1884 : An External Audit Branch was created in the office of the Accountant General,Mumbai in 1884 to audit locally the accounts of certain Department,Trust funds etc Which were not subject to the regular audit of the Account General.
1894 : In 1894,this scheme was extended to the local audit of municipalities in Sind,and to the Municipalities in the Northern Division.
1907 : In 1907,this scheme was extended to other Municipalities,District Local Boards and Cantonment Funds and New Department was placed under an officer of the enrolled list of FinANCE Department of Government Of India,Who was designated as the examiner of Local Fund Accounts.
1913 : The Department was reorganised in 1913 and the audit of Taluka Local Boards,Civil hospitals and some other accounts was added to its mandate.
1930 Act : Prior to the passing OF Local Fund Audit Act,1930,the Examiner was the auditor for Local Boards vide General Department’s GR NO.273,dt.12.01.1907 and for Municipalities,vide General Department GR NO.2092 dt.03.04.1907.
1932 : The Examiner became the Statutory Auditor for Local Bodies,Municipalities,School Boards and Notified Area Committees after promulgation of the Loacl Fund Audit Act and Notification NO.7679 dt.23.03.1931 and Notification NO.9270 dt.04.11.1932 issued under section 4 of the Act.
1958 : The Department was always under the administrative control of the Auditor General of India, since its creation. The Local Fund Audit Department was brought under the control of the State Government with effect from 01.05.1958; vide the Finance Department Resolution No TRA-1657-805-C-G-3, dt.30.04.1958 of the Government of Bombay.
1960 : As per section 6 of the Bombay Local Fund (Extension and Amendment) Act 1960, the Examiner, Local Fund Accounts was re-designated as the Chief Auditor of Local Fund Accounts.
1961 : The Local Fund Audit DEaprtment was brought under the control of this Directorate vide GR dt.27.12.1961 of FD NO. MAS – 1161/12791-XV.
1964 : The Maharashtra Village Panchayats (Audit and Accounts) Rules were accordingly amended to give effect to this decision vide Government Notification dt.19.10.1964 of Rural Development Department No. VPA-1164/GO-992 and the entire Audit establishment was transferred from the Collectors to the Chief Auditor vide GR dt. 20.10.1964 of FD No. DAT-1264 / 5789 / 64-Xii.
2008 : The Government felt that it was necessary to create a separate Directorate of Local Fund to audit all the Local bodies and vide the GR dt. 28.05.2008 of FD No.सेवा.प्र.20.08 /प्र.क्र 79/2/कोषा.प्र-3, a separate Directorate for Local Fund Accounts was constituted and vide the GR dt. 01.08.2008 of FD No.सेवा-प्र.20.08 /प्र.क्र 197/कोषा.(प्र-3), the Chief Auditor (LFA), was declared as Head of the Department.
2011 : Further vide GR dt.18.04.2011 of FD No. सेवा प्र. 2011 /प्र.क्र.71/ कोषा.प्रशा-3, the Directorate of Local Fund Accounts was renamed as the Directorate of Local Fund Accounts Audit (DLFAA). The designations such as Chief Auditor, Joint Chief Auditor, Deputy Chief Auditor (Senior), Deputy Chief Auditor (Junior) were changed to Director, Joint Director, Deputy Director, Assistant Director respectively.
Present set up of the Directorate:
This Directorate has six Regional Offices of the Joint Director at Navi Mumbai, Pune, Nashik, Aurangabad, Amravati and Nagpur. The Director (LFA), is responsible for the administration of all the offices under DLFAA. He/She also suggests the amendments in accounts matters based on the findings in the audit of Local bodies and advises w.r.t all audit matters pertaining to the Local Bodies. There are 6 Regional Offices and 34 District Offices in the State. The Directorate conducts Annual Inspection of the 2 Regional Offices and 12 offices of Assistant Director (LFA) every year.
As per the recommendations of the 13th Finance commission and vide GR dt.31.03.2011 of FD No. Sthanile-1010/Pr.Kr.26 (b)/Vima Prashasan, the audit of all Municipal Corporations in the State is entrusted to the DLFAA. The Audit wing of the Municipal Corporation is under the control of the Joint Director (Municipal Corporation Audit) which is divided into three Sub Divisions vide GR dt.06.10.2012 of FD No.Seva.pra.2012/Pr.Kr.99/Kosha (Prasha-3). Each Sub Division is headed by a Deputy Director.
The total number of posts sanctioned for DLFAA are 1298, vide GR dt.28.05.2008 of FD No.Seva.pra.20.08/pra.kra.79/kosha (pra-3). Further 119 posts were created in DLFAA for the Audit wing of Municipal Corporation vide GR dt.23.02.2012 of FD No.Misc.1011/Pr.Kr.1271/kosha.pra-3. Thirteen posts for the office of Assistant Director (LFA) were created for the newly formed Palghar District, as per GR dt.20.08.2014 of FD No.Napani.20.14/Pra.kra.79/kosha.pra-3, thus increasing the total posts under DLFAA to 1430.
The Organizational Set up of the offices of the Directorate is as follows:
|Sr.No.||Type of Auditee Institute||No. of Institutions|
|4||Municipal Corporations||26 #|
School Boards under Municipal
Council / Municipal Corporation
Agriculture Universities / Maharashtra
Animal and Fishery Sciences University
|8||Village Panchayats||27,909 *|
# The audit of all Municipal corporations by DLFAA commenced from the year
* The number of Village Panchayats to be audited may vary from year to year as per
the income of the Panchayat in a particular year.