Govt non-serious towards CAG observations on serious financial irregularities, deficiencies

Mohinder Verma
JAMMU, Mar 6: Notwithstanding the fact that serious financial irregularities and deficiencies in the implementation of various schemes and programmes are being detected during audit process every year, the State Government is not taking seriously the observations and recommendations of the Comptroller and Auditor General (CAG) of India thereby clearly indicating that transparency and accountability remain confined to official statements only and practically nobody wants to ensure the same on ground.
The audit of various schemes and programmes becomes imperative especially when the Grant-in-Aid to the Jammu and Kashmir Government from the Government of India has increased from Rs 8955 crore in 2008-09 to Rs 14354 crore in 2012-13.
The audit process starts with the risk assessment of various departments, autonomous bodies, schemes/projects, 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, Inspection Report containing 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. The important audit observations pointed out in these Inspection Reports are processed for inclusion in the Audit Reports of the Comptroller and Auditor General of India.
During 2012-13, compliance audit of 846 drawing and disbursing officers of the State and 37 autonomous bodies was  conducted by the office of the Principal Accountant General (Audit), J&K besides seven Performance Audits were also conducted.
“In the last few years, audit has reported on several significant deficiencies in implementation of various programmes/activities as well as on the quality of internal controls in selected departments, which have negative impact on the success of programmes/schemes and to offer suitable recommendations to the executive for taking corrective action and improving service delivery to the citizens”, the CAG said in its latest report.
“Fourteen paragraphs and five Performance Audits proposed for inclusion in the report of the CAG were forwarded by the Principal Accountant General (Audit) to the Principal Secretaries/Secretaries of the departments concerned, drawing their attention to audit findings and requesting them to send their response within six weeks. However, no reply of the Government was received till January 2014”, the report said.
The departments concerned adopted non-serious approach towards the paragraphs and five Performance Audits despite the fact that Hand Book of Instructions for speedy settlement of audit observations/Inspection Reports issued by the Finance Department provides for prompt response by the executive to the IRs issued by the Principal Accountant General (Audit) to ensure remedial/rectification action in compliance with the prescribed rules and procedures and accountability for the deficiencies and lapses brought out in the IRs.
According to the CAG figures, the number of Inspection Reports and number of Paragraphs as on April 1, 2012 was 7490 and 26674 respectively. During the year 2012-13, there was addition of 675 Inspection Reports and 4114 Paragraphs while as during the year only 128 Inspection Reports and 1037 Paragraphs were settled. Based on the results of test audit, 29751 Audit observations contained in 8037 Inspection Reports pertaining to the period 1998-2013 were outstanding as on March 31, 2013.
“The pendency of large number of paragraphs of serious financial irregularities and loss to Government even after being pointed out in audit indicated lack of response of the Government departments to audit”, the CAG said.
To ensure accountability of the executives to the issues dealt with in various Audit Reports, the State Government issued instructions in June 1997 to the administrative departments to furnish to Public Accounts Committee/Committee on Public Undertakings, suo-moto Action Taken Notes on all the audit paragraphs featuring in the Audit Reports irrespective of the fact that these are taken up for discussion by these Committees or not. These Action Taken Notes are to be submitted to these Committees duly vetted by the Principal Accountant General (Audit) within a period of three months from the date of presentation of Audit Reports in the State Legislature.
However, it has been observed that out of 393 audit paragraphs featuring in the Civil Chapters of Audit Reports from 2000-01 to 2011-12, suo-moto Action Taken Notes in respect of 222 audit paragraphs had not been received up to September 2013.
“Out of 371 audit paragraphs featuring in the Civil Chapters of Audit Reports for the years from 2000-01 to 2010-11, 145 audit paragraphs were discussed by the PAC up to September 30, 2013 and the recommendations in respect of 138 audit paragraphs were made by the PAC. However, Action Taken Notes on the recommendations of the Committees were pending from the State Government in respect of 116 paragraphs.
Keeping in view non-serious approach of the departments concerned, the CAG has stressed that Government may look into this matter and revamp the system to ensure proper response to the audit observations from the departments in a time-bound manner.

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