Rule 234 - CAG Audit of Grants | KartavyaDesk

Original Rule Text

given for any specific purpose to any Institution or Organisation or authority, not being a foreign State or international Body/Organization, the Comptroller and Auditor General is competent under Section 15 (1) of the CAG’s (DPC) Act, 1971, to scrutinize the procedures by which the sanctioning authority satisfies itself as to the fulfillment of the conditions subject to which such Grants and/or loans were given and shall, for this purpose, have right of access to the books and accounts of that Institute or Organisation or authority. Rule 236 (3) In all other cases, the Institution or Organisation shall get its accounts audited from Chartered Accountants of its own choice. Rule 236 (4) Where the Comptroller and Auditor General of India is the sole auditor for a local Body or Institution, auditing charges will be payable by the auditee Institution in full unless specifically waived by Government Rule 237 Time Schedule for submission of annual accounts. The dates prescribed for submission of the annual accounts for Audit leading to the issue of Audit Certificate by the Comptroller and Auditor General of India and for submission of annual report and audited accounts to the nodal Ministry for timely submission to the Parliament are listed below:- (i) Approved and authenticated annual accounts to be made available by the Autonomous Body to the concerned Audit Office and commencement of audit of annual accounts-30th June (ii) Issue of the final SAR in English version with audit certificate to Autonomous Body/ Government concerned-31st October (iii) Submission of the Annual Report and Audited Accounts to the Nodal for it to be laid on the Table of the Parliament-31st December Rule 238 (1) Utilization Certificates. In respect of non-recurring Grants to an Institution or Organisation, a certificate of actual utilization of the Grants received for the purpose for which it was sanctioned in Form GFR 12-A, should be insisted upon in the order sanctioning the Grants-in-aid. The Utilization Certificate in respect of Grants referred to in Rule230 (10) should also disclose whether the specified, quantified and qualitative targets that should have been reached against the amount utilised, were in fact reached, and if not, the reasons therefor. They should contain an output based performance assessment instead of input based performance assessment. The Utilization Certificate should be submitted within twelve months of the closure of the financial year by the Institution or Organisation concerned. Receipt of such certificate shall be scrutinised by the Ministry or Department concerned. Where such certificate is not received from the Grantee within the prescribed time, the Ministry or Department will be at liberty to blacklist such Institution or Organisation from any future grant, subsidy or other type of financial support from the Government. Rule 238 (2) In respect of recurring Grants, Ministry or Department concerned should release any amount sanctioned for the subsequent financial year only after Utilization Certificate on provisional basis in respect of Grants of preceding financial year is submitted. Release of Grants-inaid in excess of seventy five per cent of the total amount sanctioned for the subsequent financial year shall be done only after utilisation certificate and the annual audited statement relating to Grants-in-aid released in the preceding year are submitted to the satisfaction of the Ministry/Department concerned. Reports submitted by the Internal Audit parties of the Ministry or Department and Inspection Reports received from Indian Audit and Accounts Department and the performance reports if any received for the third and fourth quarter in the year should also be looked into while sanctioning further Grants. [Note: As a special measure Scientific Departments are permitted to release subsequent Grants in aid on receipt of UCs confirming utilization of 75% of the total value of previous Grant(s) from a Grantee Body.]55 Rule 238 (3) Utilization certificates need not be furnished in cases where the Grants-inaid / CFA are being made as reimbursement of expenditure already incurred on the basis of duly audited accounts. In such cases the sanction

What This Means

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Key Points

• •CAG has the power to scrutinize procedures for grants/loans given to institutions (excluding foreign entities).
• •CAG can access the books and accounts of the recipient institution for audit purposes.
• •Institutions must allow CAG access to their financial records related to the grant/loan.
• •This rule ensures accountability and proper utilization of government funds.
• •The audit focuses on whether the conditions of the grant/loan are being fulfilled.

Practical Example

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Frequently Asked Questions

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.