Para 2.2.36 — MSO (Audit)
Original Rule Text
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.
What This Means
One of audit's key functions is to verify that every expenditure item has proper sanction from a competent authority. This involves two checks: first, that the sanctioning authority actually has the power to approve such expenditure (based on constitutional provisions, laws, and delegation rules); and second, that the sanction is clear and definite, needing no further clarification from any authority. Once a sanction has been audited and accepted as valid, subsequent audit of expenditure against it becomes straightforward -- just checking that spending conforms to the sanction terms.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Every expenditure must be covered by a sanction (general or special)
- 2Two checks: competency of sanctioning authority and definiteness of sanction
- 3Authority must have power under Constitution, laws, rules, or delegation
- 4Sanction must be clear and definite, needing no further reference
- 5Once a sanction is accepted, auditing expenditure against it becomes simple
Practical Example
A District Collector sanctions Rs 12 lakh for repairing a government building. The auditor checks: (1) Does the Collector have delegation to sanction repairs up to Rs 12 lakh? The state DFPR shows the limit is Rs 15 lakh -- so competency is confirmed. (2) Is the sanction definite? The sanction order clearly states the amount, purpose, building name, and timeline -- so it is definite. The sanction is accepted, and future audit of bills against this sanction simply verifies that charges match the sanction terms.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What makes a sanction 'definite'?▼
What happens if a sanction is from an incompetent authority?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.