Audit Report Definition Audit as defined in paragraph.7 of An Introduction to Indian Government Account and Audit is in the instrument of Financial Control.
Audit Report Settlement of Audit Paras
Definition “Audit as defined in paragraph.7 of “ An
Introduction to Indian Government Account and Audit “ is in the instrument of
Financial Control. “
The verification of correctness of receipts and expenditure in the light of government orders and rules.
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| Audit Report |
How to avoid Audit objections and Financial
Irregularities
1) Be
well versed with financial rules.
2) Expenditure
be incurred within the valid sanction.
3) Availability
of budget be ensured.
4) Documentation
be proper.
5) Proper
maintenance of Accounts record be ensured.
6) Internal
audit be started in the department.
7) Up-dation
of budgetary figures with the Headquarter be ensured.
8) Purchase
procedure laid down by the department be followed.
9) Audit
observations once taken by the audit in a year should not be repeated next
year.
10) Reply
of audit observations be given within stipulated period.
11) Follow
the advisory remarks of the audit about the organization.
12) Expenditure
be made in the public interest.
AGCR INTERNAL AUDIT/ ELFA
- PARA
– Half Margin Audit Memo
-Record Memo
-Observation Memo
SOME STATISTICS ABOUT
INTERNAL AUDIT
DETAILS OF
OUTSTANDING PARA
|
DEPARTMENT |
NO. OF UNITS |
NO. OF OUTSTANDING
PARAS |
OUTSTANDING
RECOVERY (RS.) |
|
EDUCATION |
1184 |
18458 |
14.77cr. |
AUDIT REPORT
PART-A : OLD REPORT
: OUTSTANDING PARAS
PART –B : CURRENT REPORT
PART – C : TEST AUDIT
NOTE (TAN)
SETTLEMENT OF AUDIT PARAS :
Ø AVAILABILITY
OF AUDIT REPORT
ü Available
complete incomplete
ü Not
available
Ø AGCR-
Collect copy from AGCR building-contact concerned sector incharge
Ø INTERNAL AUDIT-
Collect copy from Dte. of Audit, or down load from Audit Department
site
— Old
outstanding paras:
a) Para
involving recovery
b) Procedural
para
Category of Audit Paras:
Ø Audit
paras involving Recovery
- Personal Recovery (Recovery against
individual)
- Recovery
against parties
Ø Audit
paras not involving Recovery
- Specific observation
- General/routine
observation
- Deficiencies in Maintenance of Records
- Non
Production of Records.
— Settlement
of old outstanding paras
— Para
involving recovery:
— It
is must to effect recovery whatsoever smaller amount it may be.
— For
recovery of income tax, individual submit ITNS challan 280 correctly filling the Assessment
Year and Financial Year to which the recovery relates to bank and
submit copy of challan.
— For other recoveries, get the amount deposited
through challan and submit verified and attested copy.
— For
irrecoverable recovery, obtain sanction to write off losses citing
concrete reasons from Competent Authority.
— Settlement
of old outstanding paras
— Procedural
paras:
— Furnish
reply and show compliance to Current Audit to verify that instructions have
been complied with/ deficiencies have been rectified/proper record has now been
maintained. (Spot Verification)
— Show
ex-post-facto approval of the competent authority for regularization of
irregular expenditure/expenditure incurred beyond power.
— Recovery
pointed out in Current Audit
- Not
to effect recovery on the basis of Audit Memo issued by the Audit Party in
case of recovery of Pay Fixation or if any representation submitted by an
employee or if any employee not satisfied with observation.
- Representation
should be submitted to DCA, DoE for scrutiny and for onward submission to
Dte. of Audit for consideration.
— Recovery
pointed out in Current Audit
3. Effect recovery
only after receipt of Audit Report.
4. Effect recovery, if there is no doubt about
accuracy and correctness like short recovery of DGEHS or Licence fee or LTC
fully supported by Rules for Spot settlement of Memo.
SETTLEMENT OF AUDIT PARAS:
Ø DURING
THE COURSE OF AUDIT:
- Best
time to settle audit paras on the spot.
- By
mutual discussion possible to settle minor objections.
- Give
prompt reply to audit memos.
- Give
reply to the outstanding paras.
- Give
year, para no, brief of para, and reply in a suitable format.
- Attach
all supporting documentary evidence mentioned in the reply. All papers
must be attested by HOO.
- In
case of recovery, attach copy of challan.
- Take
suggestions from the audit party.
AFTER AVAILABILITY OF AUDIT REPORT :
Ø PARAS
RELATED TO YOUR BRANCH :
- Prepare
point wise reply,
- Show
to Accounts functionary
- Send
reply through HOO/HOD
Ø PARAS
NOT RELATED TO YOUR BRANCH :
- Send
relevant extract to concerned branch
- Seek
reply with complete documentary evidence in definite time frame
- Reply
to be examined by Accounts functionary before forwarding to audit.
- Else
call a meeting.
SETTLEMENT OF AUDIT PARAS: IMPORTANT POINTS TO REMEMBER
Ø Unusual
delays be brought to the notice of next higher authorities.
Ø Replies
to the paras of the Audit Report should furnished through concerned HOD.
Ø In
case of expenditure beyond the delegated powers, seek ex-post-facto
sanction from the competent authority/Finance Department.
Ø For
un-traceable record/documents, make all efforts to trace, issue necessary
circular and place on record details of efforts made.
Ø Delay
in disposal of audit observations tends to defeat the very purpose of audit.
Ø With
lapse of time it may become more difficult to settle audit observations due to
difficulty in locating relevant records.
Ø Primary
responsibility upon the DDO/HOO and controlling officers.
Ø Reply
on each point with factual information be given.
Ø An
interim reply may be given, if final reply could not be furnished with time
limit.
Ø Initiate
action to rectify irregularities, defects and omissions etc., without waiting
for the receipt of Audit Report/Inspection Report.
Ø Accounts
functionary of the Department be consulted while sending replies.
- Personal
Recoveries (against individual)
Ø Embezzlement
of Government Money
Ø Recovery
of Income Tax
Ø Recovery
of overpayment of pay and allowances
- Pay
fixation/grant of increment/TA/FPA/CEA/
Washing
allowance/adhoc-bonus/stepping up of pay etc.
Ø Short/non
recovery of LF/WC/DGEHS/ UTGEIS
Ø Other
Recoveries-LTC/Medical/TA-DA claims
- RECOVERY
AGAINST PARTIES
Ø Non-implementation
of Penalty clause
Ø Overpayment
– payment not as per terms of agreement with the contractor
Ø Short
deduction of TDS
Ø Non
deduction of TDS
3. AUDIT PARAS NOT INVOLVING RECOVERY
- Specific/important
observations
- Irregular
payment of grants
- Non-payment
of minimum wages
- Non
deposit of statutory dues by contractor to Govt. such as ESI/EPF etc.
- Non-compliance
of terms and conditions by the contractor
- Non-conducting
of physical verification of stores {213}
- Outstanding
advances {Rule 118 R&P, 323(2) of GFR}
- Faulty
implementation of programmes/schemes
- Advance
payment to suppliers {Rule 172(1) of GFR -2017}
- Purchase
of goods and services beyond delegated powers {FD order dated 12/03/15
& 20/11/2008}
- Purchase
of banned items without concurrence of the Finance Department.
- Splitting
up of purchase {Rule 157 of GFR-2017}
- Expenditure
without re-validation of sanction by competent authority sanction of which was given in the
previous financial year.
- GENERAL/ROUTUNE
OBSERVATIONS
Ø Shortcomings
in the documents of Income Tax
Ø Non
furnishing of requisite certificate on purchase of goods as per GFR {under Rule
154 & 155 of GFR-2017}
Ø Non-disposal
of un-serviceable/obsolete items (217-223)
Ø Rush
of expenditure in the closing months (Rule 62(3) of GFR-2017)
Ø Huge
savings under budget heads {Rule 62(2) of GFR}
Ø Non-verification
of qualifying services after 18 years
Ø Reimbursement
of medical claim without obtaining non availability certificate
Ø others
- Record
Deficiencies
Ø Improper
maintenance of various registers
- Cash
book
- Stock
register
- TR-V Register
- LTC
Register
- Postage
Stamps Register
- Service
books
- Pay
Bill Register
- Bill
Register
- Liveries
Register
- Library
Record
- Other
registers/records
WRITE-OFF IRRECOVERABLE LOSSES OF STORES OR PUBLIC MONEY
a) Irrecoverable
losses of stores/money not due to theft, fraud or negligence. {Power with Admn
Secy/HOD- Rs. 50,000/- in each case subject to observance of
procedure laid down in GFR 2017.
b) Losses due to
theft, fraud or negligence {Power with Admn Secy/HOD -Rs. 5,000/- in each
case.
c) Deficiencies and
depreciation in the value of stores included in the stocks and other accounts
(. {Power with Admn Secy/HOD- Rs. 50,000/- in each case subject
to observance of procedure laid down in GFR 2017}
— www.finance.delhigovt.nic.in
— REFERENCE
BOOKS
— 1)
Receipts and Payment Rules, 1983
— 2)
General Financial Rule, 2017
— 3)
Swamy’s Handbook-2019/
Bahari Handbook 2019/
Nabhi’s
REFERENCER 2019
— NEW
DEVELOPMENTS
1. PROCUREMENT
THOUGH GOVERNMENT e MARKETPLACE (GeM) IS MANDATORY VIDE RULE 149 OF GFR vide FD O.M
dated 26/04/2017.
