The Comptroller and Auditor General of India, Shri Vinod Rai said that the existing provisions for audit in the country are restrictive. He was delivering the concluding address of the XXIVth Accountants General Conference here today with the Prime Minister giving the valedictory address.

Observing that the Institution of C&AG is concerned with upgrading the quality of governance and promoting accountability, he said that in an environment that is fast changing, agencies like autonomous bodies, societies, NGOs etc., have acquired a very important role in implementing Government programmes. There is need to ensure that the implementing agencies follow proper financial discipline as applicable to Government organizations since these societies, autonomous bodies and NGOs are spending public monies for implementing Government programmes. However, the existing provisions of C&AG's Duties, Powers and Conditions Act for audit of these implementing agencies receiving huge devolutions of Government money are restrictive and result in large chunks of government money remaining outside the purview of CAG's audit. Parliament's control over public resources cannot be diluted. The implementing agencies whether government or non-government should remain strictly accountable for the public money.

Shri Vinod Rai, said that every two years, all the Accountants General come together to discuss and deliberate on the challenges and the reforms required to further the constitutional responsibilities of the C&AG. The adequacy of powers and mandate for audit, changes required in audit processes and techniques with changing times and technology are discussed. The focus of this year's conference was improving the efficiency and efficacy of auditing towards good governance, transparency and accountability.

Observing that efficient and effective delivery of public services, accountability and transparency are key concerns of the democracy, the CAG said that it would endeavour to proactively assist the Executive to upgrade the quality of governance. This orientation could be observed in CAG Reports on the National Rural Employment Guarantee scheme, Rural Health Mission and the Delhi Metro.

The CAG said that today, about 31 Union Reports are tabled in the Parliament. "Despite best intentions, the PAC or COPU is able to do an in-depth examination of only a few audit paras and give recommendations. The Government is required to submit Action Taken Notes on the paras which are not selected by the Committees. Out of more than nine thousand audit paragraphs included in Audit Reports for the years 1994 to 2008 presented to Parliament, about three thousand audit paragraphs have not received even the first response from the Ministries. This is despite a time frame of four months agreed to by the Government for submission of Action taken Notes to the Public Accounts Committee. Such huge pendency in submission of Action Taken Notes by the Ministries highlights the ineffectiveness of the existing system," he said.

The CAG highlighted the initiative of the Department in the area of improvement of internal controls in Government. Internal controls serve to provide assurances on proper financial reporting, safeguarding of assets and achievement of organizational objective with due regard to economy, accountability, efficiency and effectiveness. The CAG is presently collaborating with different Ministries and the Civil Accounts Department to prepare a Road Map for instituting effective internal financial controls in Ministries on the request of Ministry of Finance.

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SS/RP

Audit Oversight: extend CAG audit coverage to autonomous bodies and NGOs to protect parliamentary control over public funds. The Comptroller and Auditor General highlighted that limitations in the CAG Duties, Powers and Conditions Act leave substantial public funds disbursed to autonomous bodies, societies and NGOs outside audit coverage, weakening parliamentary control and accountability; he also noted systemic failures in ministries' responses to audit paragraphs and advocated a Road Map with Ministries and the Civil Accounts Department to institute effective internal financial controls and strengthen audit processes.