Auditaudit Staff asked 2 years ago
2 Answers
RaviRavi Staff answered 2 years ago

will try to cover it in live session today at 9pm

RaviRavi Staff answered 2 years ago

Annual Accounts and the Audit Reports will be referred to specialized Committees constituted by the Parliament and the State Legislatures i.e Public Accounts Committee (PAC) and the Committee on Public Undertakings (COPU)

  • Public Accounts Committee (PAC): – PAC performs the following functions: – (Department & Ministry Reports)
  • 3Examines that the moneys (shown in the accounts) were disbursed for the purpose to which they were applied. (During 2014-15, 6951 crores under 79 Major Heads of Account (representing functions of the Government) was classified under the Minor Head “800-Other Expenditure.)


  • 2Examined that expenditure was authorized. (The CAG has rapped the health department for an unauthorised expenditure of Rs 29.12 crore by the assistant engineer, engineering cell, Reproductive and Child Health Society. The assistant engineer was “authorised to sanction works and incur expenditure up to Rs 10,000 only.)


  • 1Examine that re-appropriation (re-design of expenditures) has been made in accordance with the provisions made (i.e Distribution of fund). (In six cases, re-appropriation orders proved unnecessary because expenditure did not come even up to the level of budget provisions and in other seven cases reduction of provision also proved injudicious as there was excess expenditure under these cases. In many cases, anticipated savings of Rs 5846.86 crore were not surrendered leaving no scope for utilizing these funds for other developmental purposes.)


  • 4Examines that statements of accounts of autonomous and semi-autonomous bodies, the audit of which is conducted by CAG either under direction of President or Statute of Parliament. (Sports Authority of India Report: – Depreciation of Rs. 17.98 crore was charged on Fixed Assets during 2008-09. The same was reduced from Fixed Assets and the corresponding amount of depreciation was reduced from the Liabilities under Capital Grant directly instead of routing through the Income & Expenditure account. This resulted in understatement of Expenditure and understatement of excess of expenditure over income by Rs. 17.98 crore.)


  • Committee on Public Undertakings (COPU):COPU performs the following functions: – (PSU Reports)
  • 2To examine the report and accounts of Public Undertakings. (Examination of accounts and reports of Coal India Limited a listed company was done in FY 14-15)


  • 1To examine the reports of the CAG on public Undertakings. (Some paragraphs of audit report of CAG on performance audit of Power Grid Corporation were taken in FY 14-15)
  • 3To examine the efficiency of the Public Undertakings and to see whether they are being managed in accordance of sound business principles and prudent commercial practices

(BEL :- Exemption of Custom Duty, Excise Duty and Sales Tax in Global Bidding)

  • 4To exercise such other functions as may be allotted by the speaker from time to time. (Eg Revival of Air India.)

The examination of public enterprises by the Committee takes the form of comprehensive appraisal or evaluation of performance of the undertakings. It involves a thorough examination, including evaluation of the policies, programmes and financial working of the undertaking.

  • Estimate Committee:The Estimate Committee performs followings functions: –
  • 3To report what economies, improvements in organization, efficiency or administrative reforms, consistent with the policy underlying the estimates may be effected; (Dismayed to note that only 23% of the total hydropower potential of the country (which is pegged at 1,48,701 MW) has been developed so far, the Committee have recommended that the Government should immediately take proactive measures to develop hydroelectricity in the country.)


  • 4To suggest alternative policies; in order to bring bout efficiency and economy in administration. (Don’t ban but give tax incentives & finance pollution equipment’s to small Scale units (SSIs) to become Zero Liquid Discharge (ZLD) units.)


  • 1To examine whether the money is well laid out within the limit; and (As the budget of the Ministry of New & Renewable Energy is quite inadequate being only 0.024% of the Union Budget Estimates for 2010-11, even though the future of power sectors depends heavily on renewable energy)


  • 2To suggest the form in which the estimates shall be presented to Parliament. (Main budget & railway budget was merged as in today’s time we need integrated development of all means of transport, Further it should be presented at 11 am and not 5 pm)

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