Para 2.6.26 — MSO (Audit)
Original Rule Text
2.6.26 Unless otherwise provided, the audit of the accounts of non-commercial autonomous bodies entrusted to the Comptroller and Auditor General under the relevant Acts setting up these bodies should be conducted in accordance with the general principles and rules prescribed by him to regulate the audit of Government accounts. These principles and rules are to be followed for audit of the accounts of any local fund, public or quasi-public fund or non-Government institution or any other body or authority also, unless otherwise provided. The broad aim of Audit should be to ascertain how well these bodies are discharging their financial responsibilities and how far the funds placed at their disposal are utilized in fulfilment of the objects envisaged by Government. In this context, it should be examined whether:
(i) the objectives of the organization have been clearly defined and are in conformity with the Government’s policies and decisions;
(ii) policies and programmes have been formulated in accordance with these objectives and are being implemented based on specific and well defined procedures;
(iii) systems exist for the collection and collation of reliable progress reports on the implementation of policies and programmes;
(iv) progress is reported periodically to the Governing body of the organization and Government and such reports are adequate, timely and accurate; and
(v) internal control mechanisms are adequate and effective.
What This Means
When auditing non-commercial autonomous bodies, the CAG applies the same general principles used for government accounts, unless their founding legislation says otherwise. The core objective is to assess how well these bodies manage their finances and whether the funds given to them are being used for the purposes intended by the government. Auditors must check whether the organization's objectives align with government policy, programs are being implemented properly, reliable progress reports exist, governance bodies are kept informed, and internal controls work effectively.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Audit of non-commercial autonomous bodies follows the same rules as government accounts unless otherwise specified
- 2The same applies to local funds, public/quasi-public funds, and non-government institutions
- 3Broad audit aim: assess financial responsibility and whether funds fulfill intended objectives
- 4Five specific areas must be examined: objectives clarity, program implementation, progress reporting, governance reporting, and internal controls
- 5Progress reports to governing body and government must be adequate, timely, and accurate
Practical Example
The CAG audits the National Commission for Women. The audit team verifies that the Commission's objectives match the government's policy on women's empowerment, that its programs (legal aid, complaint handling) are implemented with defined procedures, that quarterly progress reports are sent to its governing council and the Ministry of Women and Child Development, and that internal controls prevent unauthorized expenditure. They find that progress reports are submitted 6 months late, which is flagged as a deficiency.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What is a 'non-commercial autonomous body'?▼
Can the CAG audit apply different standards to different types of bodies?▼
What is meant by 'internal control mechanisms'?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.