CHAPTER 18
CENTRAL
AUDIT AND LOCAL AUDIT
കേന്ദ്ര ഓഡിറ്റിന്റെ സംവിധാനം വിവിധ സംസ്ഥാനങ്ങളിൽ സ്ഥിതിചെയ്യുന്ന അക്കൗണ്ടന്റ്സ് ജനറലിന്റെ (ഓഡിറ്റ്) ഓഫീസുകളിൽ ഒതുങ്ങുന്നു. ട്രഷറികൾ, പൊതുമരാമത്ത് / വനം ഡിവിഷനുകൾ, മറ്റ് വകുപ്പുതല അതോറിറ്റികൾ തുടങ്ങി വിവിധ വിതരണ ശാലകൾ സമർപ്പിച്ച അക്കൗണ്ടുകൾ, വൗച്ചറുകൾ, ഷെഡ്യൂളുകൾ, മറ്റ് രേഖകൾ എന്നിവ അടിസ്ഥാനമാക്കിയാണ് സെൻട്രൽ ഓഡിറ്റ്. ഓരോ ഓഫീസിന്റെയും ആസ്ഥാനത്തെ സെൻട്രൽ ഓഡിറ്റ് പാർട്ടികൾ വഴിയാണ് ഇത് നടത്തുന്നത്. ഉത്തരവാദിത്തവും ഉത്തരവാദിത്തവും ഉറപ്പുവരുത്തുന്നതിനായി സെൻട്രൽ ഓഡിറ്റ് പാർട്ടിയിലെ ഓരോ അംഗത്തിനും പ്രത്യേക ചുമതലകളും ഉത്തരവാദിത്തങ്ങളും നൽകിയിട്ടുണ്ട്.
18.2 The following are the duties and functions
carried out in Central audit:
(a) audit of sanctions, agreements, etc.,
(b) audit of vouchers and monthly accounts
according to the quantum;
(c) recording of the objections in the Objection
Book and issue of the objection memos and pursuance with the concerned
departments;
(d) scrutiny and certification of the Finance
Accounts and Appropriation Accounts
.
.
18.3 Central Audit is by and large regularity
and propriety audit.
The principles laid down for such audit are kept in view while conducting central audit. In checking the vouchers furnished in support of the accounts, the more important points to which the auditor devotes his attention are:
The principles laid down for such audit are kept in view while conducting central audit. In checking the vouchers furnished in support of the accounts, the more important points to which the auditor devotes his attention are:
(a) that the vouchers are in the prescribed
form, that they are duly receipted by the payees, that they are in original and
that sub vouchers contains notes of dates of payment;
(b) that the details work up to the totals and
that the totals are in words as well as in figures;
(c) that they bear a Pay order, signed by the
Treasury Officer in the case of vouchers cashed at treasuries or by the
responsible disbursing officer in the case of other vouchers;
(d) that they are stamped “paid”,
(e) that there are no erasures and that any
alterations in the total are attested by the officer concerned as many times as
they are made,
(f) that receipt stamps are affixed to vouchers,
where necessary and that they are punched;
(g) that except in cases in which it is
specifically authorized no payment is made on a voucher or order signed by a
subordinate instead of the head of the office himself and that copies of
sanctions are certified by the sanctioning officer or by a gazetted officer
authorized to sign for him;
(h) that, in all cases in which it is prescribed
that agreement should be effected between two different documents, the fact of
the agreement is noted on both the documents and the note initialled by the
person who makes the agreement;
(i) that if a treasury voucher be paid by
transfer, it is stamped as having been so paid, that the head to which the
amount is credited is noted on it, and that the credit is traced in the Cash
Account when possible;
(j) that fund and income-tax deductions have
been made in strict conformity with the rules.
(k) That no claim against Government not
preferred within the time limit prescribed by Government has been paid without
the authorization of the Accountant General where so required by the State
Financial Rules.
