HISTORY

Evolution of the State Audit Offices

In November 1985, the Indian Audit & Accounts Department was bifurcated into Audit and Accounts. As a result, separate Audit office came into existence with effect from 1 November 1985.

The Audit Office was also divided into the following two offices:-
Accountant General (Audit-I), West Bengal
Accountant General (Audit-II), West Bengal

Since then the chronology of events of rechristening/ reorganization was as under: -

Local Audit Department (LAD)

Historical Background of Local Audit Department: The Local Audit Department was first created in the year 1880 with the object of having the accounts of municipalities inter alia examined locally by an officer of the Finance Department styled as Examiner of Local Accounts and attached to the office of the Accountant General. Under the Reforms of 1921 as well as under the Constitution introduced by the Government of India Act, 1935, the audit of “Local Funds” was made a Provincial subject and as such it formed no part of the statutory duties of the Auditor General of India. However, the Government of Bengal having decided to leave the control of the department as before to the Auditor General of India, an arrangement was accordingly made on consent basis between the Government of Bengal and the Auditor General of India. It has been decided by the Auditor General that his prior consent would invariably be obtained before taking up any new audit on consent basis [Reference: Auditor General’s No.951-Admn./172-45 dated 5th August 1945-Filed in case No. 164].This arrangement has since continued even after the enactment of the Comptroller and Auditor General’s (Duties, Powers and Conditions of Service) Act, 1971.As the Department was entrusted with the audit for which the Provincial Government was responsible the entire charge of the Department was debitable to the Provincial Revenues. The cost of the Department is in the first instance debited to the Government of India and is subsequently reimbursed by the State Government. The Local Audit Department, West Bengal is under the immediate charge of two Examiners of Local Accounts, who are Officer of the rank of Senior Deputy Accountant General/Deputy Accountant General of the Indian Audit & Accounts Service. Local Audit Department has its own separate administration, cadre control, budget, and expenditure.

(2) Functions of Local Audit Department: The functions of the Local Audit Department, West Bengal are to: -

• audit the accounts of the Local Bodies in the State as may be entrusted to it by the Government of West Bengal through various notifications issued from time to time under respective Acts, Rules, etc.
• certify the accounts of the Local Bodies as may be required by the respective Acts, Rules, etc.
• report audit findings to the Local Bodies in the manner as prescribed by the respective Acts, Rules, etc.
• conduct Performance Audit in respect of Local Bodies or schemes executed by them as may be entrusted by or with the approval of the Comptroller and Auditor General of India’s Office.
• report significant audit findings on Local Bodies attracting Section 14 of the Comptroller and Auditor General’s (Duties, Powers and Conditions of Service) Act, 1971, in the Civil Audit Report of the State.
• prepare separate Audit Reports on Panchayati Raj Institutions and Urban Local Bodies.
• take necessary and appropriate follow up action on its reports.

(3) Present arrangement: As indicated above, on Cluster based reorganization of State Audit Offices of West Bengal as notified in May 2020, the LAD function is bifurcated between two offices: