(1) The business of rural municipality and municipality, the accounting system of income and expenditure and the classification of revenue and expenditure titles shall be as prescribed.
(2) The local level shall keep the accounts of its transactions in the format approved by the Auditor General on the recommendation of the Comptroller General's Office.
(3) The chief administrative officer shall submit the quarterly progress of the amount spent from the funds of the rural municipality and municipality to the meeting of the executive body within fifteen days after the end of such period.
(4) The rural municipality, municipality and ward office must publish the details of their income and expenditure within the seventh day of every month.
(5) The rural municipality and municipality shall prepare a quarterly statement of income and expenditure in the local reserve fund and send it to the Federal Ministry of Finance, the State Ministry of Finance, the Ministry and the National Natural Resources and Finance Commission.
(6) If any kind of loss, damage or loss occurs to the government of Nepal, provincial government or local level due to the failure of the employee responsible for keeping the income and expenditure account of the local level, the loss, loss, such loss, shall be recovered from the employee who caused the loss.