Section 16 of The Rehabilitation Finance Administration Act, 1948
1[16. Accounts and audit.—(1) The Administration shall maintain proper accounts and other relevant records and prepare an annual statement of accounts including the profit and loss account and the balance-sheet in such form as may be prescribed by the Central Government in consultation with the Company and Auditor-General of India.
- (2)The accounts of the Administration shall be audited annually by the Comptroller and Auditor General of India and any expenditure incurred by him in connection with such audit shall be payable by the Administration to the Comptroller and Auditor-General of India.
- (3)The Comptroller and Auditor-General of India and any person appointed by him in connection with the audit of the accounts of the Administration 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 Government accounts and, in particular, shall have the right to demand the production of books, accounts, connected vouchers and other documents and papers and to inspect any of the offices of the Administration.
- (4)The accounts of the Administration 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 both Houses of Parliament.]
Summary
- The Administration must keep accurate financial records and prepare a yearly statement showing their profits, losses, and overall financial balance.
- The format of these accounts is decided by the Central Government along with the Comptroller and Auditor-General of India (a high-level government auditor).
- The Comptroller and Auditor-General audits the Administration's accounts every single year.
- The Administration has to pay out of its own pocket for the costs of this yearly audit.
- The auditors have full power to demand any account books, vouchers, or papers, and can inspect any of the Administration's offices.
- After the audit, the final certified accounts and the audit report are sent to the Central Government, which then presents them to both Houses of Parliament.
Practical examples
FAQ
1. Who is responsible for checking the Administration's math and money?
The Comptroller and Auditor-General of India checks their accounts every year.
2. Who pays for the auditors to do their work?
The Administration must pay the Comptroller and Auditor-General for any expenses incurred during the audit.
3. Do the auditors have special powers?
Yes. They have the same rights they do when auditing normal government accounts, meaning they can demand any book, paper, or voucher, and inspect any office.
4. Who sees the final audit report?
It is sent to the Central Government, which is then legally required to show it to both Houses of Parliament.
Test yourself
Q1.Under Section 16 of The Rehabilitation Finance Administration Act, 1948, how often must the accounts of the Administration be audited?
Q2.Under Section 16 of The Rehabilitation Finance Administration Act, 1948, who performs the audit of the Administration's accounts?
Q3.Under Section 16 of The Rehabilitation Finance Administration Act, 1948, who pays the expenses incurred for the audit?
Q4.Under Section 16 of The Rehabilitation Finance Administration Act, 1948, what happens to the audit report after it is certified?
Q5.Under Section 16 of The Rehabilitation Finance Administration Act, 1948, who decides the form of the annual statement of accounts?