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COMPTROLLER AND AUDITOR GENERAL'S (DUTIES, POWERS AND CONDITIONS OF SERVICE) ACT, 1971
15TH DECMBER 1971
56 of 1971
STATEMENTS OF OBJECTS AND REASONS Act 56 of l971.- Article 148(3) of the Constitutionprovides that the salary and other conditions of service of the Comptroller and Auditor-General shall be such as may be determined by law and until so determined, shall be as specified in the Second Schedule to the Constitution, Further, article 149 of the Constitution lays down that the Comptroller and Auditor -General shall perform such duties and exercise such powers in relation to the accounts of the Union and of the States and of any other authority or body as may be prescribed by or under any law made byparliament and until so prescribed, shall perform such duties and exercise such powers in relation to the accounts of the Union and of the States as were conferred on or exercisable by the Auditor -General of India immediately before the commencement of the Constitution. The conditions of service of the Comptroller and Auditor-General are at present governed by three separate sets of provisions, namely, paragraph 12 of the Second Schedule to the Constitution which refers to salary and rights in respect of leave of absence and other conditions of service; the Comptroller and Auditor-General (Conditions of Service) Act, 1953 which regulates the terms of office of the Comptroller and Auditor -General and his pensionary entitlements; and the Government of India (Audit and Accounts) Order, 1936 made under Section 166 of the Government of India Act, 1935, which continues to be in force in so far as the other conditions of service are concerned (mostly leave of absence and travelling allowance.) The duties and powers of the Comptroller and Auditor-General in relation to the accounts of the Union and of the States continue to be governed by the provisions of the Government of India (Audit and Accounts) Order, 1936, which remains in force in view of the provisions of article 149 of the Constitution. The Bill seeks to provide comprehfensively for the conditions of service and duties and powers of the Comptroller and Auditor General in replacement of the various provisions in his regard as referred to above. While it broadly follows the existing provisions both in respect of conditions of service and duties and powers, it makes certain modifications as indicated below: - (a) Conditions of Service (i) Salary.- The Bill provides that the Comptroller and Auditor-General shall be paid a salary which is equal to the salary of the Judge of the Superme Court. This is a slight modification of the existing provision which provides for a salary of Rs. 4,000 per month. The salary of the Judge of the Supreme Court is also Rs. 4,000 per month at present. (ii) Term of office.- The Bill provides that Comptroller and Auditor- General shall hold office for a term of 6 years and that where he attains the age of 65 years before the expiry of the term he shall vacate office on the date on which he attains the age of 65. The existing provision is that the Comptroller and Auditor-General shall hold office for a term of 6 years and there is no age limit for holding the office of Comptroller and Auditor- General. Age limit is being prescribed. (iii) Pension.- The Bill provides that a person whom immediately before assuming office as Comptroller and Auditor-General, was in the service of Government, shall be deemed to have retired from the previous service on the date on which he enters upon office as the Comptroller and Auditor-General, but for purposes of pension, service as Comptroller and Auditor -General will be counted as approved service in the Service to which he belonged. On demitting office as the Comptroller and Auditor-General he will be paid a pension of Rs. 15,000 per annum which will be inclusive of any prior pension admissible to or earned by him including pension equivalent of death-cum-retirement gratuity. Any other person appointed as Comptroller and Auditor-General will also be eligible to a pension of Rs. 15,000 per annum. This pension will be admissible if a person demits the office of Comptroller and Auditor-General on completing his tenure or attaining the age of 65 or due to ill -health. In case of resignation he will be entitled to a pension of Rs. 2,000 per annum for each completed year of service as Comptroller and Auditor-General but the total annual pension payable to a person inclusive of any prior pension admissible to him for service under Government will not exceed Rs. 15,000. Moreover, if the Comptroller and Auditor-General is or becomes eligible at any time under the rules governing the service to which he belonging to a pension higher than Rs. 15,000 he shall beeligible to draw the higher pension. The existing provision provides that on demitting office, the Comptroller and Auditor -General will be eligible to pension under the rules of the Service to which he belonged and in addition to an additional pension of Rs. 600 per annum for each completed year of service as Comptroller and Auditor-General subject to a maximum ofœ 1,000 in the case of officers belonging to the Indian Civil Service and Rs. 12,000 in the case of officers belonging to other services. The ceiling does not include pension equivalent of death-cum-retirement gratuity admissible to the officer. The pension provided in the Bill will be applicable to the present incumbent of the office of the Comptroller and Auditor-General at his option if it is of advantage to him as well as for future incumbents. (iv) Other conditions of services.