CHAPTER V: FUND, ACCOUNTS AND AUDIT
This chapter details how the Pollution Control Boards are financed and how their money is managed and audited.
Section 32: Contribution by Central Government
- Simple Translation: The Central Government can give funds to the State Boards every year to help them do their job, provided the money has been approved by the Parliament.
- Proviso: This funding rule is generally for new State Boards. If a State Board was already established under the Water Act (and its fund is legally allowed to be used for air pollution work), this special contribution section doesn’t apply.
Section 33: Fund of Board
- (1) Fund Source and Use:
- Simple Translation: Every State Board must have its own official bank fund. All money it receives (fees, contributions, grants, donations, etc.) goes into this fund, and all its operational expenses are paid from it.
- (2) Expenditure:
- Simple Translation: The State Board can spend whatever amount it thinks is necessary to perform its legally assigned duties.
- (3) Exemption: This simply reiterates that the fund rules don’t necessarily apply to existing Boards established under the Water Act if that Act already covers their finances for air pollution control.
Section 33A: Borrowing powers of Board
- Simple Translation: The Board can raise money by taking out loans or issuing financial instruments (like bonds or debentures) if it first gets the permission or follows the instructions of the Central or State Government.
- Real-world Example: To fund a large, multi-year project to modernize all its monitoring labs, the Central Board gets consent from the Central Government to issue a series of “Pollution Control Bonds” to investors.
Section 34: Budget
- Simple Translation: Every Central and State Board must prepare an annual budget (detailing expected income and planned expenses) in the prescribed format and time, and submit it to their respective governments.
Section 35: Annual report
- (1) Central Board Annual Report:
- Simple Translation: The CPCB must prepare a detailed annual report on all its activities in the previous financial year and send it to the Central Government. The Central Government is then required to present this report to both Houses of Parliament within nine months.
- (2) State Board Annual Report:
- Simple Translation: Every SPCB must prepare its own detailed annual report on its activities and send it to the State Government. The State Government is then required to present this report to the State Legislature within nine months.
Section 36: Accounts and audit
- (1) Accounts Maintenance:
- Simple Translation: Every Board must keep proper and accurate accounts and records and prepare an annual statement of accounts.
- (2) Audit Requirement:
- Simple Translation: The Board’s accounts must be checked (audited) by an external auditor who is qualified to audit companies under the Companies Act.
- (3) Auditor Appointment:
- Simple Translation: This auditor is appointed by the Central or State Government, but only after receiving advice from the Comptroller and Auditor General of India (CAG).
- (4) Auditor’s Access:
- Simple Translation: The appointed auditor has the right to demand and inspect all the Board’s financial books, documents, vouchers, and can inspect any of the Board’s offices.
- (5) Report Submission:
- Simple Translation: The auditor must send the final audit report (along with the audited accounts) to the respective Central or State Government.
- (6) CPCB Report to Parliament:
- Simple Translation: The Central Government must ensure the CPCB’s audit report is presented to both Houses of Parliament.
- (7) SPCB Report to Legislature:
- Simple Translation: The State Government must ensure the SPCB’s audit report is presented to the State Legislature.