Separation of accounts from audit
Also called: Departmentalisation of accounts · Topic: Constitutional Bodies: UPSC, CAG, Finance Commission and Others · NCERT: Beyond NCERT
Meaning
Separation of accounts from audit is the reform begun by a 1976 amendment. Under it, Union ministries keep their own accounts instead of the CAG's office compiling them. These accounts are now managed under the Controller General of Accounts. The idea is simple: the person who checks the books should not also be the one who writes them. This freed the CAG to focus on audit.
Example
Since 1976, a Union ministry's spending records are kept by its own accounts wing. The CAG's staff then audit those records from outside. At the state level, the Accountants General still compile most state accounts.
Don't confuse with
- Comptroller role: despite its name, the CAG never "controls" the release of money from the Consolidated Fund. Separating accounts from audit is a different issue. It is about who keeps the books.