RTI MUMBAI DAY 2/SES 3/ SLIDE 2.3.1 Environmental Auditing Environment and auditing Environment--- a...

RTI MUMBAI DAY 2/SES 3/ SLIDE 2.3.1

Environmental Auditing • Environment and auditing• Environment--- a French word meaning “Environ or

environner”--- surround or round about• The surrounding which interacts with man• Environmental aspects---elements of an organization’s

activities, products or services that can interact with the environment

• Environmental impact--- any change to the environment, whether adverse or beneficial wholly or partially resulting from an organization’s activities,products or services.


Environment and man

• Relationship between man and environment• Balanced approach• Man depends on the environment for

various needs• For food, fire wood, water, air, shelter,

agriculture, transport,constructions etc.• The various spheres of mans’ needs are

categorised into 3


Category of environment

• Depending upon the nature of state of existence, the environment can be categorised into 3.

1. Lithosphere

2. Hydrosphere

3. Atmosphere


Lithosphere

• Here the environment exists in solid form

• Eg:- Land, trees, mountain,solid wastes, ships, vehicles, roads,

• Hydrosphere:- Here it is in the liquid form

• Eg:- water, oceans, rivers, lakes, canals, leachate,etc.


Atmosphere

• Gaseous form of environment:-

• Air, ozone, nitrogen, carbon dioxide, carbon monoxide, sulphur dioxide, chloro fluro carbons, water vapour


Atmosphere Air Contains:N2 78%O2 21%

Other gases (CO2), 1%Methane,Hydrogen, Helium, Neon,Ozone

Argon.Total 100%

Any imbalance in this affects O2 Content and makes air impure.


Causes of Air Pollution:

Vehicular

Industrial

Wastes / Hazardous Wastes

Air conditioning excess

Tree felling, etc


Result of Air Pollution:

Asthma, health hazards to children, animals, plants

Imbalance in Biological Oxygen demand

Imbalance in COD (Chemical Oxygen Demand)


Contd..

• Air pollution and health problems• Asthma, bronchial T.B, Cancer• Air impurities-SPM(suspended

particulate matter)• Goes into the respiratory system and

creates health hazards• Other chemical substances that are

present in the atmosphere causes diseases


Inter National Perspective:

Ozone layer depletion.

• Ozone in the Stratosphere plays and important role in protecting live organism on the earth from the sun’s harmful ultra violet (UV) radiation. The UV rays are absorbed by Ozone molecules and are then converted into heat energy. The ozone infact acts as a protective filter.

• Contributories – Developed nations – Developing nations. Share of Developed nations more.


International Environment Accords - Air

Ambient air quality

Afforestation

Location of Noxious gas emitting industries

Green house gas emission.


Indian Legislation:

Air (Prevention and Control of Pollution) Act, 1981

Air Act

SPM (Suspended Particulate Matter)

Stone crushers, fly ash from Thermal Power Stations.


Contd…

• Stone crushing produces SPM-harmful to health

• Fly ash from thermal power stations- settles down on earth-destroys vegetation as alkaline in nature

• Goes into the respiratory system and results in heath hazards

• Fly ash shrubbs the land-making infertile


Pollution Control Boards

Responsibilities- State Pollution Control Board functions as the Statutory authority for administration of the provisions of Air Act. It can deal with air pollution and take pollution control measures for air purification


Air Pollution means:

The presence in the atmosphere of any air pollutant means:

“any solid, liquid or gaseous substances (including noise) present in the atmosphere in such concentrations as may be or tend to be injurious to human beings or other living creatures or plants or property or environment”.


Pollution of Air

Pollution – Presence of foreign substances in the atmosphere in high enough concentration and for long enough duration to cause undesirable effects.

Pollutants – Foreign substances – Particulates, Sulphur dioxide, Nitrogen dioxide, Carbon mono oxide, Hydro carbons, Ozone, Lead.


Air Pollution – Major disasters

In London, 1952 – One full week presence of high percentage of Sulphur dioxide and particulate levels. About 4000 dead.

In U S- Donora, Pennsylvania, 1984.- Air pollution from Local industry. – 20 dead 600 fell ill.

