The Director, Local Fund Audit is vested with theauthority for audit of accounts of the local bodies. As per therecommendations of Finance Commission and the guidelines for utilisation ofLocal Bodies grants issued by the Ministry of Finance, Government of India, the CAG of India is responsible for exercising control and supervision over the proper maintenance ofaccounts and their audit for all the local bodies.Thus, the Director, Local Fund Audit, GoM acts as the primary auditor for LBs, while the CAG would conduct a testcheck by way of Technical Guidance and Supervision over the primary auditor.

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