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Presentation by Mr. Shankar Narayan, ASOSAI representative (SAI India) During AGM of ARAPAC, October 2012. Asian Organisation of Supreme Audit Institutions (ASOSAI). ASOSAI. Established in : 1979 with 11 members No. of Member SAIs : 45 SAIs (as of October 2012) Objectives :

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Presentation by Mr. Shankar Narayan,

ASOSAI representative (SAI India)


AGM of ARAPAC, October2012

Asian Organisation of Supreme Audit Institutions (ASOSAI)

  • Established in : 1979 with 11 members
  • No. of Member SAIs : 45 SAIs (as of October 2012)
  • Objectives :
    • To promote understanding and cooperation through exchange of ideas and experiences;
    • To provide facilities for training and continuing education for government auditors; and,
    • To serve as a regional link with other relevant organizations in the field of public audit, etc.
  • Governing Board- 11 Members

SAIs of India (Chair), Korea, Bangladesh, China, Japan,

Malaysia, Pakistan, Philippines, Russia,Saudi Arabia, &


  • Secretary General

SAI Korea

  • Training Administrator

SAI Japan

  • Audit Committee Members

SAIs of Turkey & Jordon

role of sai india in asosai

Role of SAI India in ASOSAI

Comptroller & Auditor General of India hosted the 12th ASOSAI Assembly and became the Chair of ASOSAI,

Governing Board on 29 Feb. 2012

Publishes the ASOSAI Journal of Government Audit

twice (April & October) in a year

Member of ASOSAI, Working Group on Environment

Audit (WGEA)

Member of 10th ASOSAI Research Project (ARP) on

“Audit to Detect Fraud and Corruption: Evaluation of the

Fight against Corruption and Money Laundering”

institutional set up for capacity building activities
Institutional Set-up for Capacity Building Activities
  • Article I, the Charter of ASOSAI:

- “To provide facilities for training and continuing education for

government auditors with a view to improving the quality of their


  • The ASOSAI Strategic Plan for 2011-2015:

- Goal 1: “Institutional Capacity Building”

- Goal 2: “Knowledge Sharing and Knowledge Services”

  • The ASOSAI Budget:

More than 95% of the budget has been used for ASOSAI-sponsored

capacity building activities since 1992 when ASOSAI launched capacity

building programs for its member SAIs with its own funds.


asosai and arapac
  • All the countries represented in ARAPAC

also represented in ASOSAI except Timor Leste

  • Common goal of promoting accountability,

transparency and good governance

  • ARAPAC Secretary General,

Parliament of Bhutan made a presentation

during 12th ASOSAI Assembly in India

un general assembly resolution
UN General Assembly Resolution
  • Adopted by 66th General Assembly

Resolution no. A/RES/66/209 on 22nd Dec. 2011

  • Promoting the efficiency, accountability,

effectiveness and transparency of public administration

  • By Strengthening SAIs
emphasis of resolution
Emphasis of Resolution
  • Need to improve the efficiency,

accountability, effectiveness and

transparency of public administration.

  • Need for capacity-building as a tool
  • Cooperation of the INTOSAI and UN
emphasis of resolution1
Emphasis of Resolution
  • Necessity of SAIs independence
  • Important role of SAIs in promoting

efficiency, accountability, effectiveness and

transparency of public administration.

  • Appreciate the work of INTOSAI
  • Appreciate Lima Declaration & Mexico


synergy defined
  • Interaction or cooperation of two or more organizations,

substances or agencies to

produce a combined effect

greater than the sum of their

separate effects. (COD)

democracy and accountability
Democracy and Accountability
  • Democratic governance and

accountability basic principles of Indian

Parliamentary system

  • Accountability of the executive to

legislature is required as legislature

embodies the will of the people.

Accountability and oversight invariably

signify good governance.

democracy and accountability1
Democracy and Accountability
  • Legislature should be able to ascertain the

manner in which public policy laid down

by it is implemented.

  • Public financial accountability in India is

established through two agencies:

legislative oversight committees like PAC

and CoPU and Comptroller & Auditor

General of India(CAG/SAI).

democracy and accountability2
Democracy and Accountability
  • The legislature sanctions money to

Government through the Budget and then supervises its expenditure, through the

Public Accounts Committee and

Committee on Public Undertakings.

