BHUBANESWAR: The Finance department has issued a strong directive to all departments to urgently address a massive backlog of internal audit reports and outstanding audit paras involving financial irregularities exceeding Rs 48,448.10 crore.
In a communication issued by additional secretary Sagarika Hota to financial advisors (FAs) and assistant financial advisors (AFAs), the government highlighted that as per monthly progress reports up to September 2025, a total of 8,214 internal audit reports (IARs) and 77,413 audit paras remain pending across 27 departments.
The department expressed serious concern over the scale of irregularities which include misappropriation of funds, amounts pending recovery and sums held under audit objection. The situation reflects systemic weaknesses in financial management and poor compliance with audit mechanisms, it said.
The review further revealed long-standing lapses, including accumulation of unadjusted advances over several years and audit paras remaining unresolved for 10 to 20 years. In many cases, officials responsible have already retired or passed away, complicating accountability and recovery efforts. The delay has also resulted in substantial losses to the state exchequer due to non-recovery of misappropriated funds.
To address the issue, the Finance department has directed FAs and AFAs to closely monitor pending audit reports, conduct regular reviews and ensure that audited organisations take prompt action for early settlement of audit objections. They have also been asked to guide departments in fixing responsibility on erring officials and initiating necessary departmental proceedings.
Audit personnel have been instructed to prioritise unresolved audit paras during their next inspections and provide guidance to offices concerned for compliance. The Finance department will also undertake department-wise reviews to track progress in clearing pending audit reports and strengthening financial discipline.