CAG's Manual Standing Orders PDF

For Use of IA&AD only Comptroller and Auditor General’s Manual of Standing Orders (Administrative) Volume I (Third Edition) Issued by the Authority of the Comptroller and Auditor General of India  PREFACE...

For Use of IA&AD only Comptroller and Auditor General’s Manual of Standing Orders (Administrative) Volume I (Third Edition) Issued by the Authority of the Comptroller and Auditor General of India  PREFACE TO THE THIRD EDITION (DIGLOT EDITION) Since the Publication of Comptroller and Auditor General’s Manual of Standing Orders (Administrative), Second edition in 1970 numerous Correction slips have been issued from time to time. Also many changes have been made in the organisational set up of the Indian Audit and Accounts Department. All these have been incorporated in this revised edition of the publication, in these volumes. In Volume I, Chapter I gives the organisational set up of the department. Chapter II sets down the broad guidelines required to be observed in the working of the offices. Chapter III to VIII deal with the cadres, recruitment, promotion etc. Two new chapters have been included in this revised Manual. Matters concerning departmental examinations, syllabus etc. earlier dealt with in the two Chapters – ‘Subordinate Accounts Service’ and ‘Clerical Staff’ have now been covered in one Chapter i.e. Chapter IX on ‘Departmental Examinations’. The Service matters like Confirmation, Seniority, Promotions etc. relating to group ‘B’, ‘C’ & ‘D’ posts which were earlier dealt in the Chapters dealing with Accounts and Audit Officers and Subordinate Accounts Service & Clerical Staff have now been covered in one chapter i.e. Chapter X on ‘Service matters in respect of group ‘B’, ‘C’ & ‘D’ posts. Chapter XI deals with preparation of budget estimates and Control over expenditure and Chapter XII with the destruction of records. The financial and administrative powers of the C.A.G. under the provisions of the Book of Financial Powers, Fundamental Rules, Supplementary Rules, Civil Pension (Commutation) Rules, Classification Control and Appeal Rules, Conduct Rules, General Provident Fund (Central Service) Rules, etc. and the powers delegated to the subordinate authorities in IA&AD have been compiled in volume II of this publication. It was decided to publish all the Recruitment Rules made by department in the shape of a Manual. Accordingly the Recruitment Rules covering essential qualifications for recruitment to various posts in Indian Audit and Accounts Department and for promotions to higher posts and other conditions have been incorporated in this compilation in volume III. The formats for the Confidential Reports on persons serving in the department which were earlier printed in volume I, also have now been compiled in the “Comptroller and Auditor General’s Manual of Standing Orders (Administrative) Volume III”. It is hoped that these Manuals will be of great help to the staff and officers in discharging their duties efficiently. C.G.SOMIAH Comptroller and Auditor General NEW DELHI The 3rd December, 1991  PREFACE TO THE SECOND EDITION Since the Publication of Comptroller & Auditor General’s Manual of Standing Orders (Administrative), first edition (reprint) in 1953, in addition to issue of numerous correction slips from time to time, certain important changes have been made in the organisational set-up of the Indian Audit and Accounts Department. All these changes have been taken into account in this revised edition of the Compilation. Opportunity has also been taken to make it up-to-date. The financial and administrative powers of the Comptroller & Auditor General and of the officers subordinate to him, so long incorporated in chapter X of this compilation, have been compiled separately in a booklet entitled “Comptroller & Auditor General’s Manual of Standing Orders (Administrative) Vol. II.” S. RANGANATHAN Comptroller & Auditor General NEW DELHI The 13th November, 1969  PREFACE TO THE FIRST EDITION (REPRINT) This edition is essentially a reprint of the first edition of the “Auditor General’s Manual of Standing Orders” issued in 1938, with such adaptations and modifications as have been rendered necessary by the constitutional changes introduced by The Constitution of India, or by other factors, and also takes into account all the correction slips issued up to date. The opportunity has been taken to include in the reprint certain orders and instructions which did not find a place in the original edition. 2. Gaps in the continuity of the numbers of paragraphs in the reprint are explained by the fact that some of the paragraphs originally included in the first edition have since been deleted, either because the instructions contained in those paragraphs have become obsolete or because the matter included therein has been taken to other paragraphs, and revised numbering has not been resorted to. 3. The financial and administrative powers of the Comptroller and Auditor General and the financial powers of the Accountants General set out in this Manual are based on the rules in the Book of Financial Powers, and other rules and orders issued by the Central Government or the President after consultation with the Comptroller and Auditor General, from time to time. In all cases of doubt, reference should be made to the original rules and orders themselves and the relevant rules and instructions in this Manual should not be regarded as possessing any authority superior to that of the original rules and orders. V. NARAHARI RAO Comptroller & Auditor General NEW DELHI The 1st March, 1952  CONTENTS Headings Reference to Paragraphs CHAPTER I – Organisation and Control of the Indian Audit and Accounts Department PARAGRAPH Organisation 1.1 to 1.12 Composition of staff 1.13 Distribution of work among the Gazetted staff in a 1.14 Civil Office Control over State of Work 1.15 Reports on State of Work 1.16 Inspection of the Audit and Accounts & Entitlement 1.17 Offices Accounting and Audit of expenditure of the IA&AD 1.18 Transfer of charge 1.19 General instruction on administrative and other 1.20 matters Inspection of different groups/sections of office by the 1.21 A.G./Pr. Director of Audit and Group Officers Quarterly D.O. letters to C.A.G. 1.22 Reports on failure of Audit 1.23 Special responsibility for Cash 1.24 List of Holidays 1.25 Annexure I Abbreviated Telegraphic addresses Annexure II Quarters for the quarterly D.O. letters to the C.A.G CHAPTER II – Office procedure Office Manuals 2.1 to 2.5 Audit Bulletin 2.6 Copy Right 2.7 Supply of Codes, Manuals to the Officers and staff of 2.8 to 2.12 the office Supply of Codes and Manuals to outside offices 2.13 Supply of Copies of Manuals to the C.A.G. 2.14 Headings Reference to Paragraphs Office Library 2.15 Suggestion Award Scheme 2.16 Correspondence 2.17 Correspondence with Private and Non-Official Persons/ 2.18 Bodies Correspondence with Foreign Countries etc. 2.19 Security instructions 2.20 Cypher Code 2.21 Anonymous and Pseudonymous Complaints 2.22 Circular letters 2.23 Telegrams 2.24 Abbreviated Telegraphic Address 2.25 Transmission of urgent message through Telex 2.26 Correspondence regarding interpretation and 2.27 Amendment of Rules Use of Polite Language in the communication embodying 2.28 Audit Objections Receipt and disposal of valuables 2.29 Supply of Information in connection with questions 2.30 raised in the Parliament and the State legislatures Issue of authority for payment to other Audit & Accounts 2.31 Officers and verification of special seal and specimen signature on the authority for payment Supply of specimen signatures to the Treasury and other 2.32 disbursing officers Legibility of signatures 2.33 Requisitioning of Departmental Records for Audit 2.34 Safe Custody of documents relating to cases of fraud 2.35 and embezzlement Procedure for obtaining legal advice and arrangements 2.36 to 2.40 for the defence and prosecution of suits Production of official document in a Court of Law 2.41 Filling of Vouchers 2.42 Headings Reference to Paragraphs Loss of Files 2.43 Printing, Binding and Stationery Standard Forms Annexure: Procedure to be followed when a Government Servant is summoned by a Court to produce official documents for the purpose of giving evidence. CHAPTER III – Indian Audit & Accounts Services Recruitment 3.1 Probationary period 3.2 Training period and programme for Probationers 3.3 to 3.22 Rules for conducting the Examination 3.23 When counted against strength 3.24 Exposure to Audit 3.25 Posting and Transfers 3.26 to 3.28 Leave 3.29 Confidential Reports 3.30 Conduct and discipline 3.31 Court attachment orders 3.32 Appointment as Arbitrators 3.33 Correspondence with Superior Authority 3.34 Appointment as Examiners and Moderators etc. 3.35 Private work 3.36 Broadcast talks 3.37 Penalties 3.38 Petitions and Memorials 3.39 Superannuation and Pension 3.40 Miscellaneous 3.41 Notification 3.42 Annexure: Report of intentions of IA&AS officers to proceed on leave CHAPTER IV – Group ‘B’ Officers Accounts/Audit Officers Recruitment 4.1 Headings Reference to Paragraphs Postings and transfers 4.2 Permanent absorption in Public Sector Undertakings, 4.3 Autonomous Bodies owned or controlled by Govt. Forwarding of application for posts outside the 4.4 department Deputation/Foreign Service 4.5 In lieu posts 4.6 Notification 4.7 Assistant Accounts/Assistant Audit Officers: Recruitment 4.8 Miscellaneous 4.9 Divisional Accounts Officer: Recruitment 4.10 Miscellaneous 4.11 Sr. Personal Assistant (Group ‘B’ Gazetted): Recruitment 4.12 Miscellaneous 4.13 CHAPTER V – Section Officer’s Service Organisation 5.1 to 5.3 Appointment to the Section Officer’s Service 5.4 Direct recruitment of Section Officers 5.5 Seniority in Section Officers’ Cadre 5.6 & 5.7 Reservation of Vacancies 5.8 Continuance of Section Officers in One Section 5.9 Conditions of transfer from one office to another 5.10 Confidential Reports 5.11 Crossing of Efficiency bar 5.12 Leave Reserve 5.13 Incentive for acquiring higher or additional 5.14 professional qualification Headings Reference to Paragraphs CHAPTER VI – Clerical Staff Compositional Strength 6.1 Recruitment 6.2 Training 6.3 Leave Reserve 6.4 Continuance of staff in the same section 6.5 Promotions 6.6 Superannuation & Retirement 6.7 Annexure: Certificate of eligibility CHAPTER VII – Divisional Accountants Organisation 7.1 Recruitment 7.2 to 7.6 Training 7.7 Divisional Accountants Grade Examination 7.8 to 7.11 Confirmation 7.12 Annual increments 7.13 Efficiency bar 7.14 Confidential Reports 7.16 Postings 7.19 Cadre Composition 