Audit of Accounts of Central

Autonomous Bodies (AB)

Parimal Paul
Director (Administration)
What is Autonomous body ?

Autonomous Bodies are Institutions or

organisations set up under Acts of
Parliament or State legislatures as
autonomous organisation under specific
statutes.
Basic authority for audit of
Autonomous Bodies

 Article -149 to 151 of Indian

Constitution

 Section- 14,15,19 and 20 of

C&AG’s DPC Act empowers C&AG
for audit of Autonomous Bodies.
History of Autonomous Body
(AB) Audit Manual
 1st Manual of Instructions of Autonomous
Body was published in 1983.
 It was supplemented by a compendium
issued in 1991.
 Thereafter, a series of instructions were
issued.
 Present edition was issued in July 2007
after incorporating all the instructions
issued previously.
Structure of AB Manual
Present AB manual has been prepared in two
Parts :
Part-I : It contains legal framework for
audit of Autonomous Bodies, principles of
financial audit of autonomous bodies, quality
control in audit process.
Part-II : It contains Uniform Format of
Accounts, Common framework for financial
Reporting for Port Trusts.
 Part-I

Legal Framework and

Related Procedures
Some important definitions
 By-law : Means provisions of main Acts
framed by the Parliament
 Under law : It refers to the provisions
of in subordinate legislation having the
force of law e.g. , rules and regulations
framed by Governments under powers
vested in them in the parent Acts and
declared to have been so framed under
such powers
“Body” or “Authority”

 The word ‘Authority’ has been

interpreted to mean a person exercising
power or command vested in it by virtue of
provisions in the constitution or Acts
passed by the Parliament or the State
Legislatures.
Example: Vice-Chancellor of a University
(person exercising power)
 ( Contd.)

The term “Body’” has been interpreted to

mean an aggregate of persons whether
incorporated or unincorporated.
Examples of aggregate of persons
incorporated are Co-operative Society,
Municipality,Village Panchayat etc.
 (Contd.)

