20. Budget of National Authority.— (1) The National Authority shall prepare its budget for the next
financial year, showing the estimated receipts and expenditure of the National Authority and forward the
same to the Central Government, in such form and at such time in each financial year as may be
prescribed.
(2) The National Authority, shall adopt financial regulation and procedures, in particular the
procedure for drawing up and implementing the budget of the National Authority as may be prescribed.
21. Investment of funds by National Authority.— The National Authority may invest its funds,
including any reserve fund, in the securities of the Central Government and in scheduled banks in such
manner as may be prescribed:
Provided that the grants received from the Central Government shall not be invested and shall be
utilised for the purposes and in the manner attached to it.
22. Accounts and audit of National Authority.—(1) The National Authority shall maintain proper
accounts and other relevant records and prepare an annual statement of accounts in such form as may be
prescribed in consultation with the Comptroller and Auditor-General of India.
(2) The accounts of the National Authority shall be audited by the Comptroller and Auditor-General
of India at such intervals as may be specified by him and any expenditure incurred in connection with
such audit shall be payable by the National Authority to the Comptroller and Auditor-General.
(3) The Comptroller and Auditor-General and any other person appointed by him in connection with
the audit of the accounts of the National Authority shall have the same right and privileges and authority
in connection with such audit as the Comptroller and Auditor-General generally has in connection with
the audit of the Government accounts and, in particular, shall have the right to demand the production of
books, accounts, connected vouchers and other documents and papers and to inspect the office of the
National Authority.
(4) The accounts of the National Authority as certified by the Comptroller and Auditor-General or
any other person appointed by him in this behalf together with the audit report thereon, shall be forwarded
annually to the Central Government by the National Authority.
(5) The Comptroller and Auditor-General shall, within a period of six months from the date of
commencement of the Act, audit the accounts of the all monies collected by the State Governments and
Union territory Administrations, which has been placed under the ad hoc Authority and deposited in the
nationalised banks and submit the report to the Central Government under this section.
(6) The Central Government shall have the power to conduct the special audit or performance audit of
the National Fund and of the National Authority through the Comptroller and Auditor- General.
23. Annual report of National Authority.— (1) The National Authority shall prepare, its annual
report, giving a full account of its activities during the previous financial year and forward a copy thereof
to the Central Government, in such form and at such time, for each financial year, as may be prescribed.
(2) The annual report shall, inter alia, provide for—
(i) the summary of monitoring and evaluation of activities undertaken from amounts released
from the National Fund and State Funds during the year;
(ii) the summary of specific schemes specified in sub-clause (iii) of clause (b) of section 5
executed during the year;
(iii) the amount of money received and expended.
24. Annual report and audit report of National Authority to be laid before
Parliament.—The Central Government shall cause the annual report and audit report together with a
memorandum of action taken on the recommendations contained therein to be laid as soon as may be after
the reports are received before each House of Parliament.
15
25. Budget of State Authority.—(1) Each State Authority shall prepare its budget for the next
financial year, showing the estimated receipts and expenditure of the State Authority and forward the
same to the State Government, in such form and at such time, in each financial year, as may be
prescribed.
(2) Each State Authority shall adopt financial regulation and procedures, in particular the procedure
for drawing up and implementing the budget of the State Authority as may be prescribed.
26. Investment of funds by State Authority.—State Authority may invest funds available in the
State Fund of such State in the securities of the Central Government and in scheduled banks in such
manner as may be prescribed:
Provided that the grants received from the State Government shall not be invested and shall be
utilised for the purpose and in the manner prescribed.
27. Accounts and audit of State Authority.—(1) Each State Authority shall maintain proper
accounts and other relevant records and prepare an annual statement of accounts in such form as may be
prescribed in consultation with the Comptroller and Auditor-General of India.
(2) The accounts of each State Authority shall be audited by the Comptroller and Auditor-General at
such intervals as may be specified by him and any expenditure incurred in connection with such audit
shall be payable by the State Authority to the Comptroller and Auditor-General.
(3) The Comptroller and Auditor-General and any other person appointed by him in connection with
the audit of the accounts of the State Authority shall have the same right and privileges and authority in
connection with such audit as the Comptroller and Auditor-General generally has in connection with the
audit of the Government accounts and, in particular, shall have the right to demand the production of
books, accounts, connected vouchers, other documents and papers and to inspect the office of the State
Authority.
(4) The Accounts of the State Authority as certified by the Comptroller and Auditor-General or any
other person appointed by him in this behalf together with the audit report thereon, shall be forwarded
annually to the State Government by the State Authority.
(5) The Comptroller and Auditor-General shall, within a period of six months from the date of
commencement of the Act, audit the accounts of all the monies which have been transferred by the ad
hoc Authority to the State Compensatory Afforestation Fund Management and Planning Authorities
constituted in the States in compliance of guidelines dated the 2nd July, 2009 and submit the report to the
State Government under this section.
(6) The Central Government and the State Government concerned shall have the power to conduct the
special audit or performance audit of the State Fund and of the State Authority through the Comptroller
and Auditor-General.
28. Annual report of State Authority.—(1) Each State Authority shall prepare its annual report,
giving a full account of its activities during the previous financial year and forward a copy thereof to the
concerned State Government, in such form and at such time, for each financial year, as may be
prescribed.
(2) The annual report of a State Authority shall, inter alia, provide for—
(i) the number and location of each reforestation, afforestation and conservation activity subject
to the requirement of this section;
(ii) the amount and location of lands in hectares, cleared, conserved and planted in connection
with the activity; and
(iii) the amount of afforestation money collected and expended.
29. Annual report and audit report of State Authority to be laid before State Legislature.—The
State Government shall cause the annual report and the audit report together with a memorandum of
action taken on the recommendations contained therein to be laid as soon as may be after the reports are
received before each House of the State Legislature:
16
Provided that in case of a Union territory having no legislature, the Central Government shall cause
the annual report and the audit report together with a memorandum of action taken on the
recommendations contained therein to be laid as soon as may be after the reports are received before each
House of the Parliament.