7.22 Appointment to the post of Section Officer 7.23 Incentives for acquiring higher or additional 7.24 professional qualifications Miscellaneous 7.25 Grant of Honoraria 7.26 Annexure I: Rules for initial recruitment examination for Divisional Accountants Annexure II: Subjects & Qualifying marks and Syllabus CHAPTER VIII – Group ‘D’ Staff Strength 8.1 Headings Reference to Paragraphs Age of recruitment 8.2 Educational Qualifications etc. 8.3 Recruitment of Group ‘D’ 8.4 Promotion within Group ‘D’ 8.5 Leave Reserve 8.6 Confidential Reports 8.7 Miscellaneous 8.8 CHAPTER IX – Departmental Examinations Introductory 9.1 Section Officers’ Grade Examination 9.2 Revenue Audit Examination for Section Officers/ 9.3 Assistant Audit Officers Departmental Examination for Accountants/Auditors 9.4 Limited Departmental Competitive Examination for 9.5 Clerks for promotion as Stenographer Ordinary Grade Limited Departmental Competitive Examination for 9.6 Matriculate Group ‘D’ Staff for promotion as Clerk Departmental Examination for Clerks in A&E Offices 9.7 Incentive Examination for Senior Auditors/Senior 9.8 Accountants Incentive Examination for SOs/AAOs of A&E offices 9.9 Instructions for conducting the Departmental 9.10 Examination Grant of Honorarium 9.11 Annexure I: Statement showing the list of Candidates appearing in Section Officer’s Grade Examination Annexure II: Statement showing the list of Candidates for Revenue Audit Examination for Section Officers/ Assistant Audit Officers Annexure III: Statement showing the bank answer books after the conclusion of examination Annexure IV: Advise of despatch of Answer Scripts Headings Reference to Paragraphs Annexure V: Details regarding number of packets of Answer Scripts CHAPTER X – Service Matters in respect of Group ‘B’, ‘C’ & ‘D’ posts Confirmation 10.1 Seniority 10.2 Promotions 10.3 Deputation/Foreign Service 10.4 Forwarding of applications for Posts outside the 10.5 department Crossing of Efficiency Bar 10.6 Drawal of Annual Increments 10.7 Incentives for acquiring higher or additional 10.8 professional qualification Posts with Special Pay 10.9 Alteration in Date of birth 10.10 Confidential Reports 10.11 Conduct, Disciplines etc. 10.12 Gradation List 10.13 Service Association in the Indian Audit & Accounts 10.14 Department Grants from the compassionate fund 10.15 Private Work 10.16 Annexure I: List of Group ‘B’ posts and non-Gazetted posts the holders of which are entitled to special pay Annexure II: Columns of Gradation list CHAPTER XI – Budget and Control over Expenditure Preparation of Budget Estimates 11.1 to 11.3 Sanction and Revision of Establishment 11.4 & 11.5 Changes in Grants & Appropriation during the year 11.6 to 11.11 Control over expenditure 11.12 to 11.15 Scrutiny of Appropriation Accounts 11.16 Headings Reference to Paragraphs Annexure I: Details of provision proposed for Pay and Allowances of Gazetted Officers/Establishment Annexure II: Existing staff position of the current year and budget proposals regarding staff for ensuing year other than casual and seasonal temporary staff Annexure III: Details of the staff position of the current year and budget proposals regarding staff for ensuing year in respect of casual and seasonal temporary staff. Annexure IV: Review of Expenditure in respect of Group ’A’ Officers Annexure V: Review of Expenditure in respect of Group ’B’ and non-gazetted establishment Annexure VI: Statement showing full details of expenditure and total requirement for the year Annexure VII: Statement of expenditure relating to Group ‘A’ officers of IA&AD under IRLA system of payment. CHAPTER XII – Destruction of Records General 12.1 Life of records 12.2 Periodical Review of preservation of records 12.3 Weeding out of records 12.4 to 12.9 Records of the offices rendering account to the 12.10 IA&AD Annexure: Periods of preservation of Records CAG’s Manual of Standing Orders (Administrative) Vol.I (Third Edition) 1 CHAPTER 1 ORGANISATION AND CONTROL OF THE INDIAN AUDIT AND ACCOUNTS DEPARTMENT 1. ORGANISATION 1.1 The Comptroller and Auditor General of India is the administrative head of the Indian Audit and Accounts Department and is appointed under Article148 (1) of the Constitution of India. His duties and powers are determined under article 148 (5) and 149 to 151 of the Constitution and the Comptroller and Auditor General’s (Duties, Powers and Conditions of Service) Act, 1971 (herein after referred to as the ‘Act’). He discharges his constitutional responsibilities through the agency of the Indian Audit and Accounts Department. 1.1.1 Section 21 of the Act empowers the Comptroller and Auditor General to delegate any power exercisable by him under the provisions of the Act, to such officers of his department as may be authorised by him by general or special order, provided that, except during the absence of the Comptroller and Auditor General on leave or otherwise, no officer shall be authorised to submit on his behalf any report which he is required by the Constitution or the Government of Union Territories Act, 1963 to submit to the President or the Governor of a State or the Administrator of a Union Territory having a Legislative Assembly as the case may be. 1.2 The financial and administrative powers of the Comptroller and Auditor General, Accountants General/Principal Directors of Audit and other heads of Departments in the Indian Audit and Accounts Department are given in Volume II of this Manual. 1.3 The Comptroller and Auditor General has a Deputy Comptroller and Auditor General who functions, in general as Chief of Staff and assists the Comptroller and Auditor General in the formulation of policies and issue of directives to the field offices, in matters relating to accounting and auditing as well as administration of the Department. He is responsible for the Personnel and CAG’s Manual of Standing Orders (Administrative) Vol.I (Third Edition) 2 staff requirements of the various Offices of the Department, and formulating the budget proposals for the department. He functions as the Chief Accounting Authority for the Indian Audit and Accounts Department under the departmentalised system of accounting and discharges this function through the Pay and Accounts Officers (I.A.A.D) set up in a number of field offices, and the Principal Accounts Officer (Accountant General (Audit) Delhi). He is also responsible for the administration and efficient working of the office of the Comptroller and Auditor General. 1.3.1 In addition to the Deputy Comptroller and Auditor General, there is the “Chairman, Audit Board, who is ex-officio Deputy Comptroller and Auditor General (Commercial)” and there are five Additional Deputy Comptroller and Auditors General. The distribution of charges among them is broadly as under: - 1. Deputy Comptroller and Auditor Railway Audit, Receipt Audit (Direct and General Indirect Taxes), Policy, Planning, Research & Evaluation 2. Chairman Audit Board and Ex- Coordination of audit of Central Officio Deputy Comptroller and Government Companies and Auditor General Corporations, Commercial Audit Reports (Central) and Hindi. 3. Additional Deputy Comptroller and State Commercial Audit Reports. Auditor General 4. Additional Deputy Comptroller and State Audit Reports. Auditor General 5. Additional Deputy Comptroller and All Central Reports (excluding Railway Auditor General and Defence), Autonomous Bodies under Scientific Departments. O&M and Training, EDP and Examination. 6. Additional Deputy Comptroller and Accounts, Entitlements and Complaints, Auditor General Audit, Inspection and State Receipt Audit Reports. 7. Additional Deputy Comptroller and Central Reports – Defence, Audit of Auditor General Autonomous Bodies Central and State other than those under Scientific Departments. CAG’s Manual of Standing Orders (Administrative) Vol.I (Third Edition) 3 1.4 The main branches into which the Indian Audit and Accounts Department is divided, and the designation of the Heads of Offices in these branches are given below. Classes of Offices/Organisations Designation of the Heads of Offices/Organisations (i) Civil Accounts and Entitlement Accountants General/Senior or Deputy Offices Accountants General (ii) Civil Audit Offices Accountants General/Principal Directors of Audit (iii) Posts and Telecommunications Audit Principal Director of Audit, Posts & Offices. Telecommunications with branch offices headed by Director or Deputy Director of Audit, Posts and Telecommunications (iv) Defence Audit Offices Director General of Audit, Defence Services/Principal Director of Audit, Air Force and Navy with branch offices headed by Directors or Deputy Directors of Audit, and Principal Director of Audit, Ordnance Factories. (v) Railway Audit Offices Principal Directors of Audit, Zonal Railways and Principal Director of Audit, of Railway Production Units. (vi) Commercial Audit Organisation/ Chairman Audit Board and Ex-Officio Offices including the Principal Deputy Comptroller and Auditor General Director of Audit (Food) (Commercial), Principal Directors of Commercial Audit and Ex-Officio Members Audit Board. (vii) Overseas Audit Offices Principal Director/Director of Audit, Indian Accounts in U.K./U.S.A. (viii) National Academy of Audit & Director, National Academy of Audit & Accounts Accounts (ix) Regional Training Institutes Principal, Regional Training Institute, and Ex-officio Directors. Note: The term “Accountant General/Principal, Directors of Audit” whenever it is used in a general sense in this Manual, should be taken to include the Heads of Offices/Organisations as mentioned in this para. The terms ”Heads of CAG’s Manual of Standing Orders (Administrative) Vol.I (Third Edition) 4 Departments” and “Heads of Offices” (in their grammatical variations) used in this manual denote the Officials designated as heads of Offices in the above table. 1.5 The Deputy Comptroller and Auditor General and the Additional Deputies have authority to deputise for the Comptroller and Auditor General in any matter except in the case of Reports on Accounts submitted to Parliament and State/Union Territory Legislatures and they may to any extent as may be determined from time to time by Comptroller and Auditor General, and subject to his general control, issues orders from the office of the Comptroller and Auditor General. 