- The Bill extends the benefit of the Civil Pensions (Commutation) Rules to the Comptroller and Auditor-General, and also provides that the other conditions of service of the Comptroller and Auditor-General shall be determined by the rules applicable to a member of the Indian Administrative Service holding the rank of a Secretary to the Government of India. (b) Duties and powers (i) The Bill provides for audit by the Comptroller and Auditor -General of all expenditure from the Consolidated Fund of India, of each State and of each Union territory having a Legislative Assembly and also of all transactions relating to the contingency Funds and Public Accounts. (ii) The Bill provides for audit by the Comptroller and Auditor-General of the accounts of bodies or authorities substantially financed by grants or loans from the Consolidated Fund of India or a State or of a Union territory having a Legislative Assembly. For this purpose, a grant or loan will be treated as substantial if it is not less than Rs. 5,00,000 and constitutes not less than 75 per cent of the total expenditure of the body or authority in a financial year. (iii) The Bill provides for scrutiny by the Comptroller and Auditor-General of the procedures by which an authority sanctioning a grant or a loan to any body or authority satisfies itself as to the fulfilment of the conditions subject to which the grant or loan was given and for this purpose gives him the right of access to the books of the body or authority, with certain exceptions. (iv) The Bill provides for the audit by the Comptroller and Auditor -General of all receipts which are payable into the Consolidated Fund of India or of a State or of a Union territory having a Legislative Assembly and to satisfy himself that the rules and procedures are designed to secure an effective check on assessment, collections, etc., and to report thereon. (v) The Bill provides that the Comptroller and Auditor-General shall, if so requested by the President or the Governor of a State or the Administrator of a Union territory, as the case may be, undertake the audit of the accounts of any authority or body not otherwise entrusted to him by or under any law made by Parliament. Such request will be required to be made in public interest and after consultation with the Comptroller and Auditor -General and after giving a reasonable opportunity to the body or authority for making representations with regard to the proposal for audit by the Comptroller and Auditor-General. Ths Comptroller and Auditor -General may also propose to the President or the Governor of a State or the Administrator, of a Union territory having a Legislative Assembly, that he may be authorised to undertake the audit of any body or authority not entrusted to him. The notes on clauses appended to the Bill explain the provisions of the Bill.-S.O.R. See Gaz.of Ind., ll -8-71,Pt. II, S.2,Ext.,p.583. Act 58 of 1976.- The present accounting system applicable to most Ministries and Departments is essentially external to financial management functions in that payments are made by the treasuries and accounts are compiled by the Audit and Accounts offices under the control of the Comptroller and Auditor-General on the basis of initial and subsidiary accounts received by them from the treasuries. This system worked fairly well when Governmental business was limited. With the increase in the volume and variety of Governmental business and the continual step up of developmental outlays, the system has proved inadequate to the administration's task and separation of accounts from audit had to be thought of. 2. Under the first proviso to section 10 (1) of the Comptroller and Auditor-General's (Duties, Powers and Conditions of Service) Act, 1971, the President in respect of the accounts of the Union may, after consultation with the Comptroller and Auditor -General, by order relieve him from the responsibility for compiling the accounts of any particular service or department of the Union. As the Comptroller and Auditor- General is to be relieved of the responsibility for compiling the accounts of all the Ministries of the Union, it was considered necessary to amend suitably the proviso to section 10(1) refered to above. 3. So far as the accounts of a State are concerned, it is however, necessary to provide for prior approval of the President before the Governor of the State issues an order relieving the Comptroller and Auditor-General of the responsibility of compiling the accounts of the State in order to make sure that the due provision is made by the State Government for absorption of the employees of the Indian Audit and Accounts Department under the State Government and for safeguarding their scales of pay and other conditions of service on absorption. 4. In order to facilitate the separation of accounts from audit in some Ministries with effect from 1st April 1976 the Comptroller and Auditor -General (Duties, Powers and Conditions of Service) Amendment Ordinance, 1976(1 of 1976) was promulgated by the President on 1st March, 1976. 5. When the Comptroller and Auditor-General is relieved of the responsibility for compiling the accounts completely of the Union or of a State it is but logical to relieve him of the responsibility for the preparation and submission of annual finance accounts of the Union or of the State concerned showing the annual receipts and disbursements under the respective heads of account. For this purpose, section 11 of the principal Act will require suitable amendment. 6. The Bill seeks to replace the Comptroller and Auditor-General's (Duties, Powers and Conditions of Service) Amendment Ordinance, 1976, and includes the amendment referred to in paragraph 5. S.O.R. - See Gaz. of Ind., 23-3-76, Pt. II, S. 2, Ext., p. 717. Act 2 of 1984.-The Comptroller and Auditor -General's ( Duties, Powers and Conditions of Service ) Act, 1971 was enacted to determine the conditions of services of the Comptroller and Auditor-General and prescribe his duties and powers. The Act was amended in 1976 mainly for the purpose of making the necessary provision for relieving the Comptroller and Auditor-General from the responsibility from compiling accounts. In the light of the changed circumstances and experience gained from the working of the provisions of the Act, it is considered necessary to make certain further amendments. 2, While the provisions as to pension payable to officrs of Government have been modified, the pension payable to the Comptroller and Auditor -General remains the same as fixed in 1971. It is accordingly proposed to provide that subject to a maximum of Rs. 20,400/- per annum, a serving officer appointed as a Comptroller and Auditor-General will be entitled by way of pension to an amount equal to the aggregate of the pension admissible to him in the service to which he belonged by treating his service as Comptroller and Auditor -General as continued approved service for this purpose and a special pension calculated at the rate of Rs. 700/- per annum for each completed year of service as Comptroller and Auditor-General. It is also proposed to provide that subject to the aforesaid maximum of Rs. 20,400/- per annum, a _retired officer appointed as Comptroller and Audito -General will be entitled by way of pension to the aggregate of the pension admissible to him under the rules governing the service to which he belonged and a special pension calculated at the rate of Rs. 700/-per annum for each completed year of service as Comptroller and Auditor-General . These revised provisions as to pension will be applicable only in the case of persons demitting office as Comptroller and Auditor -General (on completing the term or attaining the age of 65 years or on ground of ill-health or by resignation) after the commencement of proposed legislation (vide clause 2 of the Bill). 3. At present, under section 14 of the Act, the Comptroller and Auditor-General is required to audit the receipts and expenditure of a body or authority which is substantially financed by grants or loans from the Consolidated Fund of India or of any State or of any Union territory having a Legislative Assembly. According to the explanation to that section, where the grant or loan to a body or authority from the Consolidated Fund of India or of any State or of any such Union territory is not less than Rs. 5 lakhs and the amount of such grant or loan is not less than seventy-five per cent of the total expenditure of that body or authority, such body or authority is deemed to be substantially financed by such grant or loan. It is proposed to enhance the limit specified in this explanation from Rs. 5 lakhs to Rs. 25 lakhs. It is also proposed to provide that the Comptroller and Auditor-General may, with the approval of the President or Governor or Administrator, undertake audit of the receipt and expenditure of a body or authority which is in receipt of Government grant or loan of rupees one crore or more in a year, though this may be less than 75 per cent of the total expenditure of that body or authority. It is furthr proposed to provide that where a body or authority comes within the purview of the audit of the Comptroller and Auditor -General in any year by reason of the tests in the explanation and new sub-section (2) being complied in its case, the Comptroller and Auditor-General shall continue to audit the receipts and expenditure of such body or authority for the succeeding two years also even if such body or authority fails to comply with the tests provided in the said explanation arid new sub-section (2) in either or both of those years (vide clause 3 of the Bill). 4, The present opportunity is being availed of to include in the Act a provision for the laying of audit reports of the Comptroller and Auditor- General in relation to the accounts of Government Companies or Corporations referred to in section 19 of the Act before Parliament or, as the case may be, the legislature of the State concerned (vide clause 4 of the Bill). 5. The Bill seeks to achieve the above object.- Gaz. Of Ind., 1-3-1984, Pt. II, S. 2, Ext., p. 4 (No. 7). Act 50 of 1987.