CAG raps J&K over no response to audit reports

The Comptroller and Auditor General (CAG) on Monday slammed the J&K government for its lack of response to the <g data-gr-id="29">pendency</g> of large number of inspection reports and observations on "serious financial irregularities".

The CAG also called for the revamping of <g data-gr-id="17">administrative</g> system for proper response to audit observations in a time-bound manner.

"There is large pendency of paragraphs (audit observations), serious financial irregularities and loss to the government even after being pointed out in the audit. It indicates <g data-gr-id="26">lack</g> of response of the government departments to the audit," said a CAG report for the state finance ending March 31, 2014.As per the CAG report based on the result of the test audit, 32,625 observations contain 8,518 inspection reports pertaining to the period between 1998 and 2014, are outstanding as on March 31, 2014.

The handbook of instructions by CAG suggests speedy settlement of audit observations and inspection reports by government departments to ensure remedial actions with the prescribed rules, procedures and accountability for deficiencies, irregularities and lapses, the report said.

The heads of offices and next higher authorities are required to comply with observations to rectify the defects promptly and report their compliance to the auditor general, it said, pointing out the lack of response from the government.

There are 29 departments and 39 autonomous bodies in J&K. The CAG noted that the reasons for persistent savings of more than Rs 1 crore were not intimated to CAG (as on August 2014) and this indicated inadequate financial control in the state.