3.16.38 The principles and procedures prescribed in paragraphs 3.16.35 to 3.16.37 do not apply to transactions pertaining to the Famine Relief Fund and Sinking Funds for loans which are governed by special arrangements.
- Annexure–1 (Referred to in paragraph 3.16.7) Procedure for Audit and Certification of the Finance Accounts and Appropriation Accounts (Civil) of the Union Government
The material for the Union Government Finance Accounts prepared by the Central Accounting Authorities is forwarded simultaneously to the Controller General of Accounts and to the Director General of Audit, Central Revenues, Principal Director of Audit, Economic and Service Ministries, Principal Director of Audit, Scientific Departments, and other accredited Audit Officers. The Audit Officers arrange checking of the material through local audit with reference to the initial records maintained by the accounting authorities. The material so checked by the accredited Audit Officers is sent to the Director General of Audit, Central Revenues, along with the audit certificate (Annexure-4). In the case of Central transactions appearing in the statement of Central transactions and other material furnished by the Accountants General (A&E) of the States and Union Territories and the Director of Accounts, Goa, only the audit certificate is furnished to the Director General of Audit, Central Revenues, by the concerned accredited Audit Officers. The Controller General of Accounts consolidates the materials received by him and makes available copies of consolidated statements to the Director General of Audit, Central Revenues, for checking the consolidation by the local audit party. The audit observations raised at both stages are got settled before finalisation of the various statements. The finalised statements are then received in Central Audit, where they are again examined generally.
2. Audit of the Appropriation Accounts (Civil) of the Union Government is conducted by the Director General of Audit, Central Revenues, Principal Director of Audit, Economic and Service Ministries, Principal Director of Audit, Scientific Departments, and other accredited Audit Officers in two stages; the first stage relates to check of grant portion of each Appropriation Account while the second stage involves scrutiny of each of these Accounts as a whole.
3. The respective accounting authorities furnish to the Director General of Audit, Central Revenues, Principal Director of Audit, Economic and Service Ministries, Principal Director of Audit, Scientific Departments, and other accredited Audit Officers grant statements (columns 1 and 2 of the Appropriation Accounts) supported by certified lists of all re-appropriation and surrender orders issued in respect of each Grant or Appropriation during the financial year and copies of those orders. These are scrutinised and audit comments communicated to the accounting authorities for corrective action before preparation of the Appropriation Accounts of the relevant individual Grant or Appropriation. Every effort is made to get the points raised at this stage settled by the time head-wise Appropriation Accounts are prepared.
4. After the accounts for the year are closed, head-wise Appropriation Account of each Departmentalised Grant/Appropriation is prepared by the accounting authority and sent in batches to the Director General of Audit, Central Revenues, Principal Director of Audit, Economic and Service Ministries, Principal Director of Audit, Scientific Departments, and other accredited Audit Officers for scrutiny, with a copy to the Controller General of Accounts. The second stage of scrutiny starts from this point. These Accounts are initially examined generally in Central Audit and thereafter checked
in Local Audit with reference to the initial records viz., the Classified Abstracts, Appropriation Audit Registers and re-appropriation and surrender orders. The defects/discrepancies noticed in Central Audit as well as Local Audit are then communicated to the accounting authorities for rectification. After the audit observations are satisfactorily met a “No Comments" letter is issued to the accounting authority. On receipt of this letter, the accounting authority furnishes four copies of head-wise Appropriation Account to the Director General of Audit, Central Revenues, Principal Director of Audit, Economic and Service Ministries, Principal Director of Audit, Scientific Departments, and other accredited Audit Officers and one copy to the Controller General of Accounts. Of these four copies, two copies are signed by the Financial Adviser and the remaining two copies are authenticated by the Chief Controller of Accounts/Controller of Accounts. These accounts are again checked in the Central Audit and Local Audit Wings with a view to ensuring that all audit observations have been compiled with. One copy of the head-wise Appropriation Accounts along with the following audit certificate is forwarded by accredited Audit Officer to Director General of Audit, Central Revenues.
“I have examined the above accounts and according to the best of my information, as a result of test audit of the books and consideration of explanations given to me, I certify that the account is correct”.
5. On the basis of head-wise Appropriation Accounts, the Controller General of Accounts prepares the condensed Appropriation Account in respect of each Departmentalised Grant/Appropriation and sends it to the Director General of Audit, Central Revenues. These condensed accounts are scrutinised in Central Audit with reference to the head-wise Appropriation Accounts and returned to the Controller General of Accounts with comment, if any.