All these bodies and authorities, are of

varying character and discipline and are
either noncommercial in nature or though
commercial in certain respects, are intended
to perform certain specified services of
public utility or to execute certain programs
and policies of Government.
Mandate and Entrustment
 Mandate
 The functions of the Comptroller and Auditor
General of India are derived mainly from the
provisions of Articles 149 to 151 of the
Constitution of India.
 Article 149 provides that the Comptroller and
Auditor General shall perform such duties and
exercise such powers in relation to the accounts of
the Union and of the States and of any other
authority or body as may be prescribed by or under
any law made by Parliament.
 Mandate (Contd.)
 Sections- 14, 15, 19(2), (3) and 20 of the
C&AG’s DPC Act empower the Comptroller
and Auditor General of India to conduct audit
of bodies / authorities and to perform such
duties and exercise such powers in relation to
them as prescribed under the Act.
 Provisions relating to the audit of Statutory
Corporations, Autonomous Bodies and
Authorities are contained in Section-14,
.
 Audit U/S 14 of C&AG’s DPC Act
1971
Section – 14 of the C& AG’s (Duties, Powers
and Conditions of Service) Act 1971 deals with
the audit of receipts and expenditure of bodies
or authorities substantially financed from Union
or State Revenue.
Section-14(1)
An Institution which receives grant or loan of
Rs. 25 lakhs and above or loan forms more than
75 percent of its total expenditure will be
audited under this Section.
Audit U/S 14 of C&AG’s(DPC)Act
1971 (Contd.)
This Section-
 Provides access to the records of bodies and
authorities given grant or loan from the
Consolidated Fund.
 Provides for audit of body or authority
Given grant or loan from Consolidated fund
Body or authority is ‘Substantially Financed’ by
Government
Audit of all receipts and expenditure
Audit subject to the provisions of any law for the
time being applicable to the body or authority
 (Contd.)
 Substantially financed means financial
assistance is not less than 25 lakh in a year
and the grant or loan is not less than 75%
of the total expenditure of the body or
authority.
Normal accounting period of the body or
authority to be taken.
Total expenditure = revenue +capital
Payments of purely depository nature not
to be treated as expenditure
 Section-14(2) of DPC Act
 In addition to above, CAG can audit the
receipt and expenditure of any body or
authority
With the prior approval of the President or
Governor
Grant or loan given to such authority is not
less than Rs. 1 crore
 Once audited under Section 14(1) or 14(2),
body or authority will be audited for two
more years
 Essential ingredients
The essential ingredients for any Institution to
attract audit under Section -14 of the Act
are as follows:
(i) The grant or loan must be to a body or
authority
(ii) The terms “body” or “authority” used in
the Act and indeed in the Constitution have
a wide connotation and include a Company
or Corporation.
 Essential ingredients (Contd.)
(iii) The grant or loan must have been paid out of
the Consolidated Fund of India or of the States.
(iv) The autonomous body must be “substantially
financed” by grant or loan in accordance with
the explanation of that term given in the
Section.
(v) An Institution which receives grant or loan
of Rs. 1 crore and above or loan forms more
than 75 percent of its total expenditure will be
audited under this Section. Only when latter
condition is not satisfied it will come under
Section 14(2)
Essential ingredients (Contd.)
(vi) Audit will be subject to the provisions
of the law applicable to the body or
authority concerned. It means our audit
will co-exist with and complement the
audit arrangements that may be specified
in such law.
 Section-15 of DPC Act
This Section deals with the functions of
C&AG in the case of grants or loans given
to other authorities or bodies.
 Grant or loan given from Consolidated Fund
for a specific purpose
 To a body or authority not being a foreign
state or international organization
 CAG to scrutinise the procedure by
which the sanctioning authority satisfies
itself about the fulfillment of grant
conditions
 (Contd.)
 Right of access to the books and accounts
of the autonomous body subject to giving
previous notice
 Obligatory to examine the records of the
sanctioning authority not obligatory to do
so in case of the AB
 The section covers only specific purpose
/conditional grants.
Section-15 of DPC Act (Contd.)
 Does not specifically provide for reporting
the results of audit. Reporting under
Section -13 is mentioned.
 CAG can be relieved form such audit by
the President or Governor after
consultation with him.
 Restriction of access to accounts when
the entity is audited by some other
authority.
 Such specific audits are rarely conducted.
 Section - 19 of DPC Act

 Deals with the audit of Government

Companies and Corporations.
 The reports of the Comptroller and Auditor
General, in relation to the accounts of a
Government company or a corporation
referred to in Section-19, shall be submitted
to the Government or Governments
concerned.
 Audit under Section 19(1)

 Section 19 (1) provides that duties

and powers of the CAG in relation to
the audit of the accounts of
Government Companies (both Central
and State) shall be performed and
exercised by him in accordance with the
provisions of the Companies Act 1956.
 Audit under Section 19(2)

 Section-19(2) of the Comptroller and

Auditor General’s (Duties, Powers and
Conditions of Service) Act 1971 deals with
Bodies established by or under law made
by the Parliament.
 They contain specific provisions for audit
by the Comptroller and Auditor General of
India.
 (Contd.)
Such bodies or authorities include :
 Major Port Trusts
 Central Universities
 National Institutes of Technology
 Indian Institutes of Technology
 Indian Institutes of Management
 Other educational and cultural institutions,
health and research institutions, etc.
 Audit under section 19(3)
Under Section-19(3) of the Act, the
Governor of a State or the Administrator
of a Union Territory having a Legislative
Assembly can entrust, in public interest,
the audit of the accounts of a
corporation established by law
made by the State/Union Territory
to the Comptroller and Auditor General
after prior consultation with him.
Audit under Section-20
- Consent Audit
 Consent or entrustment audit
 Applicable in cases where a body or
authority is otherwise not covered under
any provisions of this Act
 Two kinds of consent audit
Request by the President or Governor
Request by the CAG
Section 20(1) – Request by
President or Governor
 Request is made by the President or
Governor
 CAG shall undertake audit of accounts of
such body or authority
 Terms and conditions of audit will be as
agreed between CAG and the Government
 CAG shall have right of access to books and
accounts
 No request shall be made except after
consultation with CAG
 Audit under Section-20(1)
 Audit of other organizations (corporations
or societies) not covered under Section-
19 of DPC Act, is entrusted to the
Comptroller and Auditor General of India in
public interest under Section-20 (1) of the
Act .
 The nature of audit conducted under these
provisions is certification of annual accounts
as well as value for money audit.
Section 20(2) – Request by the
CAG
 CAG may propose to the President or
Governor
 Ask permission to audit accounts of a body or
authority (which he cannot audit otherwise)
 When substantial amount has been invested
or advanced by Central or State Government.
 Such audit is necessary in public interest
 Section 20(3) – Consent Audit

