Government Rules — Questions & Answers
622 common questions answered with rule citations. Can't find your answer? Search rules or ask Niti AI.
Can a contract be entered into without inviting open tenders?
Only in cases where it is not considered practicable. The reasons for not inviting open tenders must be recorded in writing....
Who holds the nomination for a non-gazetted government servant?
The Head of Office holds the nomination for non-gazetted government servants and for gazetted officers whose pay is drawn by Heads of Offices in establishm...
Does this apply to all state corporations automatically?
No. This section applies only to corporations whose audit is NOT already entrusted to the CAG by law. Many state corporations are already under CAG audit b...
What is an audit trail in a computerised system?
An audit trail is a chronological record of system activities that allows reconstruction of all events related to a transaction — who entered it, when, wha...
How does leave salary work during foreign service?
The foreign employer maintains a proforma leave account, sanctions leave under intimation to the AG, pays the leave salary, and then claims reimbursement f...
Do all states still have the CAG compile their accounts?
No. Over the years, some states and many Union Government departments have taken over account compilation. Where this has happened, the CAG's AG office no ...
Why is programme overlap a problem?
Overlap leads to the same people receiving benefits meant for different beneficiaries, resulting in wasteful expenditure, inflated coverage figures, and ge...
Can the PAC direct a ministry to take corrective action?
No. The PAC submits its findings and recommendations as a report to the Legislature. It is up to the government to act on the recommendations, and the Legi...
Why must interview evidence be signed by both parties?
To ensure the auditee agrees with what was discussed and cannot later deny the information provided. It creates an authenticated record of the audit intera...
What happens if the statutory auditor fails to comply with prescribed standards?
Non-compliance can lead to the auditor's report being questioned during CAG's supplementary audit, potential debarment from future appointments under Regul...
Why do different entities follow different accounting rules?
Different entities have different operational needs. Treasuries handle government cash flows, public works divisions manage construction accounts, and auto...
Does a post redesignation always require a new pay slip?
No. If the redesignation does not involve any change in duties, classification, or scale of pay, and this is clearly communicated in the gazette notificati...
When is numerical audit sufficient instead of nominal audit?
Numerical audit is sufficient for all scholarship/stipend cases that do not fall under the five categories listed in Para 3.5.24, such as small-value stipe...
Why are loose-leaf ledger cards preferred over bound ledgers?
Loose-leaf cards can be easily rearranged — for example, when a subscriber transfers between districts. They can also be removed when an account is closed,...
What is the Objection Book in this context?
The Objection Book records items that are held in suspense because they could not be classified to a final head of account or had objections raised against...
Why are audited figures needed instead of just departmental figures?
Audited figures carry the assurance of the AG's verification, ensuring accuracy and preventing over-reporting of expenditure by State departments that coul...
Can the AG (Audit) modify the topic recommended by the Board?
The AG (Audit) should generally follow the Board's recommendation. However, if circumstances change (e.g., the entity is restructured or the issue becomes ...
What is the difference between a sub-voucher and a payee's receipt?
A sub-voucher details what was purchased or what service was rendered — like an invoice from a vendor. A payee's receipt is the acknowledgment signed by th...
Why is the half-yearly cross-check done by a different AAO?
Having an independent AAO from a different section ensures objectivity. The reviewing officer has no vested interest in the work being correct and can prov...
What happens if replies are not submitted within the stipulated time?
Late or non-responses may lead to audit proceeding without the entity's input (similar to Regulation 103 for corporations). Non-cooperation may itself beco...
How is the sampling technique determined?
The sampling technique depends on the nature of the data (financial vs non-financial), the type of analysis required (trend analysis, exception testing, et...
What types of government contracts does this cover?
This covers all types of government contracts — works contracts (construction, repair, maintenance), supply contracts (procurement of goods and materials),...
Who maintains the detailed loan accounts for State Government borrowings?
The Accountants General (Accounts & Entitlements) in each state maintain detailed accounts of loans, including disbursements, interest accrued, instalments...
Is the draft report shared with anyone other than the Secretary?
The regulation specifies the Secretary to Government of the concerned Ministry/Department as the recipient. The Secretary may share internally for preparin...
What are assignment and letter of credit limitations?
These are spending limits set by the government for drawing officers. Banks must check that cheque encashment does not exceed these pre-set limits, failing...
Can a government company appoint its own statutory auditor?
No. Unlike private companies where shareholders appoint auditors, for government companies the appointment is made exclusively by the CAG under Section 139...
Why should audit examine the project from the conception stage?
Many performance failures originate in poor planning, inadequate surveys, or unrealistic feasibility assumptions. Understanding the genesis helps audit tra...
Does the CAG only check for rule violations, or also for wasteful spending?
Both. Regulation 22(4) states audit checks cover regularity (compliance with rules) as well as assertions like completeness, proper measurement, and valuat...
How are double pension claims prevented?
For non-gazetted officers, a note is made in the Service Book recording the pension amount and date of admission. For gazetted officers, the pension verifi...