6. As the Comptroller and Auditor General has not been relieved of the responsibility for compiling the accounts pertaining to the Indian Audit and Accounts Department, Union Territory Administrations of Dadra and Nagar Haveli, Lakshdweep and Chandigarh and of pensions including pensions to freedom fighters, their dependents etc. and pensions and awards in consideration of distinguished services, the head-wise Appropriation Accounts of these grants are prepared and signed by the authorities indicated below:
(i) Pensions: The head-wise Appropriation Accounts of this grant is prepared and signed by Director General of Audit, Central Revenues on the basis of material furnished by the Accountants General/Principal Directors of Audit and Chief Controller of Accounts, Ministry of Finance (Department of Expenditure).
(ii) Audit: The head-wise Appropriation Accounts of this Grant is prepared by the Director General of Audit, Central Revenues, in his capacity as the Principal Pay and Accounts Officer of the Indian Audit and Accounts Department. These accounts are signed by the Deputy Comptroller and Auditor General of India in his capacity as the Chief Accounting Authority of this grant.
(iii) The head-wise Appropriation Accounts relating to the Union Territories of Chandigarh, Dadra and Nagar Haveli and Lakshdweep are prepared and signed by the Accountants General (A&E), Punjab, Gujarat and Kerala,
respectively and furnished to Director General of Audit, Central Revenues. The audit scrutiny of the head-wise Appropriation Accounts of these accounts is, however, conducted by the Accountants General (Audit), Haryana, Gujarat and Kerala respectively.
7. Seven signatory copies and one ordinary copy of the printed Accounts duly signed by the Controller General of Accounts and countersigned by the Secretary, Ministry of Finance (Department of Expenditure) are sent by the former to the Director General of Audit, Central Revenues, who forwards them for signature of the Comptroller and Auditor General, with the requisite certificate.
- Annexure–2 (Referred to in paragraph 3.16.11)
# Form of Audit Certificate to be furnished by Accountant General (Audit) in respect of Finance Accounts of State Governments
I certify that the accounts compiled by Accountant General (A&E) for incorporation in the Finance Accounts of the Government of ................. ................... for the year ................... have been examined and audited by me in accordance with Articles 149 and 151 of the Constitution of India and the Comptroller and Auditor General’s (Duties, Powers and Conditions of Service) Act, 1971.
I certify that subject to the observations in the Report of the Comptroller and Auditor General of India and in the Finance Accounts, I am satisfied that the balances whether in cash or investments, under each head under “Debt, Deposits and Remittances” have been duly verified and found to agree with those shown in the separate registers or other records maintained in the Accounts Offices and that the debits and credits to the various Reserve Funds and Deposit Accounts were for amounts authorised by relevant Acts or Rules of the Fund and that there were no diversions for purposes other than those for which the Funds were constituted or the grants were made.
I have obtained all the information and explanations necessary and according to the best of my information and on the basis of certificates I have obtained from other Audit Officers, to the extent they are responsible for the audit of these accounts and as a result of test audit carried out under my direction and on consideration of the explanations given to me, I certify that, to the best of my knowledge and belief, the accounts are correct subject to the observations made therein and in the Report of the Comptroller and Auditor General of India for the year .................... (Civil), Government of ..................................
ACCOUNTANT GENERAL (AUDIT)
# Annexure–3 (Referred to in paragraph 3.16.11)
Form of Audit Certificate to be given by Accountant General (Audit) in respect of Appropriation Accounts of State Governments
The Appropriation Accounts of ....... ......................... for the year ............... have been examined by me. On the basis of the information and explanations that my officers required and have obtained, and according to the best of my information as a result of test audit of the Accounts, I certify, in pursuance of the provisions of Articles 149 and 151 of the Constitution of India and the Comptroller and Auditor General’s (Duties, Powers and Conditions of Service) Act, 1971 that these accounts are correct, subject to observations in the Report of the Comptroller and Auditor General of India on the Accounts of the Government of ............ ........................................ (Civil) for ..........
ACCOUNTANT GENERAL (AUDIT)
# Annexure–4 (Referred to in Annexure-1)
Form of Audit Certificate to be furnished by Accredited Audit Officer
“I certify that the Accounts compiled by ...................................... ........................... for incorporation in the Finance Accounts of the Union Government for the year ................. have been examined and audited under my direction in accordance with the requirements of Articles 149 and 151 of the Constitution of India and the Comptroller and Auditor General’s (Duties, Powers and Conditions of Service) Act, 1971.
As a result of test audit carried out under my direction and on consideration of explanations given to me, I certify that, to the best of my knowledge and belief, the accounts and review of balances have been correctly prepared.”
- Chapter–17
- Audit of World Bank and other Externally Assisted Projects
# Audit objectives and scope