Audit Reports

Assam

Overview

Internal control system encompasses the policies and procedures adopted by the management of an entity to assist in achieving management's objective of ensuring, as far as practicable, orderly and efficient conduct of business, including adherence to management policies, safeguarding of assets, prevention and detection of fraud and error, accuracy and completeness of the accounting records, executing orderly, ethical, economical, efficient and effective operations.

The massive size and scale of Government operations call for effective internal controls over its operations. Internal controls help strengthen public accountability of Government and help balance the competing demands of delivering responsive and quality services to the community whilst recognizing fiduciary responsibilities and maintaining standards of probity, prudence and ethics. Internal Controls are, therefore, closely aligned with good governance. The existence of internal controls and risk management framework and its vibrant and honest operationalization can lead to better service delivery, more efficient use of resources, better project management and promote innovation.

During the course of regular transaction audit through test check of 15 departments (out of a total of 49 departments), number of cases were noticed which raises question on the adequacy and effectiveness of the internal control systems existing in these departments. An audit analysis revealed serious inadequacies impacting the financial discipline in the departments. These deficiencies noticed were due to both overt and covert disregard for compliance of the internal control systems as prescribed in the Laws, Rules, Codes and Manuals guiding the operations of the Government departments. Ineffective internal audit coupled with lack of effectual monitoring by the Controlling Officers and Drawing and Disbursing Officers to oversee that the intended objectives of the controls in place were met through diligent discharge of their duties and responsibilities, aggravated the risk of misappropriation.

There were violations of the Government's policies and its Acts, Rules, Statutes and Regulations which resulted in misappropriation, defalcation and waste of Government funds. Absence of proper documentations and evidencing of transactions involving large sums of money, controls relating to handling of cash were rendered ineffective, as the prescribed control measures were being overlooked. Often, accountability was not being fixed. Execution of the works in total disregard of the operational controls viz. an orderly, ethical, economical, efficient and effective manner led to wasteful and excess expenditure including loss of Government funds. Public resources were not being conscientiously safeguarded against loss and misappropriations by the Controlling Officers and Heads of the Offices.

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• Preface
• Executive Summary
• Chapter 1 - Introduction
• Chapter 2 - AUDIT FRAMEWORK
• Chapter 3 - ACCOUNTABILITY AND TRANSPARENCY
• Chapter 4 - COMPLIANCE
• Chapter 5 - OPERATIONAL CONTROLS
• Chapter 6 - SAFEGUARDING RESOURCES
• Chapter 7 - INTERNAL AUDIT
• Chapter 8 - CONCLUSION
• Chapter 9 - RECOMMENDATIONS
• APPENDICES - 4 TO 5
• APPENDICES- 1 TO 3
• APPENDICES- 6 TO 9