- Article 148(1) of the Constitution provides that there be a Comptroller and Auditor-General of India who shall be appointed by the President by warrant under his hand and seal and shall only be removed from office in like manner and on the like ground as a Judge of the Supreme Court. Under clause (3) of the said article, the salary and other conditions of service of the Comptroller and Auditor-General shall be such as may be determined by Parliament by law. In pursuance of this provision, the Comptroller and Auditor-General's (Duties, Powers and Conditions of Service) Act, 1971 was passed by Parliament in 1971. Under this Act, the Comptroller and Auditor-General is entitled to receive the same salary as a Judge of the Supreme Court while his other conditions of service relating to pension, contribution to provident fund, etc., have been determined by the provisions of that Act. 2. The Constitution has given great importance to the office of the Comptroller and Auditor-General. There is parity of status between the Comptroller and Auditor-General and, the Supreme Court Judge in many cases. The status of the office of the Comptroller and Auditor -General is unique in our federal set up, he being a common functionary for both the Union and the States. It is, therefore, necessary and proper that the Comptroller and Auditor-General is given the same conditions of service and facilities as are provided to a Judge of the Supreme Court other than the tenure and the leave facilities. 3. The Bill seeks to achieve the above objects. Gaz. of India, 23-11-1987, Pt. II-S. 2, Ext., p. 21 (No. 55).
An Act to determine the conditions of service of the Comptroller and Auditor-General of India and to prescribe his duties and powers and for matters connected therewith or incidental thereto. Be it enacted by Parliament in the Twenty-second Year of the Republic of India as follows :-
CHAPTER 01: PRELIMINARY
SECTION 01: SHORT TITLE
This Act1may be called The Comptroller and Auditor-General's (Duties, Powers and Conditions of Service) Act, 1971.
SECTION 02: DEFINITIONS
In this Act, unless the context otherwise requires,-
(a) "accounts", in relation to commercial undertaking of a Government, includes trading, manufacturing and profit and loss accounts and balance sheets and other subsidiary accounts;
(b) "appropriation accounts" means accounts which relate the expenditure brought to account during a financial year, to the several items specified in the law made in accordance with the provisions of the Constitution or ofthe Government of Union Territories Act, 1963-, for the appropriation of moneys out of the Consolidate Fund of India or of a State, or of a Union territory having a Legislative Assembly, as the case may be;
(c) "Comptroller and Auditor-General" means the Comptroller and Auditor-General" of India appointed underArt. 148 of the Constitution-
(d) "State" means a State specified in the First Schedule to the Constitution;
(e) "Union" includes a Union territory, whether having a Legislative Assembly or not. Clause 2.- This clause seeks to insert certain definitions which are largely based on the meanings assigned to them in the Government of India (Audit and Accounts) Order, 1936 which continues to govern the duties and powers of the Comptroller and Auditor-General in terms of Article 149 of the Constitution. S.O.R.- Gaz. of Ind., 1 1-8-71, Pt. II, S. 2, Ext., p. 586.
CHAPTER 02: SALARY AND OTHER CONDITIONS OF SERVICE OF THE COMPTROLLER AND AUDITOR GENERAL
SECTION 03: SALARY
There shall be paid to the Comptroller and Auditor-General a salary which is equal to the salary of the Judge of the Supreme Court : Provided that if a person who, immediately before the date of assuming office as the Comptroller and Auditor-General, was in receipt of, or being eligible so to do, had elected to draw, a pension (other than a disability or wound pension) in respect of any previous service under the Government of the Union or any of its predecessor Governments, or under the Government of a State or any of its predecessor Government, his salary in respect of service as Comptroller and Auditor- General shall be reduced-
(a) by the amount of that pension; and
(b) if he had, before assuming office, received in lieu of a portion of the pension due to him in respect of such previous service, the commuted value thereof, by the amount of that portion of the pension;5[* * *]
Clause 3.-Under the existing provision a person appointed as Comptroller and Auditor-General is entitled to salary at the rate of Rs. 4,000 per mensem vide paragraph 12 ( 1 ) in Part E of the Second Schedule to the Constitution. Under this clause the Comptroller and Auditor-General would be entitled to the same salary as that of a Judge of the Supreme Court. Financially this change has no significance as the present salary ofa Supreme Court Judge is also Rs. 4,000. If, however, the salary of Supreme Court Judge is revised at a future date the Comptroller and Auditor-General would become entitled to that salary in terms of this clause. The provision relating to reduction from salary of pension, other than a disabiJity or wound pension, drawn, if any, by the Comptroller and Auditor-General is analogous to paragraph 9 of Part D of the Second Schedule to the Constitution, applicable in the case of Judges of the Supreme Court. S.O.R. - Gaz. ofind., 11-8-71, Pt. II, S. 2, Ext., p. 586.
