Functions and responsibilities of the Nazim,
Vie Council and Neighborhood Council:

 

  1. The Nazim of village council and neighborhood council shall:
  2.  

    1. Provide leadership for council-wide development and preparation of budget;
    2.  

    3. Organize management of municipal infrastructure with in the area of respective village council or Neighborhood council;
    4.  

    5. Chair panels of members constituted for amicable Settlement of disputes;
    6.  

    7. Report to tehsil municipal administration and district Government in respect of:
    8.  

      1. Violation of land use plans, building codes, rules and bye-laws;
      2.  

      3. Encroachment on state and local government property;
      4.  

      5. Sale and trade of dangerous and offensive articles;
      6.  

      7. Adulteration of articles of food; and
      8.  

      9. Breach of public water courses within the area of the village council or neighborhood council.
      10.  

    9. Prepare and send quarterly reports on the performance of functionaries of all offices located in the area including education, health, public health engineering, agriculture, livestock, police and revenue to tehsil municipal administration and district government.
  1. The Nazim, village council or the Nazim neighborhood council, as the case may be, shall be responsible for any loss flowing from his decisions and directions in violation of this Act or any other law for the time being in force and for expenditures incurred without lawful authority.
  1. The Nazim, neighborhood council shall represent the council in the special units created under section23 of this Act.

Functions of the Village Council or Neighborhood Council.

  1. Functions of the village council and neighborhood council, as the case may be, shall be to:
  2.  

    1. Monitor and supervise the performance of functionaries of all government offices located in the area of the respective village council or neighborhood council, including education, health, public health engineering, agriculture, livestock, police and revenue, and hold them accountable by making inquiries and reports to the tehsil municipal administration, district government or, as the case may be, the Government for consideration and action;
    2.  

    3. Provide effective forum for out of court amicable settlement of disputes and, for this purpose, constitute panels of members as conciliators;
    4.  
       

    5. Register births, deaths and marriages;
    6.  

    7. Implement and monitor village level development works;
    8.  

    9. Improve water supply sources, maintain water supply distribution system and take measures to prevent contamination of water;
    10.  

    11. Maintain village level infrastructure, footpaths, tracks, streets, prevent and abate nuisances and encroachments in public ways, public streets and public places;
    12.  

    13. Maintain and improve collective property including playgrounds, graveyards, funeral places, eid-gah, parks, public open spaces and community centers;
    14.  

    15. Identify development needs of the area for use by municipal administration and district government in prioritizing development plans;
    16.  

    17. make arrangements for sanitation, cleanliness, disposal of garbage and carcasses,drainage and sewerage system;
    18.  

    19. Display land transactions in the area for public information;
    20.  

    21. Mobilize community for maintaining public ways, public streets, culverts, bridges and public buildings, desilting of canals and other development activities;
    22.  

    23. Develop sites for drinking and bathing of cattle;
    24.  

    25. Organize cattle fairs and agriculture produce markets;
    26.  

    27. Organize sports teams, cultural and recreational activities;
    28.  

    29. Organize watch and ward in the area;
    30.  

    31. Promote plantation of trees, landscaping and beautification of public places;
    32.  

    33. Regulate grazing areas, establish cattle ponds and provide protection against stray animals and animal trespass;
    34.  

    35. Consider and approve annual budget presented by the respective Nazim, village council or Neighborhood council;
    36.  

    37. Facilitate formation of voluntary organizations for assistance in functions assigned to it;
    38.  

    39. Facilitate the formation of co-operatives for improving economic returns and reduction of Poverty;
    40.  

    41. Elect an Accounts Committee and review its recommendations on the annual statement of accounts and audit reports;
    42.  

    43. Report cases of handicapped, destitute and of extreme poverty to district government.
  1. The respective village council or neighborhood council shall assist district government and tehsil municipal administration in conducting surveys, collecting socio-economic data and selecting sites for municipal and social facilities and services.

LOCAL GOVERNMENT FINANCE 
Establishment of Local Funds and Public Accounts:

  1. There shall be established a district fund, a tehsil fund, village fund and neighborhood fund, as the case may be, for each respective local government.
  2.  

  3. To the credit of the respective Fund shall be placed all revenues received by a local government from the following sources:
  4.  

    1. Monies transferred by another local government under this Act;
    2.  

    3. Grants made or monies received from Government or other authorities in Pakistan;
    4.  

    5. The proceeds of taxes levied by a local government under this Act;
    6.  

    7. Rents and profits payable or accruing to a local government from immovable property vested in or controlled or managed by it;
    8.  

    9. Proceeds or any other profits howsoever known or called from bank accounts and investments of a local government;
    10.  

    11. Gifts, grants or contributions by individuals or institutions;
    12.  

    13. Income accruing from markets or fairs regulated by a local government;
    14.  

    15. Fines imposed and recovered under this Act; and
    16.  

    17. Proceeds from other sources of income which are placed at the disposal of a local government under directions of Government.
  1. To the credit of respective Public Account of the local government shall be placed all revenues received by a local government from the following sources
  2.  

    1. Receipts accruing from trusts administered or managed by it;
    2.  

    3. Refundable deposits received by it; and
    4.  

    5. Deferred liabilities.
  1. A local government, may and i f required by Government shall establish and maintain a separate fund for any special purpose to which one or more sources of revenue mentioned in sub-section (2) or any part of these sources or any specified portion of the Fund may be assigned and which shall be administered and regulated in such manner as Fund of the local government.

