[See Chapter II, paragraph 6]
Extracts from Government of India (Audit and Accounts) Order, 1936, issued as an order of His Majesty in Council under sub-sections (2) and (3) of section 166 of the Act
2. (1) In this Order the following expressions have the meanings hereby assigned to them, that is to say
"Accounts" includes in relation to commercial undertakings of a Government subsidiary accounts;
"Appropriation accounts" means accounts relating to expenditure brought into account during a financial year to the several items specified in the schedules of authorized expenditure authenticated under section 35 or 38 of the Act;
"Auditor General" means the Auditor-General of India;
"State" means a Governors State;
"Rules," in relation to leave, pension and other conditions of service, includes regulations and orders; and
"The Act" means the Government of India Act, 1935.
(3) As respects the period before the establishment of the Federation
(a) any reference in this Order to the Federal Government, or to the accounts or the revenues of the Federation, shall be construed as a reference to the Governor General in Council, or to the accounts or the revenues of the Governor General in Council, and any reference to the Governor General, except where the reference is to the Governor General acting in his discretion or exercising his individual judgment, shall also be construed as a reference to the Governor General in Council.
IIDuties and Powers of AuditorGeneral
11. (1) Subject to the provisions of this paragraph, the Auditor General shall be responsible for the keping of the accounts of the Federation and of each State, other than accounts of the Federation relating to defence or railways and accounts relating to transactions in the United Kingdom.
(2) As respects accounts of the Federation the Governor General exercising his individual judgment, and as respects accounts of a State the Governor, exercising his individual judgment, may after consulation with the Auditor General, make provision by rules for relieving the Auditor General from responsibility for the keeping of the accounts of any particular service or department.
(3) The Governor General, exercising his individual judgement, may after consultation with the Auditor General make provision by rules relieving the Auditor General from responsibility for keeping accounts of any particular class or character. (See Annexure A).
(4) The Auditor-General shall, from the accounts kept by him and by the other persons responsible for keeping public accounts, prepare in each year accounts (including, in the case of accounts kept by him, appropriation accounts) showing the annual receipts and disbursements, for the purposes of the Federation and each State, distinguished under the respective heads, thereof, and shall submit those accounts to the Federal Government or, as the case may be, to the Government of the State on such dates as he may, with the concurrence of the Government concerned, determine.
(5) Notwithstanding anything in this paragraph, the Auditor General shall comply with any General or special order of the Governor General or, as the case may be, a Governor as to the head of account under which any specified transaction or transactions of any specified class is or are, to be included.
In issuing any such order as aforesaid the Governor General or Governor shall exercise his individual judgment after consulting the Auditor General.
12. It shall be the duty of the Auditor General to prepare annually in such form as he with the concurrence of the Governor General may determine, and to submit to the Governor General a general financial statement incorporating a summary of the accounts of the Federation, and of all the States for the last preceding year and particulars of their balances and outstanding liabilities, and containing such other information as to their financial position as the Governor General may direct to be included in the Statement.
13. (1) It shall be the duty of the Auditor-General
(i) to audit all expenditure from the revenues of the Federation and the States and to as certain whether moneys shown in the accounts as having been disbursed were legally available for and applicable to the service or purpose to which they have been applied or charged and whether the expenditure conforms to the authority which governs it;
(ii) to audit all transactions of the Federation and of the States relating to debt, deposits, sinking funds, advances, suspense accounts and remittance business;
(iii) to audit all trading, manufacturing and profit and loss accounts and balance-sheets kept by order of the Governor General or of the Governor of a State in any department of the Federation or of the State;
(iv) and in each case to report on the expenditure or accounts so audited by him.
(2) The Auditor General may with the approval of, and shall if so required by, the Governor General or the Governor of any State audit and report on
(i) the receipts of any department of the Federation or, as the case may be, of the State;
(ii) the accounts of stores and stock kept in any office or department of the Federation or, as the case may be of the State.
The Governor General or the Governor of a State may after consultation with the Auditor General make regulation with respect to the conduct of audits under this sub-paragraph. (See Annexure B).
(3) This paragraph shall not apply to accounts of transactions in the United Kingdom, and the powers and duties of the Auditor General with respect to the Accounts relating to such transactions shall be as specified in section 170 of the Act.
15. It shall be the duty of the Auditor General, so far as the accounts for the keeping of which he is responsible enable him so to do, to give the Federal Government and to the Government of every State such information as they may from time to time require and such assistance in the preparation of their annual financial statements as they may reasonably ask for.
16. The Federation and every State shall
(i) supply to the Auditor General free of charge the annual Budget estimates of the Federation or of the State and any other publication issued by a department of the Federation or of the State which he may require for purposes connected with his audit functions, and
(ii) give to him such information as he may require for the preparation of any account or report, which it is his duty to prepare.
17. The Auditor General shall have authority to inspect any office of accounts in India which is under the control of the Federation or of a State, including Treasuries and such offices responsible for the keeping of initial or subsidiary accounts as submit accounts to him.
