7.3.68 While forwarding the certified annual accounts and the Audit Report thereon to Government for presentation to the Parliament/Legislature, they should be requested to intimate the date of presentation and to forward a copy of these documents, as presented, to the Accountant General, and to the Comptroller and Auditor General also in the case of documents presented to Parliament. The Principal Audit Officer concerned should also keep the Comptroller and Auditor General informed of the dates on which the documents are forwarded to Government for presentation to the Parliament/Legislature.
- Overview
- A. States/Union Territories
- Annexure-1 (Referred to in paragraph 7.3.8) General lay out of the Audit Report
- Chapter I – General
Comments arising out of a study of the Finance Accounts that have a bearing on the general financial position of Government and any other comment of a general nature will be included in this chapter. These comments should be preceded by a summary of the accounts of Government emerging from the Appropriation Accounts and the Statements of Finance Accounts under the following headings:
I Statement of Financial Position as at the end of the financial year. II Abstract of Receipts and Disbursements for the year.
The audit comments will include brief paragraphs on Government's investments and guarantees.
- Chapter II - Appropriation Audit and Control over Expenditure
This chapter will deal with important comments arising as a result of appropriation audit and from a study of the Appropriation Accounts. Where possible, comments on physical progress of projects/schemes/programmes in relation to the targets and actual expenditure may be included. Any other points establishing linkages between the budget and accounts in terms of policies and their effect may also be commented upon.
# Chapter III - Civil Departments
Irregularities and other points pertaining to expenditure incurred by various civil departments, other than that on works, will be included in this chapter. The arrangement of departments in the chapter and of paragraphs under a department may be decided keeping in view the importance of the individual reviews and paragraphs.
- Chapter IV - Works Expenditure
chapter will deal with observations arising out of the audit of works expenditure.
- Chapter V - Stores and Stock Accounts
What This Means
When forwarding certified annual accounts and the Audit Report to the government for legislative presentation, the AG should request the government to confirm the date of presentation and send back a copy of the tabled documents. The Principal Audit Officer must also keep the CAG informed about when the documents were forwarded to the government. For documents presented to Parliament, a copy must also be sent to the CAG.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
1Government must be asked to intimate the date of presentation to Parliament/Legislature
2Government should forward a copy of the presented documents back to the AG
3For documents presented to Parliament, a copy also goes to the CAG
4The Principal Audit Officer must keep CAG informed of forwarding dates
5This ensures proper tracking of the report presentation process
Practical Example
The AG (Audit) forwards the certified accounts and Audit Report of a state Road Transport Corporation to the state Transport Department for tabling. The covering letter requests the department to confirm the tabling date and return a presented copy. The AG also writes to the CAG informing them that documents were forwarded on March 1st.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What should the AG request from the government when forwarding Audit Reports?▼
The AG should request the government to intimate the date of presentation to Parliament/Legislature and to forward a copy of the presented documents back to the AG and (for Parliament) to the CAG.
Why does the CAG need to know the forwarding date?▼
To track the status of Audit Report presentation and ensure timely tabling before Parliament or the Legislature.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
This chapter will contain a synopsis of important Stores Accounts and also include points noticed in the course of audit of stores and stock transactions. The audit emphasis should inter alia be on an assessment of the efficiency and effectiveness of purchase functions, systems followed in the departments and arrangements for inventory control and management as a whole. If necessary, one or two major store holding departments may be taken up each year for a detailed appraisal of their procedures and material management systems.
# Chapter VI - Revenue Receipts
Results of audit of revenue receipts will be incorporated in this Chapter in States/Union Territories where no separate Audit Report on Revenue Receipts is prepared.
- Chapter VII - Government Commercial and Trading Activities
This chapter will also cover results of audit of Government Companies/Corporations in States/Union Territories where no separate Commercial Audit Report is prepared.
Chapter VIII - Financial Assistance to Local Bodies and others
Chapter IX - Outstanding Objections and Inspection Reports
A review of the shortcomings in the system and procedures for prompt action on audit objections, etc. may be included here.
