Para 19.12.11 — CAM
Original Rule Text
What This Means
Defalcations and losses of public money or property must be reported simultaneously to the PAO and Statutory Audit. The PAO examines whether the loss was due to defective rules or human negligence, and reports findings to the competent write-off authority. At year-end, PAOs must review and verify balances under all Debt, Deposit, and Remittance heads — confirming with the persons who own or owe the balances. Discrepancies between broadsheet and ledger are resolved either by write-off under MH 8680 (with competent authority sanction) when details exist, or by broadsheet correction when no details are available. Annual balance statements must be submitted by September 15.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Defalcation reports must go to both PAO and Statutory Audit simultaneously
- 2PAO examines cause: rule defect vs. negligence/lack of supervision — reports to write-off authority
- 3Year-end review of all Debt/Deposit/Remittance head balances is mandatory
- 4Broadsheet-ledger differences with details: write-off via MH 8680 with sanction under GAR Rule 38
- 5Annual balance statement due by September 15; consolidated Ministry report to CGA by October 15
Practical Example
During year-end review, a PAO discovers that the broadsheet for a loan head shows Rs 2 crore but the ledger shows only Rs 1.8 crore. On investigation, the broadsheet has details of 3 loan accounts totaling the extra Rs 20 lakh that were never posted to the ledger. The PAO obtains sanction from the competent authority under GAR Rule 38 and makes a write-off entry via contra adjustment under MH 8680 (Misc. Government Account) to bring the ledger in line with the broadsheet. Separately, a defalcation of Rs 1.5 lakh is reported — the PAO finds it was due to lack of supervisory checks and reports this to the Secretary for write-off consideration.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
How are broadsheet-ledger differences resolved?▼
What is the timeline for annual balance verification?▼
Who bears responsibility for reporting defalcations?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.