Para 1.1.7 — MSO

1.1.7 Expenditure incurred by Governments from their Consolidated Fund often takes the form of grants and loans to various bodies and authorities. Under Section 13 of the Act, it is the responsibility of the Comptroller and Auditor General to audit such expenditure. Audit in this case is, however, restricted to the records available in Government offices and is directed towards:

(i) examining the admissibility of the grant or loan and the adequacy of sanction; and

(ii) verifying the fulfilment of the conditions governing the grants and loans and the utilization for the purposes for which they were intended.

The Act has made provisions in Sections 14 and 15 for the audit of the accounts of authorities and bodies receiving financial assistance in the form of grants or/and loans from the Government of India or a State or Union Territory, subject to certain conditions and criteria specified in those Sections.

Note: ‘Authority’ has been interpreted to mean a person or body exercising power or command. ‘Body’ has been interpreted to mean an aggregate of persons, incorporated or unincorporated.