1.6 The Deputy/Additional Deputy Comptroller and Auditors General are assisted by the (i) Principal Director of Audit in matters relating to Audit, (ii) Director General (AE&C) in matters relating to Accounts, Entitlements and Complaints, (iii) Principal Director (Staff) in administrative matters, (iv) Principal Director of Inspection for inspection of Audit and Accounts Offices, (V) Principal Director (O&M & T) in matters relating to organisation, methods and training, Examinations and Computerisation, (vi) Principal Directors, Report (States)/ Report (Central)/Commercial, in matters relating to their respective areas, and (vii) Directors, Asstt. Comptroller and Auditors General, Deputy Directors for work relating to Administration, Report, Commercial Audit and Railway Audit. The Principal Directors of Receipt Audit report to the Comptroller and Auditor General through the Deputy Comptroller and Auditor General in all matters connected with the Central Receipt Audit Reports and to the Deputy Comptroller and Auditor General in matters connected with administration of the Central Revenue Audit Wing of the department. 1.7 The Office of the Comptroller and Auditor General is mainly concerned with formulating policies, giving directions and according sanctions only in such important matters, where the field officers do not have the necessary powers formally delegated to them. Important matters affecting audit, accounts, classification of receipts and charges and administration of the Audit and CAG’s Manual of Standing Orders (Administrative) Vol.I (Third Edition) 5 Accounts Department should, however, be referred to the Comptroller and Auditor General, where necessary. 1.8 The overall control of Railway Audit offices rests with the Deputy Comptroller and Auditor General who is also the Ex-Officio Director of Railway Audit. Similarly the overall control of the Commercial Audit Organisation rests with the Chairman, Audit Board and Ex-Officio Deputy Comptroller & Auditor General (Commercial). 1.9 The offices of the Accountant General (A&E)/Senior Deputy Accountants General (A&E)/Deputy Accountants General (A&E) in the various states are responsible for the compilation and maintenance of the accounts of the States and Union Territories. While those of the Accountant General (Audit) are responsible for the audit. Consequent upon the departmentalisation of accounts of the Union Government from 1st April 1976, the Comptroller and Auditor General is responsible only for audit of the accounts of the Union Government and the audit is done through the Principal Directors of Audit. The Comptroller and Auditor General, however, continues to be responsible through the Principal Accountant General (A&E), Calcutta for compiling the accounts relating to Central (Civil) pensions and of the Union Territories other than Delhi, Pondicherry, Daman and Diu, and Andaman and Nicobar Islands. 1.10 The Commercial Audit Offices are responsible for Audit of the transactions of Central Government Companies and Statutory Corporations. The transactions of the State Government Companies and Statutory Corporations of the State Governments/Union Territories are audited by the respective Accountants General, except in the case of Maharashtra, where it is entrusted to the Accountant General (Commercial Audit), Maharashtra, Bombay. 1.10.1 The Audit Board set–up in the Commercial Audit Organisation undertakes every year comprehensive appraisal of the performance of a few selected Commercial undertakings. The Board has no separate legal status and works under the supervision and control of the Comptroller and Auditor General of CAG’s Manual of Standing Orders (Administrative) Vol.I (Third Edition) 6 India. It consists of a Chairman, who is ex-officio Deputy Comptroller and Auditor General, two or more whole time members who are ex-officio Principal Directors of Commercial Audit. Principal Director in-charge of the concerned administrative Ministry and two part-time members, who are nominated by the Government of India in each case with the concurrence of the Comptroller and Auditor General. The Member Secretary of the Board is ex-officio Principal Director (Commercial). 1.11 There is a National Academy of Audit & Accounts at Shimla headed by a Director, for imparting training to the I.A.A.S Probationers as well as in-service training. There are also eight Regional Training Institutes at Allahabad, Nagpur, Ranchi, Jaipur, Bombay, Madras, Shillong, and Jammu to impart in-service training to B and C personnel. 1.12 A list of all the field offices, along with their telegraphic addresses is given in Annexure I to this Chapter. The details about the organisation and functions etc., of the offices will be found in the respective branch/local manuals. 1.13 Composition of Staff 1.13.1 The Gazetted Staff belonging to Group ’A’ consists of members of the Indian Audit and Accounts Service, Secretary to the Comptroller and Auditor General, Principal Personal Secretary/Principal Private Secretaries to the Comptroller and Auditor General/Deputy Comptroller and Auditor General and Welfare Officers. Group ’B’ Gazetted Staff consists of Audit/Accounts Officers, Assistant Audit/ Assistant Accounts Officers, Divisional Accounts Officers and Senior Private Assistants. In the Central Civil Audit, Posts and Telecommunications Audit, Railway Audit, Defence Audit, Commercial Audit and Overseas Audit Offices, the Heads of offices are designated as Principal Directors of Audit. The group ‘A’ Officers working under them are designated as Director/Deputy/Assistant Directors of Audit. In the State Civil Audit and Accounts and Entitlement Offices, the heads of the Offices are designated as Accountant General. Group ’A’ officers working in those offices are designated as Senior/Deputy/Assistant Accountants General. CAG’s Manual of Standing Orders (Administrative) Vol.I (Third Edition) 7 1.13.2 The non-gazetted staff consists of Section Officers (Section Officers’ Grade Examination passed), Supervisors, Selection Grade Divisional Accountants, Divisional Accountants, Senior Auditors/Senior Accountants, Auditors/Accountants, Welfare Assistants, Stenographers, Cashiers/Assistant Cashiers, Caretakers, Clerks and Typists, Selection Grade Record Keepers, Record Keepers, Drivers etc. (all group ‘C’) and group ‘D’ Government Servants. CONTROL 1.14 Distribution of work among the gazetted staff in a Civil Office. 1.14.1 The Accountant General/Principal Director of Audit is generally responsible for the efficient functioning of the office and, in particular, for the efficient administration of the establishment of his office. He is also in direct supervisory charge of internal audit, budget, efficiency cum performance audit, appropriation audit and report sections. He is assisted by Senior Deputy Accountants General/Directors or Deputy Accountants General /Deputy Directors who held the supervisory charges known as the group charges, generally organised on a functional basis; one or more functional groups being allocated to each group charge. While postings of the Officers of the I.A.&A.S. at different levels are made by the Comptroller and Auditor General, the Accountants General/Principal Directors of Audit are empowered to allocate the charges to them on condition that the work content of any charges is not modified, the reallocation of charges are made for good and sufficient reasons, to be intimated to headquarters office, no change is made, without prior approval, to or from posts carrying a special pay. As regards local arrangements in vacancies for short duration prior approval of headquarters office will have to be taken in cases involving payment of any additional remuneration. 1.14.2 The other officers are designated as either Assistant Accountants General/Assistant Directors (belonging to the Indian Audit and Account Service) or Audit Officers/Accounts Officers. They are placed in direct charge of a group of sections in the main office or of a Resident Audit Office or they supervise the work of the inspection parties or Audit Offices conducting local audit. The CAG’s Manual of Standing Orders (Administrative) Vol.I (Third Edition) 8 Assistant Accountants General/Assistant Directors are posted by the Comptroller and Auditor General. The distribution of work among the Assistant Accountants General/Assistant Directors and Audit Officers/Accounts Officers is left generally to be determined by Accountant General/Principal Director of Audit, but the headquarters of the former shall not be altered by an Accountant General/Principal Director of the Audit save with the prior approval of the Comptroller and Auditor General. 1.14.3 In the States of Bihar and West Bengal Local Fund Audit is entrusted to the Indian Audit and Accounts Department on a consent basis subject to recovery of costs from the States Governments and is attached to the offices of the Accountants General (Audit) Bihar and West Bengal. An I.A.&A.S. officer designated as Examiner, Local Fund Audit Department is posted by the Comptroller and Auditor General and placed in the supervisory charge of the Local Fund Audit in these offices. 1.14.4 The strength of Gazetted Officers for each office is fixed by the Comptroller and Auditor General after considering the justification therefor and with reference to the norms prescribed by him. 1.15 Control over State of work 1.15.1 The standard list of returns (both inward and outward) with due dates should be prescribed for each functional group/Section, to ensure control and review over the performance of various duties entrusted to it by supervisory officers at different levels. Each section of the office should maintain a Calendar of Returns in the prescribed form (Sy 264) showing the due and actual dates of despatch or receipt of returns to/from outside or within the office or submission to the branch officers (Group Officers/Accountant General/Principal Director of Audit) of the various returns and reports as the case may be. The Calendar of Returns should be submitted once a week to the Branch Officer for review and results of his review should be recorded in the Calendar of Returns. 1.15.2 The Calendar of returns maintained under the foregoing para should be submitted to the Accountant General/Principal Director of Audit through the group CAG’s Manual of Standing Orders (Administrative) Vol.I (Third Edition) 9 supervisory Officer for review once a month, on such dates as may be prescribed by him. The group supervisory officer should record the results of his review and the steps taken by him for clearance of arrears and improving the state of work. It need not, however, be submitted to the Accountant General/Principal Director of Audit if all the cases of delay in despatch/submission of return etc. and arrears are brought to his notice monthly through reports on the state of work (vide para 1.16). In the latter case, the Accountant General/Principal Director of Audit should get the Calendar of Returns reviewed monthly by his Deputies, and the control and Coordinating Section for the functional group and test checked periodically by the Internal Test Audit Section, wherever such a section exists. 