The Kerala Local Fund Audit Department takes its present form from the three sister
units of Audit Department of the former Travancore, Cochin and Madras States following
the formation of Kerala State comprising the areas which were under the administration of
the three states.
The formation of this Department is correctly attributable to the constitution and
growth of authorities intended for the local administration of the urban and rural areas in the
respective parts of the state.
In the Travancore area the Local Fund Audit Department was constituted in the
erstwhile Princely state of Travancore in the year 1942. Prior to this, the audit of the Local
Bodies in the state was conducted by the Travancore Accountant General.
The accounts of the Municipalities of the former Cochin state were under the audit
control of the Accountant General, Cochin. In the year 1949, the former states of Travancore
and Cochin were integrated and the united states of Travancore Cochin came into existence
on 1-7-1949. Consequent on integration of the states, the agency for audit of Municipal
councils coming under the former Cochin areas transferred to this Department. In the
year 1950, the Travancore - Cochin Panchayat Act was enacted and audit of accounts of
Panchayats was entrusted to this Department.
In the year 1952, the Examiner of Local Fund Accounts was appointed by the
Travancore Cochin High Court of Judicature as the Auditor of Travancore and Cochin
Devaswom Boards which was terminated in 1955. In the same year, the periodical audit of
the Courts subordinate to the Travancore Cochin High Court was entrusted with this
department. Several grant in aid institutions were also placed under the audit control of this
Department by govt. The Examiner has also been appointed as the Treasurer of Charitable
Endowments for the state in 1952.