The PAC at work 

The Committees work depends a great deal upon the results of audit and examination of the Accounts of the Union Government carried out by the Comptroller and Auditor General CAG).  The audit by the CAG is comprehensive and manifold. 

To cite an example, it involves among others, 

(a) Accountancy Audit, 
(b) Regularity Audit, 
(c) Appropriation Audit, 
(d) Propriety Audit or what is also known as Discretionary Audit and 
(e) Efficiency-cum-performance Audit.  

 In recent years, the technique of efficiency-cum-performance has been attempted in the audit of developmental schemes.  The Audit examines as how far the implementing agency is adequately discharging its financial responsibilities in regard to the various schemes undertaken by it and ascertains whether the schemes are being executed effectively and their operations conducted economically and whether they are producing the results expected of them.

In fact, the Institution of Audit plays a crucial role in the functioning of the Committee on Public Accounts and the Comptroller and Auditor General is often termed as friend, philosopher and guide of the Committee.

At the beginning of its term every year, the Committee makes a selection of Audit Paragraphs included in the various reports of C&AG for in-depth examination. After holding deliberations and taking note of the time available at its disposal, the Committee selects the most important paragraphs from the Audit Reports for detailed examination and submits its reports to the House on them.

 

Action Taken on Recommendations 
 

A report has value provided it is properly followed up.   In the case of original report, the Government is required to intimate to the Committee the action taken or proposed to be taken by it on the recommendations contained in the Report normally within six months of the presentation.  The Action   Taken replies of the Government are considered by the Committee and after due classification of the replies, an Action Taken Report is  presented to the Parliament. The Government is further required to intimate to the Committee the action taken or proposed to be  taken by it on the recommendations contained in Chapter I of the Action Taken  Report and also to furnish final replies in respect of the earlier   recommendations contained in the Original  Report in respect of which either no replies had   previously been received or only interim replies had been received.   The action taken thus reported by the Government is laid on the Table of the House in the form of a Statement without any further comments by the Committee.  This system not only ensures accountability of the Executive to Parliament but also enables Parliament and also the general public to appraise Governments final replies to the Committee recommendations.  This completes the examination of a subject by the Committee. 

 

Follow-up on Action taken by Government on Audit paragraphs not selected by the Committee    

Till 1981, there was no practice of ascertaining the action taken by the Ministries/Departments on the Audit paragraphs not selected by the Committee for detailed examination. However, with a view to ensuring enforcement of accountability of the executive in respect of all the issues dealt with in various Audit Reports, the Committee on Public Accounts decided in 1982 that the Audit Reports for the year 1980-81 be referred to the Ministries/Departments concerned for furnishing notes, duly vetted by Audit, showing remedial/corrective Action Taken on all the paragraphs contained therein.  The system has further been streamlined to review the remedial/corrective action taken notes furnished by Government on the non-selected Audit Paragraphs.

At their sitting held on 8.8.2000, the Committee decided that the remedial/correction Action 

Taken Notes received from Government are sent to Office of C&AG for categorization like (a) Accepted (b) Partially accepted and (c) not accepted and then circulated these to the Members of the Committee.  Based on the categorization, the Committee may select Audit Paragraphs for detailed examination.