ABOUT US

Introduction | Organisational Structure | Role / Function| Audit Frequency

Introduction

The internal audit organization was set up in Union Territory of Delhi w.e.f. 1st July, 1977.  It continued to work as one of the branches of Principal Accounts Organisation till 31st May, 1981.  It assumed independent entity w.e.f. 1st June, 1981 as the Directorate of Audit. The Directorate of Audit is headed by Principal Secretary (Finance) and is assisted by Addl. Secretary Finance  and Dy. Controller of Accounts (Audit).

Standards of financial propriety - Every officer incurring or authorizing expenditure from public moneys should be guided by high standards of financial propriety. Every officer should also enforce financial order and strict economy at every step and see that all relevant financial rules and regulations are observed, by his own office and by Subordinate Disbursing Officers. Among the principles on which emphasis is generally laid are the following:-

  1. Every officer is expected to exercise the same vigilance in respect of expenditure incurred from public moneys as a person of ordinary prudence would exercise in respect of expenditure of his own money.

  2. The expenditure should not be prima facie more than the occasion demands.

  3. No authority should exercise its powers of sanctioning expenditure to pass an order which will be directly or indirectly to its own advantage.

  4. Expenditure from public moneys should not be incurred for the benefit of a particular person or a section of the people, unless-

    1. a claim for the amount could be enforced in a Court of Law, or

    2. the expenditure is in pursuance of a recognized policy or custom.

  5. The amount of allowances granted to meet expenditure of a particular type should be so regulated that the allowances are not on the whole a source of profit to the recipients.

  6. The responsibility and accountability of every authority delegated with financial powers to procure any item or service on Government account is total and indivisible. Government expects that the authority concerned will have the public interest uppermost in its mind while making a procurement decision. This responsibility is not discharged merely by the selection of the cheapest offer but must conform to the following yardsticks of financial propriety:-


    1. Whether the offers have been invited in accordance with governing rules and after following a fair and reasonable procedure in the prevailing circumstances.

    2. Whether the authority is satisfied that the selected offer will adequately meet the requirement for which it is being procured. 

    3. Whether the price on offer is reasonable and consistent with the quality required.

    4. Above all, whether the offer being accepted is the most appropriate one taking all relevant factors into account and in keeping with the standards of  financial propriety.

  7.  Whenever called for, the concerned authority must place on record in precise terms, the considerations which weighed with it while taking the procurement decision.

Organisational Structure

The Directorate of Audit consists of the following two wings :-

  1. Internal Audit

  2. Examiner Local Fund Accounts

The total sanctioned strength of above three units is as under :-

S. No. Name of the post Sanctioned post
1. Director (Budget) 01
2. Dy. Secretary Finance (A/Cs.) 01
3. Dy. Director (Audit ) 01
4. Sr. Accounts Officer/ Accounts Officer 24
5. AAO/ JAO 45
6. Superintendent 01
7. Asstt. Programmer 01
8. Head Clerk 27
9. UDC 33
10. Stenographer 07
11. DEO 02
12. LDC 17
13. Peon 12
14. Driver 01
Total: 173

ROLE / FUNCTION 

The main function of Directorate of Audit, which is divided into two units namely Internal Audit and Local Fund Accounts, is to check the initial accounts of various government departments, institutions receiving grants - in-aid from the government, companies under liquidation, gram panchayats and autonomous organizations under the Government of National Capital Territory of Delhi.

The Directorate of Audit is also responsible for conducting  special audits as and when requested by the concerned departments and directed by the higher authorities.

Internal Audit test check the accuracy and completeness of the accounts and  ensures that all revenue  receipts collected are brought to account under proper head, that all the expenditures and disbursements are duly authorized, vouched and correctly classified and that the final accounts represent a complete and true statement of financial transaction it purports to exhibit.

Chapter 12 of Civil Accounts Manual issued by Govt. of India, Ministry of Finance provides for setting up of an efficient internal audit organization to ensure both accuracy in accounts and efficiency in the operation of the accounts set up. The scope and function of internal audit organization  depends on the nature of work and number of subordinate offices, the strength of establishment, nature and quantum of expenditure, etc. The organization shall check the initial accounts maintained in executive offices with a view to ascertain as to how far they are following the rules in financial matters. The internal audit should, inter alia ,cover checking of all accounts records including those relating to fund accounts, loan and advances and records of physical verification of stores, equipments, tools and plants, etc.

The duties of Internal Inspection Wing, inter-alia, include the following:-

  1. Study of the accounting procedures adopted by the Department with a view to ensure that they are correct, adequate and free from any defects or lacunae.

  2. Keeping watch over the implementation of the prescribed procedure and the orders issued from time to time.

  3. Periodical review of all account records.

  4. Perusation/Settlement of objections taken in test audit notes issued by Statutory Audit.

  5. To examine and report on points or irregularities brought to its notice.

  6. Scrutiny of purchase and stores procedures in the offices inspected, so as to ensure that they are free from any defects or lacunae.

  7. Checking of procedures with regard to disposal of assets to ensure that adequate procedure exists for scrapping/condemning and the same is followed.

  8. Scrutiny of General Office Management procedure adopted by the Head of Office locally, where there have been financial and accounting implications, so as to suggest tightening up of administrative and financial control, savings in expenditure and streamlining of accounts.

FREQUENCY OF AUDIT

Chapter 12: 10:1 of Civil Accounts Manual provides that all out efforts should be made to see that inspection of all the offices within the jurisdiction of an internal audit organisation is done at least once a year.

AUDIT CALENDAR :

 

YEAR

UNITS

2004-2005

309

2005-2006

386

2006-2007