SECTION 04: TERM OF OFFICE
The Comptroller and Auditor-General shall hold office for a term of six years from the date on which he assumes such office : Provided that where he attains the age of sixty-five years before the expiry of the said term of six years, he shall vacate such office on the date on which he attains the said age : Provided further that he may, at any time, by writing under his hand addressed to the President, resign his office.Clause 4.- This claue provides that the Comptroller and Auditor-General shall hold office for a term of 6 years from the date on which he assumes office or till he attains the age of 65 years whichever is earlier. This is a slight change from the existing provision under S.2 of the Comptroller and Auditor- General (Conditions of Service) Act, 1953(21 of 1953) which provides for a term of 6 years but without any age restriction. S.O.R. - Gaz. of Ind., 11-8-71, Pt. II, S.2, Ext., p. 586.
SECTION 05: LEAVE
Clause 5.- This clause will enable a Comptroller and Auditor-General who was in the service of Government before assumption of office, to take leave in accordance with the rules of the Service to which he belonged except that consequent on cl. 6, it provides for the carry forward of the amount of leave at credit immediately before the date of assumption of office when he will be deemed to have retired from his previous service. S.O.R.-Gaz. of Ind., 1 1-8-71, Pt. II, S. 2, Ext" p. 586.
SECTION 06: PENSION
6[ (6D) Notwithstanding anything contained in the foregoing provisions of this section, a person who demitted office [whether in any manner specified in subsection (8) or by resignation] as the Comptroller and Auditor-General, at any time before the 16th day of December, 1987, shall be entitled to the pension specified in sub-section (6-C) on and from that date."]
(7) If a person who demits office as the Comptroller and Auditor-General is not eligible to any pension under this section but is eligible to a pension under the rules for the time being applicable to the Service to which he belonged immediately before he assumed office as the Comptroller and Auditor-General, he shall, notwithstanding anything contained in this section be eligible to draw such pension as is admissible to him under the said rules.
(8) Except where he demits office by resignation, a person holding office of the Comptroller and Auditor-General shall be deemed for the purposes of this Act, to have demitted such office as such if, and only if,-
(a) he has completed the term of office specified insection 4-, or
(b) he has attained the age of sixty-five years, or
(c) his demission of office is medically certified to be necessitated by ill-health.
Clause 6.- This clause introduces new provisions relating to the pension of the Comptroller and Auditor- General. First it provides that a person who immediately before assuming office as Comptroller and Auditor-General was in the service of Government should be deemed to have retired from his previous service on the date on which he enters upon office as Comptroller and Auditor-General. On demitting office as Comptroller and Auditor-General he will be paid a pension of Rs. 15,000 per annum which will be inclusive of any prior pension admissible to or earned by him including pension equivalent of deathcum- retirement gratuity. Any other person appointed as Comptroller and Auditor-General will also be eligible for a pension of Rs. 15,000 per annum. This pension will be admissible if a person demits the office of the Comptroller and Auditor-General on completing his tenure or attaining the age of 65 or due to ill-health. In case of resignation he will be entitled to a pension of Rs. 2,000 per annum for each completed year of service as Comptroller and Auditor-General, but the total annual pension payable to a person inclusive of any prior pension and pension equivalent of death-cum-retirement gratuity admissible to him for service under Government shall not exceed Rs. 15,000. Moreover, if the Comptroller and Auditor-General is or becomes eligible at any time under the rules governing the service to which he belonged to a pension higher than Rs. 15,000 he shall be eligible to draw the higher pension. The existing provision is that the Comptroller and Auditor-General on demitting office will be eligible to a pension under the rules of the service to which he belonged, service as Comptroller and Auditor-General counting as approved service in the service to which he belonged and in addition to an additional pension of Rs. 600 per annum for each completed year of service as Comptroller and Auditor- General subject to a maximum of œ 1,000 in the case of officers belonging to the Indian Civil Service, Rs. 12,000 in the case of officers belonging to other services. The ceiling does. not include pension equivalent of death-cum-retirement gratuity admissible to the officer. The pension provided under this clause will be applicable to the present incumbent of the office of the Comptroller and Auditor-General at his option if it is of advantage to him as well as for future incumbents. The main changes from the existing provision are- (a) Fixing the maximum pension at Rupees 15,000 per annum inclusive of any prior pension and pension equivalent of death-cum-retirement gratuity irrespective of whether the person appointed as Comptroller and Auditor-General belonging to the Indian Civil Service or any other service. (b) A serving officer appointed as Comptroller and Auditor-General will be deemed to have retired from his previous service. (c) The maximum pension of Rs. 15,000 is admissible even to a person who has had no previous service under Government before assuming the office of Comptroller and Auditor-General.- S.O.R. Gaz. of Ind., 11-8-71, Pt. II, S. I, Ext" pp. 586, 587.