2. RELAXATION
- IF DEPARTMENTS FACE ANY PROBLEM
FOR PROCUREMENT OF ITEMS AVAILABLE ON GeM, FOLLOW STANDARD METHODS OF OBETAINING
BIDS/TENDER PROCESS AS PER GFR, VIDE FD.OM.DATED:-24/08/2017
— NEW
DEVELOPMENTS
3. EMPLOYEES FOR PAY LEVEL IN PAY MATRIX IN 9
(GRADE PAY:-5400) AND ABOVE ENTITLED FOR AIR TREVEL VIDE M/F OM,
DATED:-10/07/2017 AND FD ENDORSEMENT DATED:-19/07/2017 ON TA
4. ADVANCE
UPTO 12 MONTHS OF PAY OR ¾ OF THE AMOUNT OF CREDIT AT GPF PERMISSIBLE
(COMPETENT AUTHORITY - HOO) vide DoPT O.M No.3/2/2017-P&PW(F)(i) dated 07/03/2017.
— NEW
DEVELOPMENTS
5. WITHDRAWL
FOR EDUCATION/OBLIGATORY EXPENSES/ ILLNESS UPTO
12 MONTHS OR ¾ AMOUNT AT GPF PERMISSIBLE, 90% FOR HOUSING RELETED
PURPOSE (CA-HOD) vide DoPT O.M No.3/2/2017-P&PW(F)(ii) dated 07/03/2017.
6. NO DOCUMENTORY EVIDENCE REQUIRED FOR WITHDRAWL/ADVANCE
FROM GPF, SIMPLE DELERATION IS SUFFICIENT.
— NEW
DEVELOPMENTS
7. CHILDREN EDUCATION ALLOWANCE WILL BE Rs.2250/-
P.M, AND REIMBURSEMENT ONCE A YEAR, AFTER COMPLITION OF THE
FINANCIAL YEAR, CERTIFICATE FROM HOI IS SUFFICIENT.
8. FAMILY PLANNING ALLOWANCE DISCONTINUED W.E.F. 01/07/2017 VIDE M/F OM NO.F.No. 12(4)/2016-EIII.A DATED 7TH
JULY, 2017.
— NEW
DEVELOPMENTS
9. TRAVEL BY PREMIUM TRAINS/PREMIUM TATKAL TRANS/SUVIDHA
TRAINS IS NOW ALLOWED ON LTC AND TATKAL CHARGES SHALL ALSO REIMBURSABLE ON LTC W.E.F. 1/7/2017.
10. FLEXI FARE APPLICABLE IN RAJDHANI/
SHATABDI/DURONTO TRAINS SHALL ALSO BE ADMISSIBLE FOR THE JOURNEY
PERFORMED BY THESE TRANINS ON LTC. THIS IS NOT APPLICABLE FOR REIMBURSEMENT
IF NON ENTITLED OFFICER TRAVEL BY AIR.
— NEW
DEVELOPMENTS
11. In case of non-entitled Government servants travelling
by air on LTC and claiming entitled rail fare, the condition of booking the air
tickets through authorised travel agents may not be insisted upon vide DOPT OM
No. 31011/5/2014-Estt(A.IV) dated 21/08/2017.
— NEW
DEVELOPMENTS
12. Payment of Headquarters Special Pay/Special Allowance
is discontinued from the salary of the month of July, 2017 vide DOPT OM No.
2/12/2017-Estt.(Pay-II) dated 14/08/2017.
13. Festival Advance, advance of TA on transfer abolished
w.e.f. 07/10/2016.
— NEW
DEVELOPMENTS
14. All employees irrespective of pay, eligible for computer
advance up to Rs.50,000/- or actual price, whichever is less. It will be
allowed maximum 5 times in the entire service.
Further, Motor Car advance and
Motorcycle / Scooter / Moped Advance
discontinued w.e.f 07/10/2016 vide
M/F, Deptt. of Exp. O.M No. 12(I)/E.II(A)/2016
dated 07/10/2016.
— NEW
DEVELOPMENTS
15. LTC claim to be allowed in case of journey by private
transport/own arrangement (If public transport available admissible as per
entitlement, if no public transport available i.e. Private taxi for a maximum
limit of 100 Km admissible as per entitlement vide DoPT OM no.
31011/3/2015-Estt.(A.IV) dated 09/02/2017.
— NEW
DEVELOPMENTS
16. For Medical Facilities: Income limit for
dependency increased to Rs. 9000 + Dearness relief thereon, w.e.f. 08/11/2016.
17. Medical Advance to be allowed up to 90% of
package rates/estimated expenditure.
18. Hearing impaired employees having loss of 60 decibels or more also
eligible for Transport allowance at double rates.
