Section 28 of The Indian Institutes of Information Technology (Public-private Partnership) Act, 2017
- (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 or any other person in accordance with the provisions of the extant rules 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 or such person.
- (4)The Comptroller and Auditor-General of India and any person appointed 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 in this behalf together with the audit report thereon shall be forwarded annually to the Central Government.
Summary
- The Institute must keep correct accounting records and prepare an annual balance sheet.
- The format and accounting standards for these records are decided by the Central Government along with the Comptroller and Auditor-General of India.
- If the Institute's accounts do not follow standard accounting rules, they must explain the deviation, why it happened, and how it impacts their finances.
- The Comptroller and Auditor-General of India (or their appointee) audits the Institute's accounts, and the Institute has to pay the cost of this audit.
- The auditors have the power to demand account books, vouchers, documents, and to inspect the Institute's offices.
- The final audited accounts and the audit report must be sent to the Central Government every year.
Practical examples
FAQ
1. Who decides how the Institute's balance sheet should look?
The Central Government specifies the form and accounting standards in consultation with the Comptroller and Auditor-General of India.
2. What happens if the Institute makes an exception to normal accounting rules?
They must clearly state the deviation, explain the reason for it, and show the financial effect in their statements.
3. Who audits the Institute's money?
The accounts are audited by the Comptroller and Auditor-General of India or any other person appointed in this behalf.
4. Who pays for the audit process?
The Institute is required to pay any expenditure incurred by the audit team.
5. Where does the final audit report go?
It is forwarded annually to the Central Government.
Test yourself
Q1.Under Section 28 of The Indian Institutes of Information Technology (Public-private Partnership) Act, 2017, who audits the accounts of every Institute?
Q2.Under Section 28 of The Indian Institutes of Information Technology (Public-private Partnership) Act, 2017, if an Institute's balance sheet does not comply with the prescribed accounting standards, what are they required to disclose?
Q3.Under Section 28 of The Indian Institutes of Information Technology (Public-private Partnership) Act, 2017, what authority does the auditor have during the audit process?
Q4.Under Section 28 of The Indian Institutes of Information Technology (Public-private Partnership) Act, 2017, who bears the expenditure incurred by the audit team in connection with the audit?