The rules and procedures framed or adapted under the Constitution that the Legislatures follow in dealing with the Reports provide for the examination of the Accounts and the Reports by Committee of the Legislature known as PAC of the State. The Principal Accountant General/Accountant General assist the Committees in the examination of the Audit Reports.

 As soon as the Audit Reports are placed in the Legislature, the Administrative Department is required to take immediate action to rectify the irregularities mentioned in the Reports and submit Action Taken Notes (ATNs) to the Assembly Secretariat for consideration of the PAC duly vetted by Audit. The time limit fixed for submission of such replies is three months. Certain Audit paragraphs are selected by the PAC for oral evidence and detailed discussion.

Based on the final replies received, a detailed MIP (Memo of Important Points) is prepared for the Members of the Committees that serve as a ready guide or ‘aide memorie’ for oral evidence. The PAG/AG is invited to be present at the meetings of the Committees when oral evidences are taken. During oral evidences, the PAG/AG assists the Chair in the examination of the issue.

After examination of the replies of the Department of the Audit Paragraphs and the oral evidence during the discussion, PAC finalizes its recommendations on the Audit paragraphs in the form of a Recommendation Report (RR). The Report is placed in the Legislature.

The Government and the Department concerned are required to take prompt corrective action on the PAC recommendations and Action Taken Notes (ATNs) are to be submitted to the Committees.

These ATNs are vetted by the PAG/AG who keeps a close watch on the action taken by the departments on the recommendations of the Committees. The Committee also monitors the follow-up action on the ATNs and if on certain points action is an inadequate call for the Secretary of the department concerned for oral evidence. After examination of the action taken notes PAC finalises its views on ATNs in the form of a Report i.e. ATR (Action Taken Report). The Report is also placed in the Legislature.


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