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Audit-State Audit

 Introduction to the State Audit Department :

  • The Local Fund Audit Department has been in existence from the year 1880 and was under the control of the Accountant General of the then Madras State.
  • 1947-1956 under C & AG
  • 1956-1976 – Examiner of Local Fund Accounts under Directorate of Treasuries and Accounts
  • 1976-1989: Bifurcated from Directorate of Treasuries and Accounts
  • 1989 – 2000: Audit became Statutory Duty – The A.P. State Audit Act was enacted in 1989.
  • 2000: A.P. State Audit Rules were issued by the Government. Local Fund Audit Department is re-named as State Audit Department
  • 2014: On 02.06.2014 State Audit Department, Telangana has come into existence.

Objectives of the Audit :

  • The main objective of the Audit is to control the leakage of Funds, regulate the procedures and check the correctness of accounts.
  • The Principle in conducting the Audit is propriety.
  • The Auditor should be Friend, philosopher and guide to the auditee institutions.

Nature of Work :

  •  The nature of work carried out by the State Audit Department is mainly regulatory work like C & AG. It enforces the rules, regulations, procedures in the accounting system. The department does not have much public interface as it deals with Local Body authorities and Pensions of retired employee certain departments

JOB CHART OF DISTRICT AUDIT OFFICER :

  • Preparation of Annual Action Plan for Post – Audit as per Demand for a financial Year
  • Providing Leadership and Guidance to auditors for smooth conducting of the audit.
  • Obtaining draft audit reports in time from the auditors
  • Approval and Issue of Audit Reports
  • Conducting follow up action ( Issue of Special Letters and initiating the Surcharge Action in fit cases)
  • The DAO as a Member Convener, under the Chairmanship of the District Collector, should convene the DLC meeting every quarter for settlement of Audit Objections and discuss other Audit-related matters
  • Conducting Pre-Audit of the prescribed institutions ( AMCs and 6-A Temples)
  • Authorization of Pensions of certain employees
  • Overall supervision of office work and Audit work
  • Co-ordination with Executive Authorities of the auditable institutions

 The functioning of the State Audit Department at District level

  • Preparation of Annual Action Plan
  • Conducting Pre-Audit
  • Conducting Post – Audit
  • Authorization of Pensions of certain departments
  • Any other special audits entrusted by the H.O.D.
  • Issue of Audit Reports after conducting Post- Audit
  • Doing follow up action on Audit Reports vis – a – vis Issuing special letters and initiating Surcharge Action in fit cases
  • Settlement of Audit Objections 

The functioning of the State Audit Department at District level

  • Conducting Pre-Audit of AMCs and 6-A Temples: The District Audit Office conducts the Pre-Audit on the bills of AMCs and 6-A Temples in the district. However, the Pre-Audit of bills is subject to the Post-Audit.
  • Conducting Post – Audit: the District Audit Office mainly conducts the Post-Audit of accounts of Local bodies like GPs, MPs, ZPs, ULBs, ZGS, HR&CE institutions, Mee-Seva centers, Zilla Sainik Welfare Fund, CDP funds, Rythu Bazars, Relief Funds, etc.
  • Annual Action Plan: the Annual Action Plan prepared in the month of March and Audits will be conducted from April to March in every Financial Year on the accounts of Preceding year
  • Demand: the no. of auditable institutions ( Demand) to be audited for the year in Medak district.
  • Issue of Audit Reports: After conducting Post – Audit on the accounts of various institutions, Audit Reports will be approved by the competent authority and will be issued to the Executive Authorities within the stipulated time in Registered Post with Acknowledgement
  • Follow-up action on Audit Reports: After receiving the Audit Report, the Executive Authority has to send their replies on Audit objections raised in the Audit Report within a stipulated period of 60 days.
  • Issuing Special Letters: In case of serious irregularities like Mis-appropriation of funds, special letters are sent to the Executive Authorities. These special letters have to be replied within a stipulated period of 45 days.
  • Initiating Surcharge Action: On failure of giving replies to the special letters, the paras mentioned in the special letters are deemed to be accepted by the Executive Authority and Surcharge action will be initiated to recover the funds as per Revenue Recovery Act following due procedure. If replies are sent, but not compiled the Audit Objections are also liable for Surcharge Action
  • Settlement of Audit Objections: The pending Audit Objections should be settled from time to time on submission of suitable replies along with the documentary pieces of evidence by the Executive Authorities.
  • Authorization of Pensions of the following employees :
    • Class – IV employees of all in the district
    • Up to Superintendent cadre in the PR department in the district
    • Up to Head Constable in the Police Department in the district
    • Up to Forest Beat Officer cadre in the Forest Department in the district
    • A gratuity of Part-time VROs & VRAs in the district
    • Forwarding Pension proposals of Municipal employees to the AG office
    • Authorization of Pensions of ZGS employees
  • Any other special audits entrusted by the H.O.D.: The District Audit Office may conduct any special audit entrusted by the H.O.D. Viz, a special audit was conducted on Loan Waiver Scheme, 2014 in erstwhile Medak district by the Special audit Team constituted by the Director of State Audit, Telangana.
  • Attendance and Movement of Auditors: The auditors have to attend the office on the last working days of every month to write the state of audit work done in that month. They also have to attend the office for first five working days to update their office work Typist, office subordinates and other staff who are designated to look after the office workers have to stay at the office, as per the office order issued by the DAO.