COMMUNITY AUDIT & SANCTION

INTRODUCTION:

Audit was originally confined to ascertaining whether the accounting party

had properly accounted for all receipts & payment on behalf of his principal &
was in fact merely a cash audit modern audit not only examine the cash
transactions but also verify the purpose to which the cash transactions relate in the
community. So community audit is therefore, an examination of accounting
records undertaken with or view to establishing whether they correctly &
completely reflect the transactions to which they relate.

Community audit is our independent appraisal activity for the review of

accounting, financial & other operations as a basis of sources. To the management
Audit seeks to investigations all practices related to accounting of materials used
in community labor or any other activity that involves a cost community audit is
done for the purpose of evaluation, verification & betterment of health services
provided in the community.

OBJECITIVES:

The document is intended to

1. Understand the definition of community audit & its control.
2. List out the objectives of audit.
3. Narrate the functions, spirit of audit.
4. List out the different types of community audit & its process.
5. Narrate the systems of audit.
6. To detect error & fraud in accounts.
7. To enable timely finalization of accounts.
 8. To make know the public that the sate of affairs of community health
services.
To achieve the above objectives in respect of Government audit it has to ensured
that:
 There is provision of frauds for the expenditure duly authorized by a
competent authority.
 The expenditure is in the accordance with the sanction properly accorded
7 is incurred by on officer competent to incur it.
 Payment has been made to proper person & duly acknowledge so that a
second claim on the same account is impossible.
 The charge is correctly classified.
 That the numerical balance of stock material in the community is
reconciled with the total of value of balance in accounts.

TYPES OF AUDIT & PROCESS OF AUDIT

The officer incurring expenditure must follow same criteria fixed for payment.
Essential candidate for incurring expenditure are:

(i) There should exist sanction either special or general accorded by a

competent authority in the community authorizing the expenditure.
(ii) There should be provision of funds authorized by competent authority
fixing the limit within which the expenditure can be incurred.
(iii) The Expenditure should incurred with due regard to broad & general
principles of financial property.
DIFFERENT TYPES OF AUDIT ARE:-

a) Approximate Audit
“Approximate Audit” is directed primarily to ascertaining that the money
expended has been applied to the purpose for which the groups & appropriation
specified in the schedule to an appropriation act passed under Article 204 of the
constitution have been provided & that the amount of expenditure against each
grant of appropriation does not exceed the amount included in that schedule. Audit
has to satisfy itself that the expenditure whish is being audited false within the
scope of grant or an appropriation specified in the true schedule to the
appropriation, expenditure in excess of the amount of a grant of appropriation.

The responsibility for watching the progress of expenditure against a grant

of appropriation devolves on the departmental officer who ultimately responsible
for keeping the expenditure within the grant. The detailed appropriation audit is
conducted in two stages.
(i) Sanction Audit i.e. Audit or orders of allotment funds & re
appropriates which are to be enforced in audit.
(ii) Audit of expenditure, against allotment.

In the Audit of order o allotment of fund to representation orders, it should be seen

that;

 Orders have been issued by a competent authority.

 The allotments made are not in excess of the amount available under the
grant.
 The amount re-appropriated is available under the unit from which it is
allotted.
 No amount is re appropriated from the grant to another grant.
  No funds provided under plan heads are re appropriated to Non plan heads
without the previous consent of the ministry of finance.

(b) Audit against Regularity

Audit against regularity consists in verifying the expenditure conforms to
the authority which governs it to the relevant provision of the constitution.
The work of audit in relation to Regulating of expenditure is of quasi-
Judicial character. It involves interpretation of the constitution. Rules 7 orders with
reference to case laws of previous decisions & procedures during the process of
audit it should be seen that the rules & orders are not in consistent with any
provisions of the constitution or the laws made there under, they do not conflict
with the orders of rules made by any higher authorities, the issuing authorities has
got the necessary powers.

(c) Audit against propriety

It is an essential & inherent function of audit working to bring the light not
only cases of clear, irregularities, but also every matter which appears to involve
improper expenditure in the community of work of public material, even though
the accounts themselves may be in order & no obvious irregularity has occurred.
Such audit is called ‘Propriety Audit’ propriety audit extends beyond the formality
of the expenditure to its wisdom ; faithfulness & economy. It is to be ensured that
broad principles of orthodox finance are born in mind no precise rules can be laid
down for are regulating the course of audit against propriety. Its object is to
support a reasonably high standard of public morality.

(d) Audit of sanctions to expenditure

The power of sanction expenditure from the consolidated fund & the
contingency fund of a state in the governor of the sate. The sanction of the
Governor or of fund of the state one of the important functions of audit in relation
to the audit of the expenditure is to see that each item of expenditure It’s governed
by the sanction of the authority competent to sanction. In the audit of sanctions
against expenditure, audit is to see that the authority sanctioning it is competent to
do so by virtue of powers vested in it or by the provisions of the constitution & the
laws while conducting audit of sanctions against expenditure audit should follow
the guiding principles as:

1) The sanctioning authority is vested with full powers of certain class of

expenditure. A sanction accorded under this power can be challenged by audit on
the ground of propriety.

2) If it is vested with the powers which may be exercises provided due regard is
paid to certain criteria, which are expressed in general forum, sanction accorded
under this power can be challenged by audit.

All sanction to expenditure should be noted & properly attested in the audit
register against which the audit of expenditure will be conducted. Recurring
charges which are payable as the fulfillment of certain conditions should be
admitted in audit on receipt of a certificate from the drawing officer to the effect
the conditions have been fulfilled.

(e) Efficiency – cum – Performance Audit

Before independence, Government audit was mostly confined to check
individuals, transactions against provisions of funds, rules or orders of sanction or
propriety of expenditure. These methods are quite effective or fruitful in detecting
improper, irregular, wasteful & uneconomic expenditure. But after independence,
the pattern of Government expenditure, its nature & dimension underwent rapid
change in the work of increasing government expenditure of development &
welfare activities. The security of individual transactions was felt quite inadequate.
It become necessary & essential for audit to ascertain whether the various
department programmes & accordingly been developed to meet the changing
requirements. This audit involves review of performance of a scheme in terms of
the goals & objectives.

Processing the Review

In processing the review, the following stages are involved.
1) Preliminary study of the selected project scheme.
2) Development of Audit Plan.
3) Review proper.
4) Preparing the review report

Advantages of Community Audit

1) People are assured of good health services in the community.

2) Better planning can be done through community audit.
3) It helps in reallocation of resources.
4) Authorities are also sure that people in the community are also getting quality
of services

Disadvantages
1) It is considered as a source of punishment to a professional group.