The Comptroller and Auditor Basic of India (CAG) is once more within the highlight with the 14 pending stories on the efficiency of the earlier Aam Aadmi Get together (AAP) authorities in Delhi being tabled within the Meeting. The report on the now-scrapped excise coverage, which estimated that the Delhi authorities misplaced Rs 2,002 crore, was tabled on Tuesday.
The CAG, which is the nation’s supreme audit physique, has submitted a dozen audit stories to the Lieutenant Governor of Delhi lately. However the earlier AAP authorities had not laid them within the Meeting, triggering a backlash from the BJP whose MLAs had approached the Excessive Courtroom. A few of these stories, together with efficiency audits on a number of points reminiscent of the price of renovating former Chief Minister Arvind Kejriwal’s residence, liquor provide in Delhi, prevention and mitigation of air air pollution, and functioning of the Delhi Transport Company, have been offered to the L-G 4 years in the past.
Within the run-up to the Delhi Meeting polls, the BJP had promised to desk the CAG stories within the Meeting. Now, with the primary Meeting session of the brand new authorities underway, the BJP is about to comply with via on its promise.
Here’s a have a look at how the CAG chooses topics for audits, how stories are ready, and what occurs afterwards:
What are the powers and duties of CAG?
Articles 148 to 151 partly 5 of the Structure are on the appointment, duties, and audit stories of the auditor basic, who’s appointed by the President.
The Comptroller and Auditor Basic’s (Duties, Powers and Circumstances of Service) Act, 1971, determines the CAG’s service circumstances and prescribes the duties and powers of their workplace. A number of different statutes grant powers to the CAG. As an example, the Fiscal Accountability and Finances Administration Act, 2003, says the Central Authorities could entrust the CAG to “evaluation periodically as required, the compliance of the provisions of this Act and such evaluations shall be laid on the desk of each Homes of Parliament”.
Other than conducting audits of the Central and state governments, the CAG additionally maintains state authorities accounts (each monetary and appropriations), supplies pension authorisation for all state authorities staff, and maintains the Basic Provident Fund accounts of serving staff.
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What are the varied kinds of audits CAG conducts?
The CAG conducts three sorts of audits: compliance audit, or an evaluation of whether or not the provisions of the relevant legal guidelines, guidelines, and rules, and numerous orders and directions issued by the competent authority are being adopted; efficiency audit, or an evaluation of the implementation of schemes or programmes; and monetary audit, or certification of presidency’s accounts and the accounts of Public Sector Undertakings.
How does the CAG choose audit topics?
Earlier than finalising a topic, it follows a threat evaluation process that accounts for numerous elements reminiscent of the scale of the outlay of a challenge, what’s being written in newspapers concerning the subject, and its personal inspection stories over time. It additionally consults the rules laid down by the Worldwide Group of Supreme Audit Establishments, or INTOSAI, that spell out what’s of relevance to residents.
Based mostly on these standards, the CAG’s workplace approves an annual audit plan that’s applied within the area workplaces. There may be additionally an Audit Advisory Board that meets twice a yr and suggests topics and methodologies for audit.
The federal government or courts can even suggest CAG audits. As an example, the Supreme Courtroom requested the CAG to conduct an audit of the Delhi-Noida Direct (DND) flyover challenge.
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What occurs after the CAG selects a topic?
As soon as a topic is chosen, the CAG holds an entry convention with the division or organisation that’s being audited. At this convention, CAG officers inform the physique involved about issues reminiscent of their plans for the audit, the methodology to be adopted, and a tentative timeline. Additionally they search help in accessing data and paperwork.
After the audit, the officers from the auditor basic’s workplace maintain an exit convention to share their findings with the division or organisation and search their reply. The entry and exit conferences are held for each efficiency and compliance audit.
The CAG shares a draft report with the division audited. Usually, the division has to reply inside six weeks. Thereafter, the CAG indicators the report and sends it to the federal government (the President or the Governor). Then the federal government lays the report earlier than the legislature.
What does the Structure say concerning the tabling of a CAG report?
Article 151 supplies for laying CAG stories in Parliament or state legislatures however no time restrict is specified. That is why governments typically don’t lay CAG audit stories on time. As an example, the earlier Delhi authorities had not tabled a couple of dozen CAG stories within the Meeting regardless that a few of them have been offered to the L-G 4 years in the past. Previously, West Bengal additionally delayed the laying of CAG stories within the Meeting.
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A CAG report turns into public solely after it’s laid within the Home. The Public Accounts Committee examines the chosen stories and seeks a response from the federal government. The PAC additionally asks the federal government to take motion on the suggestions and submit an Motion Taken Report. Since 2019, the PAC has submitted 152 stories to Lok Sabha until July final yr. These embody scrutiny of CAG audit stories and motion taken by the federal government on them.
Do CAG stories have any influence and what number of stories are ready yearly?
The audit stories spotlight losses to the exchequer and procedural losses and in addition present suggestions that play a key function in altering guidelines and procedures. As an example, the Telangana authorities made modifications within the Engineering Procurement Contract mode just a few years in the past after a CAG audit. Among the many CAG stories which have had a huge impact in current many years is the one on licences and allocation of 2G spectrum that was tabled in November 2010. It had an enormous political impact, damaging the picture of the Manmohan Singh-led UPA authorities that was in the end voted out of energy in 2014.
In line with its web site, the CAG authorised 172 audit stories within the 2022-23 monetary yr. These stories associated to the Union authorities and state governments and have been submitted to the President of India and Governors of the respective states. The variety of audit stories has elevated lately. As an example, in 2018-19, the CAG authorised solely 73 audit stories.
