Understanding CAG


Comptroller and Auditor General (CAG) of the Supreme Audit Institution of India is appointed by the President of India for tenure of 6 years is the sentinel or warden of the national purse. And the role, function and duties of the Comptroller and Auditor General (CAG) are detailed by an act of the Parliament passed in 1971.The primary duty of CAG is to see that neither the union government nor the government of any state spends any money from the fund consolidated to them without legislative misuse. Being the impartial head of the audit and accounts system of India, it is vital that he should be independent of executive control.
Shri Shashi Kant Sharma from 1976 batch of Indian Administrative Service (Bihar Cadre) is the current Comptroller and Auditor General (C&AG) of India since May, 2013. He was elected by the General Assembly of United Nations as a Member of the UN Board of Auditors in 2014 for a term of six years. His other international responsibilities include Member of UN Panel of External Auditors, Chair of the Knowledge Sharing and Knowledge Services Committee of the International Organisation of Supreme Audit Institutions (INTOSAI) and Chair of the Working Group of INTOSAI on I.T. Audit. He is also on the Governing Board of the Asian Organisation of Supreme Audit Institutions (ASOSAI).
The Comptroller and Auditor General (CAG) is independent and unbiased by: his appointment by the President of India, Special procedure for removal (like a Supreme Court Judge), Salary and expenses Charged (not Voted) to the Consolidated Fund of India , Disallowing his holding any other Government office after his term expires
CAG can Audit:
(a) All the Union and State Government departments including the Indian Railways, Defense and Posts and Telecommunications.
(b) About 1500 public commercial enterprises controlled by the Union and State governments, i.e. government companies and corporations.
(c) Around 400 non-commercial autonomous bodies and authorities owned or controlled by the Union or the States.
(d) Bodies and authorities substantially financed from Union some of the local bodies and Panchayati Raj Institutions which are critical grass root agencies for implementation of developmental programmes and delivery of services.
Vision, Mission & Core Values of Supreme Audit Institute of India
VISION: The vision of SAI India represents the aspiration to achieve and do the best to be a global leader and initiator of national and international best practices in public sector auditing and accounting and recognised for independent, credible, balanced and timely reporting on public finance and governance.
MISSION: Mandated by the Constitution of India, SAI promote accountability, transparency and good governance through high quality auditing and accounting and provide independent assurance to our stakeholders, the Legislature, the Executive and the Public, that public funds are being used efficiently and for the intended purposes.
CORE VALUES: The guiding beacons for all their deeds and assessing performance, Independence, Objectivity, Integrity, Reliability, Professional Excellence, Transparency, Positive Approach.
Roles and Duties of Comptroller and Auditor General
• All receipts into and spending from the coffers (called the Consolidated Fund) of the Union and State Governments.
• All transactions relating to the Emergency expenses (called Contingency Funds) and relating to the monies of the public held by the Government e.g. Postal savings, Vikas Patras (called Public Accounts) at Central as well as State levels.
• All trading, manufacturing, profit and loss accounts, balance sheets and other subsidiary accounts kept in any Government department.
• All stores and stock accounts of all Government offices and departments.
• Accounts of all Government companies and Corporations e.g. ONGC, SAIL etc.
• Accounts of all autonomous bodies and authorities receiving Government money e.g. municipal bodies, IIM’s, IIT’s, State Health societies.
• Accounts of any body or authority on request of the President/Governor or on his own initiative.
The Act also provides for compilation of accounts of the State Governments from the subsidiary accounts maintained by the State Governments.
CAG has the Power to:
1. Inspect any office or organization subject to his audit.
2. Examine all transactions and question the executive.
3. Call for any records, papers, documents from any audited entity.
4. Decide the extent and manner of audit

Author Name: Omkar