 President or Governor will entrust the

audit to CAG (under both Sections)
when it is expedient to do so in public
interest
After giving reasonable opportunity to
the body or authority to make
representation with regard to proposal
for such audit
Terms and conditions of
entrustment audit
Section-20(3) deals with certain procedural
requirements to be observed before entrustment
audit under Section-20.
 No monetary limit
 Formal request for audit by CAG
 Audit in Public Interest
 Opportunity to make representation by
Autonomous Bodies
 Consultation with CAG
 Settlement of terms and conditions
 Period of Entrustment Audit
 Formal request
 Part-II

Financial Audit of Autonomous

Bodies
Certification of accounts of
autonomous bodies
Meaning of Certification of Accounts

It is the independent examination of and

expression of an opinion on the
financial statements of an entity by an
appointed auditor in pursuance of the terms
of appointment and in compliance with any
statutory obligation
Essential features of audit of
financial statements
 To make critical review of accounts and
internal control procedures
 To make such tests and enquiries as are
necessary to form an opinion that financial
statements are free from material
misstatements.
 To verify accounts with reference to the
books of accounts i.e. ledgers, journals and
subsidiary records
Essential features of audit of
financial statements (Contd.)
 To make critical review of Income and
Account / Profit and Loss Account and
Balance Sheet to ascertain that financial
statements are in conformity with the
generally accepted accounting principles
and exhibit a true and fair view of the
financial position and results of operation
of the entity.
Format of Accounts
 Format of Accounts of ABs
Autonomous Bodies under Government of
India are required to compile their accounts
from the accounting year 2001-02 in a Uniform
Format of accounts/MHRD format.
Salient features of the Uniform Format
of accounts
 One standard format of accounts
 Schedules forming part of financial statements
 The concepts of Accrual System of Accounting
and Going Concern
 Depreciation on Fixed Assets
Components of Financial
Statements
i) Balance Sheet
ii) Income and Expenditure Account
iii) Schedules to the above Financial
Statements
iv) Disclosure of ‘Significant Accounting
Policies’
v) Disclosure of other information through
‘Notes to Accounts’
vi) Statement of Receipts and Payments
 Accounting Principles and Instructions
for preparing the accounts by the
autonomous bodies
1. Consistency in following the accounting
principles and Policies.
2. Substance over form: should be governed
by their substance and economic reality, not
merely by the legal form.
3. Concept of Materiality
4. Provisions
5. Provision for Contingent Loss
6. Revenue recognition
 Fundamental Accounting Assumption
Certain fundamental accounting assumptions
underline the preparation and presentation
of financial statements.
The following are the accepted fundamental
accounting assumptions.
 * Going concern: The entity is normally
viewed as a going concern, that is, as
continuing in operation for the foreseeable
future. It is assumed that the entity has
neither the intention nor the necessity of
liquidation.
Accounting Assumption(Contd.)

* Consistency: It is assumed that

accounting policies are followed
consistently from one accounting
period to another. A change in
accounting policy is made only in
exceptional circumstances.
Accounting Assumption(Contd.)

