Para 2.4.4 — MSO

Audit of custody and issue of stores

2.4.4 The following aspects relating to purchases of stores should be examined in audit:

(i) Purchases should have been properly sanctioned and made in the most economical manner in accordance with the rules, regulations and orders issued by the Government. Audit must see that the purchases have been made taking into account the workload of the division and that the requirements have been assessed on a realistic basis and funds are available for the procurement. It is also to be seen that the stores procured are of approved quality and specifications. Stores of the required specifications covered under rate contracts entered into by the Directorate General of Supplies and Disposals or any other approved rate contract should have been purchased only under such rate contracts. The system of open competitive tender should be adopted for purchases from contractors or suppliers, the purchase being made only from the lowest tenderer unless there are recorded reasons for not doing so.

(ii) The rates paid should correspond to those agreed to in the relevant contracts or agreements. (iii)The government servants responsible for approving and receiving purchases should furnish certificates of quality and quantity before payments are made, except where the contrary is permitted by the rules of Government regulating purchase of stores.

(iv) Purchase orders should not have been split up so as to avoid the necessity for obtaining the requisite sanction of higher authorities.

(v) The stipulated terms and conditions should conform to various codal provisions and orders issued from time to time by the Government.

(vi) Necessary precautions should have been taken to safeguard government interests in cases involving advance payments for supply of stores in terms of the contract provisions or Government orders. The stores should also have been received within the stipulated period and the advance payments adjusted.