Custody and Operation of Funds and Public Account

  1. Monies credited to a Fund or a Public Account of a local government shall be kept in the State Bank, Government Treasury, a post office or a bank in such manner as shall be specified by the Government from time to time.
  2. The Funds shall be operated in such a manner as may be prescribed.

Charged expenditure

  1. The following expenditure shall be charged on the Fund of local government, that is to say:
  2.  

    1. Such sums as are required for repayment of debt;
    2.  

    3. Any sum required to satisfy any judgment, decree or award against the local government by any Court or Tribunal;
    4.  

    5. Such sums as the local government may be required by Government to contribute towards the conduct of elections, the maintenance of specified group of functionaries and the auditing of Accounts; and
    6.  

    7. Any expenditure declared by Government to be so charged.
  1. If any expenditure is a compulsory charge on the Fund of a local government and is not paid, Government may, by order, direct the person having the custody of the Fund to pay such amount, or so much thereof as may be possible from time To time, from the balance of the Fund.

Application of Funds

  1. The money credited to the Fund of a local government shall be expended in accordance With annual budget approved by the respective local council.
  2.  

  3. No local government shall transfer monies to a higher level of Government except by way of repayment of debts or for carrying out deposit works or as provided in this Act.
  4.  

  5. Where a new local government is to take over during a financial year as a result of fresh elections, the outgoing local government shall not spend funds or make commitments for any expenditure, under any demand for grant or appropriation, in excess of eight percent per men sum of the Budgeted funds for remainder of its term in office.

34.Budget Preparation

  1. The annual budget for each local government shall contain estimates of:
  2.  

    1. Grants-in-aid from Government;
    2.  

    3. Amounts available in the respective Fund;
    4.  

    5. Receipts for the next year; and
    6.  

    7. Expenditures to be incurred for the next year.
    8.  

  1. The Government shall, sufficiently before the beginning of each financial year, notify the provisional grants, which may be credited to the Fund of a local government from the Provincial Consolidated Fund.
  2.  

  3. No demand for a grant shall be made except on the recommendation of the respective Nazim.
  4.  

  5. Conditional grants from Government or other local government will be shown separately in the budget and will be governed by conditions provided therein.
  6.  

  7. Before the commencement of a financial year each local government shall, for its Fund, prepare in the prescribed manner, a budget for that year.

Approval of Budget

  1. Before the commencement of the next financial year, each Nazim shall, present the budget for Consideration and approval of the respective local council.
  2.  

  3. The budget of a local government shall be approved by simple majority of the total membership of the respective council.
  4.  

  5. No other business shall be taken up by a council during budget session.
  6.  

  7. In case a budget is not approved by the local council before commencement of the financial year to which it relates, Government shall prepare, approve and authenticate budget for the local government.
  8.  

  9. A local council shall not be empowered to approve a budget i f the sums required to meet estimated expenditures exceed the estimated receipts.
  10.  

  11. The Nazim shall authenticate by his signature a schedule specifying the:
  12.  

    1. Grants made or deemed to have been made by the local council; and
    2.  

    3. The several sums required to meet the expenditure charged upon the Fund of the local government.
    4.  

  13. The schedule so authenticated shall be laid before the local council, but shall not be open to discussion or vote thereon.
  14.  

  15. The schedule so authenticated shall be communicated to the respective Accounts Officials and Government.
  16.  

  17. At any time before the expiry of the financial year to which budget relates, a revised budget for the year may, if necessary, be prepared and sanctioned and such revised budget shall, so far as may be, be subject to the provisions of this section.

36.Accounts

  1. The accounts of receipts and expenditure of local governments shall be kept in such form and
  2.  

  3. In accordance with such principles and methods as the Auditor – General of Pakistan may prescribe.
  4.  

  5. The following arrangement for maintaining of accounts in local governments shall be followed:
  6.  

    1. The District Accounts Officer shall maintain the accounts of each district government;
    2.  

    3. The Tehsil Accounts Officer shall maintain the accounts of the tehsil municipal administration;
    4.  

    5. The Village Accountant shall maintain the accounts of village council;
    6.  

    7. The Neighborhood Accountant shall maintain the accounts of neighborhood council; and
    8.  

    9. The Accounts Officer mentioned in clauses (a), (b)
    10.  

    11. And (d) shall perform pre-audit of all payments from the respective Fund before approving disbursements of monies.
  1. The District Accounts Officer shall, quarterly and annually, consolidate the accounts of local governments in the district separately for receipts from the Government and local resources and send a copy to Government, Accountant General and Nazim district council.
  2.  

  3. Local governments shall publish annual accounts for public information.
  4.  

  5. Accounts Committees of the respective local councils shall hold public hearings to consider audit reports, objections to statement of accounts and recommend appropriate action to the local council.

37.Audit

  1. The Auditor General of Pakistan shall, on the basis of such audit as he may consider appropriate or necessary, certify the accounts compiled and prepared by the respective accounts officials of local governments for each financial year, showing annual receipts and disbursements for the purposes of each local government and shall submit certified accounts with such notes, comments or recommendations as he may consider necessary to the Government and Nazim of the respective local council.
  2.  

  3. The Nazim shall cause the audit report to be submitted to the respective local council and the local council shall refer it to its Accounts Committee for examination.
  4.  

  5. Every district government and tehsil municipal administration shall publish its annual audit report for information of public.
  6.  

  7. Every Nazim, district council and tehsil council shall appoint an Internal Auditor as principal support person for provision of information to him and members of the respective local council on fiscal performance of the local government.