Call to strengthen PPP audit

Audit of PPP projects should be mainstreamed and included as a component of regular audits, says guidance note for auditors

GN Bureau | January 24, 2017


#PPP. public-private partnership   #audits  


Public Private Partnership (PPP) models have been extensively employed in infrastructure sector, which include transport, energy, water, sanitation, social and commercial infrastructure. In addition, with the evolving governance structure, the nation’s wealth/natural resources are also being dealt by private parties for delivery of public goods and services, said a guidance note in the January issue of the Journal of Government Audit and Accounts.
 
The guidance note “Compliance audit of Public Private Partnership arrangements” said that since these PPP arrangements/structures along with the governmental organisational hierarchies implement government policies, receive, collect or expend public money these collectively comprise our audit universe.
 
 
Given the proliferation of PPP arrangements and their growing significance, the compliance audit of PPP arrangements needs to be strengthened. The objective of this guidance note is, therefore, to mainstream the planning and conduct of compliance audits of these PPP arrangements on a regular basis, it said.
 
 
The Compliance Auditing Guidelines provide the broad dimensions for evaluation of the high risk areas as also the various documents/literature and aspects that should be reviewed for assessment of risk.
 
A guideline for compliance audit of PPP arrangements comprising a) a fact sheet for maintaining database of PPP arrangements, b) indicative risk parameters and c) indicative checklist for audit of PPP arrangements has been prepared to facilitate risk assessment and conduct of regular compliance audit of PPP arrangements by field offices.
 
 
The guidance note said that audit of PPP arrangements had been a focus area of concern as this involves access to the records of private parties. The supreme court, in its judgement dated April 17, 2014, has allowed audit access to records of the private concessionaire in revenue share contracts to ensure that there is no ‘unlawful gain’ to the private concessionaire and no ‘unlawful loss’ to the government/ public entity.

 
The guideline draws attention to the following: a) Audit of PPP projects should be taken up as per the mandate provided under the supreme court judgment. b) Audit of PPP projects should be mainstreamed and included as a component of regular audits. c) Audit should develop capacity and build specialisation in audit of PPP arrangements.
 
It went on to say that PPP models have been extensively employed in infrastructure sector in the country. These PPP infrastructure projects includes transport, energy, water, sanitation and social and commercial infrastructure. In addition to the PPPs in infrastructure, the government has entered into partnerships with the private sector for exploitation of valuable, monopolistic natural resources.
 
 
 
 

 

Comments

 

Other News

A blueprint of India’s economic future: From a former RBI governor

From Dependence to Self-Reliance: Mapping India’s Rise as a Global Superpower By Bimal Jalan Rupa Publications, 184 pages, Rs 695 Bimal Jalan, a former governor of the Reserve Bank of India (RBI), has been one of our finest commentators on econom

Carbon neutrality: distant dream or a possible future?

While many countries have been chasing to reach the carbon neutral status, only a few seem to be living up to their pledges as of now. The famous ’Paris Agreement’ of 2015 was glorified and celebrated that finally 196 countries have united with an intent to mitigate and reduce the greenhouse ga

Agnipath: benefits and challenges on the path ahead

The government this week announced the Tour of Duty or `Agnipath` scheme for the recruitment of soldiers in the armed forces. Under this scheme new soldiers will be recruited only for four years. This radical and far-reaching scheme has attracted mixed reactions from various quarters. While some officials

Connecting credit card with UPI: What it means for you

UPI has become an integral part of our daily lives now. We use it to buy groceries, we use it to send money to friends and family, we use it to purchase tickets, book shows, pay the cab driver, and a whole host of other things due to the ease and availability of such a platform at our fingertips. The best

Gandhi’s letters to his youngest son also hold his aspirations for nation

Scorching Love: Letters from Mohandas Karamchand Gandhi to his son, Devadas By Gopalkrishna Gandhi and Tridip Suhrud Oxford University Press, 528 page, Rs 1495 Gandhi’s era happened to be an era when letter-writing was a primary mode of communica

‘In Mumbai, society, police forces triumphed over Covid-19’

Crediting the citizens of Mumbai for coming forward to help the police in combating the crisis situation due to Covid-19, Mumbai police commissioner Sanjay Pandey has said that Mumbai Police lost quite a few policemen during the pandemic but cumulative efforts, with citizens working hand in hand with the p

Visionary Talk: Sanjay Pandey, Mumbai Police Commissioner with Kailashnath Adhikari, MD, Governance Now


Archives

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter