Para 10.19 — MSO (A&E)
Original Rule Text
10.19 As mentioned in paragraph 4.15.1 there exist a number of Reserves and Reserve Funds in the Deposit Section of the accounts of the Union and State Governments which have been created for specific and well-defined purposes and are fed by contributions or grants from the Consolidated Fund of India or the Consolidated Fund of a State or from outside agencies. The functions of the Accountant General in relation to the transactions pertaining to such funds are described below:-
(1) It should be seen that the transactions are classified and accounted for according to the principles laid down in paragraph 4.15.1 (2) It should be seen that these transactions conform to the rules or orders governing the administration of each Fund made by competent authority. (3) The balance at the close of the year standing in the account of each Fund should be verified. Where the whole or any part of the balance of a fund is invested, the instructions contained in paragraph 10.16 should be observed.
- SUSPENSE ACCOUNTS
What This Means
Government maintains various Reserve and Reserve Funds in the deposit section of accounts, created for specific purposes and funded by contributions from the Consolidated Fund or external sources. The AG must ensure three things: (1) transactions are classified according to prescribed principles, (2) transactions conform to the rules governing each fund, and (3) year-end balances are verified, with any invested portions checked per the investment oversight rules in Para 10.16.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Reserve Funds are created for specific purposes with defined funding sources
- 2AG must verify correct classification and accounting of fund transactions
- 3Transactions must conform to the rules or orders governing each specific fund
- 4Year-end fund balances must be verified
- 5Invested portions of fund balances must follow the investment oversight rules (Para 10.16)
Practical Example
A State maintains a Calamity Relief Fund created by a central government scheme. The AG reviews the fund's annual transactions: Rs. 200 crore received from the Centre, Rs. 180 crore spent on flood relief. The AG verifies the spending conforms to the fund's governing rules (only for natural calamities), checks the year-end balance of Rs. 120 crore, and confirms that Rs. 50 crore invested from the fund is in authorized government securities as per Para 10.16.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What types of Reserve Funds exist in government accounts?▼
What are the AG's three key responsibilities regarding Reserve Funds?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.