In India – Bhopal Gas Tragedy 6000 dead 50 thousand injured


Effects of Air Pollution

Pollution of air -- Air Stagnation and SO2 concentration.

This causes Weather changes, temperature inversion. Illness, deaths etc.

Sulphur dioxide, Nitrogen dioxide, Ozone, cause Eye and throat irritation, coughing and chest paining.

Lead fumes -- asbestos fibers are carcinogenic.

Carbon monoxides -- odorless, goes inside the body and combines with Hemoglobin and absorbs oxygen from the blood causing death


Due to atmospheric pollution materials also get affected.

Corrosion of Metals:

• Deterioration of Textiles, Leather, Rubber, Nylon and other synthetic products.

• Air pollution affects vegetables, animals, fruits, trees, flowers etc.

• Leaves fall, vegetables decay, fruits dry.

• Cattle and livestock die.


Contd..

• Due to corrosion, the pipe lines of water supply get affected and water system gets choked up

• Due to chemical reaction of the soil the vegetables get decayed or become poisonous

• Water also gets polluted with air pollution


Green House Effect

CO2 is not an air pollutant in the normal course.

It is presents in air – 0.34 % or 340 ppm.

Combustion of coal oil and gas releases CO2 in atmosphere.

Less heat will escape out with CO2

concentration.

The heat level just increases – Green House Effect.


Acid RainNeutrality of Water is at average 7 pH value.

pH value of Water ranges between 0 and 14.

Anything below 7 pH value becomes acidic.

Anything above 7 pH value becomes alkaline.

Concentration of SO2, NO2 reacts with moisture to form nitric acid and sulphuric acid – Acid Rain.

This acid rain affects the buildings, other structures and bridges corrode


Environmental Problems of Acid Rain.

Contamination of Fresh Water lakes.

Forest decay.

Shrubbing of agricultural crops.

Contamination of drinking water.

Damage of other materials.

Death of fish.

Reduction of soil fertility.

Deterioration of concrete, metals, materials.


Causative AgentsTall chimneys of industries and Thermal power stations pollute air at high levels.They act as “Air mail” of pollution to other distant regions.Control of these causative agents can control air pollution also.For eg. In 1984 new York introduced measures for reduction of Sulphur emission by 30 % where by reducing acid rain.In 1986 a 5 billion programme to develop cleaner coal burning technology was introduced effectively as a Joint action of Canada and US.


Ambient Air Quality

Air quality is tested under controlled conditions.

It provides Data regarding Urban/Rural air quality.

Standards of air quality are determined based on Ambient Air Quality.

Particulates in the atmosphere are measured by Gravity techniques and inertial techniques.

SPM (Suspended Particulate Matter) and other particulate matters are separated and measured.


Sampling of Air

Methods:

Stack sampling.

Paper type Sampler.

Absorption

Adsorption


Control MechanismMost important Control – Source Reduction

This is possible with cleaner technology.

Dilution – Tall smoke stacks to reduce ambient ground level pollution.

Relocating the source – Air zoning – decided on the basis of population wind, weather etc.

All methods do not become effective due to:- air mailing nature of air

- cost effectiveness

- absence of knowledge of cleaner technology.


Audit Issues - Air

Audit – types – compliance Audit – Performance Audit.Compliance Audit – To verify that the audittee has complied with statutory environmental laws, rules.Central pollution control Board and State pollution Control Boards are Regulatory bodies enforcing compliance.Air (Control of pollution) Act 1981. Pollution Control Boards are agencies regulating and monitoring air pollution.


Salient features of Air Act, 1981

Ambient Air quality standards established.

Provides means for Control/ Abatement of Air Pollution.

Prohibits use of Polluting fuels/substances

Requires concerted efforts from pollution Control boards for establishing, operating polluting industries.

Pollution control boards to test air quality, inspect control appliances


National Ambient Air Quality Standards (NAAQS) notified – 1994.Standards specific to industrial residential rural and other sensitive areas.Pollution Control Boards – have powers to deal with grave emergency.Given power to recover the cost of control from the offenders.In 1998 Salient features of Air Act included in Motor Vehicles Act.Supreme Court issued Stringent Euro 1 & Euro 2 norms for car manufacturers.