 Accrual Basis: It is the method of

recording transactions by which
revenue, costs, assets and liabilities
are recognized in the accounts in the
period in which they accrue, i.e.
when they occur rather than when
cash or cash equivalent is received or
paid.
 Accounting Standards
Accounting standards are the basic foundations upon
which accounts are based.
 The purpose of accounting standards is to ensure
that financial statements are prepared in
accordance with generally accepted accounting
principles and practices.
 It is, therefore, necessary for the auditors of
autonomous bodies to have the knowledge of these
Accounting Standards.
 The common format of accounts has been
prepared keeping in view of the Accounting
Standards issued by Institute of Chartered
Accountants of India (ICAI),
Certification of Accounts by C & A G

The certification of accounts is “the

independent examination of and expression
of an opinion on the financial statement of
an entity” by an appointed auditor in pursuance
of the terms of appointment and in compliance
with any statutory obligation.
 The primary objective of certification audit is to
carry out an independent examination of the
financial statements of an audited body for the
purpose of expressing the opinion thereon.
Certification of accounts by C &
A G (Contd.)
 The accounts are certified by the CAG
where he acts as the sole auditor of a body
or authority under a mandate .
 The certification of accounts need not be
done by Comptroller and Auditor General
in cases where he is not the sole auditor
(superimposed audit).
Assertions underlying Income
Statement items
 Completeness
 Occurrence
 Measurement
 Regularity
 Disclosure
Assertions underlying the
Balance Sheet items

 Completeness
 Existence
 Valuation
 Ownership
 Disclosure
 Approval and authentication of
accounts
 In every case of sole audit under Section-19
(2) / 19 (3) / 20 (1) of the C&AG’s
(DPC)Act, after the approval of accounts by
the governing body / competent authority it
shall be examined by the field audit offices
with reference to Act, Rules / Bye-laws
applicable to the entity.
 Field offices should not take up audit before
the competent authority of the autonomous
body approves the accounts.
Approval and authentication of
accounts(Contd.)
However, where, considered appropriate, the audit of
the accounts may be taken up prior to receipt of
approved accounts.
• But before signing / issuing the draft SAR it must
be ensured that there is no change in the accounts
audited and those approved subsequently.
• An additional assurance that there is no significant
event in the intervening period (between the date
of audit and date of approval of accounts by
competent authority) that would affect the annual
accounts, may also be obtained from the
competent authority before issuing the draft SAR.
 Revision of accounts

 Where the accounts are revised by the

autonomous body, as a result of audit, there
should be a disclosure to this effect either
in the audit report or in the accounts by
way of a ‘note’ in the “notes to accounts”.
Financial Audit findings and
Conclusions (Chapter -9)
 Separate Audit Report
 On completion of each audit assignment
the results are to be communicated by the
Auditor in the form of written report
called Separate Audit Report (SAR) setting
out the audit observation and conclusions
in the appropriate form.
 The Separate Audit Report (SAR) should
contain only ‘comments on accounts’.
Format of Separate Audit Report

The Separate Audit Reports (SAR) of

Autonomous Bodies should contain-
(i) Introduction,
(ii) Comments on accounts, and
(iii)Impact of comments on the
accounts
Reporting Standards
The auditor should prepare the SAR setting out
the findings and conclusion in an appropriate
form as prescribed under this Manual. The
contents of SAR should be –
a) Easy to understand
b) Free from ambiguity
c) Should include only information which is
relevant and supported by sufficient and
competent audit evidence.
d) Should be independent, fair, complete,
accurate , constructive and concise.
e) Attention to be paid on objective and
unbiasedness, materiality and significance.
Contents of Separate Audit Reports
The SAR should contain only ‘comments on
accounts’ which have the necessary attributes of
materiality and significance and may include
the following:
 Non-compliance of accounting standards /
instructions contained in the Common Format of
Accounts.
 Corrections / rectifications / revisions carried out
at the instance of audit.
 Cases where assurances for rectification are not
fulfilled after a couple of years.
Contents of Separate Audit
Reports(Contd.)
 Where corrective measures have been taken
by the management in relation to matters
brought to their attention by the auditors, it
may still be necessary, for the auditors to
report certain cases to the Governing body, for
example, cases relating to any fraud /
embezzlement committed but compensated by
officials.
 Deficiencies in the system of financial control
and maintenance of financial record.
 Drafting of Separate Audit Reports
 An independent SAR / audit certificate on the
annual accounts of each accounting period is
prepared and issued.
 It maybe ensured that the comments are concise
and brief with a clear statement of the impact of
each comment on accounts.
 In case the state of accounts submitted to audit is
not satisfactory and accounts submitted to audit
not in proper form without insisting on the
accounts being recast appropriate qualification
would have to be made in the report so that
matter may be brought to the notice of the
Government.
Drafting of Separate Audit Reports(Contd.

