37 th Quarterly Review Meeting of Finance Controllers, New Delhi Settlement of Audit Paras /Objections 1

1.As per Para of FM&P manual, State Society is required to maintain a register in format as per Annexure-XXIV indicating all the Audit Paras/Objections included in the Audit Report of Pr. AG(Audit) / CAG and Statutory Auditor, Yearwise,  This Report is cumulative in nature should contain all Audit objections. Yearwise since commencement of DPEP/SSA programme in the State. 2

 Audit objections raised by Pr. AG(Audit)/CAG and Statutory Auditor, be listed separately.  Observations / objections raised by IPAI in concurrent Financial Review Report SHOULD NOT be entered in this Register, but dealt separately on file. 3

2.Para States that compliance will be reported to MHRD by State Implementing Society in format at Annexure –XXV every quarter, within 15 days of the close of every Quarter period. This Quarterly progress is cumulative and should contain the current position of all audit objections included in the Audit Reports of Pr.AG(Audit) and Statutory Auditor, yearwise, since commencement of DPEP/SSA in your office. 4

3.Quarterly Report on the Position of Settlement of Audit Objections is not being received regularly from the States despite reminders only 10 States (Andhra Pradesh, Chandigarh, Delhi, Himachal Pradesh, Jammu & Kashmir, Kerala, Odisha, Tripura, Uttarakhand & West Bengal) have sent Quarterly Report on Position of Settlement of Audit Objections for Quarter Ending and Two States (Chandigarh & Uttar Pradesh) for quarter ending

4.Progress / settlement of Audit objections raised by Pr.AG/CAG is rather slow  Some states have not even sent 1 st reply  Some States have sent 1 st reply and waiting for follow up  Some Audit objections/paras have been discussed with Pr.AG(Audit)/CAG but settlement is still pending  Constant follow up action needed. 6

5.Settlement of Audit objections raised by Statutory Auditor  Statutory Auditor (lead Auditor and District Auditors) raise large number of Audit objections is their Audit Report every year.  Many Audit objections are repeated year after year.  Key audit objections/ observations are brought to Notice of SPD of the State by MHRD for necessary remedial action every year, after receipt of Audit Report. 7

6.Para-110.2–Progress made on the settlement of Audit objections outstanding will be reviewed by the SPD on a monthly basis and appropriate further action taken to ensure their speedy settlement. 8  Follow up action/discussion with Statutory Auditor for settlement of previous year Audit objections should be included in current year Audit Report.

9 1. ANDHRA PRADESH :  In quarter ending report position regarding Audit paras/objections pertaining to Pr.AG(Audit)/CAG only have been furnished. 122 nos audit paras by AG(Audit) pertains from FY to FY None of the para has been closed/settled. In most cases it is mentioned that reply submitted but yet to be settled, in some cases even 1 st reply is under preparation. 178 nos. audit paras by CAG pertains to FY to FY and none of the paras has been closed/settled yet.

10  2. Status of audit observations/objections made by statutory Auditor, yearwise, has not been furnished. The compliance of these objections may please be discussed with statutory auditor, who will verify and settle the objections. The position of settlement of audit objections yearwise from FY to FY may please be reported to this Ministry in the quarterly report in Annexure-XXV format.

11 2. CHANDIGARH :  Position regarding audit objections/paras raised by Accountant General (Audit) for the year , and is pursued but none of the para / objections have been settled.  The position regarding Audit observations/objections raised by statutory auditor CA, for the year only have been furnished. The compliance of these audit objections may please be discussed with statutory auditor, who will

12 verify and settle the objections. Kindly furnished details of audit objections raised by statutory auditor for earlier years FY , FY also. The position is considered incomplete.  The observations made by IPAI during concurrent financial review is to be dealt on separate file, and should not be included in this performa.

13 3. DELHI :  Position regarding audit objections raised by Accountant General (Audit), Delhi for the years 2007 to 2009 has been indicated. 5 nos. audit objections are still pending settlement.  Quarterly report indicate the status of 2 nos. audit objections raised by Statutory Auditor for FY The position regarding Audit observations/objections raised for earlier years has not been indicated. The compliance of these objections may please be discussed with statutory auditor, who will verify and settle the objections.

