The Tamil Nadu Government will take up a fundamental review of its audit systems and will bring all audit departments and wings under the control of the Finance Department.
The government will also take up capacity enhancement of the audit departments and they will be professionalised, according to the Finance Department’s Policy Note for 2021-2022.
The department will aim to delegate more autonomy on individual expenditure decisions to the respective departments, while ensuring that the overall levels of accountability are substantially enhanced and there is real time control on funds flow.
This objective will be achieved through specific initiatives including switching to budgeting processes that enhance autonomy, accountability and ensure greater value for money; strengthen the treasury system and strengthen audit processes, the Policy Note said.
High-powered panel
Meanwhile, a high-power committee comprising retired Deputy CAG level officers and audit experts will be formed to make recommendations on improving the overall audit process within the State government.
Other measures to improve the audit function include providing for direct recruitment of professionally qualified persons at the appropriate level and implementing a robust transfer policy to ensure vested interests do not develop.
A position of the Director General of State Audit will be created to oversee all the existing audit agencies of the State Government. Ideally, the Director General will be drawn from the Indian Audit and Accounts Service on deputation, the Policy Note said.
In the Budget for 2021-22, the government committed to increase accountability and productivity. One of the key issues indicated there was that over 2,000 Comptroller and Auditor General audit paragraphs have been pending for many years.
Meanwhile, the Report of the Comptroller and Auditor General of India (Compliance Audit) for the year ended March 31, 2020, on the Government of Tamil Nadu was placed in the Assembly on Monday.
The report of seven departments, including higher education, contained specific recommendations on a number of issues involving non-observance of the prescribed internal procedure and systems, compliance with which would help in promoting good governance and better oversight on implementation of departmental programmes and objectives at large.
The State government is requested to take cognizance of these recommendations and take appropriate action in a time bound manner, said the report.