STATE OF INTERNAL AUDITING

a. COVERAGE

The internal audit of all Units/formations is carried out by the CLA(DS) through LAOs working at the station. All cash and store accounts are audited by the LAOs . The audit of numerical store/cash accounts is generally carried out to the extent prescribed from time to time by the M.A.G. If during the visit to a Unit/Formation, difficulty is experienced in obtaining full and fair access to any essential account or record in obtaining any important explanation etc., the LAO reports full facts of the case to the CLA(DS); M.A.G to extend the scope of audit.

The audit of all Units/Formations is carried out on half yearly basis. Besides general scrutiny of the accounts for the entire period one month in a half year period is selected for detailed audit.

As a result of internal audit, the following amount has been deposited/refunded by the Units/Formations during the last three years.

b. COMPETENCE OF PERSONNEL

The Local Audit offices comprise Accounts Officer, Assistant Accounts Officer and S/Auditors. These Accounts Officer and Assistant Accounts Officer are experienced and well versed with the rules/regulations. The audit reports rendered by them are further scrutinized at DCLA(DS) and CLA(DS) level. Before issuing the reports, these are also discussed by the LAOs with the COs of the respective units. As such it is a fact that competency of the LAOs staff is beyond doubt.

It is worth mentioning fact that P.M.A.D has its own offices as well as residential buildings at most of the stations and it is least dependant on Defence services in this regard. As such they carry out the audit independently.

c. REPORTING PATTERN

On completion of the audit of the Accounts of certain period the objections/observations noted are discussed by the LAOs with the CO of the Unit concerned. After discussion, the Audit report is issued to units with a copy to the DCLA(DS) and Audit Section of the CLA(DS).

The reports are scrutinized and objections categorized in accordance with the following principles:-

CATEGORY-A Procedural points/observations and minor objections.

CATEGORY-B Items of financial irregularities and procedural lapses requiring Govt. sanction/sanction of higher authorities.

CATEGORY-C Items considered fit for inclusion in the G.S.A. Report.

Cases of Category-A may be settled by the LAOs concerned if reply to the objections is found satisfactory or necessary action to regularize the same has been taken by the executive. The settlement of the cases under Category-B & C requires approval of DCLAs/CLA(DS).

d. RESPONSIVENESS TO EXTERNAL AUDIT

Dy. M.A.G monitors the reports of the D.G. Defence Audit and works as a liaison officer between CsMA & DGDA. The reports are also discussed by Directors with the CsMA at regional/local levels. Progress action is taken, and Advance Paras and disciplinary action is taken against the concerned staff where the laxity is noticed.