18. The Auditor General shall have authority to require that any books and other documents relating to transactions to which his duties in respect of audit extend, other than books or documents which are in the United Kingdom, shall be sent to such place as he may appoint for inspection by him :
Provided that, if the Governor General or the Governor of a State certifies that any such book or document is a secret book or document, the Auditor General shall accept as a correct statement of the facts stated in that book or document a statement certified as correct by the Governor General or as the case may be, by the Governor.
19. Anything which under this Order is directed to be done by an officer of his department authorized by him, either generally or specially :
Provided that, except during the absence of the Auditor General on leave or otherwise, an officer shall not be authorized to submit on his behalf any report which the Auditor General is required by the Act to submit to the Secretary of State, the Governor General or the Governor of a State.
IIIThe Auditor of Indian Home Accounts
20. (1) The Auditor of Indian Home Accounts (hereafter in this paragraph referred to as "the Auditor") shall under the general superintendence of the Auditor General, audit the accounts of transactions in the United Kingdom affecting the revenue of the Federation or of any State.
(2) In discharging his functions under this paragraph, the Auditor shall examine and audit the accounts, including appropriation accounts of the receipt, expenditure and disposal in the United Kingdom of all money, stores and other property due to or held for the purposes of, the Federation or any State, and shall report on those accounts and, if he is satisfied as to their correctness, shall certify them.
(3) In order that the Auditors examination of the accounts of accounting authorities and persons may, so far as possible, proceed pari passu with their transactions, he shall have free access at all convenient times to their books of account and to the other documents relating to their transactions, and may require them to furnish him from time to time, either at regular intervals or when called upon, with account of their transactions up to such date as he may direct.
Provided that, if the Secretary of State, or the High Commissioner for India, certifies that any such book or document as aforesaid is a secret book or document the Auditor shall accept as a correct statement of the facts appearing in that book or document, a statement certified as correct by the Secretary of State or, as the case may be, by the High Commissioner.
(4) As respects any matter for which no provision is made by the Act or by this Order, the Auditor shall comply with any rules which may be made for his guidance by the Governor General acting in his discretion.
NOTEUnder section 26 of the Comptroller and Auditor Generals (Duties, Powers and Conditions of Service) Act, 1971, the Government of India (Audit and Accounts) Order, 1936, as adapted by the India (Provisional Constitution) Order, 1947, ceased to be in force with effect from 15th, December, 1971, except as respects any thing done or any action taken thereunder. But the rules and regulations framed under the Order, 1936, referred to above shall remain in force till such time as new rules and regulations are framed under sections 22 and 23 respectively of the Act, 1971.
Rules framed by the Governor General under sub-paragraph (3) of paragraph 11 of the Government of India (Audit and Accounts) Order, 1936, and issued under Government of India notification no. D/106/Ref./37, dated April 1, 1937
1. (1) These rules may be called the Initial and Subsidiary Account Rules.
2. In these rules
(1) "Initial Accounts" means a primary record of all money transactions affecting the revenues of the Federation or of any State as they occur ;
(2) "the Order" means the Government of India (Audit and Accounts) Order, 1936 ;
(3) "Treasuries" includes all Treasuries and Sub-Treasuries whether under the control of the Federation or of a State ; and other terms and expressions have the same meanings as have been assigned to them in the Order.
3. The Auditor-General of India from the date these rules come into force shall be relieved from the responsibility for keeping accounts of the undermentioned class or character :
(a) Initial Accounts required to be kept in Treasuries ;
(b) Initial and Subsidiary accounts that may be required to be kept in any office or department of the Federation, or as the case may be, of any State ;
(c) Accounts of stores and stock that may be required to be kept in any office or department of the Federation or of a State by order of the Governor General or of the Governor of the State; and
(d) Trading, manufacturing and Profit and Loss Accounts and balance-sheets and any other subsidiary accounts that may be required to be kept by Order of the Governor General or of the Governor of State in any Department of the Federation or of the State.
4. Nothing contained in Rule 3 shall be construed as derogating from the authority of the Auditor-General of India
(a) to require any Treasury, Office or department keeping initial or subsidiary, accounts to render accounts of such transactions as are included in them to the audit and accounts office under his control on such dates as he may determine ; or
(b) to prescribe the form in which such accounts shall be rendered and in which the initial accounts from which the accounts so rendered are complied or on which they are based, shall be kept.
Regulations framed by the Governor of the United Provinces under sub-paragraph (2) of paragraph 13 of the Government of India (Audit and Accounts) Order, 1936, and issued under notification. B-702/ X176, dated April 1, 1937
1. The Auditor-General of India shall audit all such accounts of stores and stock of the different departments of the State Government as were subject to his audit immediately before the commencement of part III of the Government of India Act, 1935.
2. The Auditor-General of India shall conduct such audits in accordance with such rules and principles as were in force immediately before the commencement of Part III of the Government of India Act, 1935.
3. These regulations shall have effect from April 1, 1937.
NOTEUnder section 16 of the Comptroller and Auditor-General (Duties, Powers and Conditions of Service) Act, 1971 (see Appendix I-A) the Comptroller and Auditor-General shall audit all receipts which are payable into the Consolidated Fund of the State.