15/1089-90, VASUNDHARA, VASUNDHARA (P.O.), Dt. GHAZIABAD (U.P), PIN-201012
Reference: AIA/Circular-03/2012 Dated: 27th January 2012
Members & Spl. Invitees – NE &
Members of Women's Committee
The administration convened a meeting of all Federations on 25th January 2012 to brief on proposals on audit restructuring. At the outset itself DAI made it clear that the proposals are only on audit – central as well as state – and not on A&E. Cadre restructuring was also not in the agenda.
A "Brief on Restructuring Proposals" was circulated to all Federations in advance, which is appended to this circular.
DAI stated that the proposals –intended to be implemented from 01-04-2012 – are all about streamlining of audit. Stating that the department has moved from the period of voucher audit to test audit and then to transaction audit is now prepared to move to assurance based audit. DAI also stated that they are being guided by INTOSAI and ASOSAI in this.
Terming the whole exercise as only streamlining and de-layering (as far as reporting process is concerned) DAI stated that there would be no dislocation of personnel from one station to another station and the cadre controlling authority would remain the same. DAI clarified that there would be no cadre separation.
One audit party would conduct the expenditure as well as transaction audit of the entire department/office instead of by different parties as of now. This will give an overview on the total functioning of the entire department. Till this date we were only highlighting the deficiencies of the departments but with this assurance based audit we would also be appreciating the good works, DAI clarified.
In addition to regrouping of the functions hitherto discharged by the State Accounts General the central audit would be separated from the State audit AG. Centrally sponsored schemes but implemented by state governments would remain to be with State AG. The offices would be renamed as 'Social and General Services Sector' (Presently C&RA/W&RA) and 'Economic & Revenue' (presently Civil Audit). There would be no separate LB audit; it would be part of the Social and General Services Sector'. (Please go through the appended 'brief').
When pointed out during the briefing that these proposals are part of the "Strategic Plan – 2020" it was informed that only this portion of the strategic plan is being adopted.
Staff side – all the four federations – conveyed that the view of respective Federation would be conveyed very shortly.
HOW TO LOOK AT IT
At the face of it this plan looks innocuous.
As an organisation, we will have to assess such plans/programmes based on certain principles – how it affects the personnel working in the department, how far it will improve efficiency, then whether the nation, its people are going to be served better.
No outside agency whether it is called INTOSAI OR ASOSAI should have any influence over how CAG of India and IA&AD shall function. Further the sovereignty of the nation and its people, their right to have a transparent administration cannot be compromised. Let us asses the proposed 'restructuring of audit' from this base.
All the units may please go through the paper attached and also the "Strategic Plan 2020" and offer their comment by 3rd February 2012 without fail. Soft copy of "Strategic Plan – 2020" is attached (will not be sent by post).
Brief on Restructuring Proposals
Faced with a criticism on the traditional approach to transaction audit and with a desire to move towards an assurance based audit approach which would result in audit being an effective partner in providing good governance to the country, such restructuring had been proposed in many forums, important among these being the three AsG conferences in 2005, 2008 and 2010.
- Principles of Restructuring
a. Sectoral Integration – Hqs as well field offices (Horizontal). Moving away from a function based audit approach to a department based (or a sector based) audit approach.
b. Vertical Integration – CCO based audit – Audit of Ministry/Department, CGO/SGO, Abs and PSUs under the Ministry/Department.
c. Minimal Reporting lines – Single ADAI for each AG (Audit) in a State.
d. Segregation of Central audit from State Audit.
- Restructuring for Audit of State Government.
3.1 Structure at Headquarters
a. Four ADAI will supervise audit of all activities of the State Governments within the States under their charge. The jurisdictions in terms of States will remain same as that of existing ADAI (RS-I, II, III and IV).
b. Each of the four ADAIs will be supported by 2 PDs each looking after specific states within an ADAI's jurisdiction.
c. Three Sr.AO/AO/AAO will report to each PD; one each drawn from Civil audit, SRA and Commercial audit stream.
3.2 Restructuring of State Audit Offices
Currently the distribution of audited entities within various audit offices in a State or within various group charges in an audit office (States having one AG only) is based on functions, like Revenue Audit etc. Through this restructuring, the State audited entities will be redistributed between AG (Civil) and AG (C&RA)/ AG (W$RA) (as applicable) on sectoral basis. Generally, Audit of Departments/Directorates and State Abs in Economic/Revenue sector to be transferred from Civil Audit (now to be called 'Social and General Services Sector') to C&RA/W&RA (now to be called 'Economic and Revenue'). Similarly, some State PSUs to be transferred from C&RA offices (i.e. 'Economic and Revenue') to Civil Audit offices (i.e. 'Social and General Services Sector'). Principles underlying this restructuring are as follows:
a. Minimalist movement of staff outside their current place of posting;
b. Two state audit offices in each State- AG(Social and General Sector including Local Bodies) and AG(Economic and Revenue) in lieu of AG (Civil) and AG (C&RA)/(W&RA), respectively;
c. In States having one AG office, sectoral readjustment within various Group charges;
d. Audit of centrally sponsored schemes where State agencies are the implementing agencies will continue to be done by State AG;
e. Mainstreaming of LB Audit offices;
f. Six new PD (Central) offices to be created at Chennai, Bangalore, Hyderabad, Chandigarh, Ahmedabad and Lucknow (tentative);
g. Audit of Central Government offices i.e. Revenue, Expenditure transferred to the respective PD (Central) and audit of Central Abs also to be transferred to MAB offices/ PD(Central);
h. Proposed Location and Jurisdiction of PD (Central) offices are Chandigarh (Punjab, Haryana, HP and J&K); Ahmedabad (Gujarat & Rajasthan); Chennai (Tamil Nadu & Kerala); Bengaluru (Karnataka & Goa); Hyderabad (Andhra Pradesh, Orissa & Chhattisgarh); and Lucknow (tentative) (MP, UP, Uttarakhand & Bihar).
3.3 Accounts offices
ADAI (Accounts) will be responsible for overall supervision of the State (A&E) offices.
4. Restructuring of the Central Audit offices
4.1. Central Audit would also be organised on sectoral basis. Apart from DAI, the existing four Deputy C&AG charges would be reorganised Sectorally into.
· DAI (Economic & Infrastructure)
· DAI (Social Services & Local Bodies)
· DAI (General Services and Defence)
· DAI (Central Receipt and Finance)
4.2. Field audit offices (offices auditing Central Ministries i.e. DGA(CE), PD(ESM) and PD(SD) and P&T/Railways/Defence) would be given sectoral profiles and report to the DAI in charge of the sector.
Similarly, PDCA offices will also be given a sectoral profile and report to concerned DAI.
4.3 Six proposed PD(Central) offices will audit all Central Government Receipt and Expenditure (including Abs) in the States under their respective jurisdiction except expenditure under Centrally Sponsored Schemes.
4.4 There will be minimalist staff movement outside their current place of posting.
4.5. The proposed Sectoral DAI charges and the field offices reporting to them
DAI (CRA & Fin)
DAI (SS & LB)
· DG(CR), ND
· PD(C)Kolkata and Mumbai
· 6 New PD(C) offices
*DG (SS) (DGACE)
*Defence Audit set up
*PD(Eco & Infra)-PD (ESM)
*Railways Audit Set up