Para 11.4 — MSO (A&E)
Original Rule Text
11.4 The balances should be compared and reconciled with those in the accounts sent in by the Trustees or Manager.
There are sometimes large differences owing to Trusttees crediting in their accounts of the year interest which is not really payable to them till April 1st .
# BALANCES OF PROVIDENT FUNDS
What This Means
The balances of service funds must be compared and reconciled with the accounts submitted by the fund's Trustees or Manager. A common source of discrepancy is that Trustees sometimes credit interest in the current year's accounts even though it is technically not payable until April 1st of the next year. The Accountant General must identify and account for such timing differences.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Fund balances must be reconciled with Trustee/Manager accounts
- 2Timing differences in interest crediting are a known source of discrepancies
- 3Trustees may prematurely credit interest that is payable only from April 1st
- 4Differences must be identified and explained, not simply ignored
Practical Example
The Trustees of a Service Fund report a closing balance of Rs 48,00,000, while the AG's ledger shows Rs 46,50,000. On investigation, the Rs 1,50,000 difference is traced to interest that the Trustees credited in March but which is actually payable only on April 1st. The AG notes this timing difference and reconciles the two figures.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Why do large differences often appear between the AG's ledger and the Trustee's accounts?▼
Is the AG required to accept the Trustee's balance as final?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.