  • CAG’s audit was envisaged as part of the

system of Parliamentary oversight over

national finances.

democracy and accountability3
Democracy and Accountability
  • The Public Accounts Committee is often called the mother of all committees.
  • PAC is the oldest committee of

Parliament and is constituted every year

under Rule 308(1) of the Rules of

Procedure and Conduct of Business in

Lok Sabha

objectives of pac
Objectives of PAC

To see that

  • Money voted by Parliament was actually spent by the

executive for the purpose decided by Parliament.

  • All re-appropriations were done under the rules

framed for the purpose.

  • All excesses/savings are regularized

(Constitutional Responsibility- Art. 115).

functions of pac
Functions of PAC
  • Examination of accounts appropriated by the executive as certified by CAG
  • Study the SAI’s Audit Report on accounts
sai of india cag
SAI of India (CAG)
  • Comptroller and Auditor General of India is

the Supreme Audit Institution (SAI) of

the country.

  • An officer of the Constitution, his duty is to

audit all expenditure and receipts of

the Union and the States, and UT

Governments, and also various bodies and

authorities set up by Government.

cag s functions
CAG’s Functions

Duties of CAG

  • Sole auditor of Federal & State governments
  • Sole auditor of urban and rural local bodies
  • Sole/auditor of govt. authorities –statutory
  • Auditor of government companies
relationship between pac and cag
Relationship between PAC and CAG
  • A legal relationship as spelt out in Rules

of Procedure & Conduct of Business.

  • CAG of India is a constitutional authority mandated to audit expenditure and

receipts of government and place the

Audit Report in Parliament

pac and cag
  • CAG’s reports form the basis of the

Committees’ working, though they are

not precluded from examining issues not brought out in the reports.

  • In actual practice very rare. Only a few

cases of CoPU, in India, commissioning

studies and doing work independent of


pac procedures
PAC Procedures
  • PAC and CAG decide upon course of action for the year and selection of material for

oral examination

  • PAC summons witnesses (Secretaries to

Government) for oral examination. CAG

briefs the PAC and also gives a list of

questions (Memorandum of Important


  • PAC questions the witnesses.
  • After examination is complete PAC finalizes recommendations.
pac procedures1
PAC Procedures
  • Printed PAC report or recommendations

placed in Parliament.

  • Government accepts recommendations and

takes action. This is given to PAC as

Action Taken Note (ATN).

  • PAC and CAG study ATN and either

conclude session if satisfied or go in for

further examination.

synergy best practices
Synergy - Best Practices
  • PAC/ CoPU need the Audit Report to

work and CAG needs the PAC/ CoPU to optimize output and effectiveness.

  • A convergence of interests, objectives


synergy best practices1
Synergy - Best Practices
  • A continuous dialogue between PAC and CAG
  • CAG should establish its reliability and integrity- audit standards, training, peer review.
  • CAG to assure complete independence.
  • PAC and CAG to work together to set year’s

agenda and prioritize subjects.

  • CAG could brief PAC at beginning of year on

processes and procedures.

synergy best practices2
Synergy - Best Practices
  • Continuity in PAC –Chairman for two

years, half the Members to change every


  • CAG could conduct seminars, workshops

for PAC and offer reading material to

members interested in specific subjects.

  • PAC could constitute sub committees to

study different departments like Fisheries,

Transport, Education, Agriculture, Mining,

Health, etc.

synergy best practices3
Synergy - Best Practices
  • Finally, PAC Chairman must finalize

recommendations immediately after

examination, achieve consensus, have PAC

report signed by all members and place it

before Parliament.

  • Till recommendations are presented to

Parliament, discussions are inconclusive.

Report could be on a department, a

programme or an Audit Report or part of a


synergy best practices4
Synergy - Best Practices
  • CAG seconds staff to PAC and CoPU for manning their secretariats. The staff, being familiar with Audit work, could help the

Chairman a great deal.

