Internal Audit will be helpful in maintaining financial discipline and fixing responsibilities
Uttar Pradesh Chief Minister Mr. Akhilesh Yadav today issued instructions for implementation of internal audit in all state government departments. This will not only enable financial discipline but would also help in fixing responsibilities. Giving this information, a government spokesman said that the state had undertaken a detailed study by a specialist firm PricewaterhouseCoopers under ‘Modernization and strengthening of Internal Audit’ project.
Based on the final report submitted by the firm in 2003, the project was approved but for some reasons it could not be implemented. After a go ahead by the Chief Minister this is now being implemented, the spokesman said and informed that for policy making process, norms of internal audit and its implementation, state internal auditor will be responsible.
The state internal auditor will also be responsible for preparation of manuals, policies and ensuring that with the help of the Directorate of Internal Audit, the audit is implemented across all departments. It will also have to review from time to time the audit system, its organizational structure, working capabilities and training needs. Not only this, the internal auditor will also have to, from time to time, review work of Chief Audit Officer/Audit Controller and ensure that hurdles in their working are removed.
Another work of the internal auditor will be to analyse special audit works undertaken by Director, Internal Audit Directorate and the annual audit programme and to present it before the state level internal audit committee on internal audit headed by the Chief Secretary. The state internal auditor will also monitor the audit and analyze the annual report prepared by the director, internal audit directorate and present it before the state internal audit committee.
The state internal auditor has also been tasked to review the audit task plan prepared by the internal audit directorate and give it a final shape. Other than this, all major points of the internal audit and present a quarterly and annual progress report before the state internal audit committee. Not only this, the internal auditor will also represent the state in high-level seminars, committees and workshops.
On the request of the state finance department, the state internal auditor will discharge its duties upto a level where its freedom is not compromised. Other wings under the state government like Director, Local Fund Audit, Cooperative Societies and Panchayats, Director Panchayati Raj Accounts related works (barring establishment related works) will also be the responsibility of the internal auditor. Audit cell (civil/revenue) at the state government level and internal audit cell will also be directly under the administrative control of the state internal auditor. Other than this, state internal auditor will also get the following works executed under its watch – separation of accounting work from audit work and its management, analyzing the inferences of audits in hazardous departments, prepare a programme on use of computers in internal audit and review of its execution, fixing and implementation of exhaustive audit scheme with regards to financial costs/utility, identification of main projects in all departments and preparing a continuous review system for internal audit and recommending appointment or removal of additional director/joint director at the Internal Audit Directorate after review of their works.
The privileges accorded to the state internal auditor are as follows – right to review and access all information, documents, files and correspondence and it will be equivalent to the powers vested in Accountants General of Uttar Pradesh. State Internal Auditor will also have the right to seek explanations, information with regards to the internal audit from all officers of the department, all legal and technical aid for discharge of his duties, to seek explanations, information and questions with regard to smooth implementation of policy, schemes and procedures of the internal audit. The state internal auditor shall also be vested with the right of starting special audit, suo moto or on request and will also have the right to implement and assign managerial, authoritative works and duties.