What happens to an objection if the government servant transfers to another department?
The objection remains in the original department's Objection Book. A note of the transfer is made, and a retrenchment warning slip is sent to the new Treas...
What does 'mutatis mutandis' mean in the context of Regulation 22(2)?
It means the basic audit principles for Consolidated Fund expenditure apply to Public Account and Contingency Fund transactions as well, with necessary mod...
Is the CAG's advice on accounting standards binding on the government?
Under Article 150, the President prescribes the form of accounts on the CAG's advice — this is constitutionally mandated. For other advisory matters, the a...
What is the departmentalised accounting system?
It is the system where each Ministry/Department handles its own accounting through designated public sector banks (nominated by RBI) rather than through a ...
What does it mean that Goa has 'departmentalised' its accounts?
It means the state government has taken over the compilation of its own accounts from the CAG's office. The Accountant General (A&E) no longer prepares the...
Why is the last day of the month used instead of the actual dates of expenditure?
PWD expenditure occurs in small amounts across many days. Using the last day of the month simplifies interest calculation while being fair to the borrower ...
What are takavi works?
Takavi works are government-financed agricultural improvement works (like wells, bunds, or small irrigation channels) where the cost is advanced as a loan ...
How does integrated audit differ from a regular compliance audit?
Compliance audit checks whether rules were followed. Integrated audit goes much further by examining the entire functioning of a department -- its financia...
Why is dual follow-up necessary?
The Local Fund Auditor may have capacity constraints or different priorities. The AG's independent follow-up ensures that serious observations are not negl...
Can the government request changes to the finalized paragraph at this stage?
At this stage, the paragraph has already been finalized. While the government can raise concerns, the finalization process (including consideration of thei...
What if the corporation's Act is silent on CAG audit?
If the legislation does not specifically provide for CAG audit, the general provisions of the DPC Act and these Regulations would apply to the extent relev...
What is the Representational Grant?
It is a grant given to senior diplomats (typically Ambassadors and High Commissioners) to cover expenses for hosting official receptions, dinners, and othe...
How are modifications communicated?
Modifications are issued as orders of the CAG and communicated to all AG offices through the CAG's headquarters. Significant modifications may be published...
Can one audit combine all three types?
Yes. Regulation 5(4) explicitly states that audits combining 'either all or some aspects of financial, compliance and performance audits are also conducted...
Can the AG recover past payments made under a wrong rule interpretation?
Generally no. The correct interpretation takes effect from the date of the competent authority's order, not retrospectively, unless there are special instr...
How are HRA rates determined?
HRA rates depend on the city classification (X, Y, or Z category based on population) and the officer's pay level. These rates are prescribed by government...
What is an audit trail in a computer system?
An audit trail is a chronological record that provides documentary evidence of the sequence of activities — from input through processing to output. It all...
How often must suspense balances be analyzed into individual items?
Quarterly. The details of each transaction making up the balance are entered in an analysis register, which must be reviewed by the Branch Officer....
Why must the report be in the IO's own handwriting?
Handwriting ensures confidentiality — it cannot be typed by support staff who might compromise the sensitive assessment. It also authenticates that the IO ...
Why does Central Audit check contract agreements?
Vague or imprecise contracts can lead to disputes, cost overruns, and financial losses for the government. Audit ensures contracts follow standard practice...
What about periodic grants like police uniform allowance?
The statement of service must record the last payment of grants that are renewable at fixed intervals, so the new Accounts Officer knows when the next gran...
Why must the figures match between Form 18 and AC 33?
Both documents report on the same works to different audiences. Discrepancies would undermine the credibility of government financial reporting and could i...
What are Allocation of Business Rules?
These are rules that define the subjects and functions allocated to each department of the government. They establish the mandate -- what each department i...
Who decides whether money value should be omitted or supplemented?
The approach should be settled in consultation with the Finance Ministry or Department. This ensures the presentation is fair and not misleading....
What happens if the department does not reply within the specified time?
The audit report is finalized without the department's reply. Typically, the report will note that the department's reply was not received, which reflects ...
What does 'true and fair view' mean in the context of government corporations?
It means the financial statements accurately reflect the corporation's actual financial position — assets, liabilities, income, and expenditure — without m...
Can the CAG reject the department's own performance targets?
The CAG can critically review them for 'reasonableness and soundness.' If found inadequate, the CAG can set its own criteria based on best practices for au...
What are Debt, Deposit, and Remittance heads?
These are non-revenue heads. Debt heads cover government borrowings and loans given. Deposit heads cover money received in trust or as security. Remittance...
Why is the March plus and minus memorandum specifically referenced?
Because March is the last month of the financial year, and lapsed deposits are typically identified and written off at the close of the financial year....
Why does the CAG audit pension payments on behalf of Myanmar?
Due to the historical division of British India, some retired officers draw pensions in India on Myanmar's behalf and vice versa. A reciprocal arrangement ...
What is the difference between pre-check and post-check pension payment?
