Taking strong notice of the non-adherence to the guidelines of Comptroller and Auditor General of India, the Jammu and Kashmir administration has directed all Administrative Secretaries to compile action taken report on audit observations pointed by the CAG.
According to officials, the directions have been issued after it came to the notice of the Finance department that substantive progress has not been made in the matter and number of audit observations continue to remain unaddressed as per the provisions of Regulation 145 of Regulations of Audit and Account 2020.
“Further, as per Principal Accountant General there is lack of response from the departments on the subject. As a result, achieving the objectives of audit in terms of examining the validity, propriety, economy, efficiency and effectiveness of financial management in Public administration is severely affected,” officials informed
In view of the non-adherence of guidelines, Financial Commissioner, Finance Department Arun Mehta has directed formation of Audit Committees in terms of Regulation 145 of Regulations on Audit and Accounts 2020.
“Regulation 145 of the Regulations on Audit and Accounting 2020, issued by the Comptroller and Auditor General of India in pursuance to section 23 of the CAG’s (Duties, Powers and Conditions of Service) Act, 1971, stipulates that 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 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. The minutes of the meetings of the audit committee shall also be recorded”.
The communique further states that all the Administrative Secretaries shall establish audit committees in the entities (departments/PSUs) falling under their respective control in accordance with Regulation 145. “Action taken may be confirmed within a week’s time
A senior finance department official informed that following the directive of the administration, majority of the departments have constituted audit committees in their respective departments.
It is pertinent to mention that these audit committees are supposed to look into the number and gist of audit observations/paragraphs included in the audit report(s) of the CAG for the previous year(s). They are also required to suggest measures for rectification of major irregularities pointed by the Accountant General (Audit) during the previous year(s).