18.4 As mentioned earlier, Audit conducted in a
Central Office of the Indian Audit and Accounts Department is based on accounts
rendered to that office by the various disbursement outlets. The major portion
of the original records, namely, the initial accounts and other books or papers
on which the accounts so rendered are based, are retained in the offices where
they originate. To enable him to assure himself of the accuracy of the original
data on which the accounts and his audit work are based, the Comptroller and
Auditor General has authority to inspect any office of accounts which is under
the control of the Union or of a State Government, including treasuries and
such offices responsible for the keeping of initial or subsidiary accounts, as
submit accounts to him. This authority is exercised by the officers of the
Indian Audit and Accounts Department on behalf of the Comptroller and Auditor
General.
Objects of Inspection and Local Audit
18.5 The primary objects of inspection are (i)
to see that the initial accounts from which the accounts rendered by
departmental officers are compiled, or on which they are based, are properly
maintained in the prescribed forms and that financial rules and orders are
being carried out, and (ii) to test the degree of care exercised by the
departmental authorities responsible for keeping the accounts over the accuracy
of original records. At the same time a test audit is applied to such accounts,
vouchers etc., as are not audited in the Central Audit office or as cannot be
checked adequately except at a local audit. In inspections the purpose of this
test audit is to provide the material upon which a conclusion regarding (i) and
(ii) above may be reached.
18.6 Local audit may be distinguished from
inspection in that its purpose is to audit the initial accounts maintained in
certain Government institutions and offices on the spot. Here the duties of
audit are not confined merely to seeing whether the initial accounts are
maintained in proper form or whether the financial rules are properly observed
but a test audit of accounts is conducted in sufficient detail to verify the
accuracy and completeness of accounts according to the prescribed rules for the
audit of expenditure and receipts of the Union and State Governments.
(A) INSPECTION
Inspection of Treasuries
18.7 The object of inspection of treasuries by
an Audit Officer is to assist the Revenue authorities in establishing a system
of treasury working strictly in accordance with the prescribed rules. It is not
intended that those authorities should be relieved of their responsibilities
for management and inspection, but the Inspection Audit Officer should see
generally that the rules prescribed by Government are understood and observed.
He may also be asked to undertake any special enquiry which Government desires
to be made. He is required to see:
(i) that the procedure observed at treasuries
meets all the requirements of audit and that accounts are properly maintained;
and
(ii) that orders regarding this custody and
handling of cash and other valuables and the control of balances are duly
observed.
No responsibility for physical verification of
balances of cash, stamps, or opium, however, rests on the Inspecting Audit
Officers or indeed on the Indian Audit and Accounts Department.
18.8 Where audit on the spot has been
prescribed, this is conducted at the inspection. For this purpose, the original
vouchers and other accounts documents requiring examination or verification are
brought from the Audit Office, and the check of these documents previously
exercised by the Treasury Officer is reviewed completely.
18.9 The scope of the inspections of treasuries
is extended also to seeing, on behalf of the Government concerned or the
Reserve Bank as the case may be (i) that
the orders issued by the competent authority regarding the custody and handling
of treasure and the control of the balances are duly observed, (ii) that the
standing order relating to coins, currency , and remittances of treasure are
clearly understood by the Treasury Officer and his staff, and duly observed in
practice, and (iii) that the registers and forms prescribed for recording
receipt and disposal of Securities are maintained correctly.
18.10 The Inspecting Officer sees that
irregularities brought to notice at the previous inspection have been remedied
and that the correct procedure is being observed in respect of all matters, the
procedure relating to which was considered defective previously.
Inspection of Public Works Divisions
18.11 The primary objects of inspection are (i)
a test audit of such accounts, vouchers etc., as are not audited in the audit
office or as cannot be checked completely except at a local audit; (ii) an
examination of initial accounts from which the accounts rendered by Divisional
Officers are compiled or on which they are based, so that it may be seen that
those accounts are properly maintained in the prescribed forms and (iii) a
review of the work of Divisional Accountant posted by the Accountant General so
that it may be seen that the Accountant discharges his duties with efficiency.
18.12 The inspecting officer do not merely
confine himself to the routine audit and inspection work. He is allotted one
major work or two minor works, whether completed or in progress, for a complete
analysis and examination of these accounts since commencement. He also avails
himself of the opportunity of assisting the officers of the Public Works
Department with his advice in matters affecting the accounts or the financial
regularity of transactions. He also finds scope for making suggestions bearing
on the economy of public money.
