Defence ministry sets up panel to carry out performance, efficiency audit

New Delhi, July 15: The Defence Ministry on Friday set up an institutional mechanism comprising an apex committee, with the defence secretary as chairman, to conduct a "performance and efficiency" audit of capital procurements, logistics, inventory, and maintenance of assets of the armed forces.

"This kind of audit is expected to provide valuable inputs to the top management of the ministry of specific shortcomings, if any, in planning and execution of projects, and suggest systemic improvements in internal controls, soundness of financial procedures, identification of risk factors, etc," the ministry said in a statement.

The members of the committee include Vice Chiefs of the three Services, Secretary Defence (Finance), Chief of Integrated Staff Committee (CISC), Controller General of Defence Accounts (CGDA), Director General (Acquisition) and other senior officials of Ministry of Defence and Defence Research and Development Organisation (DRDO).

The broad areas that have been identified for the conduct of Performance and Efficiency Audit include Defence Capital Procurements, provisioning, logistics, inventory levels, Maintenance of platforms/ assets, role and performance of Authority Holding Sealed Particulars (AHSP) etc. the Apex committee can also recommend any other specific area for Performance and Efficiency Audit.

The committee chaired by Defence Secretary will identify specific areas for the conduct of performance and audit by CGDA and monitor performance audit reports and action taken thereon.

It also shall advise Defence Minister on remedial measures to be adopted as well as measures for overall improvement in the strengthening of internal oversight and Risk Management Framework.