Comptroller and Auditor General’s (Duties, Powers and Conditions of Service) Amendment Act, 1971
- DPC Act,1971 came into force w.e.f. 15th Dec 1971
- Includes 4 chapters and 26 sections as follows :-
Chapter-1 Preliminary (Section 1-2)
Chapter-2 Salary and Other Conditions of Service of CAG (Sections 3-9)
Chapter-3 Duties and powers of CAG (sections 10 – 20)
Chapter-4 Miscellaneous (sections 21 – 26)
- Section 1 to 9 ensures independence of CAG
- Section 10 to 12 related to Accounts of Union & States
- Section 13 to 20 related to Audit
Note:
- DPC Act was passed as per Article 148(3) and 149
- DPC Act has been amended 4 times.
Chapter-1 Preliminary (Section 1-2)
Section 1: Title
Section 2: Definitions Comptroller and Auditor-General” appointed under Article 148 of the Constitution
Chapter-2 Salary and Other Conditions of Service of CAG (Sections 3-9)
Section 3: Salary
- equal to the salary of the Judge of the Supreme Court
- charged on Consolidated Fund of India
Section 4: Term of office
- 6 years or 65 years of age whichever is earlier
- He may vacate his post by giving resignation letter to President
Section 5: Leave
- granted leave as per rules applicable to members of Indian Administrative Service
- President can grant or refuse leave to CAG
Section 6: Pension
● equal to the pension payable to Judge of Supreme Court
Section 7: Omitted
Section 8: Right to subscribe to GPF
Section 9: Other conditions of service
● Entitled to other conditions of service such as travelling allowance, rent-free residence, conveyance facilities, medical facilities etc.same as that of the judge of Supreme Court
Chapter-3 Duties and powers of CAG (sections 10 – 20)
Section 10: Compilation & keeping of A/c of Union & States by CA G
(1) The CAG shall be responsible- (1.) for compiling the accounts of the Union and of each State (2.) for keeping such accounts
Provided that the President may, after consultation with the CAG by order relieve him from the responsibility for compiling-
- the said accounts of the Union (either at once or gradually); or
- the accounts of any particular services or departments of the Union
Provided further that the Governor of a State may with the previous approval of the President and after consultation with the CAG , by order, relieve him from the responsibility for compiling-
- the said accounts of the State (either at once or gradually); or
- the accounts of any particular services or departments of the State
Provided also that the President may, after consultation with the CAG, by order, relieve him from the responsibility for keeping the accounts of any particular class or character.
Section 1 1: Preparation & Submission of A/c by CA G
The CAG shall prepare accounts related to annual receipts and disbursements for the purpose of the Union, of each State and of each UT having a Legislative Assembly, and shall submit those accounts to the President or the Governor or Administrator of the UT having a Legislative Assembly, as the case may be on or before such dates as he may, with the concurrence of the Government concerned, determine
Provided that the President may, after consultation with the CAG , by order, relieve him from the responsibility for the preparation and submission of the accounts of the Union or of a UT having a Legislative Assembly
Provided further that the Governor of a State may, with the previous approval of the President and after consultation with the CAG , by order, relieve him from the responsibility for the preparation and submission of the accounts of State.
Section 12: CAG will give information and render assistance to the Union and States in the preparation of their annual financial statements
Section 13: It shall be the duty of the CAG
- To audit all expenditure from the Consolidated Fund of India/State/UT having a Legislative Assembly
- To audit all transactions of the Union and of the States relating to Contingency Funds and Public Accounts
- to audit all trading, manufacturing, profit and loss accounts and balance-sheets and other subsidiary accounts kept in any department of the Union or of a State
Section 14: Audit of receipts and expenditure of bodies or authorities substantially financed from Union or State Revenues
(1) CAG audit and report on all receipts and expenditure of substantially financed bodies or authorities
Note: If grant/loan given to a body in a FY from Consolidated Fund of India/State/UT
is >=25 lakhs and not less than 75% of total expenditure of this body then such body is called as substantially financed
(2) CAG can audit it with previous approval of President/Governor/Administrator if grant/loan in a FY is not less than 1 Crore.