 Comments in SAR should be arranged in order

of the financial statements as they appear in the
Uniform Format of Accounts/ MHRD Format
(Balance Sheet, Income & Expenditure Account,
Receipts & Payments Account, Significant
Accounting Polices, Notes to Accounts etc).
 Comments should be linked with the respective
account heads shown in the financial
statements / schedules that are affected by the
comment.
 Drafting of Separate Audit
Reports (Contd.)
 Inorder to have a better understanding of
the comments and their impact on the
financial statements, name of the account
head as mentioned in the financial
statements under the main head, sub-head
or schedule etc. together with amount must
invariably be mentioned in the beginning of
the comment in draft SAR.
Drafting of Separate Audit
Reports (Contd.)

 Effect of Comments on Accounts

The net impact of comments on the
elements in financial statements where
ever relevant ,material and practicable may
be included in SAR as a separate Para.
Drafting of Separate Audit
Reports (Contd.)
 Lack of response
If the reply to Draft SAR was not received
within the stipulated period the matter
should be reported in the SAR.
Drafting of Separate Audit Reports
(Contd.)
 Audit Certificate
 The form of Audit Certificate given in
Annexure -5 should be adopted in
respect of audit of annual financial
statements of autonomous bodies.
 Significant audit comments should also
be included in the audit certificate so that
results / significant comments could
attract attention of Executive /
Parliament / Legislature.
Issue of Management letter
 Sometimes comments on Accounts in
SAR do not always bring out the impact
on Accounts. In such cases the auditor
submits detailed report in addition to
SAR / audit certificate termed
“Management Letter” regarding the
procedures ,systems, weaknesses in the
internal control etc.
Management letter (Contd.)
 The observations of the following nature
following nature may be included in the
“Management Letter”:
i) Errors in annual accounts not material;
ii)Deficiencies in accounting records, systems
and controls with recommendation for their
improvements;
iii) Non-compliance with the financial control/
internal control procedure with
recommendation for their improvements;
 Management letter (Contd.)
iv) Classification errors within the accounting
head where management has management
has assured rectification in next years’
accounts.
v) Steps to be taken for recovery /adjustment
of long outstanding balances on personal
accounts
vi) Reconciliation between the balances as per
broadsheets and as reflected in the accounts;
Management letter (Contd.)

