FOLLOW UP PROCEDURES

1
FOLLOW UP PROCEDURES

• DAY 8
• SESSION NO.3 (THEORY)
• BASED ON CHAPTER 8
• PERFORMANCE AUDITING GUIDELINES

2
Learning Objectives

• In the previous session we discussed
• Follow-up procedures 
• Parliamentary guidelines 
• Procedure for recommendations not
• accepted 
• Annual follow-up programme 
• Objective of follow-up programme

3
Cont

• In this session we will discuss
• Inventory of recommendations 
• Method to deal with significant delay in
• implementation of the recommendations
• Effectiveness of performance audits
• assessment
• Reporting to SAI Headquarters on audit
• effectiveness  
• Quality assurance of the follow-up
• programmes

4
Inventory of recommendations

• The inventory should consist of all
  recommendations, with appropriate grading under
  vital or critical, significant and
  important.
• The database should also contain other relevant
  information viz.
• The year of audit/report,
• Status of acceptance viz. accepted, partially
  accepted, not accepted and not replied,
• nominal implementation reported by the entity and
  the time of such reporting,

5
Cont

• risk associated with non-implementation or poor
  implementation, besides follow-up reviews.
• Where the committee of legislature has examined a
  performance audit report, the inventory may
  contain the final recommendations made by the
  committee.
• The Accountants General may monitor the
  preparation and updating of the inventory and
  send reports to SAI headquarters at the
  prescribed intervals.

6
Method to deal with significant delay in
implementation of the recommendation

• The delay in implementation of significant
  recommendation(s)should be brought to the notice
  of the minister, in case of the recommendations
  relating to state governments
• If it is significant enough so as to warrant
  taking up with the Chief Minister, the issue may
  be referred to the SAI top management.
• In regard to matters pertaining to the Union
  Government, such issues may be taken up with the
  minister or the Prime Minister by Comptroller and
  Auditor General.

7
Cont

• Accountants General may refer such matters to SAI
  top management along with the consequence of
  delay in implementation of the recommendation(s).
• Another method could be to prepare a generic
  follow-up report for presentation to the
  legislature.

8
Effectiveness of Performance audits assessment

• Accountants General may carry out an
  evaluation of the effectiveness of the
  performance audits annually. The internal
  evaluation may consist of
• the expected outcome of each performance audit
  anticipated at the time of planning
• the actual value added, qualitatively and
  quantitatively to the programme or the entity as
  a result of implementation of the
  recommendations and
• the reasons for significant variation between the
  expected value addition and the actual. The
  variations may be attributed to under assessment
  or over assessment, deficient entity response,
  and deficient quality of performance audit. The
  evaluation will include the remedial measures
  also.

9
Reporting to SAI Headquarters on audit
effectiveness

• The Accountants General may send the result of
  their internal impact evaluation on the
  effectiveness of the performance audit to SAI top
  management with detailed explanatory notes.

10
Quality assurance of the follow-up programmes

• Compliance assurance of the follow-up programmes
  in these guidelines
• Supervision by Accountant General
• Monitoring by SAI top management and
• Internal quality reviews, evaluation and peer
  review.
• The audit effectiveness through performance
  audits may be incorporated as a specific area in
  the SAIs programme of technical inspection, peer
  review, etc.

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Session Summary

• In this session we discussed
• Inventory of recommendations 
• Method to deal with significant delay in
  implementation of the recommendations
• Effectiveness of performance audits assessment
• Reporting to SAI Headquarters on audit
  effectiveness 
• Quality assurance of the follow-up programmes