Lack of manpower slows audit settlements
The government has been deprived of a large sum of unrealised money as only 3.34 percent of audit observations were settled in 2012-13 owing to a lack of adequate manpower, weak documentation and negligence.
According to the Office of the Comptroller and Auditor General (OCAG), the total number of outstanding audit observations in 10 directorates was 860,699 worth Tk 489,224 crore, which is more than the national budget of the upcoming fiscal year.
Meanwhile, the number of settled observations stood at 29,753 in 2012-13 having a financial involvement of Tk 139,812 crore, according to a strategy paper on improving responsiveness to audit observations.
“Audit observations are piling up day by day in the audit directorates and the pace of settlement is relatively slow,” Masud Ahmed, comptroller and auditor general, said in the report.
The paper was presented at a meeting of the OCAG at Bangabandhu International Conference Centre in Dhaka.
Ahmed said auditors raise observations on apparent wrong-doing by the executives. Here, the responsibility of the executives is to defend their position by relying to the audit observations on time.
“If these are not responded timely and appropriately, the audit may lose its effectiveness.”
The paper said due to a workforce shortage, audit directorates are able to audit only 40 percent of their auditable units or entities.
A third of the sanctioned posts at the OCAG office are currently vacant.
And a third of their existing staff has to be present at the head office to process the audit related activities, follow-up and settlement of pending observations and perform administrative and supervising activities. The rest of their staff are able to work on the field.
“As a result, the workforce directly involved in conducting and managing auditing activities is not adequate,” according to the strategy paper.
The annual settlement rate of pending audit observations ranges between 1 percent and 21 percent, and averages 2.3 percent, the paper shows.
It said weak documentation, a lack of officials trained on public financial management, unwillingness, negligence and ignorance to timely response to audit observations, absence or ineffective international audit mechanism, lack of computerised database of pending audit observations and a huge work load are adding to the poor settlement rate.
According to the auditee organisations, the main obstacle to settlement of audit observations include lack of experienced staff, weakness in audit documentation, lack of communication with audit departments and line ministry, unwillingness of concerned officials to respond to inherited audit observations of other colleagues.
The study paper is the culmination of a five-year 'Strengthening the Office of the Comptroller and Auditor General Project', sponsored by a number of development partners, including the World Bank. Mashiur Rahman, economic affairs adviser to the prime minister, said more emphasis should be given on the sectors that receive large allocations.
The government's expenditure has increased, he said. “So if the expenditure is not done effectively, you might be spending more money but you will not get the results.”
Suraiya Zannath, senior financial management specialist of the World Bank in Dhaka, called for speedy settlement of the pending observations, saying, “Justice delayed is justice denied.”
Sound financial management also remains a focus for development assistance from development partners and investors, Zannath added.
Shyamal Kanti Chowdhury, deputy CAG; Md Afabuzzaman, senior finance controller of the OCAG, and Zahurul Islam, director of the auditor general project, also spoke.
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