14 4. JAMMU & KASHMIR :  Position regarding audit objections/paras raised by Pr. Accountant General (Audit) yearwise not sent. If no para is pending the ‘NIL’ statement be submitted.  In quarter ending , position regarding Audit observations/objections raised by statutory auditor CA, yearwise not furnished. Status of audit objection for FY sent only. The compliance of these objections may please be discussed with statutory auditor, who will verify and settle the objections. The position is considered incomplete.

15  What is position of pending audit objections for earlier years and for FY and FY The position of settlement of audit objections yearwise may please be reported to this Ministry in the quarterly report in Annexure-XXV format.

16 5. HIMACHAL PRADESH :  Position regarding 106 nos. audit paras / audit objections raised by Accountant General (Audit), for the year to , , and has been indicated. Out of 106 paras 42 nos. have been shown as settled. But still many paras pertaining to earlier years are pending. Efforts be made to settle these pending paras.

17  Quarterly report indicate that many audit objections raised by statutory auditor pertaining to years , , , and are still pending. The position regarding Audit observations/objections raised by statutory auditor CA, for the year have not been included. The compliance of these objections may please be discussed with statutory auditor, who will verify and settle the objections. The position furnished is considered incomplete.

18 6. KERALA:  Position regarding audit objections/paras raised by Pr. Accountant General (Audit) for the year upto , FY , , , 2009 have been indicated. Large number of paras are still pending settlement and efforts be made to clear these long outstanding paras.

19  The position regarding audit objections raised by Statutory Auditor has not been furnished. Kindly furnish the position of pending audit objections yearwise i.e., from FY to FY The compliance of these objections may please be discussed with statutory auditor, who will verify and settle the objections. The position furnished is considered incomplete.

20 7. ODISHA :  Position regarding audit paras / audit objections raised by Accountant General (Audit)/ CAG, for the years , , has been indicated. Large nos audit para are still pending settlement, efforts be made to clear these long outstanding audit objections at the earliest.

21  Quarterly report indicated the status of audit objections raised by Statutory Auditor for FY The position regarding Audit observations/objections raised for has not been indicated. The compliance of these objections may please be discussed with statutory auditor, who will verify and settle the objections.

22  Quarterly report indicated the status of audit objections raised by Statutory Auditor for FY The position regarding Audit observations/objections raised for has not been indicated. The compliance of these objections may please be discussed with statutory auditor, who will verify and settle the objections.

23 8. TRIPURA:  Position regarding objections raised by Accountant General (Audit), if any has not been shown. If there is no such Audit para pending, then NIL statement be indicated.  The quarterly report submitted indicate the status of 2 nos. Audit objections raised by statutory Auditor (CA) one pertaining to FY and other pertaining to FY Both are yet to be settled. Kindly furnish details of audit objections raised by statutory auditor for earlier years i.e.,

24 FY to FY as many objections pertaining to these years are pending settlement. The compliance of these objections may please be discussed with statutory auditor who will verify and settle the objections.  The position regarding Audit observations/ objections raised by statutory auditor CA, for the year have not been furnished. The position is considered incomplete.

25 9. UTTARAKHAND :  It is indicated that position of outstanding Audit paras by AG (Audit) for the year to is NIL.  In the report for quarter ending status regarding 10 nos. audit objections raised by statutory auditor for FY indicated only without any comments /observations of statutory auditor. Compliance of these objections may also be shown to the auditor, who will verify and settle the objections.

26  Status of pending audit observations/ objections raised by statutory auditor for FY not indicated. The position of settlement of audit objections may be reported to this Ministry in the quarterly report.

WEST BENGAL :  Status regarding observations made by IPAI during concurrent Financial Review is to be dealt on separate file and should not be included in this Annexure-XXV.  Report indicate the status of 49 Audit paras raised by Pr. Acctt. Gen. (Audit) WB for the period FY to FY only, out of 49 paras, 13 paras have been shown as settled/dropped. Remaining 36 para are yet to be settled/ dropped.

28 Many paras are pending for long, efforts be made to settle these old pending paras at the earliest.  The report do not indicate the actual position of settlement of audit objections included in the Audit Report of Pr.AG(Audit) WB. In column ‘Audit Para No’ all the audit paras included by Pr. Acctt. Gen(Audit)/WB are to be shown, whereas your office has shown only the audit para which remained unsettled on a particular date.

29  Position of Audit observations/objections, included in the Audit Report of Statutory Auditor for FY , FY and FY have not been indicated. Compliance of these audit objections may be shown to the auditor, who will verify and settle the objections. The position of settlement of audit objections may be reported to this Ministry in the quarterly report.