Para 2.2.37 — MSO

2.2.37 In the audit of sanctions to expenditure from the point of view of competency of the sanctioning authority, the guiding principles enunciated below should be observed:

(i) If the sanctioning authority is vested with full powers in respect of a certain class of expenditure, a sanction accorded under those powers can be challenged by Audit only on grounds of propriety (see also paragraph 2.2.47).

(ii) If the authority is vested with powers that may be exercised only after paying due regard to certain criteria expressed in a general form, sanctions accorded under those powers can be challenged by Audit:

(a) if the disregard of the criteria is considered to be so serious as to make the sanction perverse; or

(b) if the facts of the case are such as to make the Accountant General confident that one or more of the criteria have been disregarded.

(iii) If the sanctioning authority is vested with powers that are expressed in precise terms, the Accountant General is bound to ascertain that the order defining its powers is obeyed exactly in every instance.

(iv) For the purpose of financial sanction, a group of works which forms a single project shall be considered as one work, and the necessity for obtaining the sanction of a higher authority to a project is not avoided by reason of the fact that the cost of each particular work in the project does not require such sanction.

(i) In respect of irrigation, navigation, embankment or drainage works, the construction estimates of which have been closed, this rule is subject to the special rules prescribed for sanctions to incur capital expenditure.

(ii) A preliminary enquiry, survey or experiment, which must necessarily precede the formulation of any project or scheme, need not to be considered for the purpose of this rule as forming part of that project or scheme.

(v) If any one part or component of a scheme requires the sanction of a higher authority, Audit should hold under objection any expenditure thereon until the necessary sanction is obtained; in determining whether objection should be raised to expenditure on any other part or component of the scheme prior to the receipt of such sanction, it should be seen that the expenditure is not likely to exceed, at a later date, the limit up to which sanction can be accorded by the original sanctioning authority.