Office of the CGDA
West Block-V, R K Puram
Dated: 25th April, 2008
All Regional Pr CsDA/CsDA, PCDA (Navy), PCDA (Air
CDA (Air Force) New Delhi
of Local Audit Objections/Observations
This is with reference to HQrs letter No O&M/Insp/RCC/2007
dated 14th May 2007 whereby the powers of LAOs/RAOs for settlement of
objections/observations was withdrawn. As envisaged in the above-quoted
letter a feedback on the working of the new system as well as any
suggestion for improvement in implementation was obtained from all
2. A Committee was constituted with Smt Nita Kapoor,
PCDA, Western Command, as the Chairperson, to look into the
difficulties being faced by the Controllers, in effective
implementation of the new Scheme. The Committee has submitted its
Report. The recommendations of the Committee have been examined and it
has been decided to restore the powers for settlement of objections to
the LAOs, as prescribed by rules and regulations prior to introduction
of the new system vide this office letter dated 14-05-07. The operative
contents of ibid letter dated 14-05-07 therefore stands superceded with
3. All objections settled under the new scheme will
hold good and the respective LAOs will keep a note for the purpose in
4. However, in order to achieve the desired results
and to improve the quality of internal audit, the Committee has
recommended that the earlier system needs to be strengthened further
through the approach given in the Annexure enclosed.
5. Confirmation of receipt of this letter may be sent
by name to Jt. CGDA (AT-I).
6. This issues with the approval of CGDA.
Jt CGDA (AT-I)
1 The mechanisms laid down under Para 797 of OM Part
II Vol I and Appendix II to OM Part I relating to Inspection/Adm Review
and Super Review at the level of IDAS Officers including PCDA/CDA/Addl
CDA/JCDA, need to be strengthened and their frequency increased to
facilitate further improvement in quality.
2 Close monitoring of working of LAO/RAO by a
competent Group Officer in IA Section under the supervision of
JCDA/Addl CDA/CDA/PCDA and also by giving adequate training to IA
Section as well as to LAOs/RAOs and their staff
3 .LAOs/RAOs Conference needs to be organized in the
Main Office of PCsDA/CsDA regularly and in a focused manner to address
the issues and problems faced by the LAOs/RAOs and decision areas
warranting intervention at his/her level. The duration of such
conferences should depend on the strength of the LAOs/RAOs under the
Organisation of PCDA/CDA.
4 These Conferences should be organized in a well
structured manner by tasking each LAO/RAO or group of LAOs/RAOs to
cover specific area of audit and give a focused presentation before the
PCDA/CDA. This approach will make the LAOs/RAOs to do a thorough study
of the topic assigned and will bring out specific issues/decision areas.
5 Besides the items incorporated by the CGDA in
Internal Audit Report (IAR), some of the significant MFAI items,
particularly those amongst fresh items, incorporated by the PCsDA/CsDA
may be compiled by the HQrs Office and widely circulated to field
Controllers for information and guidance. The Controllers concerned
may, in turn, circulate such items in their Organization, in addition
to the items projected by their LAOs, in order to identify similar risk
areas in their Organization and to focus on them.
6 The Ad-hoc Committees formed to review and discuss
audit matters could be activated and regular meetings between the
executive authorities and audit authorities be held, where important
matters relating to Internal Audit/ Statutory Audit can be discussed.