RTI, MUMBAI / CH 81 FOLLOW UP PROCEDURES DAY 8 SESSION NO.3 (THEORY) BASED ON CHAPTER 8 PERFORMANCE AUDITING GUIDELINES

RTI, MUMBAI / CH 82 Learning Objectives In the previous session we discussed:  Follow-up procedures  Parliamentary guidelines  Procedure for recommendations not accepted  Annual follow-up programme  Objective of follow-up programme

RTI, MUMBAI / CH 83 Cont… In this session we will discuss:  Inventory of recommendations  Method to deal with significant delay in implementation of the recommendations  Effectiveness of performance audits: assessment  Reporting to SAI Headquarters on audit effectiveness  Quality assurance of the follow-up programmes

RTI, MUMBAI / CH 84 Inventory of recommendations  The inventory should consist of all recommendations, with appropriate grading under ‘vital or critical’, ‘significant’ and ‘important’.  The database should also contain other relevant information viz.  The year of audit/report,  Status of acceptance viz. accepted, partially accepted, not accepted and not replied,  nominal implementation reported by the entity and the time of such reporting,

RTI, MUMBAI / CH 85 Cont…  risk associated with non-implementation or poor implementation, besides follow-up reviews.  Where the committee of legislature has examined a performance audit report, the inventory may contain the final recommendations made by the committee.  The Accountants General may monitor the preparation and updating of the inventory and send reports to SAI headquarters at the prescribed intervals.

RTI, MUMBAI / CH 86 Method to deal with significant delay in implementation of the recommendation  The delay in implementation of significant recommendation(s)should be brought to the notice of the minister, in case of the recommendations relating to state governments  If it is significant enough so as to warrant taking up with the Chief Minister, the issue may be referred to the SAI top management.  In regard to matters pertaining to the Union Government, such issues may be taken up with the minister or the Prime Minister by Comptroller and Auditor General.

RTI, MUMBAI / CH 87 Cont…  Accountants General may refer such matters to SAI top management along with the consequence of delay in implementation of the recommendation(s).  Another method could be to prepare a generic follow-up report for presentation to the legislature.

RTI, MUMBAI / CH 88 Effectiveness of Performance audits: assessment Accountants General may carry out an evaluation of the effectiveness of the performance audits annually. The internal evaluation may consist of:  the expected outcome of each performance audit anticipated at the time of planning;  the actual value added, qualitatively and quantitatively to the programme or the entity as a result of implementation of the recommendations; and  the reasons for significant variation between the expected value addition and the actual. The variations may be attributed to under assessment or over assessment, deficient entity response, and deficient quality of performance audit. The evaluation will include the remedial measures also.

RTI, MUMBAI / CH 89 Reporting to SAI Headquarters on audit effectiveness  The Accountants General may send the result of their internal impact evaluation on the effectiveness of the performance audit to SAI top management with detailed explanatory notes.

RTI, MUMBAI / CH 810 Quality assurance of the follow-up programmes  Compliance assurance of the follow-up programmes in these guidelines;  Supervision by Accountant General;  Monitoring by SAI top management; and  Internal quality reviews, evaluation and peer review.  The audit effectiveness through performance audits may be incorporated as a specific area in the SAI’s programme of technical inspection, peer review, etc.

RTI, MUMBAI / CH 811 Session Summary In this session we discussed:  Inventory of recommendations  Method to deal with significant delay in implementation of the recommendations  Effectiveness of performance audits: assessment  Reporting to SAI Headquarters on audit effectiveness  Quality assurance of the follow-up programmes