Section 11 of The Comptroller and Auditor-General’s (Duties, Powers and Conditions of Service) Act, 1971
Preparation and Submission of Accounts
Original Text
Provided that the President may, after consultation with the Comptroller and Auditor-General, by order, relieve him from the responsibility for the preparation and submission of the accounts relating to annual receipts and disbursements for the purpose of the Union or of a Union territory having a Legislative Assembly:
Provided further that the Governor of a State may, with the previous approval of the President and after consultation with the Comptroller and Auditor-General, by order, relieve him from the responsibility for the preparation and submission of the accounts relating to annual receipts and disbursements for the purpose of the State.
Visual Summary
Summary
Section 11 establishes the duty of the Comptroller and Auditor-General (CAG) to act as the primary accountant for the Union and State Governments. It mandates the CAG to prepare annual accounts detailing receipts and disbursements based on compiled data. These accounts must be submitted to the respective Head of State (President, Governor, or Administrator). However, the section also contains provisions allowing the President or Governor to relieve the CAG of this responsibility, facilitating the separation of accounts from audit functions.
Key Takeaways
-
Core Duty: CAG must prepare annual accounts showing receipts and disbursements for the Union, States, and UTs. -
Appropriation Accounts: If the CAG compiles the accounts, they must also prepare the Appropriation Accounts (comparing expenditure against grants). -
Submission Hierarchy: Accounts are submitted to the President (Union), Governor (State), or Administrator (UT). -
Relief Clause: The Act allows for the “departmentalization of accounts,” where the Executive takes over accounting duties from the CAG.
Key Analysis
-
➤
Separation of Roles: Historically, the CAG performed both accounting and auditing functions. Section 11 defines the accounting role but includes provisos that facilitate the separation of these powers (as seen in 1976 for the Union Government), allowing the CAG to focus purely on audit. -
➤
Constitutional Mandate: This section operationalizes Article 151 of the Constitution, ensuring that the financial reports reach the Legislature via the President or Governor. -
➤
Appropriation Accounts: The specific mention of Appropriation Accounts is critical. These accounts compare the actual expenditure with the grants voted by the Legislature, serving as a primary tool for legislative control over executive finance.
Key Ingredients
-
Input Data: Accounts compiled by CAG or the Government. -
Content: Annual receipts and disbursements (Finance Accounts) and Appropriation Accounts. -
Recipient: President (Union), Governor (State), or Administrator (UT). -
Timing: Dates determined by CAG with Government concurrence.
Related Provisions
Practical Illustrations
The CAG compiles the accounts for the State of Bihar. At the end of the financial year, the CAG prepares the Finance Accounts and Appropriation Accounts and submits them to the Governor of Bihar, who then causes them to be laid before the State Legislature.
The President of India, after consulting the CAG, issues an order relieving the CAG from compiling the accounts of the Ministry of Defence. Consequently, the CAG is also relieved from the duty of preparing and submitting these specific accounts under Section 11, shifting the responsibility to the Controller General of Defence Accounts (CGDA).
Process Flowchart
Practice Questions
Q1: To whom shall the Comptroller and Auditor-General submit the accounts of a State?
- A. The President of India
- B. The Chief Minister of the State
- C. The Governor of the State
- D. The Speaker of the State Assembly
View Correct Answer
Reasoning: Section 11 explicitly states that accounts of a State shall be submitted to the Governor of that State.
Q2: Who has the authority to relieve the CAG from the responsibility of preparing Union accounts?
- A. The Parliament
- B. The President, after consultation with CAG
- C. The Finance Minister
- D. The Supreme Court
View Correct Answer
Reasoning: The first proviso to Section 11 empowers the President to relieve the CAG of this duty by order, after consultation.
Q3: What specific type of accounts must be included if the CAG compiles the accounts?
- A. Profit and Loss Accounts only
- B. Commercial Undertaking Accounts
- C. Appropriation Accounts
- D. Contingency Fund Accounts only
View Correct Answer
Reasoning: Section 11 specifically mentions “(including, in the case of accounts compiled by him, appropriation accounts)”.
Frequently Asked Questions
What are Appropriation Accounts mentioned in this section?
Can the CAG prepare accounts based on data compiled by others?
Who determines the deadline for submitting these accounts?
Conclusion
Section 11 is pivotal in the financial administration of India, ensuring that the Executive Head (President or Governor) receives a consolidated view of the annual finances. While it establishes the CAG as the primary authority for preparing these accounts, its provisos provide the necessary legal framework for the separation of accounts from audit, allowing the administration to evolve towards departmentalized accounting while retaining the CAG’s oversight role.