  • There is a lot to commend this practice,

especially when most PACs are starved of staff.

role of cag vis a vis pac
Role of CAG vis a vis PAC
  • Accounts certified by CAG and Audit

Reports- the basis of PAC’s working

  • CAG helps the PAC select audit material

for detailed examination

  • CAG briefs the PAC before oral


role of cag vis a vis pac1
Role of CAG vis a vis PAC
  • CAG scrutinizes the material submitted

by government

  • CAG can, with permission of the Chair,

offer or seek clarification during oral


  • CAG vets the draft report of PAC for

factual accuracy

  • CAG vets the government’s Action Taken Report on PAC’s recommendations
role of cag vis a vis pac2
Role of CAG vis a vis PAC
  • PAC and CAG thus work together with

PAC being a mini Parliament overseeing

Government expenditure and the SAI

providing the necessary inputs in the form

of certified accounts and Audit Reports.

  • Oversight of the executive by Parliament

is important in a democracy and that over

sight is the main function of PAC.

role of cag vis a vis pac3
Role of CAG vis a visPAC
  • In India PAC looks upon CAG as friend,

mentor and guide.

pac and cag1
  • Thus , SYNERGY
interaction board of audit of japan bai diet legislature of japan
Interaction -Board of Audit of Japan (BAI) & Diet (Legislature of Japan)
  • BAI submit Audit Reports to the Diet
  • Provides Explanation to Ministry of


  • Training courses for auditee Ministries
  • Briefing Audit Report to each Ministry
  • Analyses auditees internal control
reporting procedure
Reporting procedure
  • The Board prepares Audit Report yearly

with audited final accounts

  • Submits Audit Report to the Cabinet
  • Cabinet submits Audit Report to the Diet
  • Audit results inform public the execution of state budget.
board of audit inspection bai korea
Board of Audit & Inspection (BAI), Korea
  • BAI as an agency under the President
  • Report audit results to the President

and the National Assembly

  • Full audit results publishes on BAI's website and distributed the press release
  • National Assembly may request the Board of Audit and Inspection to conduct the audit
board of audit inspection bai korea1
Board of Audit & Inspection (BAI), Korea
  • BAI shall report the audit results within 3 months from the date of receiving the


comptroller and auditor general of bangladesh pac
Comptroller and Auditor General of Bangladesh & PAC
  • CAG has fully independent audit mandate
  • Submits audit reports to the President
  • President causes them to be laid before

the Parliament.

  • Public Accounts committee of the

Parliament acts upon the audit reports

  • PAC calls upon the concerned Principal

Accounting Officer (the secretary of the ministry)

comptroller and auditor general of bangladesh pac1
Comptroller and Auditor General of Bangladesh & PAC
  • To account for the audit findings, audit

opinion and recommendations.

  • After discussion the committee gives

directions to executives or auditee on

each audit para.

  • Sometimes the PAC may ask the CAG to make a review on the implementation of

the directions given by PAC.

national audit authority cambodia
National Audit Authority, Cambodia
  • NAA is an independent public entity and has own budget
  • The NAA reports directly to the National Assembly, Senate, and royal government
  • Royal Government submits budget state-ments to the NAA for auditing. NAA certify these statements and issue the audit

reports to the National Assembly and

the Senate.

national audit authority cambodia1
National Audit Authority, Cambodia
  • If the Government fails to submit budget settlement to NAA within a period of 9 months after the end of the financial year. Auditor-General have to report this delay to the National Assembly and the Senate.
  • The Auditor-General issues report to the National Assembly, the Senate, the

Council of Ministers, Ministry of Economy and Finance and relevant ministries.

national audit authority cambodia2
National Audit Authority, Cambodia
  • Report to the Parliament and Senate are discussed by the Second Commission of

finance, banking and auditing

  • Follow up procedure of examination on

the audit report will be done by the

Second Commission

national audit office of the people s republic of china cnao
National Audit Office of the People’s Republic of China (CNAO)
  • Auditor General is a member of the State Council and CNAO is under the direct

leadership of the Premier of the Council

  • CNAO is authorized by law to issue

circulars about their audit findings to the relevant government departments

national audit office of the people s republic of china cnao1
National Audit Office of the People’s Republic of China (CNAO)
  • The work report is submitted to the

Standing Committee of the National

People’s Congress and made available to public at the same time except for state

secrets or business secrets of the auditees