Section 257. Action by municipality on audit report.

(1) The municipality shall, on the report of the audit agency and may on its own motion, after taking the explanation of the person concerned or making such further enquiry as it may consider necessary, charge any person responsible for irregular expenditure pointed out by the audit agency or the amount of any deficiency or loss caused by the negligence or misconduct of such person or any sum received which ought to have been, but is not brought into account by such person, and shall, in every such case, certify the amount due from such person. (2) The municipality shall in writing state the reasons for its decision in respect of every charge and send a copy thereof to the person against whom it is made.