1.15.3 The Calendar of Returns is an important instrument of control for supervisory officers at different levels, and its proper maintenance and prompt review by supervisory officers should be ensured. Firm steps should also be taken for the clearance of arrears. 1.16 Reports on State of work 1.16.1 A detailed report on the state of work in each section of the office, at the end of the month, should be put up to the Accountant General /Principal Director of Audit, through the Supervisory Officers, in such forms and on such dates as may be prescribed by him. The report should show the internal as well as external arrears, with the certificate prescribed in Note 2 below, duly signed by the Branch Officer in-charge of the section. 1.16.2 The report on the state of the work and the certificate should cover all kinds of work including correspondence, and mention specially the progress of the Branch Officers’ review of audit. Cases of good work done by staff in the section, which deserves commendation, should also be mentioned in this report. It should also mention the number of bills received for pre-audit and outstanding over a week, the number of pension claims received for verification or issue of Pension payment orders and outstanding for over a month, the number of the applications for final withdrawal of provident fund outstanding for over a month and the number of letters (inward receipts) outstanding for over a period which CAG’s Manual of Standing Orders (Administrative) Vol.I (Third Edition) 10 may be prescribed by the Accountant General/Principal Director of Audit. It should indicate the arrears of accounting, posting and closing of broadsheets, reconciliation of difference between broadsheets, ledger, audit and review, issue of objection statements/inspection reports, and records management such as, filing, indexing, transfer of old records to old records branch and arrangement of records. The Group Supervisory Officers should pointedly draw attention of the Accountant General/Principal Director of Audit to any lapses or inordinate delays on the part of the Branch Officers and the sections. NOTE 1: Items of work for the disposal of which no period is prescribed in any rule or order should be treated as in arrears, if the relevant account, return or other document has been in the office for more than three weeks. NOTE 2: The certificate mentioned in this paragraph should be in the following form. ‘I certify to the best of my knowledge and belief that with the exception of the arrears detailed and explained in the attached report, the work is up- to-date’. 1.16.3 A report in the form of a descriptive memorandum reviewing very briefly, but critically, the state of work as on 31st March, 30th June, 30th September, and 31st December in each functional group or sub group in his office, should be sent by the Accountant General/Principal Director of Audit so as to reach the Comptroller and Auditor General’s Office before the 15th (20th in the case of Offices which have to collect reports from their subordinate offices) the month following the quarter for which it is due. The arrears, internal as well as external, should invariably be computed in terms of mandays (at the standard rates prescribed for calculating staff requirements or the rates prescribed by the Comptroller and Auditor General from time to time for computing arrears) unless required otherwise in respect of some specific items. Where it is not possible to assess the arrears in term of mandays with any degree of exactitude, an approximate estimate should be given. The overall increase or decrease in arrears should be indicated in a separate para of the report. All important CAG’s Manual of Standing Orders (Administrative) Vol.I (Third Edition) 11 measures to clear the arrears and remove defects as also the dates by which they are expected to be cleared/removed should also be indicated in the report. 1.16.4 It should specify only those items of work pertaining to each group or sub- group which are in arrears and in which the quantum of arrears exceeds 15 mandays. It should cover all the arrears as specified in various circulars issued by headquarters office from time to time and should be accompanied by annexures in requisite forms as indicated in those circulars. NOTE 1: Arrears in respect of audit inspections should be computed at the end of each year with reference to the programme for the year and should be exhibited in the report for the quarter ending March only. They should not be carried to the subsequent quarterly reports. The position in this regard in a report for the quarter ending March of a particular year should, however, be compared with that shown in the report for the quarter ending March of previous year, and the increase or decrease in the arrears during the year worked out. NOTE 2: Arrears on account of post review by the Section Officer/ Assistant Audit Officer/Assistant Accounts Officer of the Internal Test Audit Section should be shown in terms of units and mandays with the date of allotment of the oldest item, in the arrear report of the Internal Test Audit Section and in terms of units only in arrears reports of the Section concerned. There should be no arrears in making the allotment of post review. NOTE 3: The number of letter etc. outstanding for more than one month and three months respectively should be separately exhibited in the report. Brief particulars and reasons for delay in respect of each letter outstanding for more than three months should also be given. The report should be sent in a separate cover addressed by name to the Principal Director (Audit) in respect of Audit Offices and Director General (AE&C) in respect of Accounts and Entitlement offices. The report in respect of Commercial and Railway Audit offices should be sent to the respective wings of the Headquarters office in accordance with the instructions contained in the related manual. CAG’s Manual of Standing Orders (Administrative) Vol.I (Third Edition) 12 In addition to the quarterly reports on the state of work referred to in para 1.16.3 and 1.16.4 above, the following reports should also be furnished by the Accountants General (A&E) to the Office of the Comptroller and Auditor General in the prescribed proforma so as to reach on or before the dates shown against each. (i) Report on the outstanding pension 30th April, 31st July, 31st cases as on 31st March, 30th June, October and 31st January of 30th September and 31st December each year (ii) Report on the outstanding cases of 15th May, August, final payments of provident fund November and February balances for the quarters ending each year March, June, September, and December. (iii) Report on incomplete provident 31st October and 30th April fund accounts and missing each year credits/debits at the close of the March and September respectively. (iv) Report on un-posted items of 30th September, 31st provident fund accounts at the December and 31st march close of accounts for March, June each year. and September respectively. (v) Report on the balance under 10th May and November Provident Fund Suspense at the each year. close of the accounts for the half year ending 31st March and 30th September. CAG’s Manual of Standing Orders (Administrative) Vol.I (Third Edition) 13 (vi) Report on the despatch of annual 30th September each year statements of Provident Fund Accounts for the preceding financial year and census of ledger cards. (vii) Report in respect of differences 15th December each year between the Ledger and Broadsheet Balances, acceptance of the balances and clearance of outstanding under Suspense and Remittance Heads up to 31st March of each year (including supplementary account). (viii) Follow up report in respect of item 15th July each year (vii) above 1.16.6 In addition to the reports mentioned at Paras 1.16.3 and 1.16.5 above, the Accountants General /Principal Directors of Audit are responsible for making special reports to the Comptroller and Auditor General of any large arrears in work, as and when they come to their notice and for furnishing such reports as may be required by the headquarters office. 1.16.7 Each field office should also prepare an Annual Administrative Report of the office highlighting the work done in the office during the year. The report should be brought out each year before the end of September of the year following the year to which the report relates. A copy of the report should be sent to the Comptroller and Auditor General, Deputy Comptroller and Auditor General, concerned Additional Comptroller and Auditor General and Principal Director/Director General besides two copies for the library of the headquarters office. CAG’s Manual of Standing Orders (Administrative) Vol.I (Third Edition) 14 1.17 Inspection of the Audit and Accounts and Entitlement offices 1.17.1 The field offices and the different branches of the headquarters office of Indian Audit and Accounts Department in India are inspected periodically by he Principal Director of Inspection on behalf of the Comptroller and Auditor General of India. The object of inspection is mainly to report to the Comptroller and Auditor General of India whether the administrative, accounting and audit responsibilities entrusted to the Accountants General /Principal Directors of Audit are being adequately discharged and whether there are any special problems or areas of weaknesses which require their special attention etc. It also enables the Accountant General/Principal Director of Audit or head of the office inspected to satisfy himself about the proper discharge of his primary responsibilities for the efficient working of his office, The Principal Director of Inspection is assisted by a team of Administrative Officers and Assistant Administrative Officers. 