WHAT IS CAG: In brief: The CAG is also the external auditor of Government-owned corporations and conducts supplementary audit of government companies, i.e., any non-banking/ non-insurance company in which the state and Union governments have an equity share of at least 51 per cent or subsidiary companies of existing government companies. In details: The Comptroller and Auditor General (CAG) of India( Hindi:भारत के नियंत्रक-महालेखा परीक्षक) is an authority, established by the Constitution of India under Chapter V, who audits all receipts and expenditure of the Government of India and the state governments, including those of bodies and authorities substantially financed by the government. The CAG is also the external auditor of Government-owned corporations and conducts supplementary audit of government companies, i.e., any non-banking/ non-insurance company in which the state and Union governments have an equity share of at least 51 per cent or subsidiary companies of existing government companies. The reports of the CAG are taken into consideration by the Public Accounts Committees, which are special committees in the Parliament of India and the state legislatures. The CAG is also the head of the Indian Audit and Accounts Department, the affairs of which are managed by officers of Indian Audit and Accounts Service, and has over 58,000 employees across the country. The CAG is mentioned in the Constitution of India under Article 148 – 151. The CAG is ranked 9th and enjoys the same status as a judge of Supreme Court of India in Indian order of precedence. The current CAG of India is Shashi Kant Sharma,who was appointed on 23 May 2013. He is the 12th CAG of India. Appointment : The Comptroller and Auditor-General of India is appointed by the President of India following a recommendation by the Prime Minister. On appointment, he/she has to make an oath or affirmation before the President of India Compensation : The salary and other conditions of service of the CAG are determined by the Parliament of India through The Comptroller and Auditor-Generals (Duties, Power and Conditions of Service) Act, 1971. As per the act, his salary is the same as salary of a Judge of Supreme Court of India. Neither his salary nor rights in respect of leave of absence, pension or age of retirement can be varied to his disadvantage after his appointment. The CAG is not eligible for further office either under the Government of India or under the Government of any State after he has ceased to hold his office. These provisions are in order to ensure the independence of CAG. Salary of CAG: Date Salary 1 January 2006 INR90,000 (US$1,500)[1][14] Removal: The CAG shall only be removed from office in like manner and on the like grounds as a judge of the Supreme Court of India. Scope of audits: CAG is not a munimji or an accountant or something like that... He is a constitutional authority who can examine the revenue allocation and matters relating to the economy. CAG is the principal auditor whose function is to go into the economy, effectiveness and efficiency of the use of resources by the government. If the CAG will not do, then who else will do it Audit of government accounts (including the accounts of the state governments) in India is entrusted to the CAG of India who is empowered to audit all expenditure from the Consolidated Funds of the union or state governments, whether incurred within India or outside, all revenue into the Consolidated Funds and all transactions relating to the Public Accounts and the Contingency Funds of the Union and the states. Specifically, audits include: 1.Transactions relating to debt, deposits, remittances, Trading, and manufacturing 2.Profit and loss accounts and balance sheets kept under the order of the President or Governors 3.Receipts and stock accounts.CAG also audits the books of accounts of the government companies as per companies act. In addition, the CAG also executes performance and compliance audits of various functions and departments of the government. Recently, the CAG as a part of thematic review on Introduction of New Trains is deputing an auditors team on selected trains, originating and terminating at Sealdah and Howrah stations, to assess the necessity of their introduction. In a path-breaking judgement The Supreme Court of India ruled that the CAG General could audit private firms in revenue-share deals with government. Former CAG, Vinod Rai has been appointed as external auditor of three major UN organisations: the Vienna-based International Atomic Energy Agency (IAEA), the Geneva-based World Intellectual Property Organisation (WIPO) and World Food Organisation(WFO). Former CAG, Vinod Rai has been elected the Chairman of the United Nations panel of external auditors. Rebecca Mathai is an Indian who is presently the External Auditor of UN organisation World Food Programme(WFP) Headquartered at Rome, Italy. Following are some of the most debated CAG reports: 1.2G Spectrum allocation 2.Coal Mine Allocation 3.Fodder scam 4.Krishna-Godavari(KG)D6 gas block Name of the Comptroller and Auditor General of India : Shashi Kant Sharma, Year tenure began 2013,Year tenure ended :Incumbent (6 years tenure or 65 years of age, whichever is earlier]
Posted on: Fri, 24 Oct 2014 06:34:46 +0000
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