1. RTI Mumbai/DAY 1/Slide 1.2.3 Applicability of CAG’s (DPC) Act on EA Section 13 of the Act- CAG has power to audit the expenditure spent from the consolidated Fund – Central, State, UT. Audit of both plan funds – Non plan funds. Audit of sanction, Audit of Regularity, Audit of propriety and ECPA Audit types of Audit.

2. RTI Mumbai/DAY 1/Slide 1.2.3 Audit of Trading, Profit and Loss Account, Balance Sheet – Proforma Accounts. Audit of sanction – plan sanction, Authority. Budget allocation to be audited. Project wise allocation under Major/Minor head of expenditure of Environmental issue. Drawal of Money – Excess/Saving. For excess – Regularizations, For saving justification. Appropriation Audit.

3. RTI Mumbai/DAY 1/Slide 1.2.3 Audit of Rules and Orders. Verification of authority – Money is spent by persons competent to spend. Money is legally available for spending by authorities for Environmental issues. Proper Sanction from Competent authority is obtained before spending.

4. RTI Mumbai/DAY 1/Slide 1.2.3 Propriety Audit – The need analysis of any environmental issue Project feasibility study. Study to be based on Scientific reasoning The project is in accordance with the environmental policy of the Govt. Rate of Return (Pollution abatement) or (Pollution Prevention) is achieved. The targeted benefits have been enjoyed by the target group.

5. RTI Mumbai/DAY 1/Slide 1.2.3 ECPA Audit - Performance Audit 3EES – Economy,Efficiency and Effectiveness. Environmental Auditing is the fourth ‘E’. Project/ Programme implementation Review. Covers a wide range of objectives/Criteria Objective: To evaluate a project/ Programme for economic, efficient and effective implementation.

6. RTI Mumbai/DAY 1/Slide 1.2.3 The programme should be implemented at the least cost. Maximum or targeted out put at the minimum input. Nugatory/extra expenditure/avoidable expenditure to be avoided. ‘Canons of financial propriety’ in Government spending. Wastages of Money to be avoided by the executive. Benefits targeted (pollution control or reduction of contamination of water /purification of air etc) to be achieved.

7. RTI Mumbai/DAY 1/Slide 1.2.3 Timely implementation of the project Time overrun, cost overrun. Non achievement of target. Fixing of targets to be in accordance with the Environmental policy. Targets to be in accordance with International accords signed by the country. Responsibility centre/Accountability centres for a timely implementation, achievement of targets etc.

8. RTI Mumbai/DAY 1/Slide 1.2.3 SAI to ascertain the Internal Control of the entity. SAI to rely upon the internal control mechanism. SAI to verify the Performance indicators. Performance indicators to be measurable. for eg:- -Control of greenhouse gas emission. - Reduction of CO 2, SO 2 etc. - Control of vehicular pollution. - Maintenance of Noise level at certain specified areas – schools, courts, Industries etc.

9. RTI Mumbai/DAY 1/Slide 1.2.3 SAI to audit the CPM/PERT charts etc to measure the extent of implementation. SAI to measure the physical targets, financial targets. SAI to audit the inventory level/ wastage etc. SAI to assess the authorities and their competence.

10. RTI Mumbai/DAY 1/Slide 1.2.3 In case the programme/project being implemented through Non-Governmental agencies,SAI to see : That there is clear understanding about the scope and extent of allotment of issues for environmental implementation. The understanding/contract/MOU is foolproof and protects the financial interest of the state/Govt. There is adequate security available in case of default. Proper, valid agreement has been entered into.

11. RTI Mumbai/DAY 1/Slide 1.2.3 pollution Control Boards( PCBs) are regulatory bodies. They regulate environmental issues created by Governmental working as well as working of non- governmental bodies. It is seen in audit that: PCBs have got adequate data regarding environmental issues. PCBs survey polluting industries for pollution control. They issue regular consent letters for commencement of industries/ continuance of activities. They collect water cess and other receipts regularly.

12. RTI Mumbai/DAY 1/Slide 1.2.3 They survey the polluting industries and levy penalty if the fixed norms are violated ‘Polluter pays’ – System/Concept is introduced/ enforced. They report to the Government the State of affairs. Their reports to be in alignment with national Environmental policy.

13. RTI Mumbai/DAY 1/Slide 1.2.3 Afforestation is an Environmental activity. Forest degradation to be stopped by Forest Departments. They have to enforce Forest Act. Forests to be protected from human attack. Wild animals to be protected. Forest Audit/Review of the working of forest Development Corporations – Perforamne Audit.

14. RTI Mumbai/DAY 1/Slide 1.2.3 Environmental activities involve collection of revenue – Cess and fees etc. Section 16 – Receipts audit of CAG’s DPC Act. To verify that receipts/revenues are assessed, collected and credited. Receipts collected in time or not. Delay in collection results in bad debts/write off. Assessment short falls – Loss of revenue. Fraud/embezzlement of revenue. Levy of fees/cess – rationality – sustaienance. Concept of sustainable Development. Not only environment but also economic/Social development to take place.

15. RTI Mumbai/DAY 1/Slide 1.2.3 Environmental issues are dealt with by Govt Deptts, Autonomous bodies/Govt Companies/ Statutory Corporations. Section 19 of the CAG’s Act: Autonomous bodies/ Companies/Statutory corporations prepare financial statements. Certification Audit – Financial Audit. Concept of Environmental assets/liabilities. Accounting standards to be evolved.

16. RTI Mumbai/DAY 1/Slide 1.2.3 Creation Environmental assets/ own funds/ grants/subsidy etc. Accounting treatment. Concept of Cash accounting – Limitations. Concept of accrual accounting – Takes care of not only period of1 year but more than 1 year. Cash accounting – cash flow.

17. RTI Mumbai/DAY 1/Slide 1.2.3 Environmental liability- Liability towards compliance of Law. Liability towards International accords. Liquidations/ non-liquidation of liabilities. Liability towards non-compliance-penalty. Value of liability – adequacy or otherwise. Whether liability is bearable.

18. RTI Mumbai/DAY 1/Slide 1.2.3 Disclosure: Not only accounting of assets and liabilities but also contingent liabilities. Disclosure – Accounting Standards. Companies Act provisions- Statutory corporations – Act provisions under which such bodies function. Relationship with the provisions of Act and the environmental issue.

19. RTI Mumbai/DAY 1/Slide 1.2.3 Autonomous Bodies CAG’s DPC Act. Consent audit. Major financial implications – Bodies like Industrial Development Corporation, Housing Boards, Metro politan Region Dev. authority/ Sewerage Board, water Authority etc. undertake activities affecting environment All have environmental issues to be dealt with. Construction to be ecofriendly. Construction issue – Deforestation, tree felling dust rising, pollution of air etc. Afforestation – Major expenditure, its effectiveness

20. RTI Mumbai/DAY 1/Slide 1.2.3 Major financial implications for audit under section 20- certification Audit. Balance to be verified and audited environmental perspective. Litigation on account of environmental issues. Non allotment of land due to Forest clearance. All environmental issues to be seen in the audit under Section 20.

21. RTI Mumbai/DAY 1/Slide 1.2.3 SAI to take up audit with an environmental perspective. Highlight lack of development due to environmental issues. Sustainable Development Concept to be kept in mind. Objection only on developmental side may be detrimental to eco systems. Reporting to be moderate.

22. RTI Mumbai/DAY 1/Slide 1.2.3 Environmental auditing can be done: through so many important sections of CAG’s DPC Act. Incase of units getting Government grants sections 14/15 of CAG’s DPC Act apply. Reporting to be moderate if the objection obstructs environmental promotion.