1. 26 th Quarterly review meeting of State Finance controllers at Chandigarh,Punjab PRSENTATION ON AUDIT COMPLIANCE PROCESS FOLLOWED IN SSA, ORISSA Presented by Sri N.P.Sethi, FA & CAO, SSA ORISSA

2. Types of Audit conducted at SSA, ORISSA Government Audit Institute of Public Auditors of India appointed by MHRD. (Govt. of India) Accountant General Audit (Civil) Efficiency Audit by Finance Deptt. Govt. of Orissa. Departmental Audit by School & Mass Education Deptt. (Govt. of Orissa.) Audit by Statutory / Internal Auditors Statutory Audit by Chartered Accountants Internal Audit by Chartered Accountants

3. Periodicity & Frequency IPAI Audit: Random without stipulated frequency Accountant General Audit : Random covering 2-3 years at a stage Efficiency Audit by Finance Department : Random covering 2-3 years at a stage School & Mass Education Dept. Audit : Regular recurring but few districts at one time Statutory Audit:On yearly basis Internal Audit:On quarterly basis

4. Submission of Report by different Audit Parties IPAI Audit:Through MHRD. Govt. of India Accountant General:Through S&ME Dept. Govt Of Orissa Finance Department Audit :Through S&ME Dept. Govt Of Orissa School & Mass Education Deptt. Audit : To District Point with a copy to State Project Office Statutory Audit: To District Point with a copy to State Project Office Internal Audit: To District Point with a copy to State Project Office

5. Responsibility for Compliance 1.Intervention Heads at State/District Level. 1.Compilation & Certification of compliances by Financial Consultant & District Project Coordinator at District level & FA & CAO at State Project Office. 3. Observation on accounts adherence to financial & procedural norms in BRCs / CRCs / VECs by respective BRCCs / CRCCs / VECs & compliance verified by DPO before submission to Audit Authorities.

6. Settlement of Audit Paras / Points AG AUDIT: Some observations are settled through Audit Memos issued during Audit. Triangular Committee (consists of representative of AG,S&ME Deptt. & SPD/FC of the State)If the observations raised are not settled through Audit Memos then they are treated as Audit Paras & settled through a Triangular Committee (consists of representative of AG,S&ME Deptt. & SPD/FC of the State) on the basis of satisfactory Compliances submitted. Public Accounts Committee (Legislative Assembly of State)Some Audit Paras if treated as Draft paras then settled through Public Accounts Committee (Legislative Assembly of State) Efficiency Audit (Finance Deptt.) / IPAI Audit / S&ME Audit: Settlement on the basis of satisfactory compliance report submitted by DPOs/SPO Statutory & Internal Audit Settlement on the basis of satisfactory compliance certified by subsequent Statutory Auditor & Internal Auditor.

7. Review of Audit Observations / Comments / Suggestions  Observations of the auditors are first entered in a register.  Quarterly review of Internal Audit by FA & CAO & SPD.  Periodical interaction by FA & CAO with Statutory Auditors from appointment till completion of Audit.  Discussion on Audit observations by Internal Auditors with DPC / Intervention Heads in presence of representatives from State Office.  Placing Major Audit findings in Executive Committee Meeting.  Inclusion of audit compliance as one of the Agenda points in the monthly FC & DPC meeting at the State Project Office.  The status of observations and compliances are reported quarterly to the GOI.

8. Present Scenario Development of Prototype Software Though the above procedures followed in SSA Orissa serves our need, it is more tedious and time consuming. PROTOTYPE SOFTWARE To overcome this bottleneck, we are planning to develop a PROTOTYPE SOFTWARE catering to the specific requirements of SSA,ORISSA. This will facilitate on line viewing of Audit Observations/Status of compliance of Statutory & Internal Audit. It will also helpful for periodical review of Major observations by SPD & Financial Advisor & Chief Accounts Officer. Contd…

9. The proposed prototype application will be web based. It will have the following functionalities Development of Prototype Software Admin - Presets schemes in the application - Uploads CA’s observation report against the schemes District s - All districts will have unique login ID to access their site - They will submit/upload compliance report on each scheme - Once submitted, they will not be able to change the report State - Will review and give remarks on each scheme - Has facility to drop an observation Report - Scheme wise status report is to be generated for each/all districts - Reports can be generated between two given dates

10. S. No. SchemeObservationAmount Compliance by DPO Remarks by SPO 1Advance position Link to uploaded file To be uploaded by DPO 2BRS Link to uploaded file To be uploaded by DPO 3 Expenditure Monitoring Status aRecurring Link to uploaded file To be uploaded by DPO bNon-recurring Link to uploaded file To be uploaded by DPO cControl System Link to uploaded file To be uploaded by DPO 4Visit to KGVB Center aName of Center Link to uploaded file To be uploaded by DPO bBlock Link to uploaded file To be uploaded by DPO cStrength Link to uploaded file To be uploaded by DPO Logout Submit Drop Development of Prototype Software (Cont..) Only this column can be edited by the Districts Drop

11. Thank You