Regulation 145 — Audit Regulations 2020
Original Rule Text
# 145. Establishment of audit committees and their constitution
(1) 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. Minutes of the meetings of the audit committee shall be recorded.
(2) In the case of Central Government establishments located in the States, the Ministry may nominate a State level audit committee in consultation with Accountant General (Audit) for settlement of audit observations.
Regulations on Audit and Accounts 2020
What This Means
The government must establish audit committees to monitor and ensure that pending audit observations are complied with and settled. Each committee must include representatives from the administrative department, the audit office, a nominee from the Finance Department, and the head of the auditable entity's department. Meeting minutes must be recorded. For central government offices located in states, the Ministry may set up a state-level audit committee in consultation with the AG (Audit).
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Government must establish audit committees for settlement of pending audit observations
- 2Committee composition: administrative department + Audit + Finance Department nominee + HoD of auditable entity
- 3Minutes of all audit committee meetings must be recorded
- 4For central government offices in states, state-level audit committees may be constituted
- 5The purpose is monitoring compliance, not just discussion — settlement of observations is the goal
Practical Example
The Government of Gujarat constitutes an Audit Committee for the Irrigation Department comprising the Additional Secretary (Water Resources), a representative from the AG (Audit) Gujarat, a Joint Secretary from the Finance Department, and the Chief Engineer (Irrigation). They meet quarterly to review pending inspection report paragraphs. For each observation, they assess: whether the department accepts it, what recovery or corrective action has been taken, and whether the observation can be settled. The minutes are signed and copies sent to all members.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
How often should audit committees meet?▼
Can audit observations be 'settled' in these committees?▼
Why is a Finance Department nominee included?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.