Lucal fund audit function under the adminstration of Finance Deprtment Punjab. It is headed by Director General LFA who is usually a Grade 20 Officer. The main function of Local Fund Audit Department is to carry out audit of the accounts of Local Councils and other institutions in Punjab(Public Fund).

In Punjab , there is a divisional director(Grade 18 or 19) in every divisional Head Quarter of the Province. ADs are either posted in divional office or serve as Resident Auditor in TMAs and other institution falling under the jursidiction of Local Govt.
In addition to audit, this department performs the following functions:

1: Verification of pension cases of member of the Punjab Councils(Union,Tesil and District) Unified Grade Service and employees of all the auditees where pensionery benefits have been extended by Government and issue of pension admissibility certificates thereof.
2: Verification and fixation of pay of all members of Punjab Councils Unified Grade Service of Local Councils and other miscellaneous institutions in Punjab.
3: Certification of title of leave in respect of member of Punjab Councils Unified Grade Service.
4: Guidelines and issuance of advices to local councils etc in financial matters and proper maintenance of accounts.
5: Carrying out Audit of various Governements that fall under the jurisdiction of Local Fund Audit Deptt.
6: Supervising stock takings of various Govt Departments if directed by any other Govt department/ministry.

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