1.17.2 Before an office is taken up for inspection, reasonable notice is normally given by the Principal Director of the Accountant General /Principal Director of Audit or the head of the office concerned, except in cases where a special inspection at short notice is considered necessary. The inspection is conducted in one or more spells, as may be decided by the Principal Director and so arranged as to cause minimum dislocation of work in the office inspected. The programme of actual inspection of the different branches /units /sections of the office inspected should be drawn up in consultation with the Accountant General /Principal Director of Audit concerned so as to cover as wide an area as possible and at the same time ensure a study in depth of all the problems and weakness in the offices. The Principal Director may primarily rely on the half yearly appraisal reports which he receives from the Internal Test Audit sections of each office, and other periodical reports received in the headquarters such as state of work report, report on Provident Fund, Pensions, Accounts and Balances of Debt, Deposit Suspense and Remittances to identify the areas of weaknesses and deficiencies in the different offices which requires detailed study. In the case of the offices showing heavy arrears in work, the Principal Director should scrutinise the reasons for increase in or accumulation of arrears from time to CAG’s Manual of Standing Orders (Administrative) Vol.I (Third Edition) 15 time, the measures taken by the head of the office to over take the arrears and the effect of these measures. 1.17.3 While the scope of the inspection and functions of the Principal Director are broadly as indicated in paragraph 1.17.1 and 1.17.2 above, the Principal Director is free to select other items for a review or scrutiny if, in his opinion, such a review or scrutiny would be fruitful or useful in locating latent defects and areas of weakness and for determining the scope for improvements in the working of the office. While the scope of inspection is essentially aimed at examining whether the prescribed rules and procedures are being strictly observed, and pointing out deviations without authority, it does not preclude Principal Director of Inspection from reviewing the methods of work and procedures prescribed and followed in specific areas, with a view to examining the need for revising or improving them, and also locating defective or deficient procedures where he considers that even if sanctioned by usage, such rules and procedures lead to inefficiency in the working of the office, or are not capable of practical implementation to achieve the desired objective or bring disrepute to the members of the staff or the public. In such instances, he may make suggestions to the headquarters office for revising them. He should also make an assessment of the effectiveness of supervision at different levels. 1.17.4 The Principal Director should conduct a review of the arrangements existing in the office for drawal of bills, their encashment, custody, disbursement and obtaining of proper acquittances, accounting of cash, prompt and correct disposal of undisbursed amounts, as also the measures adopted for subjecting the Cash Book, the cash balance and other records to a thorough and systematic check by or under the order or supervision of the Accountant General/ Principal Director of Audit. He should specially scrutinise the reports of check of cash book and verification of cash and other connected papers for locating any defects in procedure, which may cause or had resulted in loss of Government monies in custody. He may subject the cash transactions of selected period or periods to a check by his Administrative Officer or by his staff with a view to satisfying himself about the correctness of the records and the adequacy of the CAG’s Manual of Standing Orders (Administrative) Vol.I (Third Edition) 16 control in the offices inspected. He may also generally review the arrangements made for the prompt collection of dues of Government, their remittances to Government account and for an actual verification of the credits of a selected period in Government account with reference to the Bank scrolls etc. for the monies shown as remitted. 1.17.5 The Principal Director should review the working of the Pay and Account office of the Indian Audit & Accounts Department or the Cheque Drawing Offices, set up under the scheme of departmentalisation of accounts, and which form part of the office inspected and should examine the adequacy of the arrangements made for receipt and disposal of claims for the payment etc., as also the adequacy, effectiveness and results of audit of the transactions carried out by the authority nominated for the purpose. 1.17.6 The Principal Director should review the effectiveness of the Internal Test Audit Sections and their reports, and the attention and importance given to, and the action taken on their reports by the Accountant General/ Principal Director of Audit /Group officers. The Principal Director should review the action taken to eliminate or rectify the defects noticed in the previous inspections, which where left to be pursued by the Internal Test audit sections. 1.17.7 He should also examine the Stock Register for the Codes and Manuals marked ‘Secret’ and ‘ for use of IA&AD only’ and the procedure followed for write off of Secret Memorandum of Instruction and Manual of Standing Orders (Audit/Accounts and Entitlement). 1.17.8 He should also verify the records as to the findings and inspections of the sections /units of the office by the Accountant General/ Principal Director of Audit and the Group Officers as required under para 1.21 of this manual in order to ensure that the findings are systematically and promptly recorded and duly followed up. 1.17.9 He should also check up or test check at least broadly, the calculations of staff requirements of the offices inspected with a view to ensuring that the same have been worked out in accordance with the prescribed standards, that the CAG’s Manual of Standing Orders (Administrative) Vol.I (Third Edition) 17 standard rates are interpreted and applied correctly and uniformly form office to office and that the instructions regarding maintenance of record of statistics of work done have been strictly observed. The results of such test check should be included in the Inspection Report of the office inspected. 1.17.10 He should generally see what action has been taken by the Accountant General/ Principal Director of Audit to remove and avoid the omissions and defects noticed during the last inspection and how far these measures have been fruitful in curing the defects, and make a brief mention of his findings in the report. 1.17.11 The Inspection Report should include an overall picture of the state of affairs in the office inspected indicating the general impression which the Principal Director of Inspection has formed of the efficiency, accuracy, punctuality etc. which will give the Comptroller and Auditor General a correct appreciation of the state and efficiency of work in the different departments of that office. The Principal Director would, therefore, also look into following points: - (i) System of fixing targets of work and achievements there against to see whether the targets have been subdivided into groups and machinery devised to monitor their progress regularly; (ii) Involvement of Group Officers and other senior Officers in the planning and execution of work; (iii) Deployment of manpower to achieve optimum utilisation and system of estimating the requirement of manpower; (iv) System of attending to and re-dressal of complaints/grievances of outsiders as wall as staff; (v) System of ensuring timely disposal of disciplinary, confirmation and efficiency bar cases as well as the prompt writing of Confidential Reports; (vi) Position of Court/ CAT cases; (vii) System of vetting of inspection reports/Audit notes and the contribution made at Headquarters to improve its quality/contents; CAG’s Manual of Standing Orders (Administrative) Vol.I (Third Edition) 18 (viii) System of building up of portfolio files and coordination between central and local audit; (ix) Comparative picture of arrears/complaint cases etc, in the office. (x) Review of I.T.A to see how far it has helped in improving general efficiency of the offices; and (xi) Coordination with sister offices at all levels including cooperation and teamwork between different offices situated at the same station. 1.17.12 The Accountant General/ Principal Director of Audit of the office inspected shall make adequate arrangements for the prompt supply, preferably within a day, of the registers, vouchers and other records requisitioned by Principal Director or his party. For coordinating the work in this connection and also for purpose of collecting and editing the replies of the various sections/branches to the inspection memos of the Principal Director, the Accountant General/ Principal Director of Audit may nominate a senior officer in his office, not lower in rank than a Deputy Accountant General/Deputy Director who will also keep former informed of the progress in the supply of records to Principal Director and difficulties, if any, experienced in complying with requisitions. 1.17.13 During the course of inspection, memos will be issued by or under the orders of the Principal Director, to the office inspected, calling for information, clarification or details, or asking for verification of facts stated or for initiating action to remedy defects etc. Replies to all these memos should generally have the prior approval of the Accountant General/ Principal Director of Audit and should be given with reasonable promptness. Based on these replies, the Principal Director should arrive at his findings or tentative conclusions, and discuss the more important matters and serious irregularities with the Accountant General/ Principal Director of Audit as soon as possible. 1.17.14 The Principal Director may, in advance of his report, make special reference to the Comptroller and Auditor General on any important point of special or general interest, which may arise in the course of inspection and on CAG’s Manual of Standing Orders (Administrative) Vol.I (Third Edition) 19 which a decision may be necessary in advance of the orders to be passed on the formal report. The draft of such a reference should be shown to the Accountant General/ Principal Director of Audit concerned and should contain an agreed statement of facts as well as comments thereon. 1.17.15 The report of the Principal Director should generally aim at pinpointing areas of the weaknesses in the office inspected and action taken or to be taken to remedy the situation. The report may also include matters of general interest which may require consideration at and issue of orders from the headquarters and reference to any new or improved procedure followed in the office inspected, which may with advantage be considered for adoption in other offices. 