Para 16.6 — MSO

16.6 In respect of grants to nonGovernment or QuasiGovernment bodies or institutions, the Central Government have decided that where assets are to be acquired wholly or substantially out of Government grants it should be laid down that assets should not, without the prior sanction of the Government be disposed of, or utilised for purposes other than those for which the grants are sanctioned. 16.7 Government of India have decided that Utilisation Certificates need not be furnished in cases where the grants-in-aid are sanctioned subject to the fulfilment of certain pre-requisite conditions and are in the nature of reimbursement of expenditure already incurred. In such cases the sanction letters should clearly specify that the Utilisation Certificates will not be necessary. 16.8 Unless it is otherwise ruled by Government, every grant made for a specified object is subject to the implied conditions-

(i) that if no time limit has been fixed by the sanctioning authority the grant will be spent upon that object within a reasonable time (normally within one year from the date of issue of the letter sanctioning the grant) and

(ii) that any portion of the amount which is not ultimately required for expenditure upon that object will be surrendered. 16.9 In the case of unconditional grants, the Accountant General is in no way concerned with the manner in which the grant is

In cases in which the audit of local authorities and public or quasi public bodies is conducted by an office not subordinate to the Comptroller and Auditor General of India, (for example, Examiner of Local Fund Accounts of a State Government) a certificate regarding the grants having been utilised on the objects for which it was sanctioned and in accordance with the conditions attaching to the grant, based on that Officer’s audit, may be accepted from the administrative government authority concerned.