Audit procedures – Compliance Audit

Mainly focused at Regulatory Bodies.Pollution Control Boards to see:That the industries/Specified industries take consent from themConsent for commencement – operationsTo maintain records of consents.Audit to verify adequacy of database and comment on inadequate data/loss of revenue/extent of Environmental damage.


Industrial zoning to be ensured

Non compliance leads to agglomeration of unwanted industries in densely populated areas leading to health hazards to human beings, cattle etc.

This leads to imbalance in ambient air quality

Since Air has Air mailing property this leads to non-compliance of international accords, National statues, Regulatory functions etc.


Audit of Legislative Frame work

National level policy – Review the policy and ensure adequacy for compliance of international compulsion in regard to Air Pollution.

Not to criticize the policy – SAI mandate does not specify.

Audit to focus on issues involving international commitments and inadequate legislation.

Audit to scrutinize the performance of Pollution Control Boards (PCBs) in complying with Laws/Rules/Regulations there under.


Financial AuditConducted at Regulatory Bodies public sector undertakings.

As regulators they have to enforce compliance of laws and collect cess, Revenue, Penalty etc.

Its adequacy to be audited and commented

Accounting aspects of these activities to be evaluated with reference to existing accounting standards.

The Balance sheet and notes forming part of accounts, liabilities/ contingent liabilities to be verified/commented.


In the case of public sector undertakings, comments under section 619 (4) of the companies Act, 1956 to highlight cases of non-compliance of Regulatory compulsion and resultant incidence of liability, contingent liability etc. To highlight Statutory Auditor’s obligation in reporting.To review Auditors report and comment absence of Reporting on adequate measures for Compliance of Environmental issues.To cover checking of Environmental assets established such as afforestation, gardening, ETP etc.To scrutinize treatment of environmental assets in the balance sheet and the disclosure of Accounting policy.


Performance AuditApplies to any other Audits where Performance audit techniques are involved.Pertains to review of Environmental projects, programmes, schemes.PCBs performance as well as any other projects undertaken by public sector undertakings, Government departments/Bodies/Authorities etc.Performance – Critically analyze to see:The objectives are achieved economically, efficiently and effectively.


Audit issues are:

Input Output ratios – concept is maximization of output at minimum input.Target is achieved efficiently and the targeted beneficiaries are not less than forecasted.The objective is achieved timely and the benefit accrued to the targeted group.No extra expenditure, no nugatory expenditure, no avoidable expenditure, no wastage, no fraud, no misappropriation etc.


Manpower utilization is minimum

No cost overrun, no time overrun.

Project completed in time -- ensuring abatement of pollution thereby ensuring eco-friendly, economic friendly projects/schemes.

Audit to review the project not only in economics/Financial terms but also in environmental angle.

Audit to ensure sustainable development theme while commenting the environmental projects.


AIR ACT – AUDIT QUESTIONNAIRE

• In the case of Air Issues also the regulatory body is PCB

• The Ambient Air Quality has to be maintained • The Ambient Air Quality differs from place to

place and location to location• Industrial area will have a separate Air Quality

whereas country side with full vegetation will have a different Air Quality


Cont…

• Air Quality depends upon the contents of Nitrogen, Oxygen, Other Gases

• The Effect will change with the change of 1% other gases which include CO2

• CO2 is produced with burning of carbon containing substances – burning of woods, burning of fossil fuels etc.


Impurities in Air

• SPM – Suspended particulate matter

• CO – Carbon Monoxide

• Other Noxious Gases

• Fly ash from power houses

• Decaying of organic matters

• Municipal waste

• Hazardous chemical waste


Effects of Pollution by AIR

• Human health hazards

• Green House effect

• Climate change

• Global Warming

• Deforestation

• Land decay


Cont…

• Air Borne diseases like Asthma, Respiratory Problem, etc.

• Increase in CO2 contents in Air

• Increase in Temperature

• Increase in Methane, Chloro fluro carbons.

• Loss of vegetation

• Loss of fertility of Land


GREEN HOUSE EFFECT

• Earth receives sunlight

• Earth radiates the received sunlight

• It escapes through the atmosphere

• If CO2 is present in large quantity, due to its peculiar property the radiated sunlight is absorbed by CO2 molecules

• This results in increase in Temperature.