(3) CAG may audit for further 2 years irrespective of fulfilment of above conditions.
Section 15: Function of CAG in the case of grants/loans given to other authorities or bodies
(1) When grant/loan is given for specific purpose from Consolidated Fund ,not being a foreign state or International Org, CAG will scrutinise the procedures of granting this loan and shall have right to access(after giving notice) to the books & accounts of authority or body President/Governor/Administrator can relieve him from this duty after consulting CAG itself (in public interest)
(2) The right to access the books/accounts of any corporation where the law establishing it provides for audit by an agency other than CAG, is available to CAG only with the authority of the President/Governor/Administrator otherwise not.
(3) Such authorisation is made after consultation of CAG and after giving the concerned corporation a reasonable opportunity of making representations with regard to the proposal to give the CAG right of access to its books and accounts.
Section 16: Audit of Receipts of Union or of State s
● CAG should audit all the receipts which are payable to Consolidated Fund of
India/State/UT
● Also satisfies himself that rules and procedures are designed to secure an effective check on the Assessment, Collection, and Proper Allocation of Revenue
Section 17: Audit of accounts of stores and stoc k
CAG audit and report on the accounts of stores and stock kept in any office or department of the Union or of a State
Section 18: Power of CAG related to Audit of accounts
(1) CAG has ● Authority /right to inspect any office of Union/State
● Right to access any book of accounts at any place
● Right to summon or inquire
(2) Person-in-charge of office shall afford all facilities & comply with requests for information
Section 19: Audit of Government companies and corporation s
(1) CAG will audit Government Companies according to Companies Act
(2) CAG has power to audit accounts of Corporations established by or under law made by Parliament and shall exercise such power according to provisions of respective legislation
(3) Where the Governor/Administrator requests CAG (in public interest) to audit Corporations established by law of the State legislature or UT legislature, CAG shall do that. Such request can only be made after consultation with CAG
Section 19A: Laying of reports in relation to accounts of Government companies and corporation
● The CAG report of audit of Govt Co. or Corp. is submitted to the Government concerned
● The Government shall cause to laid these reports before the Parliament/ State Legislature/ UT legislature concerned
Section 20: Audit of accounts of certain authorities or bodie s
(1) President/Governor/Administrator after consultation with CAG can authorise CAG to audit accounts of any authority or body which is not entrusted to him by or under any law made by parliament
(2) CAG can submit a proposal to the President/Governor/Administrator for authorisation to undertake the audit of accounts of any body or authority whose audit has not been entrusted to him by law, if CAG is of the opinion that substantial amount has been invested in or advanced to such body or authority
Chapter-4 Miscellaneous (sections 21 – 26)
Section 21: Delegation of Power of Comptroller and Auditor-General
● Authorises CAG to delegate any power exercisable by him under this Act, to any officer of his department,by general or special order
● Provided that except during absence of CAG on leave or otherwise, no officer can submit Audit Report on behalf of CAG
Section 22: Power to make Rules
(1) Central Govt,may after consultation with CAG , by notification in the official
Gazette,make rules for maintenance of Accounts
(2) Such rules may provide for –
● Manner in which initial/subsidiary accounts shall be kept by treasuries,offices
● Manner in which accounts of Union/State are to be compiled or kept
● Manner of accounts of stock & stores
● Any other matter
(3) Every rule made by central govt (as above) shall be laid before both the houses of Parliament,while it is in session, for a total period of 30 days
Section 23: Power to make regulations
CAG is authorised to make regulations for carrying into effect the provisions of this Act and as per this section, CAG has made
● Regulations on Audit & Accounts,2007 to determine scope and extent of the audit.
● General Principles of Government accounting
● Manual of standing orders(Audit)
Section 24: Power to dispense with detailed audit CAG has power to dispense with detailed audit of any account/class of transactions
Section 25: Repealed CAG’s(Condition of Service) Act, 1953 is repealed
Section 26: Removal of Doubts
For removal of doubts, it is hereby declared that on the commencement of this Act the Government of India (Audit and Accounts) Order, 1936, as adapted by the India (Provisional Constitution) Order, 1947, shall cease to be in force