18.13 For example, in a public works division he
may find that there are chronic delays either in measuring work done or in
making payments after measurements have been taken and that such delays lead to
enhancement of rates. He may notice that no attempt is made to introduce
competition amongst contractors, or that the arrangements for giving out
contracts for work or supplies are otherwise so defective as to suggest that
possibly Government does not receive full value for payment made.
(B) LOCAL AUDIT
Necessity for local audit
18.14 The main purpose of the local audit is to
conduct a test check of the accounts for a particular period to verify the
accuracy and completeness of accounts. It is also seen (a) that the vouchers
not required to be sent to the Audit Office are kept on record duly cancelled
and (b) that entries in the local accounts are properly vouched.
General arrangements for local audit
18.15 The periodicity, scoop and extent of local
audit of the departmental offices and offices of authorities and bodies whose
audit is entrusted to the Comptroller and Auditor General are determined by the
Comptroller and Auditor General. Based on the guidelines issued by the
Comptroller and Auditor General, the Accountants General/ Directors of Audit
prepare an annual programme of inspections on the basis of offices to be
inspected and the periodicity for inspection of different offices. The
periodicity is decided with reference to the quantum of contingent expenditure
incurred and the importance of the units on the pattern of administration
obtaining in each State. Local audit is conducted by sending peripatetic
parties to the departmental offices periodically or through establishment of
concurrent resident audit officers at the site of the departments or agencies
concerned.
18.16 The classes of accounts with which the
local audit staff deals are so varied that any general rule and instruction
applicable to local audits could not possibly be laid down. The essential
object of accounts of any institution is to present a definite financial
picture and intelligent audit is impossible unless there is some consideration
of the general financial picture as well as investigation of the details of the
transactions, the mass of which work to the financial result. The local audit
staff before taking up the audit of any particular institution has, therefore,
to study the system of accounts and books prescribed, to see why they have been
prescribed and how far they fulfil the desired end. The staff members have also
to consult the periodical administrative report or any other Government
publication, where the accounts of income and expenditure of the institution
appear, to obtain a correct perspective of the financial side of the
institution. An important element of local audit is the examination of adequacy
and efficiency of internal control procedures. The economy and efficiency with
which various development programmes and schemes are implemented and programme
results achieved is also checked in local audit.
18.17 The initial and subsidiary accounts are
examined to see that they are properly maintained in the prescribed form; that
financial rules and orders are being carried out and that adequate care and
scrutiny are being exercised by the departmental officers to ensure their
accuracy. The tender documents leading to the award of a contract for a work or
supply of machinery, equipment, stores etc., the contract, the design and
estimates, the project feasibility report, periodical appraisal reports of a
project, cost documents, papers leading to a financial sanction or decision
etc., are scrutinized. The purpose of this local test audit is to provide the
material for reaching a conclusion in regard to proper maintenance of initial
and subsidiary accounts and observance of financial rules and orders.
Audit of Establishment Charges
18.18 The pay allowances, overtime allowance
claims, children’s education claims, reimbursement of tuition fees claims and
T.A. Bills are checked with reference to the local records kept in the
departmental accounts offices to satisfy about the correctness of the
certificates on the basis of which the claims have been drawn and to see that
the rules and regulations in regulating such claims have been followed.
