, No.

3 fJ Rep/WR/Coord/SMU t67 -Z0Zz

$rril + fu"s-rl-dr&c+rrftqr-r +.1 q'rqtirq OFFICE OF THE COMPTROLLER &

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AUDITOR GENERAL OF INDIA
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10, BAHADUR SHAH ZAFAR MARG,
NEW DELHI.11O 124
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To,

The Principal Accountant General

O/o PAG (Audit-!, Gujarat

Sub: Horizontal PA on cross-cutting audit on Solid Waste Management in Urban

Local Bodies

Sir,

Please refbr to your office letter No. APM/S-2/Minutes of tlie DAIs/O.W dated
5th Juiy 2022 onthe subject cited above vide which it was intimated that a party has
been
deployed to conduct gap analysis, following which compliance audit on the issuls/
aspects
which were not covered previously will be undeftaken.

In this regard. please find attached minutes of the Steering Committee Meeting held
on
29tl' June 2022 wherein approach for conducting gap anilysis has been defined
under
Item 1 rvhich may also be pemsed. Specific proposal on gap analysis and follow up audit.
after following the given directions, may be submitted tolhis office for approvat. ihe gap
analysis may contain variance statement with respect to Audit objectives, period and
scope
ofaudit already covered vis-d-vis proposed to be covered as pei the appioved guidelines
of the horizontal audit.

Yours faithfi.rlly,

Encl: as above

h& D (s. Rai)

Director General (WR)

Eo tTro / Phone :23231440,2g2g1761 *w I Fax : 91 -11-29295446,23294014

www.cag.gov.tn
 Minutes of the Steering Committee Meeting held on29th June 2022

Meeting ofthe Steering Committee chaired by the DAIOIR) and comprising ofthe DAI/ADAIs
and the DG/PDs of all the Report States(RS) Wings, rvas held on 29th J:une 2022 at 1 1 :30 am.
The list of officers who attended the meeting has been given in Annexure A.

The issues deliberated upon, decisions taken and the action points are detailed below:

Item I- Pan India Reports - timelines, exclusion criteria and gap analysis
After deliberation, it was decided that a gap analysis needs to be done for pan India topics,
wherever the topic has been covered by Field Audit Office (FAO) in last five years. For this,
the following approach may be taken:
a.
to such areas be included in the
compliance errriif rennrt

b. Reports placed in Legislature and discussed by PAC- along with a) above, follow
\.-..'
\ up audit of action taken on PAC recommendations may be done.
t'
It was further decided that proposals for exchrsions and coverage after gap analysis, if any, may
be intimated to the Synchronisation Report S'tale,wing by,the respective Report States wings.
These would be consolidated and approval trom the C&AG would be taken by RS
synchronisation.
$*
i.Horizontal Performance Audit on PHIMS- The memhers rvere informcd that the Nodal
\' Wing and the Nodal State is Northern Region and O/o PAG(Audit), Himachal Pradesh,
(ffi respectively. The timelines were shared with all the members, and have been detailed in
Annexure B for ready reference.
With regard to the timeline of finalising the individrral reports before the respcctivc Winter
Sessions of 2022, certain apprehensions were raised regarding timely finalisation due to
operational issues.
'Ihe DAI(1IIR) stated that the Winter Scssion 2022was decided only after the timelines were
approved individually ty the C&AG. Flence, if there is any deviation in timslines for the
individual reports, the approval for the same will have to be taken from the CAG by the
respective RS wings, and intimated to the Rep. Sync. rving. The Pan India report is a paraliel
pluuess, and is not intended to bc tabled in tlie legislature, but to be shared with the
stakeholders.

Further, there was a consensus on arranging a Midterm review in the second week of
August 2022, wherein the respective PAG/AG of the FAOs will be askecl to give a short
presentation on the progress anci findings of audit. DAICfR) stated that the format of
presentation and other modalities will be finalised by Rep. Sync. Wing and shared with all
RS wings.

ii.Horizontal audit on Collection of Building and Other Construction Workers' Welfare

Cess and its utilisation- It was infonned that the Nodal Wing and the Nodal State is
Northern Region and Oio PAG(Audit), Haryana respectively. Ihe FAOs of Punjab, J&K,
 o\
.,t5 l

Delhi and Puducherry have been excluded. The timelines were shared with all the members,
and have been detailed irc{nnexure C for ready reference.

It was fuitherdecided that once the guidelines have been received, the gap analysis and
exclusions should be finalised by the respective wings and intimated to the Report
Synchronisation wing, for getting it approved from the C&AG.

