Hyderabad: A large number of audit red flags raised by the Comptroller and Auditor General (CAG) remain unaddressed in Telangana, with several govt departments failing to respond to queries on irregularities in schemes and project implementation, raising concerns over accountability and oversight. According to the CAG report, departments have not submitted action taken reports or provided adequate replies to audit observations. Between 2017 and 2022, as many as 3,914 inspection reports and 28,424 audit findings (paragraphs) remained pending with various departments. Key departments that failed to respond include irrigation, agriculture, animal husbandry, environment and forests, higher education, panchayat raj and rural development, transport, industries and municipal administration. While some departments are yet to be bifurcated, certain corporations are currently inactive. Irrigation tops the listThe irrigation department accounts for the highest pendency, with 889 inspection reports (IRs) and 2,599 observations pending. The agriculture department follows with 484 IRs and 2,691 findings awaiting response. “The department heads or senior officials are supposed to respond to the observations contained in IRs and take appropriate corrective action. Audit observations communicated in IRs are also discussed at periodical intervals in meetings at district and state level by officers of the accountant general’s office with officers of the departments concerned. Of these, replies have not been received in respect of 617 IRs (6,671 paragraphs),” the CAG report said. Official sources said departments are required to respond to draft audit reports within a stipulated timeline, ideally within three months. Draft compliance audits were sent to departmental secretaries with a note that these would be placed before the assembly. Despite this, many departments did not furnish replies. The non-receipt of responses was brought to the notice of the chief secretary in March 2024 and reiterated in Aug that year. The CAG noted that responses received from the govt were incorporated in the report. Financial lapses“Lack of action on the inspections and audit paragraphs is fraught with the risk of perpetuating serious financial irregularities pointed out in these reports. It may also result in dilution of internal controls in the governance process, inefficient and ineffective delivery of public goods, services, fraud, corruption and loss to public exchequer. The state govt should come up with an appropriate mechanism to review and take expeditious action to address the concerns flagged in these audit reports,” the CAG said. The CAG also expressed concern over delays in submitting action taken reports, stating that departments should respond proactively without waiting for formal notices.
