Which of the following statements is/are correct? 1. The Muddiman Committee recommended the separation of Accounts from Audit as a necessary financial reform 2. Indian Institute of Public Administration was set up on the lines recommended by Dr. Paul H. Appleby Select the answer using the code given below:

Correct — C, Both 1 and 2. Statement 2 is the firmer of the two. Paul H. Appleby surveyed Indian administration for the Government of India and his 1953 report recommended a national institute to train administrators and to carry out research in public administration; the Indian Institute of Public Administration was set up in New Delhi in 1954, with Jawaharlal Nehru as its first president. Statement 1 rests on the recommendation that accounts be separated from audit, which Indian public-administration literature attributes to the Muddiman Committee of 1924 — the same committee better known for its split majority and minority reports on the working of dyarchy. The separation itself came much later, when Union government accounts were departmentalised in 1976 and the Comptroller and Auditor General was relieved of compiling most of them.

• (a)1 only — It drops the Appleby link, which is the better documented of the two. Appleby's 1953 survey led directly to the founding of the Indian Institute of Public Administration in 1954.
• (b)2 only — It rejects the accounts-audit statement. Keeping the same office both to write the accounts and to audit them is a recognised conflict, and the 1924 recommendation to split the two is the one this item is drawing on.
• (d)Neither 1 nor 2 — Statement 2 alone rules this out. The Indian Institute of Public Administration exists, and it was founded on the recommendation contained in Appleby's report.

Auditing an account written by the same office is a weak control, so most systems separate the accounting function from the audit function. In India both sat with the Auditor General under the Government of India Act, 1919, and the split was carried through only after the Comptroller and Auditor General's (Duties, Powers and Conditions of Service) Act, 1971, when Union accounts were departmentalised in 1976. Paul Appleby's two reports of 1953 and 1956 are the other landmark in this stretch, and the second of them proposed what became the Institute of Public Administration and an organisation and methods division in the government.

The attribution in statement 1 is worth flagging honestly. The Muddiman Committee is remembered in constitutional history as the Reforms Enquiry Committee on dyarchy, and its accounts-audit recommendation is recorded in Indian public-administration texts rather than in the constitutional narrative. Statement 2 is the safer anchor: if a candidate is sure only about Appleby, options (a) and (d) are already gone, and the choice narrows to (b) or (c).

• Paul H. Appleby surveyed Indian administration in 1953 and reported again in 1956.
• The Indian Institute of Public Administration was established at New Delhi in 1954.
• Separation of accounts from audit was carried through in 1976 with the departmentalisation of Union accounts.
• The Comptroller and Auditor General's (Duties, Powers and Conditions of Service) Act was passed in 1971.
• The Muddiman Committee of 1924 is otherwise known as the Reforms Enquiry Committee on the working of dyarchy.

• Placing the founding of the Indian Institute of Public Administration after the first Administrative Reforms Commission; the institute came a decade earlier.
• Assuming the accounts-audit separation happened in 1924 because that is when it was recommended.
• Mixing up the Muddiman Committee with the Simon Commission, which followed in 1927.

A two-statement item that pairs a well-documented fact with a weaker attribution, so that the safer statement carries the answer.

• practice — not a real PYQ

  The Indian Institute of Public Administration was set up in 1954 following the report of

  • (a)Paul H. Appleby
  • (b)A. D. Gorwala
  • (c)K. Santhanam
  • (d)Morarji Desai

  Answer(a) Paul H. Appleby — his survey of Indian administration proposed such an institute.

• practice — not a real PYQ

  The departmentalisation of Union government accounts, which separated accounts from audit, took effect in

  • (a)1950
  • (b)1971
  • (c)1976
  • (d)1985

  Answer(c) 1976 — following the Comptroller and Auditor General's (Duties, Powers and Conditions of Service) Act, 1971.