Accounting for Accountability
By: Mohammad Hussain Khan
In most traditional sense Public Financial Management is concerned with how Government manages the budget in its established phase viz formulation, approval and execution. It is interdisciplinary drawing from economics, political science and public administration, as well as Accounting and Accountability.
Accounting is the language which provides a way to measure financial performance while Accountability ensures that this performance is achieved in an ethical and responsible manner.
With a view to increase accountability, reduce misuse of public resources and improve compliance with laws and regulations in the Government departments of J&K. Accounting and Accountability are the concerns uppermost in the minds of all citizens. Economic development cannot be sustained in the long run unless it is driven by Accounting & Accountability.
Accounting and Accountability can contribute to a good governance and help to sensitize awareness and public opinion which in turn helps the citizenry to maintain vigil on the actions of executive. A Government is administered well or practices good governance when its authority and institutions are accountable, effective, transparent, equitable and inclusive under the rule of law. Good governance is not the responsibility of the Government alone. It also extends to the civil society, the NGO’s and Citizens.
The Government collects money from the public and spends it on behalf of public and thus such spending does place an element of higher accountability. Such accountability requires that the actions and decisions taken by public officials are transparent and capable of withstanding public scrutiny.
History speaks of such accountability being a cornerstone of virtually all definitions of democracy and good governance, since time immemorial. Despite good steps being initiated by the emperors, the lack of accountability had rendered the entire effort fruitless.
The community of nations seeks development which is sustainable over the long run. Such sustainability is possible only when it is premised on the delivery of public services based on core values such as Accounting and Accountability.
The existences of strong and independent accountability ensuring institutions are necessary to uphold the interest of citizens. These institutions detect and prevent poor administration, waste and leakages in the system. They restrain abuse of power and arbitrary behavior.
They prevent illegal and unconstitutional conduct and enforce standards of responsibility and accountability. These institutions entrusted with oversight functions provide an independent mechanism to ensure that things move in the manner they are supposed to move and that the deviations to acceptable practices are identified and midcourse corrections are taken. Citizens are the ultimate stakeholders in their Government and public trust is crucial to any Government which wants to survive.
Accounting and Accountability, the two cardinal principles of good governance in a democratic setup depend to a large concept on how well the public audit function is discharged. Just as it is difficult to know when a fish moving in water is drinking it, so it is challenging to find out when a Government servant incharge of undertakings, misappropriates money.
It is in this background that the framers of the constitution of India decided to provide and independent authority in the form of C&AG. The C&AG is critical link in the chain of public accountability in a democratic system of Government.
As models of governance evolve and newer system to purvey Government schemes are conceptualized, auditors have also to keep upgrading their skill sets. This is the way in which audit can add value. I also wish to emphasis that between “audit” and the “administration” there is no “We” and “They” relationship. Both are on the same side of table. Their goals are common. While the administration is the spending agency of Governmental resources, the auditor is merely the validation agency to provide comfort not only to the legislature but also to the man on the street.
In the newly emerging scenario, the public besides seeking a more participative governance, is getting more vocal in its observation on the performance of the Government agencies. There is a thus a perceptible paradigm shift in the approach towards public spending. Should there not be a paradigm shift in the approach of auditors too?
The oft raised query is that, in an era where the Government has itself introduced the concept of social audit and transparency through the Right to Information Act, should not the Public auditors seek to sensitize public opinion about audit observations, especially in respect of the audits of the social sector departments such as those dealing with public health, primary education, rural employment, environment and drinking water.
It is incumbent on auditors to sensitize public opinion towards the way Government expenditure is undertaken and how the nation’s resources are being tapped for its economic development. The Supreme Court of India in 2013 had passed a Judgement stating as follows: “The CAG is not a Munim (accountant) to go into the balance sheet. The CAG is a constitutional authority entitled to review a conduct performance audit on revenue allocations relating to the centre, the states and union territories and examine matters relating to the economy and how the Government uses its resources. Don’t undermine the office of the CAG”
Since thought is the servant to action, it is, therefore, crucial that the accountability institutions must reshuffle themselves to the changing scenario and must assist to serve the interest of the public, as economic prosperity is not an option but a necessity.
At the end, I would like to add here that to record every deed of His supreme creation (man), God has assigned this work to Holy Angles. To great extent, job of questioning, testing and communication has also been entrusted to Holy Angles. Thus Accounting and Accountability has a divine origin and demands sincerity, honesty and integrity.