SECTION 07: COMMUTATION OF PENSION
- Omitted by the Comptroller and Auditor-General's (Duties, Powers and Conditions of Service) Amendment Act (50 of 1987), S. 3 (16-12-1987).
SECTION 08: RIGHT TO SUBSCRIBE TO GENERAL PROVIDENT FUND
- Every person holding office as the Comptroller and Auditor-General shall be entitled to subscribe to the General Provident Fund (Central Services).
SECTION 09: OTHER CONDITIONS OF SERVICE
-7[Save as otherwise provided in this Act, the conditions of service relating to travelling allowance, provision of rent-free residence and exemption from payment of income-tax on the value of such rentfree residence, conveyance facilities, sumptuary allowance, medical facilities and such other conditions of service as are for the time being applicable to a Judge of the Supreme Court under Chapter IV of the Supreme Court Judges Act, and the rules made thereunder, shall, so far as may be, apply to a serving or retired Comptroller and Auditor-General as the case may be.] Provided that nothing in this section shall have effect so as to give a person, who immediately before the date of assuming office as the Comptroller and Auditor-General, was in the service of Government, less favourable terms in respect of any of the matters aforesaid than those to which' he would be entitled as a member of the Service to which he belonged, his service as Comptroller and Auditor-General being treated for the purpose of this proviso as continuing service in the service to which he belonged.
CHAPTER 03: DUTIES AND POWERS OF THE COMPTROLLER AND AUDITOR GENERAL
OBJECTS AND REASONS Clause 10.- The existing order provides that the Comptroller and Auditor- General shall be responsible for keeping the accounts of the Union and of each State except the accounts relating to Defence and Railways. The President or the Governor, as the case may be, has, however, the authority to relieve the Comptroller and Auditor-General, after consultation with him, from the responsibility for keeping the accounts of any particular service or department. The President may also relieve the Comptroller and Auditor-General from the responsibility for keeping the accounts of any particular class or character. In exercise of these powers the Comptroller and Auditor-General has been relieved of the responsibility for the maintenance of accounts of certain selected Department (e.g.. Food Department, Rehabilitation Department, Supply Department. Lok Sabha, Rajya Sabha, etc.). The Administrative Reforms Commission after considering the pros and cons of the scheme has recommended that as a general policy the responsibility for maintaining the accounts should continue to vest in the Comptroller and Auditor-General except where separate accounts offices have already been set up for the purpose. Clause 10 provides for the maintenance of the status quo with differnce that the responsibility vested in the Comptroller and Auditor-General will be in respect of compiling accounts and keeping them where necessary. This clause also gives the President or the Governor, as the case may be, the power to revoke any existing arrangement after consultation with the Comptroller and Auditor-General. S.O.R. - See Gaz. of Ind., 1 1-8-71, Pt. II, S.2, Ext., p. 587.p. 588.
