Section 30 of The Indian Institutes of Information Technology Act, 2014
- (1)Every Institute shall maintain proper accounts and other relevant records and prepare annual statement of accounts including the balance sheet in such form and accounting standard as may be specified by notification, by the Central Government in consultation with the Comptroller and Auditor-General of India.
- (2)Where the statement of income and expenditure and the balance sheet of the Institute do not comply with the accounting standards, the Institute shall disclose in its statement of income and expenditure and balance sheet, the following, namely:—
- (a)the deviation from the accounting standards;
- (b)the reasons for such deviation; and
- (c)the financial effect, if any, arising out due to such deviation.
- (3)The accounts of every Institute shall be audited by the Comptroller and Auditor-General of India and any expenditure incurred by audit team in connection with such audit shall be payable by the Institute to the Comptroller and Auditor-General of India.
- (4)The Comptroller and Auditor-General of India and any person appointed by him in connection with the audit of the accounts of any Institute shall have the same rights, privileges and authority in connection with such audit as the Comptroller and Auditor-General of India has in connection with the audit of the Government accounts and, in particular, shall have the rights to demand the production of books, accounts, connected vouchers and other documents and papers and to inspect the offices of the Institute.
- (5)The accounts of every Institute as certified by the Comptroller and Auditor-General of India or any other person appointed by him in this behalf together with the audit report thereon shall be forwarded annually to the Central Government and that Government shall cause the same to be laid before each House of Parliament in accordance with such procedure as may be laid down by the Central Government.
Summary
- The Institute must keep proper financial records and prepare an annual balance sheet.
- The format and accounting standard for these records are decided by the Central Government in consultation with the Comptroller and Auditor-General of India (CAG).
- If the Institute's accounts do not follow the standard rules, it must openly state the deviation, explain why it happened, and detail any financial impact.
- The CAG audits the accounts, has the power to demand documents and inspect offices, and the Institute must pay the costs of this audit.
- The final certified accounts and audit report are sent to the Central Government, which then presents them to both Houses of Parliament.
Practical examples
FAQ
1. Who decides how the Institute's balance sheet should look?
The Central Government specifies the form and accounting standard, in consultation with the Comptroller and Auditor-General of India.
2. What happens if the Institute breaks an accounting rule by mistake?
They must disclose the deviation, the reason for it, and the financial effect it caused in their statement of income and expenditure and balance sheet.
3. Who does the actual auditing of the Institute?
The Comptroller and Auditor-General of India (or a person appointed by them).
4. Does the public or government get to see the audit?
Yes, the final report is sent to the Central Government, which lays it before both Houses of Parliament.
Test yourself
Q1.Under Section 30 of The Indian Institutes of Information Technology Act, 2014, who is responsible for auditing the accounts of every Institute?
Q2.Under Section 30 of The Indian Institutes of Information Technology Act, 2014, if the Institute's statement of income and expenditure deviates from the specified accounting standards, what must the Institute do?
Q3.Under Section 30 of The Indian Institutes of Information Technology Act, 2014, who pays for the expenditure incurred by the audit team in connection with the audit?
Q4.Under Section 30 of The Indian Institutes of Information Technology Act, 2014, what must the Central Government do with the certified accounts and audit report once it receives them?