WELCOME

The Sikkim Local Fund Audit Act, 2012 has empowered the Director of Local Fund Audit to conduct the audit of accounts of Local Bodies. The Director, Local Fund Audit conducts post audit of all Local Bodies in the subsequent financial year. The Director, Local Fund Audit (DLFA) conducts the audit of these Panchayati Raj Institutions through the Directorate of Local Fund Audit, under Finance  Department, Government of Sikkim.

Under the Sikkim Local Fund Audit Act - 2012, the Director of Local Fund Audit, Sikkim is vested with the power of disallowing any item of the expenditure incurred contrary to the Act/ Rules and surcharges/penalties for the same shall be imposed on the person incurring or authorizing such expenditure.

The Directorate of Local Fund Audit conducts post audit of the Panchayati Raj Institutions and Municipalities; and subsequent Audit Reports consisting of defects noticed during the audit are issued to the Chief Executive Officer of the institutions concerned who has to take prompt action for rectifying the defects pointed out in the course of audit. 

The Director of Local Fund Audit, Sikkim is made in charge of the audit of the funds of the Panchayati Raj Institutions and Municipalities as specified in the Schedule prescribed in the said Act.

Sl. No.	Name of the Institution	Total Units
1.	DZUMSA	2
2.	GRAM PANCHAYAT UNIT	197
3.	MUNCIPAL CORPORATION	1
4.	MUNICIPAL COUNCIL	1
5.	NAGAR PANCHAYAT	5
6.	ZILLA PANCHAYAT	6
	TOTAL	212

The Director of Local Fund Audit, Sikkim is vested with the power to disallow any item of expenditure incurred contrary to the law and also to impose a surcharge on the person incurring or authorizing such expenditure and also may charge any person responsible for, the amount of any deficiency, loss or unprofitable outlay occasioned by the negligence or misconduct of that person or of any such sum which ought to have been accounted for but is not brought into account by that person and shall, in every such case, certify the amount due from such person.

The Audit Reports of notified Gram Panchayats and Municipalities are approved by the LFAO. Institution wise audit observations containing various audit objections are issued to the Executive Authorities of the Local bodies for follow up action i.e., rectification of defects pointed out in the audit reports and to submit suitable replies to the Audit after obtaining approval of the General Body of the authority concerned.

Under Section 19 of Sikkim Local Fund Audit Act, 2012, the Director, Sikkim Local Fund Audit is required to submit annually a Consolidated Audit and Review Report on the accounts of the Local Bodies to the Government for laying of such report on the table of the Legislative Assembly.

The Consolidated Audit and Review Reports can be found here: