XII (306-313)

CHAPTER XII 

LOCAL FUNDS

Introductory

(Article. 311)

306..The transactions of local funds (as defined in Article 3) are not included as such in the Government account, except in so far as their cash balances are deposited with the Government under the rules and accounted for under the deposit head “Deposits of Local Funds” within the Public Account. The Government’s function in regard to such deposits is that of a banker (See Chapter X of this Code and Part VIII of the Kerala Treasury Code). 

🆀Government function as a ………………………...in regard to Deposit of Local Funds

(A) Treasury Officer 

(B) Banker 

(C) Owner 

(D) Auditor

Correct Answer: Option: (B) Banker 

🆀Funds of Local Funds are credited in Govt .accounts under

the head 

(A) Deposits of Local Funds - in the public accounts division 

(B) Contingent Fund 

(C) Consolidated Fund 

(D) Local Fund account

Correct Answer: Option: (A)Deposits of Local Funds - in the public accounts division

ലോക്കല്‍ ഫണ്ടുമായി ബന്ധപ്പെട്ട ചോദ്യങ്ങള്‍ സ്ഥിരമായി  ചോദിച്ചു കാണുന്നു.

307. Some of the important classes of local funds are 

1	District Funds.
2	Municipal Funds (ie., the moneys of Municipal Councils governed by the Municipal Acts).
3	Kerala State Road Transport Corporation Working Fund.
4	Village Panchayat Fund i.e., the moneys of panchayats governed by the Kerala Panchayats Act, 1960 (Act 32 of 1960).
5	Kerala State Electricity Board Working Fund.
6	Market Committee Fund.
7	Library Fund.

🆀Which is treated as “Local Fund”? 

(A) District Funds

(B) K.S.R.T.C. Working Fund

(C) Library Fund

(D) All above 

Correct Answer: Option: D) All above 

🆀 The department in which first performance budget was introduced in the state        

(A)agriculture 

(B)fisheries 

(C)public works 

(D)social justice 

Correct Answer:- Option- (C)public works 

🆀 Which of the following is not a Local Fund? 

(A) Municipal Fund

(B) KSEB Working Fund 

(C) Market Committee Fund 

(D) Karunya Benevolent Fund

Correct Answer: Option: (D) Karunya Benevolent Fund

🆀 Which is not included in some of the classes of local funds is 

(A)District funds 

(B)Municipal funds 

(C)-Kerala state road transport corporation working fund 

(D)Provident fund 

Correct Answer:- Option- (D)Provident fund 

🆀Which is not coming under "Local Fund"? 

(A)Kerala State Electricity Board Working Fund 

(B)Market Committee Fund 

(C)-Library Fund 

(D)Mutual Fund 

 Correct Answer:- Option- (D)Mutual Fund 

308.  Local bodies (as defined in Article 3) perform functions closely allied to those of the Government and receive aid from the Government in the form of grants and loans for certain purposes. This Chapter refers to the rules relating to some of the financial transactions between the Government and the local bodies. 

Grants to Local and Other Bodies 

309. The payment of grants to local and other bodies, e.g., grants for the maintenance of roads, is governed by the general or special orders of the Government in regard to such grants.

 The Government may by general or special orders specify the various items of grants that are payable to local and other bodies on account of certain fines realised by Courts and credited to the Government. The grant on account of these fines should be drawn, and paid in the manner indicated in the Kerala Treasury Code (See Rule 196, Chapter III, Part V). 

Loans to Local Bodies 

310. Rules relating to the execution of work on behalf of local bodies by the Public Works Department are contained in Articles 31 to 33 of the Kerala Account Code, Volume III and Chapter 16 of the Kerala Public Works Account Code. The detailed procedure to be followed in connection with borrowing by local bodies from the Government is laid down in the Kerala Local Authorities Loans Rules, 1965 (See also Article 235.) 

Charges recoverable from Local Bodies 

Article 311

311.(a)When the Government agree to render a service to, or incur a charge on account of a local body, the estimated amount of the charge or cost of the service should ordinarily be recovered in advance in accordance with the principle laid down in Article 34. In exceptional cases, however, the Government may authorise the special arrangements detailed in Article 34.

 (b) Any amount due to the Government by a local body and remaining unpaid, including any amount overdue for payment in respect of a loan, should be recovered at the earliest opportunity in the manner indicated in Article 35. 

Time-limits for claims by Local Bodies 

312. A local body should prefer its claims for any amount which the Government have sanctioned for payment to it not later than the latest date specified by the Government for the payment or, if the Government have not specified any such date in respect of a particular payment or class of payments, within six months, from the date on which the local body receives the orders of the Government authorising the payment [See also Article 55 (c)]. 

In the case of water supply and drainage schemes or other works for which the Government have promised a grant on the post-payment system, the local body concerned should prefer its claims for the grant within six months of the execution of the work (or instalment of the work, where the work is executed and paid for in separate instalments) unless the local body has been definitely informed that the Government will consider the claim only after provision has been included for the purpose in the budget, in which case the claim for the grant should be preferred within six months of the execution of the work or within one month of the date of receipt of information that provision is available in the budget, whichever is later. 

Arrear Claims of Local Bodies 

313. A claim preferred by a local body after the latest date specified for it should not be paid without specific sanction of Government in each case. In the case of statutory grants, the Government will summarily reject every arrear claim which is made after the expiry of three years subsequent to the year in which the claim fell due, and in the case of non-statutory grants and other amounts due by the Government, they will summarily reject all arrear claims (See also Article 60). 

Note:— In the case of items of revenue collected by the Revenue Department on behalf of local bodies, the payment will be sanctioned by such authorities as may be specified by the Government from time to time. 

🆀 Arrear claims including those relating to statutory grants will be sanctioned by Government when the claim is preferred within ____________ years subsequent to the year in which the payment was due. 

A:-One year 

B:-Three years 

C:-5 years 

D:-Six years 

Correct Answer:- Option-B:-Three years 

🆀What is the time limit prescribed for claiming a grant by a local body for a work done for which the Govt has promised a grant? 

(A) Within 2 months

(B) Within three months 

(C) Within six months

(D) Within one year

Correct Answer: Option: (C) Within six months

🆀 Accounts of the Local bodies are audited by __________. 

 A:-Chartered Accountants 

 B:-Auditors appointed by local bodies 

 C:-Director of co-op-Audit 

 D:-None of the above 

 Correct Answer:- Option- D:-None of the above