P.C.D.A Dehradun
pcda dehradun

Mandate & Charter of Audit

The Defence Accounts Department, headed by the Controller General of Defence Accounts is mandated to carry out internal audit of all expenditure and receipts besides accounting and payment functions. Secretary (Defence Finance)/FA(DS) functions in the dual capacity of representative of Ministry of Finance in the field of Defence Expenditure and as Chief Accounting Officer for the Defence Services, discharging this responsibility through the CGDA. Controller General of Defence Accounts as chief of Internal audit and SD(F)/FA (DS) as chief accounting officer support Defence Secretary in discharge of his role, responsibility as Chief Accounting authority of MOD.

The work of Internal Audit is carried out through the network of PCsDA/CsDA. This mandate for audit in the Defence Accounts Department is derived from the Military Finance Department in India, which was working under the crown. The mandate as above includes audit of sanctions accorded by all authorities lower than Govt. of India including Services Hqrs. The audit of each sanction is supposed to be carried out by PCDA/CDA before payments are released. While doing audit of sanction, it is verified that sanction has been accorded by the competent authority, financial concurrence obtained wherever required budget is available under relevant head of account and procurement is done at reasonable rate.

The broad and general principles on the basis of which audit by Defence Accounts Department is being conducted over Defence receipts and expenditure is laid down in the Defence Audit Code (available on website). The primary function of audit is to verify the accuracy and completeness of accounts to secure that all receipts are brought to account under the proper head, that all expenditure and disbursements are authorized, vouched and correctly classified and that the final account represents a complete and true statement of the financial transactions it purports to exhibit.

Further there are detailed instructions on the audit and inspection of the Stores and Public Fund Accounts of all Defence units and formations. These instructions are contained in Local Audit Manuals for the Army, Navy and Air Force. Percentage checks and periodicity of audit has been prescribed with reference to risk perception as per the IC-RM framework. The instructions are periodically reviewed with reference to chance of risk assessment and mitigation of the risks in the prescribed procedures. Internal Audit is carried out primarily by the Principal Controllers and Controllers of Defence Accounts through the Zonal/Area Accounts Offices, Local Audit Officers (LAOs) and the Regional Audit Officers (RAOs) working under them. Similarly, the internal audit of Ordnance Factories & Ordnance Factory Board is conducted by Chief Internal Auditor (OF) located at Kolkata.

The Audit conclusions/findings relating to serious irregularities are submitted to the SDF/FA(DS) and Defence Secretary in the form of Internal Audit Report and follow up action is taken by the concerned PCsDA/CsDA. The result of internal audit of all Defence Establishments is being reflected in the Annual Audit Certificate being rendered by the CGDA for inclusion in the Appropriation Account, which are countersigned by C&AG and placed in Parliament.