Para 10.3 — MSO (A&E)
Original Rule Text
10.3 It is an important part of the duties of the Accountant General (Accounts & Entitlement) to review and verify the balances under Debt and Deposit heads and the outstanding under Remittance heads as disclosed in the books of Accounts at the close of the year. The first step in the process of this verification is to see how far the final results of any detailed accounts kept of the transactions work up to and agree with the balances in the Ledger. The next step is to ascertain, where necessary, whether the person or persons by whom the balance is owed or to whom it is due admit its correctness, and in case of balances due to Government, how far they are really recoverable.
- REMITTANCE TRANSACTIONS
What This Means
A key duty of the Accountant General (A&E) is to review and verify all year-end balances under Debt, Deposit, and Remittance heads. This verification has two steps: first, checking that the detailed subsidiary accounts agree with the ledger balances; and second, confirming with the parties involved (debtors or creditors) that they acknowledge the balance as correct. For balances owed to the government, the AG must also assess whether they are actually recoverable.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Year-end balances under Debt, Deposit, and Remittance heads must be verified
- 2Step 1: Reconcile detailed subsidiary accounts with ledger balances
- 3Step 2: Obtain confirmation from debtors/creditors that balances are correct
- 4For government receivables, assess actual recoverability
- 5This is a fundamental internal control mechanism
Practical Example
At the end of the financial year, the AG's office reviews the ledger showing Rs. 500 crore outstanding under 'Loans to Local Bodies'. The team first checks this against the detailed loan registers for each local body. Finding a Rs. 2 crore mismatch, they trace it to a recording error. Next, they write to each local body asking them to confirm their outstanding balance. For a municipality that has been financially struggling, they assess whether the Rs. 15 crore shown as recoverable is realistic.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What are the two steps in balance verification?▼
Why is recoverability assessment important?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.