According to Section 132 of SLGO 2001, the Local Government Commission will perform the following functions.
a) Conduct annual and special inspections of the Local Governments and submit reports to the Chief Executive of the Province.
b) Conduct on its own initiative or, whenever, so directed by the Chief Executive of the Province, an inquiry by itself or through District Government into any matter concerning a Local Government.
c) Cause on its own initiative or, whenever, so directed by the Chief Executive of the Province, a special audit by itself or direct a District Government to arrange a special audit, of any Local Government.
d) Resolve disputes between any Department of the Government and District Government or between two District Governments. Provided that if the Local Government Commission fails to settle the dispute, the aggrieved party may move the Chief Executive of the Province for resolution thereof;
e) Enquire into the matters referred to it by the District Coordination Officer under the provisions of sub-section (3) of section 28 and by the Government under sub- section (4) of section 30 and give its decision thereon or, as the case may be, make report to the competent authority; and.
f) Submit to the Chief Executive of the Province an annual report on the over-all performance of the District and Taluka /Town level Local Governments.
Section-115. (6) The Local Government Commission of a Province may cause for a special audit of the accounts of a local government as provided for in section 132.
