Para 10.22 — MSO (A&E)
Original Rule Text
10.22 All balances under suspense heads must be reviewed at short intervals to ensure that no item remains unadjusted longer than is reasonably necessary to bring about its clearance in the ordinary course with due regard to the rules applicable to each case.
- GENERAL
What This Means
All suspense head balances must be reviewed at short, regular intervals to ensure no item remains uncleared longer than reasonably necessary. The standard for 'reasonable time' depends on the specific rules applicable to each type of suspense transaction. This review prevents old items from accumulating and ensures timely clearance.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Suspense balances must be reviewed at short intervals (not just annually)
- 2No item should remain unadjusted longer than reasonably necessary
- 3What constitutes 'reasonable' depends on the rules for each type of transaction
- 4Regular review prevents accumulation of old uncleared items
Practical Example
The AG establishes a monthly review cycle for suspense accounts. During the October review, the team identifies 25 items outstanding for more than 3 months. For salary-related suspense items, the rules allow 2 months for departments to submit classification. The 15 items exceeding this are flagged and reminder letters sent. For inter-departmental adjustments, the rules allow 3 months, so the remaining 10 items are within the acceptable timeframe but are noted for follow-up next month.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
How often should suspense balances be reviewed?▼
What determines how long an item can reasonably stay in suspense?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.