Chapter X - Other topics of interest
B. Union (Civil)
- Overview
- Chapter I - General
Comments arising out of a study of Finance Accounts that have a bearing on the general financial position of Government and any other comment of a general nature will be included in this chapter. These comments should be preceded by a summary of the accounts of the Union Government emerging from the Appropriation Accounts and the Statements of Finance Accounts under the following headings:
I Statement of Financial Position as at the end of the financial year. II Abstract of Receipts and Disbursements for the year.
The audit comments will inter-alia include brief paragraphs on Government's investments and guarantees.
- Chapter II - Appropriation Audit and Control over Expenditure
This chapter will deal with important comments arising out of appropriation audit and on a study of the Appropriation Accounts.
- Chapter III - Expenditure-Civil Departments
Irregularities and other points pertaining to expenditure incurred by civil departments, other than that relating to works, will be included in this chapter.
Chapter IV - Works Expenditure
This chapter will deal with points arising out of the audit of works expenditure.
Chapter V - Stores Purchases
Chapter VI - Departmentally managed Government Undertakings.
Annexure-2 (Referred to in paragraph 7.3.26) Important points that can form the subject matter of comments in Audit Reports 1. Administration of grants and control over expenditure:
(a) Any notable changes in the arrangement of grants, such as significant increase or decrease in their number, their amalgamation or sub-division, etc.
(b) Matters affecting the completeness or accuracy of the accounts.
(c) Expenditure on services not duly authorised in the Schedule to an Appropriation Act.
Note: In the absence of an authoritative definition of the term `New Service", the Accountant General should be guided by such case law as may have been evolved by the Committee on Public Accounts concerned. In doubtful cases, he should obtain the orders of the Comptroller and Auditor General.
(d) Expenditure not in accordance with the intentions of the Legislature or which indicates gravely faulty administration of the grant or appropriation. Any re-appropriation that should be brought to the notice of the Public Accounts Committee under the rules will also be mentioned.
(e) Any expenditure on any object disapproved by the Legislature or requiring its specific approval, but incurred in its absence.
(f) Any important item of expenditure incurred without necessary sanction or contrary to a valid condition or restriction imposed by the Legislature.
(g) Expenditure incurred in excess of voted grants and charged appropriations. 2. Revenues
(a) Actual realisations from the levy of additional or fresh taxes and duties in comparison to the forecasts in the Budget.
(b) Disproportionate increases in recent years in the cost of collection of taxes.
(c) Non-revision of prices of forest produce sold by Government with reference to the prevailing market prices.
(d) Arrears and other irregularities in realisation of revenues.
(e) Delays in notification of detailed rules for levy and collection of taxes and duties after an Act for the purpose has been passed by the Legislature.
(f) Efficacy of internal audit machinery and systems in the major revenueearning departments and review of the results of internal audit.
(g) Trends of realisation of extraordinary receipts and special features, if any.
(h) Cases of remission of revenue (other than land revenue) and abandonment of claims to revenue required to be reported to the Audit Office by Heads of Departments.
(i) Large claims against foreign governments, local bodies or other outside parties that have been outstanding for prolonged periods. 3. Expenditure
(a) Expenditure not in conformity with the authority that governs it.
(b) Irregularities connected with contracts.
(c) Major items of extraordinary or apparently unnecessary expenditure such as:
(i) ex-gratia payments;
(ii) compensation paid for damages sustained;
(iii) payments in excess of amounts admissible under a statute, contract or rules;
(iv) payments necessitated by failure to enforce contractual terms; and
(v) irrecoverable advance payments made on account of services not rendered ultimately.
(d) Any uneconomical or apparently wasteful expenditure attributable to:
(i) execution of works without adequate investigation of their utility or feasibility;
(ii) execution of works by Government agencies not possessing the ability or facilities for proper execution;
(iii) unsatisfactory functioning of Government commercial undertakings;
(iv) physical achievements of schemes and projects not being commensurate with the expenditure incurred; and
(v) any other causes; and
(e) important cases of losses, write-off, nugatory or improper expenditure.