(I) ഗസറ്റഡ് അല്ലാത്ത ഓരോ സർക്കാർ ജീവനക്കാർക്കും ഒരു സേവന പുസ്തകം പരിപാലിക്കപ്പെടുന്നുണ്ടോയെന്ന് പരിശോധിക്കാൻ സേവന പുസ്തകങ്ങൾ പരിശോധിക്കുന്നു (ii) ഒരു സർക്കാർ ജീവനക്കാരന്റെ car ദ്യോഗിക കാരിയറിലെ എല്ലാ ഇവന്റുകളുടെയും എൻ‌ട്രികൾ സേവന പുസ്തകത്തിൽചേര്‍ക്കുകയും യോഗ്യതയുള്ള അതോറിറ്റി സാക്ഷ്യപ്പെടുത്തുകയും ചെയ്യുന്നു; (iii) യോഗ്യതയുള്ള അധികാരത്തിന്റെ അനുമതിയില്ലാതെ ജനനത്തീയതിയിൽ ഒരു മാറ്റവും വരുത്തുന്നില്ല; ഒന്നാം പേജിലെ എൻ‌ട്രികൾ ഓരോ അഞ്ച് വർഷത്തിലും വീണ്ടും സാക്ഷ്യപ്പെടുത്തുന്നു; (iv) സേവന സ്ഥിരീകരണത്തിന്റെ വാർഷിക സർട്ടിഫിക്കറ്റ് സേവന പുസ്തകത്തിൽ രേഖപ്പെടുത്തിയിട്ടുണ്ട്. എൻ‌ട്രികൾ പേ നിരകൾ അംഗീകരിക്കുന്നുവെന്ന് കാണുന്നതിന് വിശദമായ ഓഡിറ്റിനായി തിരഞ്ഞെടുത്ത മാസത്തിലോ മാസത്തിലോ ഉള്ള ശമ്പള ബില്ലുകളുടെ ഓഫീസ് പകർപ്പുകളെ പരാമർശിച്ച് പരിശോധിക്കുന്നു. സേവന പുസ്തകങ്ങളുടെ പരിശോധനകളുടെ അളവ് നിർദ്ദേശിക്കപ്പെട്ടിട്ടുണ്ട്, അതിനാൽ പെൻഷൻ പരിശോധിക്കുന്നതിനുള്ള ഏക രേഖകൾ സേവന പുസ്തകങ്ങളായതിനാൽ ഓരോ സേവന പുസ്തകവും നാല് വർഷത്തിലൊരിക്കൽ പരിശോധിക്കപ്പെടും.
18.20 In the service books selected for check,
the correctness of pay and increments allowed to the Government servant from
time to time for the period to which the check of service books relates, is
also to be checked.
18.21 It is also checked that no payment has
been made to a Government servant beyond his attaining the age of
superannuation or on the expiry of term of extension of service sanctioned by
competent authority. The audit endorsement duly signed by the incharge of the
inspection party is required to be made in the service books checked during the
local audit.
18.22 A test check of the leave accounts
including accounts of persons likely to retire or likely to complete 30 years
of qualifying service are checked in detail.
Results of Inspection and Local Audit
18.23 The results of the inspection and local
audit are set forth in two separate documents:
(i) the inspection report detailing the more
important defects of procedure and financial irregularities and describing
briefly the general state of the accounts and the nature of the financial
control over transactions;
(ii) the Test Audit Note dealing with errors and
minor irregularities which are not important enough to be brought to the notice
of higher authority.
18.24 As a rule trifling matters which, can be
and have been set right on the spot or are of no consequence to the finances of
Government, are not mentioned, but if a number of similar points are noticed,
they are brought to notice, mentioning the type of error or irregularity with
one or more instances, so that proper instructions may be issued for future
guidance of the Government servants concerned. Improper and irregular
individual transactions are identified and cited as examples to demonstrate the
significance of faculty practices and promote the acceptance of constructive
recommendations designed to save money, avoid improper payments or other losses
or promote operational efficiency.
18.25 The statements and figures in relation to
any defects or irregularities evidence. Instead of quoting the rules or the
order violated, the actual or possible effect of such deviation on the
financial interest of Government is to be explained clearly. Particular care is
taken in regard to the language and tone of the report.
18.26 The Inspection Report is completed by the
Inspecting Officer before the audit of the office inspected is closed and it is
not signed until the officer-in-charge of the Office (or any other officer
acting on his behalf) has been given the opportunity for reading and discussing
it and suggesting any omissions or modifications. The inspection report is kept
as brief as possible but the points raised in it are pursued until finally
settled. The Test Audit Notes does not require a reply in detail, but it is
verified at a subsequent inspection that necessary action has been taken on it.