Settlement of audit observations of CAG
No mechanism to track compliance after regular intervals
Mohinder Verma
JAMMU, May 25: Several Government departments of the Union Territory of Jammu and Kashmir are soft-paddling on the settlement of audit observations of the Comptroller and Auditor General (CAG) of India even after framing of committees of officers several months back.
This is mainly because COVID-19 has become an alibi for skipping routine official work even for those departments which are remotely connected with the ongoing fight against the deadly virus.
On August 5, 2020, the Comptroller and Auditor General of India issued the Regulations in pursuance of Section 23 of the Comptroller and Auditor General’s (Duties, Powers and Conditions of Service) Act, 1971.
Regulation 145 read: “Government shall establish audit committees for the purpose of monitoring and ensuring compliance and settlement of pending audit observations. Each committee so established shall comprise of a representative each from the administrative department, Audit and a nominee from the Finance Department besides the Head of the Department of the auditable entity”.
However, no immediate attention was paid towards Regulation 145 by majority of the Government departments in Union Territory of Jammu and Kashmir and this was exclusively highlighted by EXCELSIOR in its edition dated January 4, 2021. It was mentioned that Government departments were not ready to understand that the broad objectives of audit are to examine the legality, validity, regularity, propriety, economy, efficiency and effectiveness of financial management and public administration.
On January 10, 2021, the Financial Commissioner, Finance Department Dr Arun Kumar Mehta issued a circular and admitted that vital Regulation of Comptroller and Auditor General (CAG) has not received due attention of several departments and Corporations.
Accordingly, the Financial Commissioner Finance enjoined upon all the Administrative Secretaries to establish audit committees in the entities (departments/PSUs) falling under their respective control in accordance with Regulation 145.
Seeking Action Taken Report from this in this regard within a week’s time, he also laid stress on extending necessary cooperation to the Principal Accountant General for settlement of audit observations, which otherwise remain unaddressed for considerable period of time.
Within few days after the issuance of instructions by the Financial Commissioner, Finance Department, each and every Government department established audit committee for holding meetings on number and gist of audit observations/paragraphs included in the audit report(s) of the CAG of the previous year; number of gist of major irregularities intimated by the Accountant General (Audit) during the previous year, action taken report by the department on these aspects and number of audit observations communicated in draft audit reports/inspection reports issued during the previous year and gist of observations with substantial money value and those with serious internal control lapses.
However, sources in the Accountant General J&K office told EXCELSIOR that only few departments have convened meetings of the audit committees while as majority are soft-paddling on the same.
“The audit committees are comprised of only four-five persons as such there is no difficulty in convening meetings by ensuring social distancing but COVID has become an alibi for the departments to skip even routine work”, they said, adding “even meetings can be convened through video-conferencing but it seems that seriousness towards settlement of audit observations was confined only to the framing of the audit committees”.
The Finance Department had sought Action Taken Report on framing of audit committees but it should also seek information from all the departments vis-a-vis settlement of audit observations ever since the formulation of such committees, sources stressed.
“Tracking compliance after regular intervals is imperative especially in the light of the fact that Accountant General (Audit) has a number of times expressed concern over dilly-dallying approach of the Government departments and corporations towards settlement of audit observations/paragraphs and submission of Action Taken Report”, they said.
As per Regulation 146, which deals with annual public statement regarding pending audit observations, each Head of the Department is supposed to make vital information available on the department website regularly updated in the first quarter of each year.
“Compliance to Regulation 146 depends on strict adherence to Regulation 145 and due to dilly-dallying approach on the part of audit committees the departmental websites don’t have information as has been stressed upon by the Comptroller and Auditor General of India”, they further said.
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