4. Debt, Deposits and Remittances transactions
(a) Debt position of the Government -- A consolidated statement of debt may be presented and salient features, such as the magnitude of debts, expenditure on debt servicing, amortisation arrangements, arrears in repayment, etc. may be highlighted.
(b) State of loan records.
(c) Arrears in realisation of loans.
(d) Acceptance and verification of balances.
(e) Deviations in utilisation of loan proceeds and from the stated objectives in support of the borrowings and manner of application of borrowed funds not in conformity with sound and prudent principles of public finance.
(f) Review of Reserve Funds – Extent to which the objectives of the funds are fulfilled.
(g) Review of outstandings under Suspense and Remittance heads.
# 5. Grants-in-aid
(a) Irregularities connected with administration and utilisation of grants-inaid.
(b) Overpayments and irregular payments.
(c) Results of audit of bodies or authorities in receipt of substantial financial assistance from Government under Sections 14 and 15 of the Act.
6. General
(a) Any irregularity in connection with the withdrawal and disbursement of money, designed to bring about a closer accord between expenditure and allotments, such as:
(i) withdrawal of money in advance of requirements, particularly towards the close of a financial year; and
(ii) deferment of payments that are due and fully matured.
(b) State of initial accounts and delays in submission of accounts by treasuries, and public works and forest divisions - types of irregularities generally committed - steps taken by Government to improve the efficiency of their functioning.
(c) Absence of adequate administrative regulations and procedures to secure proper and effective check on monetary transactions, such as those relating to purchase of stores.
(d) Points arising out of scrutiny of the utilisation of Central assistance by the State Governments. They will be reported by the State Accountants General to the Central Ministry concerned and after obtaining the comments of the Central Ministry, Accountants General will propose suitable draft paragraphs for incorporation in the Central Audit Report.
Note: Any serious delay in the issue of necessary financial or accounting rules (statutory or non-statutory) by a Government should receive suitable mention in the Audit Report, unless the Accountant General considers that the rules to be framed are not so important as to seriously impair efficiency, or is satisfied that there will be no further delay. While formulating any comments, he should, however, mention the causes of the delay, particularly in cases where it would be unfair to comment without doing so.
# Annexure-3 (Referred to in paragraph 7.3.53) Instructions to be followed in the printing of Audit Reports
In preparing the documents for the press, every endeavour should be made to minimise the cost of printing, consistent with the requirement of presenting a clear, intelligible and readable compilation. The following points, in particular, should be borne in mind:
(a) Before the documents are sent to press, the general arrangement of their printing should be carefully considered and the instructions given should be sufficiently clear and precise. The manuscript should be legibly typewritten and should be sent in its final form.
(b) The size of the documents should preferably be "RA 4".
(c) All statements should be printed vertically and not horizontally.
(d) "Charged" expenditure should be printed in italics.
(e) Different and distinctive types should be used for printing the headings and sub-headings.
(h) Copies of the documents in excess of the number really necessary should not be printed. The number required for the use of the Government concerned should be ascertained beforehand. The Audit Officer arranging printing of the documents should estimate his requirements for his office library, for circulation among his establishment and for supply to officers with whom he exchanges publications. The number of copies to be offered for sale should be determined well in advance in consultation with the Publication Branch of the Government concerned.
(i) The logo of the State Government would continue to be printed on the cover of the State Audit Reports wherever this is already being done. The Ashoka Pillar with its own motto will be printed on the covers of all other Reports.
(j) The space between the designation of the Principal Audit Officer and the word "Countersigned" on the signatory page of the printed Audit Report should be one inch (1") and that between the word "Countersigned" and the name of the Comptroller and Auditor General should be one and a half inches (1 1/2"). Similarly, the space between the text of the Audit Certificate and the name of the Comptroller and Auditor General should be one and a half inches (1 1/2") inches in the Finance Accounts and Appropriation Accounts.
Formats for all the Audit Reports have been standardised with a view to exhibiting them on the Internet. The Reports should be formatted on common parameters according to the instructions contained in letter No.85-Rep(c)/156-98 dated 25th January, 1999 issued by the Comptroller and Auditor General.
- CHAPTER–4 Submission of Audit Reports and Subsequent Action