Para 4.2 — MSO (A&E)
Original Rule Text
4.2 Under the provisions of Section 10(1)
(a) of Comptroller & Auditor General of India’s (D.P.C.S.) Act, 1971, the Comptroller & Auditor General of India is responsible for compiling the accounts of each State from the initial and subsidiary accounts rendered by the treasuries, offices or departments responsible for keeping of such accounts to the Accountants General under his control. The accuracy of the accounts prepared by the Accountants General depends on the correct classification of transactions. Therefore, it is of utmost importance that the financial transactions are properly recorded in the accounts and that they are allocated to the proper heads of account.
What This Means
Under the CAG's DPC Act 1971, the Comptroller and Auditor General is responsible for compiling each state's accounts from initial records sent by treasuries, offices, and departments to the Accountant General. The accuracy of these compiled accounts depends entirely on whether transactions are correctly classified, making proper classification of paramount importance.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1The CAG is responsible for compiling state accounts under Section 10(1)(a) of the DPC Act 1971
- 2Accounts are compiled from initial and subsidiary accounts rendered by treasuries and departments
- 3Accountants General compile accounts under the CAG's control
- 4Accuracy of compiled accounts depends on correct classification of transactions
- 5Proper recording and allocation to correct heads of account is of utmost importance
Practical Example
The treasury in Lucknow processes a payment of Rs. 5 lakh for purchasing computers for the Agriculture Department. The Treasury Officer must classify this under the correct head (e.g., '2401 - Crop Husbandry' or '4401 - Capital Outlay on Crop Husbandry' depending on whether it's revenue or capital). If misclassified, the Accountant General's compiled accounts for Uttar Pradesh will show incorrect figures under the wrong heads, distorting the state's financial statements.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What is the legal basis for the CAG compiling state accounts?▼
Who sends the initial accounts to the Accountant General?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.