1.17.16.1 In case there is disagreement of any point between the Principal Director and Accountant General/ Principal Director of Audit, the respective points of view, along with the facts of the case, should be included in the report for examination in the headquarters and issue of instructions. 1.17.16.2 The draft report should be discussed by the Principal Director with the Accountant General/Principal Director of Audit before it is finalised. The A.D.A.I. in charge of Inspection may at his discretion, visit the office inspected, review the results of inspection and discuss with the Accountant General/ Principal Director of Audit the report in general and points of disagreement between the Principal Director and Accountant General/Principal Director of Audit in particular. 1.17.17 The report should be prepared in three parts, Part I- Introductory containing general information, Part II-major observations and Part III-Minor observations to be pursued by the Accountant General/Principal Director of Audit through the Internal Audit/ Coordinating Section of his office. It is personal responsibility of the Accountant General/Principal Director of Audit to satisfy himself, by periodical review, that remedial measures have been initiated and action has been taken in all cases. 1.17.18 Five copies of report should be prepared by the Principal Director of Inspection, one copy for submission to the Comptroller and Auditor General, two CAG’s Manual of Standing Orders (Administrative) Vol.I (Third Edition) 20 for being sent to the Accountant General/Principal Director of Audit concerned, one for the Principal Director of Inspection for his record and one for further use or further action by the Principal Director of the Inspection. Extracts of only such paragraphs on which further examination/scrutiny is necessary should be sent to the concerned section at the headquarters, indicating the specific issue involved. In case of branch and sub-offices inspected extracts from the report pertaining to these offices should be sent to the heads of these offices also. The deficiencies or other points which form the basis for the conclusions drawn in the report may be detailed in the annexure to the Report which should also mention briefly points which will require verification during the next inspection and points on which further action has been left to be taken by the Accountant General/Principal Director of Audit. 1.17.19 On receipt of the copies of the Inspection Report, the Accountant General/Principal Director of Audit should immediately initiate action to examine observations made in the report, direct suitable remedial measures being taken and take such further action as he may consider necessary to rectify or improve the situation pointed out therein. A quarterly report on the progress of the remedial action etc., taken should be sent to the headquarters. If any difficulties arise in implementing any part of the Report, instructions of Headquarters should be sought either by a special reference or through the quarterly report. The Accountant General/Principal Director of Audit should periodically arrange for a review of the remedial steps taken on the earlier and current inspection reports to insure that they are fully implemented. The defects noticed by the Principal Director in other offices, to which attention is drawn through circulars issued from the headquarters should also be carefully examined by the Accountant General/Principal Director of Audit to see that defect do not exist in his office. 1.18 Accounting and Audit of Expenditure of the I.A.A.D. 1.18.1 The revised arrangements in the force from October 1976 for the drawals of funds for expenditure and the accounting processes thereof in respect of Indian audit and Accounts Department, as well as procedure prescribed for the CAG’s Manual of Standing Orders (Administrative) Vol.I (Third Edition) 21 audit of such expenditure, are laid down in a separate manual viz. ”Manual of the Pay and Accounts Office (I.A.A.D) ”. 1.19 Transfer of Charge 1.19.1 When an Accountant General/Principal Director of Audit is relieved either permanently or temporarily, of the charge of his office; he will draw up and give for the information of his successor a memorandum setting out briefly the results of his special knowledge and experience of the office. The Accountant General of an A&E office should prepare the memorandum in five parts dealing with :- (i) matter relating to IA&AS officers (ii) matters relating to Group ‘B’ officers (iii) establishment matters of a confidential nature (iv) establishment matters not of a confidential nature (v) other matters One copy of each of these parts should be sent by the relieving officer, by name to the following officers in the Headquarters office: Part (i) Assistant Comptroller and Auditor General (P) Part (ii) Director (P) Part (iii) Assistant Comptroller and Auditor General (N) Part (iv) Assistant Comptroller and Auditor General (N) Part (v) Director (Accounts) The Accountant General (Audit)/Principal Director of Audit (other than of Railways and Commercial) should prepare the memorandum in ten parts dealing with: (i) matters relating to IA&AS officers. (ii) matters relating to Group ’B’ officers. (iii) establishment matters of a confidential nature. CAG’s Manual of Standing Orders (Administrative) Vol.I (Third Edition) 22 (iv) establishment matters not of a confidential nature. (v) matters relating to central and local audit of non-commercial autonomous bodies etc. (vi) matters relating to state commercial audit. (vii) matters relating to revenue audit. (viii) matters relating to audit reports. (ix) matters relating to O&M and Training, and (x) matters relating to important outstanding paras of the reports of the Principal Director of Inspection. One copy of each of these parts should be sent by the relieving officer to the following officers by name in the headquarters office: - Part (i) Assistant Comptroller and Auditor General (P). Part (ii) Director (P) Part (iii) & (iv) Assistant Comptroller and Auditor General (N). Part (v) Principal Director (Audit) Part (vi) Director (Commercial) Part (vii) Director (Receipt Audit) Part (viii) Director (Report Central)/ Director (Report State) Part (ix) Director (O&M)/ Director (Training) Part (x) Principal Director (Inspection) The Principal Directors of Audit (Railways)/ and Principal Directors of Commercial Audit Ex-officio Members Audit Board should prepare the memorandum in five parts as in the case of Accountants General (A&E). The copies of the memorandum should be sent to the concerned officers at the headquarters office as bellow: - CAG’s Manual of Standing Orders (Administrative) Vol.I (Third Edition) 23 Parts Principal Director Principal Director Commercial Audit of Audit (Railways) and Ex-Officio Member Audit Board Part (i) Assistant Comptroller and Assistant Comptroller and Auditor Auditor General (P) General (P) Part (ii) Director/Deputy Director Director Commercial (Railways) Part (iii) Director/Deputy Director Director Commercial (Railways) Part (iv) Director/Deputy Director Director Commercial (Railways) Part (v) Director/Deputy Director Principal Director and Member (Railways) Secretary, Audit Board 1.19.2 The relieved officer will explain inter alia in what respects the working of any of the sections of his office is defective or in arrears, indicate the state of codes and manuals for the up keep of which he is responsible, point out serious irregularities, if any, relating to the officers rendering accounts to his office, record a reference to any case where relations between audit and administration have been unsatisfactory and draw the attention of the relieving officer to all important pending cases that might require special scrutiny. He will give his successor a note containing his views regarding his fitness of Accounts /Audit Officers for continued officiation or confirmation and discuss it with him referring to the relevant confidential report. The fact that it has been done should be mentioned in the memorandum. 1.19.3 The relieved officer should also have the register of keys, valuables, secret document etc, checked by the relieving officer, hand over keys, etc. to him, get his acknowledgement on the register itself and state the fact in part IV of the memorandum mentioned in paragraph 1.19.1 1.19.4 The relieving officer should make a preliminary examination of the memorandum given to him in accordance with paragraph 1.19.1 and within 3 months satisfy himself that he is fully apprised of all that concerns the effective CAG’s Manual of Standing Orders (Administrative) Vol.I (Third Edition) 24 and efficient administration of his office, and make a special report to the Comptroller and Auditor General of any defects of points of importance noticed by him 1.20 General instructions on Administrative and other matters General 1.20.1 An Accountant General/Principal Director of Audit may not- (1) Without the prior sanction of the Comptroller and Auditor General reverse any deliberate orders of an important nature passed by an officer who preceded him in his office; (2) Issue any important notice to the public through Treasury Officers or otherwise unless it has been approved by the Comptroller and Auditor General; (3) Forward an application to Government or any other authority, for sanction for expenditure or for relaxation of leave or pension rules, (such application should be returned for being sent direct to the proper executive authority). Issues relating to the administration of his office should be taken up through the Comptroller and Auditor General of India, unless otherwise directed in any case. (4) Propose increase in/or re-organisation of, departments, other than his own except when advice is sought; (5) On any account join in protesting against any retrenchment or economy which a competent authority may order; (6) Suggest Expedients for evasion of the natural operation of a rule when reporting on claims to pension or allowances of any kind, his duty being merely to report how a claim is affected by the rules; (7) Advise upon any question relating to pensionary claims except in accordance with general or special orders, prescribing the occasions on which he may give such advice; CAG’s Manual of Standing Orders (Administrative) Vol.I (Third Edition) 25 (8) Issue orders stopping the payment of establishment or contingent bills of an office to obtain compliance with orders except in extreme cases when so required by specific formal direction of the Central or State Government as the case may be; or (9) Without the sanction of the Comptroller and Auditor General, demand the submission to an audit and accounts office of a new accounts return if the new accounts return is to be made by an officer not under the control of the Comptroller and Auditor General, the State or Central authorities concerned should first be consulted and the result of such consultation made known to the Comptroller and Auditor General. 