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Performance Audit


Performance Audit has been incorporated in the audit portfolio of the Office of the Comptroller & Auditor General of Bangladesh [OCAG] since 1999. The OCAG realizes that in Bangladesh, where resource constraint is a major issue and a significant amount of public expenditure is financed by public debt, an independent evaluation of the economy, efficiency and effectiveness with which public resources have been used is essential. Therefore, Performance Audit was introduced by OCAG in addition to Financial and Compliance Audits for ensuring accountability of the executive to the Parliament and ultimately to the taxpayers for optimal utilization of public resources.

The Constitution of the Peoples’ Republic of Bangladesh provides OCAG with the mandate to perform Performance Audits. The mandate of the CAG, to carry out all audits, is derived from Article 128 of the Constitution which provides the CAG with discretionary power in deciding how, what and when to audit.
Moreover, the Public Accounts Committee [PAC] of the 5th Parliament expressed its concern in 1998 for greater accountability and requested the Auditor General to conduct Performance Audits alongside annual financial and compliance audits.

 

Performance Audit Activities in OCAG

Performance Audit was first piloted by OCAG in 1999 in response to the demand of the PAC. A Performance Audit Cell was created and four Pilot Audits were carried out by the Cell with officials who had under gone extensive trainings in the relevant fields. The reports were finalized in January 2002 and were submitted to Parliament. The reports are:

  • Performance Audit on Printing, Publication and Distribution of Text Books
  • Performance Audit on the Power Distribution System of Dhaka Electricity Supply Authority [DESA]
  • Performance Audit of the Industrial Parks of Bangladesh Small and Cottage Industries Corporation [BSCIC]
  • Performance Audit on the Health Care Services of the Chittagong Medical College Hospital

After the successful piloting of Performance Audit in Bangladesh, OCAG conducted performance audits regularly through the nine Audit Directorates.

Then in 2005 a Performance Audit Directorate was established to coordinate performance audit activities of OCAG. The Organogram of the Performance Audit Directorate is given below:

The main responsibility assigned to the Performance Audit Directorate is the enhancement of performance audit capability of OCAG by:

  • Providing advice to other Audit Directorates
  • Supervising performance audit works of other Audit Directorate
  • Conducting performance audits
  • Working as research wing of OCAG for improving audit methodology
  • Developing training modules and deliver trainings
  • Developing Quality Checklists
  • Setting up a Resource Centre

 

Status of Performance Audit Reports

Since 1999 total of 22 Performance Audit Reports have been submitted to the Parliament, of which following three (3) reports were discussed in the PAC:

  • Jamuna Fertiliser Co. Ltd. under Bangladesh Chemical Industries Corporation
  • Performance Audit on Bangladesh Jatiyo Grontho Kendro
  • Performance Audit on DESA.

The following 19 performance Audit reports have been submitted to the Parliament. The Public Accounts Committee of the 9th Parliament has established five sub-committees to address all files pending hearing.

 

  Audit Directorate

Ministry

Title

 Year

Commercial AuditDirectorate                               

Ministry of Industries

Audit of Bangladesh Insulator & Sanitary Ware Factory Ltd. of Bangladesh Chemical Industries Corporations

 1998-2003

 Commercial Audit Directorate                                                        

Ministry of Industries

TSP Complex Ltd. Patenga, Chittagong of Bangladesh Chemical Industries Corporations

 2002-2004

Commercial Audit                                                  Directorate                                                          

Ministry of Industries

Bangladesh Urea Fertilizer Ltd. Rangadia, Chittagong of Bangladesh Chemical Industries Corporations

 2002-2004

Commercial Audit Directorate               

Ministry of Industries

Jamuna Fertilizer Company Ltd. of Bangladesh Chemical Industries Corporations

 2002-2004

Commercial Audit Directorate

Ministry of Industries

:

2003-2004

Commercial Audit Directorate                                    

Ministry of Forest & Environment

:

 2003-2005

Local & Revenue Audit Directorate
                                               

:

:

 2003-2004

Local & Revenue Audit Directorate                                                 

:

:

2003-2004

Local & Revenue Audit Directorate

:

:

2002-2004

Local & Revenue Audit Directorate                                    

:

:

2001-2007

Local & Revenue Audit Directorate                                              

:

:

1994-2001