— NEW
DEVELOPMENTS
19. Full reimbursement as per the entitlement allowed for
journey(s) performed on LTC by the family members from any place in
India to Headquarters/place of posting of the Government servant and back. When such journey is performed from the Home
Town, the LTC shall be counted against ‘Home Town’ LTC and in case the journey
is from any other place in India, then it shall be counted against ‘Any place
in India’ LTC vide DoPT OM no. 31011/5/2015-Estt.A-IV dated 31/10/2017.
— NEW
DEVELOPMENTS
20. Government employees in the pay level of 14 and above
(Grade Pay Rs.10000/- and above) shall be entitled for air travel in
Business/club class for the purpose of LTC. vide DoPT OM
No.31011/8/2017-Estt.A-VI dated 18/01/2018.
— NEW
DEVELOPMENTS
21. Claim of a Govt. servant to Travelling Allowance/ Daily
Allowance Tour/ Transfer/Training/ Journey on Retirement, is forfeited or
deemed to have been relinquished if the claim for it is not preferred within
60 days (earlier time limit was one year) succeeding the date
of completion of the journey vide M/F OM No. 19030/1/2017-E.IV dated 13/03/2018.
— NEW
DEVELOPMENTS
22. In case Govt. Employee avails free boarding and lodging on
Tour, No Daily Allowance (DA) is admissible vide M/F, Department of
Expenditure OM No. F.No. 19030/1/2017-E.IV dated 01/02/2018.
— NEW
DEVELOPMENTS
23. LTC may be availed while an employee is on Child Care
Leave (CCL)/ employee on CCL may be permitted to leave HQ with prior approval/
may also proceed on foreign travel provided clearances from appropriate
competent authorities vide DOPT OM No. 13018/6/2013-Estt(I) dated 03/04/2018.
— NEW
DEVELOPMENTS
24. Children below the age of 5 years are not charged for rail
journeys, no reimbursement shall be made in respect of the air journey
performed by children, aged less than 5 years, of the Government servants who
are not entitled to travel by air on LTC. this provision shall not be
applicable for the segments where the air journey has been allowed to the
non-entitled Government servants and their families under the special
dispensation scheme, existent from time to time
vide DOPT OM No. 31011/3/2016-Estt A-IV
Dated 16/05/2018.
— NEW
DEVELOPMENTS
25. Grant of special increment in the form of
personal pay to Central Government Servants for participation in sporting
events and tournaments of National or International importance: Rates of
personal pay has been revised
w.e.f. 01/07/2017 vide DoPT OM no.
6/1/2017-Estt-(Pay-I) dated 11/06/2018.
— NEW
DEVELOPMENTS
26. Consolidated instructions have been issued for reimbursement
of Children Education Allowance (CEA) and Hostel Subsidy vide DoPT OM
No.A-27012/02/2017-Estt.(AL) dated 17/07/2018.
- Further,
procedure for claiming a reimbursement has also been simplified.
— NEW
DEVELOPMENTS
27. Employees who
were appointed to posts prior to
01.01.2006 and whose pay, as fixed in
the revised pay structure as on 01.01.2006 lower than the prescribed entry pay for
direct recruits of that post, shall not be less than such entry pay w.e.f.
01.01.2006. Employees who were appointed
to such posts by way of promotion on or after 01.01.2006 and
whose pay, happens to be lower than the said entry pay, shall also not be less
then such entry pay from the date of their promotion taking place on or after
01.01.2006. vide M/F O.M. No. 8-23/2017-E-IIIA dated 28/09/2018. and F.D
endorsement dated 06/11/2018.
— NEW
DEVELOPMENTS
28. Guidelines for procurement of Computer Hardware,
Software and Computer Accessories etc. amended vide I.T. Deptt. order no.
1/2019 dated 30/01/2019. Clearance for standard technical specifications from I.T. Deptt. not required.
— NEW
DEVELOPMENTS
29. Amount of Cash Handling Allowance revised w.e.f.
01/07/2017 vide DoPT O.M. No. 4/6/2017-Estt.(Pay-II) dated 18/01/2019 and F.D
endorsement dated 28/03/2019.
30. Incentive
for acquiring for fresh higher qualifications in the 7th CPC,
one time lump-sum rates (like Ph.D/ PG Degree/ Degree has been revised
DoPT O.M No. 1/5/2017-Estt(Pay-I) dated 15/03/2019 and F.D. endorsement dated
24/04/2019.
— NEW
DEVELOPMENTS
31. Rule 149 Government e-Marketplace amended vide M/F O.M. No. 1/26/2018-PPD dated 02/04/2019.(main
point)
- Up
to Rs.25,000/- through any of the available supplier
- Above
Rs.25,000/- and upto Rs.5,00,000/- through GeM seller having lowest
price of at least three OEM’s.
- Above
Rs.5,00,000/- after mandatorily obtaining bids.