TN's audit department set for a major haul

Tamil Nadu’s Finance Department has taken steps to prevent Comptroller and Auditor General’s (CAG) audit objections in all government departments. At present, audit paragraphs are pending for the past several years and the DMK government has decided to have a robust internal audit mechanism.

The government proposes to take up a fundamental review of the audit system within the government. The Finance Department proposes to follow a few measures to improve the audit function.

“The department plans direct recruitment of professionally qualified persons at the appropriate level and greater capacity to build audit staff through training and revision as well as updating of audit manuals,” said a senior Finance Department official.

“We plan to implement a robust transfer policy to ensure vested interest do not develop, deploy audit parties, on a randomised basis rather than on fixed area based or institution jurisdiction to prevent collusive practices,” said the official.

Technology will be used to monitor the audit process. “More intensive and systematic follow up of audit findings and reports with heads of department and concerned agencies will be done,” the official said.

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The official said that the position of the Director General of state audit will be created to oversee all the existing audit agencies of the state government. “Ideally, the Director General will be drawn from the Indian Audit and Accounts Service on deputation,” he said.

“A high-power committee comprising retired Deputy CAG level officers and audit experts will be formed to make recommendations on improving the overall audit process within the state government,” the official said.

The Governor had said in his address that the audit and oversight function of the government will be thoroughly overhauled. In the Budget speech for 2021-2022, this government has committed to increase accountability and productivity.

One of the key issues indicated in the Budget speech was that over 2,000 CAG audit objections have been pending for many years. The government has also indicated that a robust strong internal audit mechanism within government is essential to ensure that any wrong doing is identified early, and corrective action is taken without delay.

The government will take up a fundamental review of the audit system within government and to this end, all the audit departments and wings functioning within government, are being brought under the control of the Finance Department, and will be integrated seamlessly to ensure that internal audit functions are effectively carried out across all government departments and agencies.

The government will also take up capacity enhancement of the audit departments and they will be professionalised.