CAG investigates EPF balance sheets over surplus fund


New Delhi: The Comptroller and Auditor General of India (CAG) has asked the Employees' Provident Fund Organization (EPFO) to provide details about the sources of the surplus money that funded additional interest of 1 percent on retirement savings in the current fiscal year. According to an EPFO official, CAG came to examine the EPF balance sheets and seek details to find how the additional money of 1,731 crore arose. CAG audits the accounts of the EPFO every year. Therefore, a surplus of 1,731 crore surprised it. Now, CAG has decided to examine the records to ensure there is no accounting error, said an official with the CAG. Samirendra Chatterjee, central PF commissioner said, "Our records are regularly audited by the CAG". He further added that the surplus was found when the accounts were analyzed on an accrual basis. The EPFO follows a cash-based accounting system and not the accrual based. Hence, the interest suspense account in the EPFO had a balance of 14,696 crore as members' account have not actually been credited.