1.21 Inspection of different groups /sections of the office by the Accountant General /Principal Director of Audit and Group Officers 1.21.1 In order to tone up the working of different functional groups/sections of the office and to have a personal appreciation of their working arrears of work in the section, the quality of work being done, the bottlenecks and the problem areas and to give necessary directions and guidance, the Accountant General/ Principal Director of Audit should inspect a couple of sections of one of the functional groups in a month. For the same purpose, the group supervisory officers should also inspect 2 to 3 sections under their charge every month. These inspection should be arranged in such a manner that each section within a group in inspected by the Accountant General /Principal Director of Audit once or twice a year. These inspections need not to be conducted in great details but should cover aspects like guidance and controls exercised by the Branch Officer and the section-in-charge, quality of work performed, arrears record of management, accommodation arrangements and cleanliness, and maintenance (including completeness and the quality) of some of the prescribed records/registers. The findings of these inspection are to be recorded by the Accountant General /Principal Director of Audit and Group Officers along with directions given. There should also be adequate follow up action on these inspection reports to make these inspections effective in toning up of the quality CAG’s Manual of Standing Orders (Administrative) Vol.I (Third Edition) 26 of work, clearance of arrears and remedying deficiencies. Deficiencies in the system brought to notice in this inspection should be got studied further with a view to bringing about improvement. For omissions and lapses noticed, responsibility will have to be fixed. 1.22 Quarterly demi-official letters to the Comptroller and Auditor General from the Accountants General /Principal Directors of Audit 1.22.1 The Accountants General /Principal Director of Audit should send quarterly a comprehensive personal and confidential letter to the Comptroller and Auditor General mentioning the major and the important events and developments and policies of Government, and giving his personal appreciation of the state of work and arrears in the different wings of the office. These letters should not normally be more than 3 pages and should eschew Statistical and other details of annexure unless absolutely necessary. It should contain only significant factual information necessary to have a proper appreciation of the state of work in the different wings and the measures the Accountant General /Principal Director of Audit is taking to improve matters. Non-receipt of any comments or directions from the headquarters should not be taken to mean acquiesance in any line of action indicated in the letter and the matters which require directions or approval from the headquarter should be specifically referred to the headquarters in normal way. Matters that are to be mentioned in these letters are indicate in a circular letters issued by the headquarters office from time to time, but the Accountants General /Principal Directors of Audit are free to include any other matter which is considered significant enough to be brought to the notice of the Comptroller and Auditor General. This arrangement doesn’t also preclude the Accountants General /Principal Directors of Audit from writing to the Comptroller and Auditor General on any significant matter about which they wish to apprise him independent of the quarterly letters. 1.22.1.1 The offices of the Accountants General /Principal Directors of Audit are divided into three groups and separate due dates are prescribed for each of these groups as indicated in Annexure II. CAG’s Manual of Standing Orders (Administrative) Vol.I (Third Edition) 27 1.22.1.2 Copies of these letters to the Comptroller and Auditor General are to be endorsed by the Accountants General /Principal Director of Audit to the Deputy Comptroller and Auditor General and to all the Additional Deputy Comptroller and Auditors General. Note: - Quarterly D.O’s are not meant to be an item of Calendar of Returns. If there are no important developments or significant points to be brought to the notice of the Comptroller and Auditor General during the quarter, no letter need be sent. 1.23 Reports on failures of Audit 1.23.1 The Accountants General /Principal Directors of Audit should send to the Office of the Comptroller and Auditor General a separate report of every serious case of failure of audit as soon as it comes to light (including those pointed out by the Principal Director of Inspection, if any) irrespective of any report which may be required for other purposes. The report should explain the manner in which the failure occurred, and mention the names of the persons responsible and the disciplinary action taken or recommended. 1.24 Special responsibility for cash 1.24.1 Although the group officer in charge of Administration is directly concerned, the Head of the office is specially responsible for seeing that there is adequate control over the section of his office which handles cash. The fact that the Cashier (or any subordinate who handles cash) has given security or executed a bond does not reduce the special responsibility of the Head of the office for ensuring that an effective system of control over the custody, disbursement and accounting of cash exists and functions. There should be continuous review of the arrangements for the expeditious disbursement of money, for the custody thereof, and for the prompt and correct disposal of undisbursed balances and of sums otherwise payable into the bank. There should be adequate reconciliation of cash with the accounts. In order to better exercise better control over cash, there should be an concurrent check of all entries in cash book by a selected Assistant Audit Officer /Section Officer, other CAG’s Manual of Standing Orders (Administrative) Vol.I (Third Edition) 28 than the one in charge of the drawal of the bills, a daily verification of the closing cash balance by the Officer in charge of cash, a half yearly test check of the cash accounts by the Internal Test Audit Party/Co-ordination Section and monthly surprise check of the cash balances by one of the Deputies. The Head of the office should at regular intervals satisfy himself that the system of supervision, as prescribed in authorized codes or special orders, is observed properly and should remedy speedily the defects noticed, if any. 1.24.2 Where the system of cheque payment by the audit and accounts offices in vogue, the gazetted officer entrusted with the duty of signing the cheques is required at the close of each day, to check in person the Register to Cheques Drawn with the Cheques on hand to see that no more cheque forms have been removed than are accounted for by proper entries in the Register of Cheques Drawn. The Accountant General/Principal Director of Audit is responsible for seeing that this stocktaking of cheque forms is on no account postponed or neglected. Note: - The actual cash to which the Cashier can have access without the help of the Officer in change should as far as possible not exceed the amount of security furnished by him. The money in excess of this security should be kept in a safe under double lock. 1.25 List of Holidays 1.25.1 Each Head of office should, subject to the instructions issued by the Government of India and Comptroller and Auditor General of India from time to time, determine and publish a list of closed (other than Saturdays and Sundays of each months) as well as Restricted holidays to be observed in his office and in the offices subordinate to him. The closed holidays to be observed should consist of 13 compulsory holidays (namely, Republic Day, Independence Day, Mahatma Gandhi’s Birthday, Idul’ Zuha, Muharram, Good Friday, Buddha Poornima, Idul fitar, Gurunanak’s birthday, Christmas Day, Mahaveer Jayanti, Dusshera (Vijay Dashmi) and Diwali. The remaining three holidays may be chosen by the Central Government Employees Welfare Co-ordination Committees, wherever, they CAG’s Manual of Standing Orders (Administrative) Vol.I (Third Edition) 29 exist, or by the Head of the office at other places taking into account the local importance of occasions from the list of twelve occasion circulated by the Department of Personnel and Training, Government of India. The total number of holidays in any one calendar year should not, exceed sixteen and if any of these holidays falls on a Sunday/Saturday/any other holiday, it would not be substituted by another holiday. In addition, each employee may be permitted to avail himself of any two restricted holidays out of the list of Restricted Holidays. 1.25.2 The closed, and restricted holidays should be finally fixed for a year and no charge should ordinarily be made therein. 1.25.3 A copy of the list of closed /restricted holidays for the ensuing calendar year should be sent to the Comptroller and Auditor General’s office (in duplicate) on or before 22nd December each year as well as to the Department of Personnel and Training, Government of India. 1.25.4 In addition to the above-mentioned holidays, Heads of offices are authorized to order the closing of the offices whenever it is announced by the All India Radio/Doordarshan that the central Government offices all over India will remain closed. Any Departmental examination conducted by the Comptroller and Auditor General and scheduled to be held on the date declared a closed holidays, should not, however, be postponed, but should be conducted according to the schedule at all centres, unless instructions to the contrary are received from the Office of the Comptroller and Auditor General. CAG’s Manual of Standing Orders (Administrative) Vol.I (Third Edition) 30 ANNEXURE I (Referred to in Paragraph 1.12) Indian Audit and Accounts Department Comptroller and Auditor General of India Name of Office Abbreviated Telegraphic Address Civil Audit and Accounts Offices I. Accounts and Entitlement Offices 1. Accountant General (A&E), ACCOUNTS HYDERABAD Andhra Pradesh, Hyderabad. 2. Accountant General (A&E), ACCOUNTS GUWAHATI Assam, Guwahati. ACCOUNTS ASSAM SHILLONG Branch Office at Shillong. 3. Principal Accountant General (A&E)-I, PRIN ACCOUNTS RANCHI Bihar, Ranchi. 4. Accountant General (A&E)-II, ACCOUNTS PATNA Bihar, Patna. 5. Accountant General (A&E), ACCOUNTS RAJKOT Gujarat, Rajkot. Branch Office at Ahmedabad. GAJA ACCOUNTS AHMEDABAD 6. Accountant General (A&E), HISAB CHANDIGARH Haryana, Chandigarh. 7. Senior Deputy Accountant General (A&E), HIM ACCOUNTS SHIMLA Himachal Pradesh, Shimla. 8. Deputy Accountant General (A&E), KASH ACCOUNTS SRINAGAR Jammu & Kashmir, Srinagar. Branch Office at Jammu. ACCOUNTS JAMMU 9. Accountant General (A&E), ACCOUNTS BANGALORE Karnataka, Bangalore. 10. Accountant General (A&E), ACCOUNTS THIRUVANATHAPURAM Kerala, Trivandrum. Branch Offices at Trichur, Kottayam, ACCOUNTS THRISSUR Ernakulam and Kozhikode. 11. Accountant General (A&E)-I, LEKHA GWALIOR Madhya Pradesh, Gwalior. Branch Office at Bhopal. LEKHA BHOPAL CAG’s Manual of Standing Orders (Administrative) Vol.I (Third Edition) 31 Name of Office Abbreviated Telegraphic Address 12. Accountant General (A&E)-II, HAKDARI GWALIOR Madhya Pradesh, Gwalior. 13. Accountant General (A&E)-I, ACCOUNTS BOMBAY Maharashtra, Bombay. 14. Accountant General (A&E)-II, HISAB NAGPUR Maharashtra, Nagpur. 15. Deputy Accountant General (A&E), ACCOUNTS IMPHAL Manipur, Imphal. 16. Accountant General (A&E), ACCOUNTS SHILLONG Meghalaya, Arunchal Pradesh and Mizoram Shillong. 17. Deputy Accountant General (A&E), ACCOUNTS KOHIMA Nagaland, Kohima. 18. Accountant General (A&E), ACCOUNTS ORISSA Orissa, Bhubaneswar. Branch Office at Puri. STATE ACCOUNTS PURI 19. Accountant General (A&E), PUNJ ACCOUNTS CHANDIGARH Punjab, Chandigarh. 20. Accountant General (A&E), ACCOUNTS JAIPUR Rajasthan, Jaipur. 21. Senior Deputy Accountant General (A&E), ACCOUNTS GANGTOK Sikkim, Gangtok. 22. Principal Accountant General (A&E), ACCOUNTS CENT MADRAS Tamil Nadu, Madras. 23. Senior Deputy Accountant General (A&E), ACCOUNTS AGARTALA Tripura, Agartala. 24. Principal Accountant General (A&E)-I, PRIN ACCOUNT ALLAHABAD Uttar Pradesh, Allahabad. 25. Accountant General (A&E)-II, MAHA LEKHA TWO ALLAHABAD Uttar Pradesh, Allahabad Branch Office at Lucknow. 26. Principal Accountant General (A&E), ACCOUNTS CALCUTTA West Bengal, Calcutta. CAG’s Manual of Standing Orders (Administrative) Vol.I (Third Edition) 32 Name of Office Abbreviated Telegraphic Address II. Civil Audit Offices 1. Accountant General (Audit)-I, ANDHRA AUDIT Andhra Pradesh, Hyderabad. 2. Accountant General (Audit)-II, RECAUDIT HYDERABAD Andhra Pradesh,Hyderbad. Branch Office at Vijayapuri North (AP). 3. Accountant General (Audit), AG AUDIT SHILLONG Assam, Meghalaya, Arunachal Pradesh, Mizorom Shillong. Branch Office at Guwahati. 4. Accountant General (Audit)-I, PAT AUDIT Bihar, Patna. Branch Office at Ranchi. 5. Accountant General (Audit)-II, RAN AUDIT RANCHI Bihar, Ranchi. 6. Accountant General (Audit)-I, GUJAUDIT AHMEDABAD Gujarat, Ahmedabad. Branch Office at Rajkot. 7. Accountant General (Audit)-II, AUDIT RAJKOT Gujarat, Rajkot. Branch Office at Ahmedabad. 8. Accountant General (Audit), HAR AUDIT Haryana, Chandigarh. 9. Accountant General (Audit), HIMAUDIT SHIMLA Himachal Pradesh, Shimla. 10. Accountant General (Audit), KASH AUDIT SRINAGAR Jammu & Kashmir, Srinagar. Branch Office at Jammu. 11. Accountant General (Audit)-I, CARN AUDIT Karnataka, Bangalore. Branch Office at Dharwar. 12. Accountant General (Audit)-II, CARN AUDIT-II Karnataka. Bangalore, 13. Accountant General (Audit)-I KER AUDIT Kerala, Trivandrum. Branch Offices at Trichur, Kottayam, Kozhikode. CAG’s Manual of Standing Orders (Administrative) Vol.I (Third Edition) 33 Name of Office Abbreviated Telegraphic Address 14. Accountant General (Audit)-II, KERA AUDIT Kerala, Trivandurm. Branch Office at Cochin. 15. Accountant General (Audit)-I, LEKHA PARIKSHA GWALIOR Madhya Pradesh, Gwalior. 16. Accountant General (Audit)-II, LEKHA PAREEKSHAN BHOPAL Madhya Pradesh, Bhopal. Branch Office at Gwalior. 17. Accountant General (Audit)-I, RAJYA AUDIT Maharashtra, Bombay. 18. Accountant General (Audit)-II, LEKHA PARIKSHA NAGPUR Maharashtra, Nagpur. 19. Accountant General (Comml. Audit), VANIJYIK PARIKSHA Maharashtra, Bombay. 20. Accountant General (Audit), AUDIT IMPHAL Manipur, Imphal. 21. Accountant General (Audit), AUDIT KOHIMA Nagaland, Kohima. 22. Accountant General (Audit)-I, ORISS AUDIT BHUBANESWAR Orissa, Bhubaneswar. 23. Accountant General (Audit)-II, ORISS AUDIT BHUBANESWAR Orissa, Bhubaneswar. Branch Office at Puri and Koraput. 24. Accountant General (Audit), PUNJAUDIT CHANDIGARH Punjab, Chandigarh. Branch Office at Nangal. 25. Accountant General (Audit)-I, LEKHA PARIKSHA JAIPUR Rajastha, Jaipur. 26. Accountant General (Audit)-II, LEKHA PARIKSHA JAIPUR Rajastha, Jaipur. 27. Accountant General (Audit), AUDIT GANGTOK Sikkum, Gangtok. 28. Accountant General (Audit)-I, AUDIT ONE MADRAS Tamil Nadu, Madras. Branch Office at Pondicherry. CAG’s Manual of Standing Orders (Administrative) Vol.I (Third Edition) 34 Name of Office Abbreviated Telegraphic Address 29. Accountant General (Audit)-I, AUDIT TWO MADRAS Tamil Nadu, Madras. 30. Accountant General (Audit), TRIAUDIT TRIPURA Tripura, Agartala. 31. Accountant General (Audit)-I, UPAUDITEK ALLAHABAD Uttar Pradesh, Allahabad. 32. Accountant General (Audit)-II, AUDIT LUCKNOW Uttar Pradesh, Lucknow. Branch Office at Allahabad. 33. Accountant General (Audit)-I, ACCTGEL CALCUTTA West Bengal, Calcutta. 34. Accountant General (Audit)-II, AG AUDIT TWO CALCUTTA West Bengal, Calcutta. 35. Principal Director of Audit, ACCOUNT CENT CALCUTTA Central, Calcutta. Branch Office at Port Blair. 36. Director General of Audit, ACCOUNTS NEW DELHI Central Revenues, New Delhi. 37. Accountant General (Audit), ACCOUNTS NEW DELHI Delhi, New Delhi. 38. Principal Director of Audit, SUP AUDIT NEW DELHI Economic & Service Ministries, New Delhi. 39. Principal Director of Audit, SUP AUDIT NEW DELHI Scientific Departments, New Delhi. Branch Offices at Bombay, Calcutta and Madras. 40. Principal Director of Audit, KENDRIYANLEP BOMBAY Central, Bombay. III. Audit Office in U.K. and U.S.A. 1. Director of Audit, AUDIT CAREHICOMIND LONDON Indian Accounts, London. 2. Director of Audit, CARE INDEMBASSY WASHINGTON Indian Accounts, Washington. CAG’s Manual of Standing Orders (Administrative) Vol.I (Third Edition) 35 Name of Office Abbreviated Telegraphic Address IV. Post and Telecommunication Offices 1. Principal Director of Audit, CEN OFF DELHI (Posts and Telecommunications), New Delhi. Branch Offices at Calcutta, Madras, Nagpur, Lucknow, Bombay, Hyderabad, Trivandrum, Kapurthala, Cuttack, Patna, Jaipur, Bhopal and Bangalore. V. Defence Audit Offices 1. Director General of Audit DEF AUDIT NEW DELHI (Defence Services), New Delhi. Branch Offices at Meerut, Allahabad, Patna, Pune, Chandigarh, Jammu and Madras 2. Principal Director of Audit, AF NAVAUDIT (Air Force and Navy), New Delhi. Branch Offices at Bombay, Dehradun and Bangalore. 3. Principal Director of Audit, STATU AUDIT CALCUTTA (Ordnance Factories), Calcutta. Branch Offices at Jabalpur, Kanpur, Madras, Calcutta and Kirkee. VI. Railway Audit Offices 1. Principal Director of Audit, GIPAUDIT BOMBAY Central Railway, Bombay. 2. Principal Director of Audit, CARY CALCUTTA Eastern Railway, Calcutta. 3. Principal Director of Audit, UTTLEPARI NEW DELHI Northern Railway, New Delhi. 4. Principal Director of Audit, DANER GORAKHPUR North-Eastern Railway, Gorakhpur. 5. Principal Director of Audit, SEEMA AUDIT GUWAHATI N.E. Frontier Railway, Guwahati. 6. Principal Director of Audit, RAIL AUDIT SECUNDERABAD South Central Railway, Secunderabad. 7. Principal Director of Audit, MAS AUDIT MADRAS Southern Railway, Madras. 8. Principal Director of Audit, CHAUSERY CALCUTTA South Eastern Railway, Calcutta. CAG’s Manual of Standing Orders (Administrative) Vol.I (Third Edition) 36 Name of Office Abbreviated Telegraphic Address 9. Principal Director of Audit, BIBI AUDIT BOMBAY Western Railway, Bombay. 10. Principal Director of Audit, CAPURYS CALCUTTA Railway Production Units and Metro Railway, Calcutta. Branch Offices at Chittaranjan, Varanasi and Madras. VII. Commercial Audit Offices 1. Principal Director of Commercial Audit &Ex- DIRCOMIT, BANGALORE Officio Member Audit Board, Bangalore. 2. Principal Director of Commercial Audit & DIRCOMIT, BOMBAY Ex-Officio Member Audit Board-I, Bombay. 3. Principal Director of Commercial Audit & AUDIT BOARD Ex-Officio Member Audit Board-II, Bombay. 4. Principal Director of Commercial Audit & DIRCOMIT, CALCUTTA Ex-Officio Member Audit Board-I, Calcutta. 5. Principal Director of Commercial Audit & COLAUDIT Ex-Officio Member Audit Board-II, Calcutta. 6. Principal Director of Commercial Audit & DIRCOMIT, HYDERABAD Ex-Officio Member Audit Board, Hyderabad. 7. Principal Director of Commercial Audit & DIRCOMIT, MADRAS Ex-Officio Member Audit Board, Madras. 8. Principal Director of Commercial Audit & DIRCOMIT, NEW DELHI Ex-Officio Member Audit Board-I, New Delhi. 9. Principal Director of Commercial Audit & FERAUDIT, NEW DELHI Ex-Officio Member Audit Board-II, New Delhi. 10. Principal Director of Commercial Audit & Ex-Officio Member Audit Board-III, New Delhi. 11. Principal Director of Commercial Audit & DIRCOMIT, RANCHI Ex-Officio Member Audit Board, Ranchi. 12. Principal Director of Audit FOOD AUDIT, NEW DELHI (Food), New Delhi. Branch Offices at Madras, Calcutta, Bombay, Chandigarh and New Delhi (Resident Audit offices at Lucknow, Bhopal,Trivandrum and Chandigarh). 13. Director, National Academy of Audit and AUDIT, ACADEMY Accounts, Shimla. CAG’s Manual of Standing Orders (Administrative) Vol.I (Third Edition) 37 ANNEXURE II (Referred to in paragraph 1.22.1.1) GROUP ‘A’ January July April October 1. Accountant General (A&E), Haryana. 2. Accountant General (A&E), Punjab. 3. Accountant General (A&E), Rajasthan. 4. Pr. Accountant General (A&E)-I, Uttar Pradesh. 5. Accountant General (A&E)-II, Uttar Pradesh. 6. Sr. Dy. Accountant General (A&E), Himachal Pradesh. 7. Sr. Dy. Accountant General (A&E), Jammu & Kashmir. 8. Accountant General (Audit), Haryana. 9. Accountant General (Audit), Himachal Pradesh. 10. Accountant General (Audit), Jammu & Kashmir. 11 Accountant General (Audit), Punjab. 12. Accountant General (Audit)-I, Rajasthan. 13. Accountant General (Audit)-II, Rajasthan. 14. Accountant General (Audit)-I, U.P. 15. Accountant General (Audit)-II, U.P. 16. Director, National Academy of Audit & Accounts, Shimla. 17. Director General of Audit, Central Revenues, New D