SECTION 10: COMPTROLLER AND AUDITOR --GENERAL TO COMPILE ACCOUNTS OF UNION AND STATES
-(1) The Comptroller and Auditor-General shall be responsible
(a) for compiling the accounts of the Union and of each State from the initial and subsidiary accounts rendered to the audit and accounts offices under his control by treasuries, offices or departments responsible for the keeping of such accounts; and
(b) for keeping such accounts in relation to any of the matters specified in clause (a) as may be necessary:8 [Provided that the President may, after consultation with the Comptroller and Auditor- General, by order, relieve him from the responsibility for compiling-
(i) the said accounts of the Union (either at once or gradually by the issue of several orders); or
(ii) the accounts of any particular services or departments of the Union: Provided further that the Governor of a State may, with the previous approval of the President and after consultation with the Comptroller and Auditor-General, by order, relieve him from the responsibility for compiling-
(i) the said accounts of the State (either at once or gradually by the issue of several orders), or
(ii) the accounts of any particular services or departments of the State:]8[Provided also] that the President may, after consultation with the Comptroller and Auditor -General, by order, relieve him from the responsibility for keeping the accounts of any particular class or character.
(2) Where, under any arrangement, a person other than the Comptroller and Auditor- General has, before the commencement of this Act, been responsible-
(i) for compiling the accounts of any particular service or department of the Union or of a State, or
(ii) for keeping the accounts of any particular class or character. such arrangement shall, notwithstanding anything contained in sub -section (1), continue to be in force unless, after consultation with the Comptroller and Auditor-General, it is revoked in the case referred to in clause (i), by an order of the President or the Governor of the State, as the case may be, and in the case referred to in clause (ii), by an order of the President.
SECTION 11: COMPTROLLER AND AUDITOR --GENERAL TO PREPARE AND SUBMIT ACCOUNTS TO THE PRESIDENT, GOVERNORS OF STATE AND ADMINISTRATORS OF UNION TERRITORIES HAVING LEGISLATIVE ASSEMBLIES
TheComptroller and Auditor-General shall, from the accounts compiled by him or 9[by the Government or by any other person responsible in that behalf,] prepare in each year accounts (including, in the case of accounts complied by him, appropriation accounts) showing under the respective heads and annual receipts and disbursements for the purpose of the Union, of each State and of such Union territory having a Legislative Assembly, and shall submit those accounts to the President or the Governor of a State or Administrator of the Union territory having a Legislative Assembly, as the case may be, on or before such dates as he may with the concurrence of the Government concerned, determine.10[Provided that the President may, after consultation with the Comptroller and Auditor- General, by order, relieve him from the responsibility for the preparation and submission of the accounts relating to annual receipts and disbursements for the purpose of the Union or of a Union territory having a Legislative Assembly: Provided further that the Governor of a State may, with the previous approval of the President and after consultation with the Comptroller and Auditor-General, by order, relieve him from the responsibility for the preparation and submission of the accounts relating, to annual receipts and disbursements for the purpose of the State.]Clause 11.-This clause requires as at present the Comptroller and Auditor-General to prepare the annual accounts separately for the Union and each of the States and Union territories having Legislative Assemblies showing the receipts and disbursements and to submit them to the President, the Governor or the Administrator, as the case may be. In addition, where the accounts are compiled by him he has also to prepare an Appropriation Account showing the expenditure brought to account against the moneys authorised under the Appropriation Act and submit the same to the President the Governor or the Administrator, as the case may be. S.O.R. -SeeGaz. of Ind., 11-8-71, Pt.II, S.2, Ext.,
SECTION 12: COMPTROLLER AND AUDITOR --GENERAL TO GIVE INFORMATION AND READER ASSISTANCE TO THE UNION AND STATE
The Comptroller and Auditor-General shall, in so far as the accounts, for the compilation or keeping of which he is responsible, enable him so to do, give to the Union Government, to the State Governments or to the Governments of Union territories having Legislative Assemblies, as the case may be, such information as they may, fro m time to time, require, and render such assistance in the preparation of their annual financial statements as they may reasonably ask for.Clause 12.- This clause casts a duty on the Comptroller and Auditor-General to furnish such information to the Union Government or the State Governments or Governments of Union territories having Legislative Assemblies as required and as could be gathered from the accounts for the compilated or keeping of which he is responsible and is based on the existing arrangement. S.O.R. - See Gaz. of Ind., 1 1-8-71, Pt. II, S. 2, Ext., p. 588.