In pre-check, the AG's office verifies the pension bill and authorizes payment before it is disbursed. In post-check, the treasury pays first, and the AG's...
Does the CEO receive the report at the same time as the Government?
Yes, a copy is sent simultaneously. This ensures the corporation is informed and can prepare for any queries from the governing body or the legislature....
Does the department have a say in what gets audited?
The interaction starts from 'selection of subject(s) for review,' so the department's views are considered. However, the final decision on audit scope rest...
Does this mean the Audit Board might not review the draft performance audit report?
Yes, if the Board exercises this discretion. When it confines itself to topic selection, the subsequent audit including draft report finalization is handle...
Why is immediate notification important?
Because the disbursing officer remains responsible for removing the objection until told otherwise. Without prompt notification, the officer may spend cons...
Are revenue stamps still required on vouchers above Rs. 20?
The Rs. 20 threshold is the rule as stated in the MSO. However, stamp duty thresholds may have been revised by subsequent government orders. The current ap...
What does Appendix 2 of the Account Code prescribe?
It provides the standard methodology for determining estimated construction costs of capital works, including which cost elements to include and how to han...
How does EIA aid in decision-making?
EIA provides authorities with a comprehensive understanding of all environmental, social, and economic implications of a proposed project, enabling them to...
Is there a deadline for the government to lay the report before Parliament?
While the DPC Act does not specify a strict deadline, there is a convention and expectation that reports be tabled during the next session of Parliament/le...
Why can't multiple officers simply share a sanction without limits?
Without defined limits, there is no way to check if any individual officer is overspending or if the total sanction is being exceeded. It would also make i...
Why is this list so important?
Without a complete and updated list of auditable entities, the CAG cannot ensure all public money is subject to accountability. New entities or legislative...
Is there a specific timeline for the department to act on systemic faults?
Regulation 143 does not prescribe a specific timeline, but the expectation is prompt action. Persistent inaction can be flagged in inspection reports, incl...
Is the AG responsible for preventing excess spending?
No. The AG's role is to monitor and warn. The responsibility for keeping spending within allotments and regularizing any excess rests with the executive fi...
Who are the 'intended users' of CAG audit?
Primarily the legislature (Parliament or State Assembly) which uses audit reports for accountability. The broader public, media, and civil society are also...
Can an autonomous body resist CAG audit access citing its autonomy?
No. Once a body falls under CAG's audit jurisdiction (through Sections 14, 15, 19, or 20), Section 18 powers apply in full. Autonomy in governance does not...
Can anyone override the auditor's decision to press an objection?
The residuary discretion rests with the CAG and the AG. They can decide not to press an objection when they are satisfied that future regularity and propri...
Why is Form 20 used instead of a separate form?
Form 20 was originally designed for Public Works remittances but is adapted with suitable changes in column headings for other departmental remittances. Th...
Why is an unsigned copy sent to the Secretary to the President?
The President is the constitutional authority to whom CAG reports are submitted (Article 151). The demi-official unsigned copy keeps the President's office...
Can a Padma Shri or similar civilian award be mentioned in the History of Services?
No. Only war service medals/clasps and specific police/fire service medals for gallantry are permitted. Civilian honors and hereditary titles should not be...
Where in the certified list are these additional details recorded?
In the remarks column of the monthly certified list, which is designated for recording such additional particulars....
What happens if the audit party does not receive sanction scrutiny results in time?
The party may audit transactions without knowing whether the underlying sanction is valid, potentially missing irregularities. This is why the MSO emphasiz...
Is a special audit different from a regular performance audit?
A special audit is typically triggered by a specific concern or allegation and may be narrower in scope. Regular performance audits are planned as part of ...
Why must closed accounts also be included in the quarterly compilation?
Accounts closed during the quarter still had transactions (withdrawals, final payments) that affect the departmental totals. Excluding them would cause the...
Does performance audit only look at spending or also at program design?
It goes beyond spending. Regulation 45(4) states it covers planning and preparedness, regulatory and institutional frameworks, and the actual benefit deliv...
What are special amendment facilities?
These are tools or utilities that allow direct modification of data files outside the normal application interface — such as database editors or command-li...
What is the difference between Form 95 and Form 96?
Form 95 records items credited or debited to suspense accounts, while Form 96 records items that have been adjusted in the accounts but are not yet finally...
What are 'remittances in transit'?
These are unadjusted debit or credit entries where cash has been sent from one treasury but not yet acknowledged by the receiving treasury or currency ches...
How are missing recovery instalments tracked?
Through the Register of Missing Credits prescribed in paragraph 12.64. Each non-receipt of a recovery instalment is noted and watched until the amount is u...
Why is this distinction important?
Certification of accounts carries legal significance — it is the auditor's formal opinion on whether accounts are true and fair. Keeping this separate ensu...
Can audit object to the government's choice of funding source?
No. Deciding whether to fund capital expenditure from revenue or borrowings is the government's function. However, audit can bring to notice cases where th...