estimate under sub-rule (5), the Board shall consider the suggestions, if any,
made by the Central Government thereon and shall approve the budget estimate
with such changes as it may think fit. The Board may, in the
course of any financial year for which a budget estimate has already been
approved under rule (4), prepare one or more supplementary budget estimates for
the residual period of such year and the provisions of rule (4) shall, so far
as may be, apply to such estimate as if it were an original budget estimate. (1)
If the Chairperson or any
person authorised by him finds in the course of the year that there is likely
to be an excess of expenditure over the sanctioned budget estimate (including
any revised budget estimate) under any head, or any sum included in the said
sanctioned or revised budget estimate is required for any pressing emergency,
the Chairperson or any person authorised by him shall examine the allocation
under each head of budget estimate with the object of discovering probable
savings under any other head and submit its proposal to the Board to effect the
re-appropriation. (2)
Where such re-appropriation
is feasible, the Board may sanction the re-appropriation subject to such
conditions as it may deem appropriate in that behalf. The Board shall
prepare and keep books of account and other relevant books and papers for every
financial year which gives a true and fair view of the state of affairs of the
Major Port Authority and such books shall be kept in such manner as may be
specified by the Central Government. (1)
The Board may appoint an
internal auditor, who shall either be a chartered accountant or cost and
management accountant or such other professional as may be decided by the Board
to conduct internal audit of the accounts, statements and documents concerning
the functions and activities of the Major Port. Explanation - For the
purposes of this sub-rule, the term "chartered accountant or cost and
management accountant or such other professional" shall mean a chartered
accountant or cost and management accountant or such other professional,
engaged in practice. (2)
The appointment of an
internal auditor under sub-rule (1) shall be done by the Board from the panel
of professionals maintained by the Comptroller and Auditor General of India or
the Reserve Bank of India. (3)
The Board or any audit
committee appointed by the Board shall formulate the scope, functioning,
periodicity and methodology for conducting the internal audit. (4)
Without prejudice to
sub-rule (3), the internal auditor shall examine and report on the transactions
and monthly accounts of the Major Port Authority and certify whether in his
opinion such transactions and accounts are properly drawn up in accordance with
the accounting policies as approved by the Board from time to time. (1)
The Board shall, within such
time as may be fixed by the Central Government, prepare after the commencement
of each financial year an annual statement of accounts for the previous
financial year. (2)
The annual statement of
accounts prepared under sub-rule (1) shall include such information and
particulars as may be specified by the Central Government in consultation with
the Comptroller and Auditor General of India. (3)
The annual statement of
accounts prepared under sub-rule (1) shall give a true and fair view of the
state of affairs of the Major Port Authority and comply with such accounting
standards as specified by the Institute of Chartered Accountants of India from
time to time: Provided that the
annual statement of accounts shall not be treated as not disclosing a true and
fair view of the state of affairs of the Major Port Authority, merely by reason
of the fact that they do not disclose any matters which are not required to be
disclosed by any law for the time being in force. (4)
Without prejudice to
sub-rule (3), where the annual statement of accounts of the Major Port Authority
do not comply with the accounting standards referred to in sub-rule(3), such
Major Port Authority shall disclose in its annual statement of accounts, the
deviation from the accounting standards, the reasons for such deviation and the
financial effects, if any, arising out of such deviation. (5)
The annual statement of
accounts shall be approved by the Board and signed on behalf of the Board by
the Chairperson (or in his absence, by the Deputy Chairperson) and the Head of
Finance department in the Major Port. (6)
The annual statement of
accounts adopted and signed under sub-rule (5) shall be authenticated by
affixing the common seal of the Major Port Authority and shall be submitted by
the Major Port to the Audit Officer each year within such time as may be fixed
in this behalf by the Central Government in consultation with the Comptroller
and Auditor General of India. (7)
The Audit Officer shall
audit and report on the annual statement of accounts of the Major Port
Authority and certify whether in his opinion the balance sheet and profit and
loss account contain all particulars and are properly drawn up so as to exhibit
a true and fair state of affairs of the Major Port Authority and in case he has
called for any information from the Major Port Authority or any of its
officers, whether it has been given and whether it is satisfactory. (8)
The Audit Officer shall
complete the audit of the annual statement of accounts of the Major Port
Authority and submit the audit report to the Board of such Major Port Authority
within such time as may be fixed by the Central Government in consultation with
the Comptroller and Auditor General of India. (9)
The annual statement of
accounts as certified by the Audit Officer, together with the report of the
Audit Officer shall be forwarded annually to the Central Government by the
Board within such time following the close of the financial year to which the
accounts relate as may be fixed by the Central Government: Provided that if the
report of the Audit Officer is not received by the Board within such time as
may be fixed in this behalf by the Central Government, the annual statement of
accounts shall be submitted to the Central Government without the report of the
Audit Officer. The Board shall pay
to the internal auditor and the Audit Officer the audit fee and out of pocket
expenses incurred by each of them in connection with the annual audit of its
accounts, within three months from the date of which any demand is made by
them. (1)
The internal auditor or the
Audit Officer, as the case may be, shall submit a separate statement to the
Board, if necessary, in regard to- (a)
any material impropriety,
irregularity or defects which he may observe in the expenditure, or in the
recovery of moneys due to, or in the accounts of the Major Port Authority; or (b)
any loss or waste of money
or other property owned by or vested in the Major Port Authority which has been
caused by neglect or misconduct, with the names of the persons who in their
opinion are directly or indirectly responsible for such loss or waste. (2)
The Board upon receipt of
statement under sub-rule (1) shall forthwith take into consideration any
defects or irregularities that may be pointed out by the internal auditor or
the Audit Officer in its audit report and shall take such action thereon as the
Board may think fit: Provided that if
there is a difference of opinion between the Board and the Audit Officer on any
point included in the audit report, and the Board is unable to accept or
implement the recommendations, if any, made by the Audit Officer on such point,
the matter shall forthwith be referred to the Central Government which shall
pass final orders thereon and the Board shall be bound to give effect to such
orders.Major
Port Authorities (Accounts And Audit) Rules, 2021