Rule 236 — GFR

Rule 236 (1) Audit of Accounts. The accounts of all Grantee Institutions or Organisations shall be open to inspection by the sanctioning authority and audit, both by the Comptroller and Auditor General of India under the provision of CAG(DPC) Act 1971 and internal audit by the Principal Accounts Office of the Ministry or Department, whenever the Institution or Organisation is called upon to do so and a provision to this effect should invariably be incorporated in all orders sanctioning Grants-in-aid.

Rule 236 (2)

(i) The accounts of the Grantee Institution or Organisation shall be audited by the Comptroller and Auditor General of India under Section 14 of the Comptroller and Auditor General of India (Duties, Powers and Conditions of Service) Act, 1971, if the Grants or loans to the institution in a financial year are not less than Rupees twenty- five lakhs and also not less than seventy-five percent of the total expenditure of the Institution. The accounts may also be audited by the Comptroller and Auditor General of India if the Grants or loans in a financial year are not less than Rupees one crore. Where the accounts are so audited by the Comptroller and Auditor General of India in a financial year, he shall continue to audit the accounts for a further period of two years notwithstanding that the conditions outlined above are not Department of Atomic Energy, Department of Space, Ministry of Earth Sciences, Defence Research and Development Organisation. [Amendment notes: 1 Inserted vide DoE OM No. F. No. 8(1)/2021-E.IIA dated 03.09.2021. The Scientific Ministries/ Departments are Department of Science and Technology, Department of Bio- technology, Department of Scientific and Industrial Research,]

fulfilled.

(ii) Where any Grant and /or loan is 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