CHAPTER XVI

APPROPRIATION ACCOUNTS, FINANCE ACCOUNTS AND AUDIT REPORTS THEREON

175. Appropriation Accounts - The Appropriation Accounts and the Audit Report thereon are prepared by the Comptroller and Auditor-General of India for each year in accordance with the provisions of the Constitution and procedure laid down by the Comptroller & Auditor General of India. Their object is to present the audited accounts of all the expenditure of the year, whether voted or charged, in the form of a separate Appropriation Account for each grant / appropriation, with any important observations considered necessary to make as a result of the audit investigation. They also include the comments deemed to be necessary to make upon the result of the audit of trading, manufacturing and profit and loss accounts and balance-sheets kept in respect of Government commercial or quasi-commercial concerns and upon the examination of accounts of receipts and of stores and stock. In order that only agreed statements of facts and completed cases are included in the reports, a convention exists between the Comptroller and Auditor-General and the State Government whereby cases relating to any previous year which become ready for inclusion after the last report was written are included in the report of a subsequent year.

176. Finance Accounts - Besides the Appropriation Accounts, the Comptroller and Auditor-General of India also compiles the Finance Accounts of the State Government in respect of each financial year. This compilation presents the accounts of the receipts and outgoings of the Government for the year, together with a report on the financial results disclosed by the different accounts and other data coming under examination; that is to say, both the revenue and capital accounts, the accounts of the debt and the liabilities and assets of the Government as deduced from the balances recorded in their books and other information.

177. Preliminary action in the Finance Department on receipt of the Appropriation Accounts, the Finance Accounts and Audit Reports thereon - On receipt of the authenticated copies of the Appropriation Accounts, Finance Accounts and the Audit Reports thereon, in terms of the provisions of Article 151 (2) of the Constitution, from the Comptroller and Auditor-General of India, the Finance Department will obtain the orders of the Governor for laying the copies before the Legislature and then move the Legislative Department to arrange for the item relating to the laying of these documents before both the Houses of the Legislature being included in the agenda of business of the Houses.

178. Reference to the Committee on Public Accounts :

(i)   After the Appropriation Accounts, the Finance Accounts and the Audit Reports thereon are laid on the table of the House, they shall stand referred to the Committee on Public Accounts for examination and report.

 

(ii)   If they are received by the Assembly Secretariat at a time when the Assembly is not in session, then these may be referred to the Committee on Public Accounts by order of the Speaker.

Note : All functions which relate to the public undertakings / Corporations of the State shall be outside the purview and jurisdiction of the Committee on Public Accounts. The functions relating to the public undertakings / corporations are vested in the Joint Committee on the Public Undertaking and Corporations (See Appendix II).

179. The Committee on Public Accounts is a Committee of the Legislative Assembly and is constituted under Rules of Procedure and Conduct of Business of the Uttar Pradesh Legislative Assembly (See Appendix II).

180. Constitution and function of the Committee on Public   Accounts - The constitution and functions of this Committee are described in rules 229 and 230 of the Rules of Procedure and Conduct of Business of the Uttar Pradesh Legislative Assembly 1958. (See Appendix II).

181. The other general rules of procedure applicable to the Committee on Public Accounts as well as to the other Committees of the Legislative Assembly are contained in Rules 200 to 269-K, of the Rules of Procedure and Conduct of Business of Uttar Pradesh Legislative Assembly, 1958. (See Appendix II).

182. The Comptroller and Auditor General of India, or his representative the Accountant General, Uttar Pradesh and the Finance Secretary or his representative are invited to attend the meetings of the Committee. These officers may offer their advice on any matter which comes under discussion.

183. The Committee is entitled to offer criticism and make recommendations or suggestions upon any matter discussed in the Appropriation and Finance Accounts and the Reports thereon received from the Comptroller and Auditor-General of India in respect of both receipts and expenditure (voted or charged) or any other matter referred to it or which the Committee deems necessary to scrutinize.

184. Presentation of the Committee’s Report before the Legislative Assembly - The report of the Committee on Public Accounts will be presented to the Assembly by the Chairman of the Committee. Thereafter, copies of the report will be sent by the Assembly Secretariat to the Administrative Departments of the Secretariat for taking necessary action on the recommendations of the Committee and also to the Accountant General, Uttar Pradesh, the Finance Department, the Comptroller and Auditor-General of India, other States and the Government of India, for information. Action taken by the Departments concerned on the recommendations of the Committee shall be communicated by them to the Assembly Secretariat, the Finance Department and the Accountant General :

Provided that the Committee may, if it so desires, direct that any of its recommendations be sent to the departments concerned for immediate necessary action without waiting for the report to be presented to the Assembly. In such a case, a copy of recommendations of the Committee shall also be sent to the Accountant General and the Finance Department for information. Action taken by the department concerned on such a recommendation shall be communicated by the department to the Assembly Secretariat, the Finance Department and the Accountant General.

185. The departments and officers concerned shall keep secret all papers concerning the action taken on the recommendations of the Committee sent to them in advance till the report is laid on the table of the Legislature.

186. Action to give effect to the recommendations of the Committee and of the Legislative Assembly will be taken by the departments concerned but the Legislative Assembly Secretariat is responsible for seeing that such action has been taken.

187. A memorandum showing the action taken, or proposed to be taken, on the recommendations of the Committee by the various departments of the Government shall be prepared by the Assembly Secretariat in consultation with the Finance Department, and shall be placed before the Committee. The Committee after considering it may make such recommendations as may seem necessary and submit its report to the House.

188. The Committee will examine the replies regarding the action taken and will report to the House in its next report whether it considers the action taken by the departments to be adequate or otherwise.

189. Accountant General’s comments on the action taken on  Committee’s recommendations - The Accountant General in the next and subsequent Appropriation Accounts and his reports thereon and the Comptroller and Auditor-General of India in his comments on those Accounts may refer to the action which has been taken by the Government in respect of cases previously reported by him and may comment on the adequacy or otherwise of the action taken by the Government.

190. Excess Grants - The procedure for dealing with the demands for excess grants has been described in Section IV of Chapter XIV.