The wing at CAG office is known by Revenue Audit Wing. The wing is headed by Principal Director who reports to Deputy C&AG who in turn reports to C&AG of India. The PD is assisted by a team of Director(Customs), Sr. Administrative Officers (Customs) and sectional staff in discharging duties.
Functions of Revenue Audit Wing (Customs):-
1. The Principal Director functions as Principal Audit Officer and are vested with the responsibility of preparing annual audit report, which after approval of C&AG is submitted to the President of India for being laid before both Houses of Parliament. 2. Draft paras on Customs and also draft Review Report on Performance received from the field offices are vetted at HQrs and issued as draft audit paragraphs (DAP) and draft review report to the Ministry of Finance or Commerce as the case may be for their comments. Based on the Ministrys reply, Audit Reports (Compliance and Performance) are prepared. The Audit Reports are duly signed by P D (Customs) and countersigned by CAG of India and submitted to the President of India through the Ministry of Finance, who causes them to be laid on table of both the houses of Parliament every year preferably during budget session. 3. CRA wing at HQrs coordinates customs audit work in the field offices which includes issue of directions/instructions for audit planning, execution and reporting, etc. Topics for review type of DPs on
Material Prepared by Smt. M.Janaki Devi,AAO(Customs), PDA(Central), Hyderabad systems defects and recurring failures are identified and guidelines for undertaking the systems review on the subject. 4. PD (Customs) may consider attending some of the meetings of the conferences of Commissioners of Customs convened by CBEC. 5. Tripartite meetings: In case of difference of opinion on interpretation of legal points arising between the CAGs office and Ministry, on points of law involved in audit objections and resolved in Tripartite meetings held in the Ministry of Law. 6. Technical inspections of CRA wing of field offices are conducted on rotational basis by HQrs inspection team. 7. Association with Public Accounts Committee: After the report is laid on the table of the Parliament, the PAC takes up the report for discussion, identify the topics/issues for oral discussion. 8. Organising seminars and workshops: Periodical seminars/workshops on customs matters are organized by HQrs office with the help of field offices. Field formations:- The audit of receipt is conducted in the field under the overall supervision of AG/PDA (Central) having state wise jurisdictional charge of the area under Customs Commissionerates. CRA wing functions under the charge of a Group Officer supported by field inspection parties. The field parties visit the commissionerate offices, preventive units, etc and conduct audit of customs receipts. The audit of expenditure relating to these offices is also simultaneously conducted by the CRA parties. In major commissionerates, the CRA also carries out concurrent test audit of bills of entry and shipping bills at the customs houses.
Material Prepared by Smt. M.Janaki Devi,AAO(Customs), PDA(Central), Hyderabad Besides, the Customs commissionerates, the CRA wing also insects records at various offices of the Director General of Foreign Trade (DGFT), the Development Commissioner under the Ministry of Commerce, the Director, STP, etc. In addition, every year, CRA wing also undertakes performance audit reviews on topics/schemes as per HQrs directions.
Concurrent Audit:- Objection are issued in the form of Test Audit Memos under the signature of SAO/AO, incharge of concurrent audit to the jurisdictional incharge through the internal audit department and acknowledgement obtained. The Audit Memos should bear running serial numbers and kept in record. Receipt of documents for audit from customs house and their return after audit are watched through a register called Key Register. The Audit Memos issued are watched through a Register of Test Audit Memos, which is submitted to the Branch Officer and Group Officer every month for review. Local Audit:- All objections in the form of Audit Queries/Half Margins under the signature of SAO/AO, incharge of the party should be issued to the jurisdictional in charge of Customs. The objections which could not be settled on the spot during the course of audit should be drafted in the Local Audit Report (LAR). The LAR should contain three parts:- Part I:_ Inroductory Part II A:- Should contain all Major Irregularities noticed in current audit which is likely to find a place in the Audit Report of CAG. Part II B:- Should contain paras which are not required to be pursued through Part IIA of the LAR
Material Prepared by Smt. M.Janaki Devi,AAO(Customs), PDA(Central), Hyderabad Part III:- Minor objections ( less than 10000). All objections should be entered in Objection Book and closed every month and submitted. Draft LAR should be prepared by the AAO and reviewed by the SAO/AO, incharge of the party. Before submitting it to HQrs section, the cases should be discussed with the concerned Asst. Commissioner in case of Division or Superintendent. The fact of discussion should be mentioned in the lar. LAR should be issued within 5 days of completion of audit to HQrs section. The report should be vetted by AAO, then AO/SAO at local HQrs and approved by the Group Officer. The complete and neatly typed report should be issued to the concerned officer with a copy to AC/DC, Customs within one month from the date of completion of audit. A Register of LAR should be maintained. Objection Book:- All objections should be entered in the OB. It should be closed every month under the signature of SAO and reviewed by Group Officer. PDP (MI) register:- All Potential Draft Paras/Major Irregularities are entered in the register and only those cases which are converted into Statement of Facts or dropped on approval of PDA should be cleared from the PDP register. Should be submitted on 10 th of every month to the GO/PDA for their review. SOF register:- All Statement of Facts may be forwarded to the department for confirmation of facts within 6 weeks. Based on the SOF and departments comments, draft paragraphs are processed. If the para is not fit to be developed as DP based on the reply of the department, the case may be removed from the SOF register. The register is to be putup to PDA by 10 th
of every month.
Material Prepared by Smt. M.Janaki Devi,AAO(Customs), PDA(Central), Hyderabad Returns to HQrs office:- (Authority:- HQrs circular No. 1/2011-Customs / No.240/85/RA-INDT-Cus/2011 dated 2.9.2011. Sl.No. Name of returns Periodicity 1. Half yearly performance report April and October 2. Objections accepted and not converted into DPs April (Annual) 3. Statement of objections for which first replies have not been received within six months of issue April and October