Government Audit in India : Applicability & Process
The Comptroller and Auditor General of India is the Constitutional Authority in India, established under Article 148 of the Constitution of India. He is empowered to Audit all receipts and expenditure of the Government of India and the State Governments, including those of autonomous bodies and corporations substantially financed by the Government. The CAG is also the statutory auditor of Government-owned corporations and conducts supplementary audit of government companies in which the Government has an equity share of at least 51 per cent or subsidiary companies of existing government companies. The reports of the CAG are laid before the Parliament/Legislatures and are being taken up for discussion by the Public Accounts Committees (PACs) and Committees on Public Undertakings (COPUs), which are special committees in the Parliament of India and the state legislatures. The CAG is also the head of the Indian Audit and Accounts Department, the affairs of which are managed by officers of Indian Audit and Accounts Service, and has 43,576 employees across the country (as on 01.03.2020). Accountability audits
An accountability audit evaluates whether a local government has adhered to applicable state laws, regulations and its own policies and procedures. We audit records to ensure public funds are accounted for and controls are in place to protect public resources from misappropriation and misuse. We are required to examine the financial affairs of all local governments at least once every three years.
The Center for Government Innovation helps local governments help the people they serve. The Center provides online tools and offers in-person training courses, workshops and technical assistance.
Financial audits
We perform financial statement audits to provide an independent opinion on a local government’s financial statements and the results of its operations and cash flows. In other words, these audits determine whether the financial statements present a reliable, accurate picture of a government’s finances.
A local government is required to receive an audit of its financial statements if it:
receives over $2 million in annual revenues, or
spends more than $750,000 in federal financial assistance, or
is specified in financing arrangements, such as bonds, loans or grant agreements.
All local governments are required by RCW 43.09.230 to submit an annual financial report to our office within 150 days of the end of their fiscal year.
Learn about the Local Government Advisory Committee, which consults with SAO to create statewide accounting guidance that affects local governments.
Federal single audits
Recipients of federal funding must arrange for an audit when they spend $750,000 or more in federal awards in a year. A federal single audit’s objective is to determine and report on whether a local government that received federal funding has complied with applicable requirements. Each federal single audit contains two components:
An audit of the local government’s internal controls and compliance with federal requirements.
An audit of financial statements.
Single audits typically must be completed and submitted to the Federal Audit Clearinghouse within nine months following the fiscal year end being reported on.
Special engagements
Energy Independence Act compliance examinations (Energy examinations)
We conduct examinations of Washington’s large utilities to ensure they are complying with the Energy Independence Act (EIA). The act requires the state’s qualifying utilities to obtain up to 15 percent of their electricity from renewable resources each year and to pursue cost-effective energy conservation to meet their biennial targets.
School apportionment-related audits
Our School Programs team is responsible for centralized planning and performing apportionment audits of programs such as alternative learning experience and special education. The School Programs team also performs accountability audits of public charter and tribal compact schools.
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