Rajan Gandhi
The role of governance is an integral component of any country’s growth and development. In the past corruption and political scandals have ensured unimaginable losses to the exchequer which creates a paucity of funds for implementation of beneficial schemes for the populace besides getting black money in the hands of those who can easily stash them in tax havens across the globe. It is incontrovertible fact that in circumstances of financial encumbrance, the poorest of the poor are the biggest losers. With a population of nearly 22 % below the poverty line, mismanaged audits and tampered accounts do not augur well for our nation especially in an era where India has been plagued by the menace of unprecedented corruption and such auditing and scrutiny of the Government accounts assume prime importance. The Offices of the Comptroller and Auditor General (CAG) have been increasingly perceived as an institution that can ensure the accountability of the executive. From time to time CAG’s intervention has indeed yielded enormous results and therefore a concerted effort needs to be made by the CAG to ensure transparency by similar checks on various contracts awarded by Local and State Governments. This will also ensure efficacy in the implementation of basic infrastructure projects for building of roads, schools and housing.
The audit process starts with the risk assessment of various departments, autonomous bodies, schemes/ projects which take into account the criticality/ complexity of activities, level of delegated financial powers, internal controls and concerns of stakeholders and previous audit findings. Based on this risk assessment, the frequency and extent of audit are decided and an Annual Audit Plan is formulated. After completion of audit, an Inspection Report (IR) containing the audit findings is issued to the head of the office with request to furnish replies within one month. Whenever replies are received, audit findings are either settled or further action for compliance is advised. Important audit observations pointed out in these IRs are processed for inclusion in the Audit Reports of the Comptroller and Auditor General of India which are submitted to the Governor of the respective states. In Jammu and Kashmir also under Article 151 of the Constitution of India SAG conducts annual audits and last audit had been conducted during 2015-16 in which compliance audit of 918 drawing and disbursing officers (DDO’s) of the State and 31 autonomous bodies was done. Besides this, three performance audits were also conducted. On the basis of audit reports disturbing facts have been observed with several significant deficiencies in implementation of various programs / activities as well as on the quality of internal controls in selected departments which have negative impact on the success of programs and functioning of the departments and suitable recommendations to the respective executive for taking corrective action and improving service delivery to the citizens have been suggested. The draft audit paragraphs proposed for inclusion in the report of the CAG of India are forwarded to the Principal Secretaries/ Secretaries of the Department concerned drawing their attention to the audit findings and requested to send their response within six weeks. The fact that several departments had not sent any reply invariably indicates non serious or least bothered attitude of our state’s bureaucracy.
The audit findings involving recoveries that came to notice in the course of test audit of accounts of the departments of the State Government were referred to various departmental DDOs for confirmation and further necessary action under intimation to audit. The detailed figures of recoveries pointed out by audit during the year 2015-16 and accepted by the departments are astonishing : from Audit report Rs 155.2 crore, IRs staggering Rs 956.91 crore totaling a whopping Rs 1112.11 crores and recoveries effected on basis of these reports are mere Rs.16.77 crores which itself shows the sorry state of affairs at present. The Hand Book of Instructions for speedy settlement of Audit observations/ Inspection Reports (IRs) issued by the Government (Finance Department) provides for prompt response by the executive to IRs issued to ensure remedial/ rectification action in compliance with the prescribed rules and procedures. The HODs and next higher authorities are required to comply with the observations contained in the IRs and rectify the defects and report their compliance to the AG office. The very fact that based on the results of test audit in J&K, 41,953 audit observations contained in 10,357 IRs pertaining to the period 1998-2016 are outstanding as on 31 March 2016 and this only points out again the seriousness of respective Governments. Mere 896 inspection reports and 5506 observations were settled in 2015-16.
To ensure accountability of the executive to issues dealt with in various Audit Reports, the State Government (Finance Department) issued specific instructions in June 1997 to the administrative departments to furnish suo-motu Action Taken Notes (ATNs) on all the audit paragraphs featuring in the Audit Reports to the Public Accounts Committee (PAC)/ Committee on Public Undertakings (COPU) irrespective of whether these are taken up for discussion by these Committees or not. These ATNs are to be submitted to these Committees duly vetted by the Accountant General (Audit) within a period of three months from the date of presentation of Audit Reports in the State Legislature. However out of 469 audit paragraphs, reply to 176 audit paragraphs had not been received up to 30th September 2016.Out of 440 audit paragraphs featuring in the Civil chapters of Audit Reports for the years from 2000-01 to 2013-14, only 200 audit paragraphs have been discussed by the PAC up to 30th September 2016. Recommendations in respect of 185 audit paragraphs have been made by the PAC. However, ATNs on the recommendations of the Committees are pending from the State Government in respect of 113 paragraphs.
Further a total of 586 annual accounts of 28 bodies are still awaited for Audit as on 31st March 2016. Nine Autonomous Bodies required to be audited by the Comptroller and Auditor General (C&AG) of India had also not furnished the annual accounts which includes Ladakh Autonomous Hill Development Council, Leh, Ladakh Autonomous Hill Development Council, Kargil, Compensatory Afforestation Management and Planning Authority, Sher-e-Kashmir University of Agricultural Sciences and Technology, Srinagar , Sher-e-Kashmir University of Agricultural Sciences and Technology, Jammu, EPF Board, Srinagar ,Jammu and Kashmir State Housing Board, Khadi and Village Industries Board, Building and Other Construction Workers Welfare Board and total grants to the tune of Rs 726.61crores were released for the year 14-15 for these bodies. In fact the audit of Ladakh Autonomous Hill Development Council (LAHDC) Leh is pending since its inception in 1995-96 and similarly audit of LAHDC Kargil which came into existence in the year 2004-05 is also pending as they have failed to submit accounts for audit although substantial sums are being released to the Council and unspent balances at the end of the year remain credited in a non-lapsable fund in the Public Account of the State and it is a serious financial irregularity persisting for years. In view of this non-compliance, the audited accounts of these statutory bodies have not so far been presented to the State Legislature as required under the statutes under which these Bodies were created.
The pendency of large number of paragraphs indicates lack of response of the Government departments to Audit and repeated violations amount to undermining the purpose of such audits and CAG reports. Country has changed under our PM right now with zero tolerance towards corruption and accountability is the prime focus right now. Centre has shown its intent by linking almost all schemes with Adhaar and PAN cards and all central schemes are being monitored on monthly basis and non adherence to norms result in stoppage of funds immediately. Our State Government should look into this matter immediately and revamp the entire system to ensure proper response to the audit observations from the departments in a time-bound manner which even Governor has asked for recently. The very fact that CAG cannot take any corrective action itself makes the role of State Government most important in the matter and as they say actions speaks louder than words – transparency is the need of hour for our state’s economy .
“The right thing to do and the hard thing to do are usually the same.”
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