Para 2.2.36 — MSO

2.2.36 As explained in paragraph 2.2.2, one of the important functions of Audit in relation to the audit of expenditure is to see that each item of expenditure is covered by the sanction of the competent authority. While doing so, Audit has not only to see that the expenditure is covered by a sanction, either general or special, but it has also to satisfy itself that:

(i) the authority sanctioning it is competent to do so by virtue of the powers vested in it by the provisions of the Constitution and of the laws, rules or orders made thereunder or by the rules governing delegation of financial powers framed by a competent authority; and

(ii) the sanction is definite and therefore needs no reference either to the sanctioning authority itself or to any higher authority.

Note: When a sanction to expenditure received by the Audit Officer has been examined and admitted as regular and correct, the audit of expenditure against the audited sanction becomes a simple matter as Audit has then merely to see that the expenditure conforms to the provisions of the sanction.