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An OVERVIEW of SAI, INDIA Ravikiran Ubale Dy AG (Audit) Maharashtra. National Academy of Audit & Accounts.

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Presentation on theme: "An OVERVIEW of SAI, INDIA Ravikiran Ubale Dy AG (Audit) Maharashtra. National Academy of Audit & Accounts."— Presentation transcript:

1 An OVERVIEW of SAI, INDIA Ravikiran Ubale Dy AG (Audit) Maharashtra. National Academy of Audit & Accounts

2 Sessions Objective ?? Video?

3 Audit ? Audit means harassment ! I cannot take some decisions. There will be an Audit objection ! “5Cs”

4  “I am of the opinion that this dignitary or officer is probably the most important officer of the Constitution of India. He is the one man who is going to see that expenses voted by Parliament are not exceeded, or varied from what has been laid down by Parliament in what is called the Appropriation Act. If this functionary is to carry out the duties - and his duties, I submit are far more important that the duties of the judiciary.” Dr. B.R. Ambedkar.  The broad aim of audit is to safeguard the interests of the citizens and to assist the Parliament or State/Union Territory Legislature in exercising financial control over the Executive.

5 Program Outputs & Outcomes Government Departments Accounts Audit Office ReportsReportsReportsReports AUDITAUDIT Parliamentary Financial Control AUDITAUDIT Funds Parliament

6 Why Audit ? For Good Governance Highlighting areas where internal controls / clarity of rules needed Highlighting impact of irregular actions Pointing out constraints in performance as per mandate Making legislature aware about an organization's work environment Providing a laundry list for the top management

7 What is Audit  A systematic and independent examination of data, statements, records, operations and performances (financial or otherwise) of an organization for a stated purpose.  Auditing is analytical, critical, investigative  Conduct of audit leads to a report Statutory audit is much beyond just financial transactions.

8 Comptroller & Auditor General of India  Constitution of India entrusted the responsibility of public sector auditing in India to the C&AG, assisted by IAA&D  Appointed By The President  As Provided For In The Constitution (Articles 148- 151)  Considerable authority, dignity and independence.  He is neither an officer of Parliament, nor a functionary of the Government  Functions as per CAG’s Duties, Powers and Conditions of Service Act 1971

9 Mission of SAI,India Mandated by the Constitution of India, we promote accountability, transparency and good governance through high quality auditing and accounting and provide independent assurance to our stakeholders, the Legislature, the Executive and the Public, that public funds are being used efficiently and for the intended purposes

10 CAG audit  Receipts and expenditures of all Government Departments of the Union & States  Government companies and corporations  Authorities & Bodies substantially financed

11 Also CAG maintains Accounts……  Advises on the format of accounts of Union and State Governments  Compiles the accounts of the State Governments except Goa.  provident fund accounts of the employees of most of the State Governments  Except AP, Bihar,Goa, J&K, Mizoram, Punjab, Rajasthan and Sikkim

12 Also CAG authorises……  Salary and allowances to gazetted officers of a few State Governments  Assam, Bihar, Karnataka, Kerala, Manipur, Meghalaya, Nagaland and Tamil Nadu  Pension etc. to the employees of most State Governments and Union Territories  Except AP, Gujarat, Goa, MP, Mizoram, Rajasthan, Sikkim and UP

13 And ……  Auditing International agencies such as WIPO,IMO,WTO,WFP.  On Governing Boards of the International and Asian Bodies of Public Auditors (INTOSAI and ASOSAI)  International training programmes at its international centre.  Provide Audit experts to Foreign Governments

14 CAG and IAAD Size of IA&AD 44,750 men in position against sanctioned strength of 70,000 Size of IA&AS 667 Officers 134 field offices of which 94 in audit 28 in accounts, and, 12 training institutes

15 Union Government comprises of about 50 Ministries with about 100 Demands for Grants and Railways grouped into following sectors Revenue Services Sector (Tax Departments) Economic Services Sector (Oil & Gas, Coal, other Minerals, Industries, Power, Transport) Social Service Sector (Health, Education, Culture, Social Welfare, Food Security, Rural Develop) General Services Sector (Defence, Paramilitary, Administration, Legislature) It is same in a smaller scale for all State Governments Audit of Central Government Departments

16 Audit of Economic Services Sector Departments Audit of Railways 18 offices headed by (PDs) 14 cities dedicated cadre of AOs, AAOs,Ars Posts and Communications 1 office headed by (DG) 14 Dir/DD at 12 locations dedicated cadre AO,AAO Audit of all Economic Services Departments (Power, Transport etc) 400 central PSUs –Commercial Audit 13 offices headed by Principal Directors dedicated cadre AO, AAO, Auditors

17 Audit of General, Social Services Sectors Departments Audit of Defence Ministry - 6 offices headed by DG/PDs Army, Air Force, Navy, Ordinance Fact Audit of all other General, Social Service Departments 11 offices headed by DG/PDs ( PD Central) Most of the Autonomous Bodies (IIT, IIM, Museums etc about 350) fall under this. Financial Audit of their Annual Accounts- SAR ( Separate Audit Reports ) Above PD Central Offices also carry out Revenue Audit (Income Tax, CE, ST, Customs)

18 Audit of State Governments 28 State Governments - AGs/PAGs organized into ERSA/GSSA Accounts and Entitlements - 27 AGs (Pension, PF of State Govt. Employees)

19 CAG’s Reach Reaches all 3 tiers of Government: Union, State, Local Bodies Covers PSEs, Autonomous Bodies, Major Grantees Number of audited units 2,56,000; app. 63,0562 actually audited Close to 100 Audit Reports prepared each year

20 How many Reports? Union Government Civil Autonomous Bodies Scientific Deptts. Post & Telecommunications Defence Railways Indirect Taxes Direct Taxes Commercial State Government Civil Receipts Commercial

21 Reporting u For Union Government u To President u Reports Are Tabled In Union Parliament For State Governments To Governors Of States Reports Are Tabled In State Legislatures

22 Conventional Sitting Plan of Central / State PAC during the Meeting Supporting Staff of Vidhan Sabha

23 Our Audit Impact Some of our audit observations point towards underassessment of taxes, which necessitates recoveries from concerned parties by executive Recoveries status for FY 2011-12 in Crore Recoveries pointed out Recoveries accepted Recoveries effected Union Government 33,723.407,073.901,721.41 State Government45,490.1220,706.151,635.3 Total79,213.5227,7803,356.94

24 Recommendations accepted by executives At the Union level the percentage of acceptance of audit recommendation was 36.76 % Financial value of recommendations accepted was 271.16 Crore At the state level the percentage of acceptance of audit recommendation was 27.39 % Financial value of recommendations accepted was 4807.19 Crore

25 Financial Impact of audit of Annual Accounts of PSUs Supplementary audit of Government companies & corporations, under section 619(4) of the companies act Corrections made as a result of supplementary audit at the union level Types of audit observationNo of Companies Amount in Crores Accounting policies/notes to the accounts/classification mistakes etc 5329,304.81

26 Exercise ?


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