MERITS AND DEMERITS OF GREEN HOUSE EFFECT

• In the atmosphere, if CO2 increases it results in increased Photosynthesis

• More vegetation

• But Global Warming

• Resulting in Melting of POLAR ICE and FLODDING

• Submerging of land


AUDIT ISSUES

• What are the sources of air pollution?• What are the causes of air pollution?• How is the air pollution regulated?• What are the preventive provisions of Air Act?• How is pollution of air from vehicles regulated?• What are the causes of carbon air pollution – How

regulated?• What are the entity’s/country’s policies on air

pollution?


AUDIT ISSUES (Cont…)

• Are they aligned with international Accords?• Is there any timeliness for control of Co2 in cities?• What are the programmes and what are effects of

not attaining?• What are the ill effects of air pollution and how

they affect mankind/plants/animals etc.• How are the ill effects controlled or abated by the

Govt. what are the programmes? What are the financials implications?



• Are the programmes of air pollution control planned and budget provided?

• Whether the International accords are taken into consideration? If so, the extent to which such commitments have been complied?

• Any financial implication exists for complying with the International air pollution accords. If so how and to what extent such commitments are complied and pollution controlled?



• How air pollutions affect the forest? What are financial implications involved at national level to abate/control them?

• Is there a Forest Policy and how is it Legislated?• What are the aesthetic effects of air pollution?

What are its applications? What is legislative remedy for such pollution?

• What are EMS on air pollution?• What are the UN efforts to contain the air

pollution?



• What are the roles of Pollution Control Boards (PCB) to Control/Prevent Air Pollution?

• How far legislative compliance has helped the PCB to control air pollution? What are the financial implications involved?

• How are the PCBs regulating gas emissions and what are the monitoring system?

• What is Acid Rain? What is the financial implication to control such rain? Who does the Control?



• How are toxic discharges (gases) in the lakes/rivers, etc controlled?

• What are POP’s (Paraystem Organic Pollutants)?

• What are the effects of Ozone?• How is the Ozone layer depleting controlled

by the country/entity?• What is climate change?


AUDIT OF AIR – AUDIT CHECKPOINTS

• Collect the various policy declarations of the Government as to its strategy to deal with water pollution, sustenance of water resources, water sharing, water pricing etc, to frame the audit approach.

• Get the detailed action plans and programmes prepared and proposed for implementation

• Conduct the usual regularity, financial, propriety and Performance audit of these programmes


AIR AUDIT CHECKPOINTS(Cont…)

Examine the various statues to identify the objectives, responsibility and mandates of the Governments, CPCB, SPCB, etc particularly the following acts and programmes

River Boards Act, 1956 Inter State Water Disputes Act, 1956 Irrigation Commissions (1901, 1972) Accelerated Rural Water Supply Programme (1972

– 73) Drought Prone Area Programme (1973)



The water (Prevention and Control of Pollution Act) 1974

Command Area Development Programme 1974 – 75

The Water Cess Act, 1977 Setting up of National Water Resources Council

1983 Centrally Sponsored Rural Sanitation Programme

1986 Environmental Protection Act 1986



73rd and 74th amendments to the Constitution of India 1992, 1993

National Lake Conservation Plan 1993 Setting up of National River Conservation

Directorate 1995 Accelerated Irrigation Benefits Programme

1996 National Water Policy 2002



• Go though the various Audit Reports of Union Government as well as the State Government to see the reviews as well as the Draft paras dealing with Environment issues, the PAC reports and recommendations and use them as guidelines for audit particularly for reviews.

• Collect the various publications of the Ministry of Environment and Forests to gather data useful for audit approach and audit analysis.



• See the cases of funding of specific projects or programmes, the conditions, monitoring mechanisms evaluation, analysis of results etc.

• See the commitments made as per the international Accords and see the various reports, data and progress reports to evaluate the impact as well as adherence to the commitments.

• See the research programmes undertaken, funding arrangements, mile stones of research, results of research, publications, scope for patents on certain techniques developed, commercialization of viable research out coming, etc.

RTI MUMBAI DAY 2/SES 3/ SLIDE 2.3.1 Environmental Auditing Environment and auditing Environment--- a...

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