SECTION 13: GENERAL PROVISIONS RELATING TO AUDIT
It shall be the duty of the Comptroller and Auditor-General-
(a) to audit all expenditure from the Consolidated Fund of India and of each State and of each Union territory having a Legislative Assembly and to ascertain whether the moneys shown in the accounts as having been disbursed were legally available for and applicable to the service or purpose to which they have been applied or charged and whether the expenditure conforms to the authority which governs it;
(b) to audit all transactions of the Union and of the States relating to Contingency Funds and Public Accounts,
(c) to audit all trading, manufacturing, profit and loss accounts and balance sheet and other subsidiary accounts kept in any department of the Union or of a State; and in each case to report on the expenditure, transactions or accounts so audited by him.
Clause 13.- This clause provides that the Comptroller and Auditor-General will audit all expenditure from the Consolidated Fund of India and of each State and of each Union territory having a Legislative Assembly, all transactions relating to the Contingency Funds and Public Accounts and all trading, manufacturing, profit and loss accounts and balance sheets and other subsidiary accounts and follows the existing provisions. S.O.R. - See Gaz., ofind., 11-8-71, Pt. II, S.2, Ext., p. 588.
SECTION 14: AUDIT OF RECEIPTS AND EXPENDITURE OF BODIES OR AUTHORITIES SUBSTANTIALLY FINANCED FROM UNION OR STATE REVENUES
Clause 14.- This is a new provision which provides for audit by the Comptroller and Auditor-General of the accounts of bodies or authorities substantially financed by grants or loans from the Consolidted Fund of India or a State or of a Union territory having a Legislative Assembly. For this purpose, a grant or loan will be treated as substantial if it is not less than Rs. 5 lakhs and constitutes not less than 75 per cent of the total expenditure of the body or authority in a financial year.
SECTION 15: FUNCTIONS OF COMPTROLLER AND AUDITOR --GENERAL IN THE CASE OF GRANTS OR LOANS GIVEN TO OTHER AUTHORITIES OR BODIES
Clause 15.- This clause requires the Comptroller and Auditor-General to scrutinise the procedures by which any authority sanctioning a grant or a loan from the Consolidated Fund of India or of any State or of a Union territory having a Legislative Assembly to any authority or body other than a foreign State or International Organisation satisfies itself as to the fulfilment of the conditions subject to which the grant or loan was given. For this purpose the Comptroller and Auditor-General will have right of access, after giving reasonable previous notice to the books and accounts of the authority or body but in so far as Corporation established by law is concerned, if the law establishing the Corporation provides for the audit of its accounts by an agency other than the Comptroller and Auditor-General, he will not have right of access to the books and accounts unless he is so authorised by the President, the Governor of a State or the Adminstrator of a Union territory, after consultation with the Comptroller and Auditor- General and after giving an opportunity to the concerned Corporation to make any representation with regard to such authorisation. Provision has also been made to empower the President, the Governor or the Administrator, as the case may be, to relieve the Comptroller and Auditor-General from the responsibility of the scrutiny provided for in this clause in public interest and after consultation with the Comptroller and Auditor-General.- S.O.R. Gaz. of Ind., 11-8-71, Pt. II, S. 2, Ext., p. 588.
SECTION 16: AUDIT OF RECEIPTS OF UNION OR OF STATES
It shall be the duty of the Comptroller and Auditor-General to audit all receipts which are payable into the Consolidated Fund of India and of each State and of each Union territory having a Legislative Assembly and to satisfy himself that the rules and procedures in that behalf are designed to secure an effective check on the assessment, collection and proper allocation of revenue and are being duly observed and to make for this purpose such examination of the accounts as he thinks fit and report thereon.Clause 16.- Under the existing arrangement, audit of receipts can be taken up by the Comptroller and Auditor- General with the approval of or if required by the President or Governor. This clause empowers the Comptroller and Auditor-General to audit all receipts which are payable into the respective Consolidated Funds and to satisfy himself that the rules and procedure are designed to secure an effective check on assessment, collections, etc., and to report thereon as recommended by the Administrative Reforms Commission and as envisaged in article 151 of the Constitution.- S.O.R. Gaz. of Ind., 11-8-71, Pt. II, S. 2, Ext., p. 589.
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