viii) Typing / printing errors which can be

rectified at the time of printing the annual
accounts / annual reports;
ix) Failure to obtain confirmation of
balances or to watch over receipts of
utilisation certificates from grantee /
beneficiaries,etc.
 Management letter (Contd.)
 The Management letter can be addressed
to the Chief Executive Officer of the AB.
 Management letter is issued only at the
time of issue of final SAR to AB or Ministry.
 Management letter will not require
Headquarters‘ approval but a copy should
be sent to Headquarter along with the
Draft SAR.
Finalisation of Separate Audit Report
 The Draft SAR should be sent to Autonomous
bodies concerned and their replies to various
observations contained in it should be obtained.
 Replies received must be taken into account and
incorporated if necessary in the SAR proposed to be
issued,
 If Management disagrees to any facts in the report ,
their correctness should be rechecked.
 In case replies are not acceptable should be clearly
given in aide-memorie and rebuttal in brief
incorporated in the SAR.
Finalisation of Separate Audit Report
(Contd.)
 If as a result of reply or any further
observation arising subsequently any fact or
figure undergoes a change in the SAR, the
changed position should also be got
confirmed from the Management concerned.
 If no replies are received to Draft SAR within
the stipulated period, SAR should be finalised
and the fact of non furnishing the replies
should be indicated in the SAR
Format of Separate Audit Report
 The Separate Audit Reports in respect
of autonomous bodies / authorities
other than the major Port Trusts
should be prepared in the format given
in Annexure-4 . In case of major
Port Trusts a separate SAR has been
prescribed vide Annexure-6
Annexure -4 (Format of Separate Audit
Report)
1. Introduction
Following matters may be included in this paragraph:
i) Setting up of Autonomous Body
Reference to the Act, Rules, notification etc. under which the entity
was set up, date of commencement of operations and main
objectives of the entity, subsidiary rules under which the entity is
functioning etc.
ii) Audit Mandate
Relevant Section of C&AG’s (DPC) Act under which audit is
conducted and Section of the particular Act governing the entity’s
audit function may be included.
iii) Grants/loans received during the year from Government
and Government agencies
The grants/ loans received from Government and /or from
authorised Government agencies during the year may be stated in
this paragraph.
 (Contd.)
2. Comments on Accounts
2.1 Balance Sheet :

2.1.1 : Liabilities :
Misstatements, omissions and other
deficiencies in accounting various liabilities –
i.e. Corpus Fund, grants received,
borrowings, current liabilities and
provisions may be commented in short
sub-paras.
2.1.2 : Assets

Misstatements, omissions and other

deficiencies in accounting various asset
accounts- i.e. Fixed assets, cash and
bank accounts, other current assets,
loans and advances, investments etc.
may be commented in short sub-paras.
Comments to be incorporated in
Annexure attached with the SAR

1.Adequacy of Internal Audit System

2.Adequacy of Internal Control System
3. System of Physical verification of fixed
assets
4. System of Physical Verification of
Inventory
5. Regularity in payment of statutory dues
 Significance of Annexure
1.Adequacy of Internal Audit and
Control System :
 To see whether Internal Audit and Control
System is adequate and commensurate with
the size of the Autonomous Body.
 Deficiencies and weakness in the system
noticed could be commented and
recommended for improvement/ strengthening
of both the system could be given
Significance of Annexure (Contd.)
2. System of Physical Verification of
Fixed Assets and Inventory
 To see whether Fixed Assets and Inventory
have been physically verified by the
management at reasonable intervals.
 Any material deficiency if noticed, on
physical verification have been properly
dealt with in the books of accounts.
Significance of Annexure (Contd.)
3.Regularity in payment of Statutory
Dues.
 To see whether Autonomous Body is
regular in depositing the undisputed
statutory dues including PF, ESI, Income Tax,
Sales Tax, Service Tax, Custom Duty etc. with
appropriate authorities.
 If not, comment to the extent of the
statutory dues at the close of the financial
year outstanding for more than six months
for the date it become payable.
Submission of draft separate Audit
Reports to the Headquarters
 In all cases except the cases where it is
finalized by the respective field office, the
SAR to be placed before Parliament or
State Legislature the reports and
accounts as audited must be submitted
to Headquarters office for prior approval
before these are sent to Government
concerned for being placed before
Parliament/State Legislature.
 Provision for getting approval of the
draft SAR from Headquarter
 Before sending the Draft SAR to Headquarter office
for approval, it should be sent to Autonomous Body
concerned and their replies to various observations
contained in it should be obtained.
 Replies received must be taken in account and
incorporated if necessary in the SAR proposed to
be issued.
 If however, management disagree to any facts in the
accounts, their correctness should be rechecked.
Provision for getting approval of the
draft SAR from Headquarter (Contd.)