With regard to the OIOS toolkit, it was intimated that this will be prepared byNodal wing
with support from CTO, and will be circulated to all RS wings by the Report
Synchronisation wing.
iii.Horizontal audit on Solid Waste Management in ULBs- It was intimated by SMU that
the Nodal Wing and the Nodal State is Westem Region and OloP AG(Audit), Maharashtra
respectively
exclusions finalised by the
respective wings and intimated to the Report with iustification, for
gettrng it approved from the C&AG.

The draft guidelines were shared by the Western Re

The corresponding, changes.

region preferably.by.,end, of July Z,A2Z with the other RS wings.

Further, it was w the source of
data This is not
feasible in all FAOs, as.there are issues with coverage and data availability, and thus data
from respective Staie Pollulion Control Boards,may be used, if available.
It was further intimated that the target for laying of reporl in State Legislation is Monsoon
session 2023, and the internal timelines may be prescribed by the functional wings to ensure
targeted submission.

iv.Performance audit of Major and Minor minerals- All the members were informed that
the CAG has desired a PA on the topic to be included in Annual Audit planZ0Z2-23. SMU
wing had proposed to identify a nodal State wing and State, and suggested ER wing as Nodal
wing and Jharkhand as Nodal State. Further, five states had been identified to under-take this
audit, viz- Andhra Pradesh, Jharkhand, Telangana, odisha and Ra asthan. It was further
intimated that the RS wings may intimate the Rep. Sync. Wing about any other States, that
have either taken up the audit or propose to take up the audit.

It was decided that as a pan India picture is not to be presented in this case, hence there is
no need for a nodal office. It was further decided that the Eastem region may share the
guidelines of the Bihar office to att otrr.i ns i;iAgt along with t6" pFr
of tne ieport, fo,
gfidanCd ana necesbary action of other FAOs.

The issues of entrustment of audit and access of data with regard to the respective
District
Mineral Foundation Trust, was flagged. It was decided that to get clarity on the issue, the
RS wings may direct the respective FAOs to collect the information about the same.
and
intimate the same to Rep. Sync. wing.
 ,/ .,.,/.-.'\'..
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Item Itr- State Finances {gdit Reports(SFAR)-The issues of 'Funds kept in DDOs account'
and 'Off-budget borrowings' were discussed. It was intimated that the guidelines on funds
transferred to DDO accounts, as received from GA wing, will be circulated by the Rep. Sync.
Wing for necessary action.
It was further intimated that a workshop is being jointly conducted by DAI(GA) and DAI
(Report S,ync.) with the PAsG of both Audit and A&E offices of Gujarat, Maharashtra,
Rajasthan and Goa on 8th July 2022,in Mumbai, and the outcomes of the same will be shared
with the RS wings.
All RS wings were requested to encourage the respective FAOs to follow the GA wing's
directions to suitably analyse and report on the above issues in the SFARs. It was further
decided that along with the templates for SFAR that are currently in use, all FAOs should be
encouraged to follow the Financial Attest Audit guidelines, to ensure that the necessary quality
assurances about the audit process are obtained-

It l.,,as f,:rther agreed possible, a training on the SFAR may be

by ali the members that, if
conducted for all SAOs/AAOs of FAOs and Hqrs., engaged in compilation and finalisation of
SFARs, sometime in August/September, after consultation and concuffence of
ADAI(Training).
Apart from the above, the issue of Single Nodal Accounts and their impact on the State
Finances was flagged for further examination and analysis by all the RS wings. It was further
decided that to get clarity on the issue, the RS wings may direct the respective FAOs to collect
the information about the mechanism put in place for operationalization of SNAs in respective
states.

Item Use of Excel for Data Analysis and Audit Planning- It was intimated that RTI,
III-
Hyderabad has designed and developed aData Analysis model to assist the A&E offices in
analysing voucher data using MS Excel. It was informed that the same would be circulated to
all the RS wings for use in audit planning and field work'
Item IV-Miscellaneous issues- With regard to audit of IFMS, it was intimated that an approach
paper was finalised after the workshop on IFMS for NR Wing conducted in iCISA. This will
bs L:iruulated to all regions for use in FAOS, where audit of IF'MS is being undertaken.
 *ii t
Annexure A

The following members had attended the

meeting:

1. ADAr(sR) & DG(icrsA)

2. ADAr0{ER)
3. ADAr(NCR)
4. ADA(CR)
s. ADAr(wR)
6. ADAr(ER)
7. DG(LB)
8 DG(ER)
9. DGG\IER)
:

10. DG(CR)
1 1. PD(SR)

12. PDQ\fR-I & Report Sync.)