 In case, replies are not acceptable, reasons

as to why the replies are not acceptable
should be clearly given in aide-memoire
and rebuttal in brief incorporated in
the SAR.
 If no replies are received to the draft SAR
within the stipulated period, SAR should be
finalised and the fact of non-furnishing of
replies should be indicated in the SAR.
 (Contd.)
Thereafter, forward draft / final separate audit
report to Headquarters office, with the
following information/documents:
1. Two copies of draft SAR along with aide-
memories and key linking the figures.
2. Two copies of draft audit certificates
proposed to be issued.
3. One copy of authenticated annual accounts
to be certified by the audit office.
 (Contd.)
4. In case of the autonomous bodies having branch /
units the following information may also be
furnished:
a) Number of units of Autonomous Bodies,
b) Number, name/location of units selected for audit;
and
c) Name of units whose comments have been
incorporated in the SAR.
5. A brief note on the evaluation of internal control
system in the autonomous body.
6. Management letter, if any.
7. Check list.
 (Contd.)
 After receipt of approved SAR from
Headquarters office, the same should be
sent to Ministry concerned and Chief
Executive of the Autonomous Body.
 The intimation regarding sending the SAR
to Ministry concerned and Autonomous
Body along with the replies in annotated
form to the observations raised by
Headquarter office has also to be
forwarded to headquarter office.
 Challenges in audit of Autonomous
Bodies
1. Delayed approval and authentication of accounts by
the Board of Governors etc.
2. Delay in submission / finalization of accounts
3. Arrear in accounts
4. Delay in presentation of SAR before both the
Houses of Parliament.
5. Delay in submission of Utilisation Certificates
6. Delay in submission of replies to the draft SAR by
the management.
 Challenges in Autonomous
Bodies
 Delays in submission / finalization of
accounts
If the accounts of an autonomous body are not
received within the stipulated time, Head of
the Department concerned should specifically
bring out the matter of delay to the notice of
the Chief Executive of the autonomous body
demi-officially so that the delay is not
attributed to audit.
 Challenges in Autonomous
Bodies(Contd.)
 Arrear in accounts
 Many Autonomous Bodies do not submit their
accounts for several years.
 This would indicate the lack of a financial
reporting system and lack of control over
these Autonomous Bodies.
 Thus, non-submission of accounts by the
Autonomous Bodies not only contravened the
provisions of the Act but was also fraught with
the possibility of fraud and mismanagement.
 Challenges in Autonomous
Bodies(Contd.)
 Delay in presentation before both the
Houses of Parliament.
 The audited accounts of Central Autonomous
Bodies audited by the Comptroller and Auditor
General of India are required to be presented to
Parliament within nine months i.e. by 31
December of the following financial year.
 It would, thus, be seen that a large number of
audited accounts had not been placed before the
Parliament within the prescribed time.
 Challenges in Autonomous Bodies
(Contd.)
 Delay in submission of Utilisation
certificates
 As per the General Financial Rules,
certificates of utilisation of grants in respect
of grants released to statutory bodies /
organizations are required to be furnished
within 12 months from the closure of the
financial year by the bodies/organisations
concerned.
Timelines for Audit
 Time Schedule
The following time schedule should be adhered to for conducting the
audit and finalisation and issue of SAR:
Sr. No. Task Date by which task to becompleted

1. Approved and authenticated annual 30th June

accounts to be made available by the
Autonomous body to the concerned
audit office and commencement of
audit of annual accounts.
2. Issue of draft SAR to the Chief Executive 31st August
of the autonomous body
3. Receipt of reply to draft SAR from the 14th September
Management (two weeks from the
date of issue of draft SAR).
4. Submission of draft SAR, with or without 21st September
Incorporating replies of the autonomous
bodies, to the Headquarters for approval.
5. Sending approved SAR by Headquarters 21st October
to the Field office (two weeks from the date
of receipt of draft SAR at Headquarters)
6. Issue of the final SAR in English version 31st October
with audit certificate to autonomous body/
Government concerned.
7. Issue of the Hindi version of final SAR, 15th November
where this is done by AG/Pr. Director of
Audit themselves with a copy of the final
SAR to the Headquarters.