Para 2.4.5 — MSO

2.4.5 As regards custody and issue of stores, it has to be seen in audit whether:

(i) a particular official has been responsible for the custody of stores for prolonged periods and, if so, whether the stores have been physically verified regularly to guard against any loss, pilferage, etc.;

(ii) discrepancies, if any, between the book balances and the ground balances have been reconciled promptly;

(iii) appropriate and effective follow-up action has been taken on reports of physical verification of stores for making good any losses, shortages, etc. and to fix responsibility therefor;

(iv) adequate precautionary measures have been taken to prevent misuse of materials issued to contractors for use in works;

(v) adequate storage facilities are available and precautionary measures have been taken to protect stores from damage and undue deterioration;

(vi) efforts have been made to transfer surplus stores to other works, divisions or departments where these could be utilised;

(vii) a report on surplus stores that could not be so transferred as well as on obsolete and unserviceable stores, specifying the reasons for so declaring them, has been promptly sent to the competent authority for facilitating their disposal; (viii)all issues of stores are supported by proper indents and have been approved by the competent authority and acknowledged by the intended recipients; and

(ix) officers entrusted with custody of stores or holding charge of stores have furnished the security prescribed in terms of the instructions issued from time to time by the competent authority.

Note: Only such materials as are provided in the agreement should have been issued to contractors in a phased manner based on its use within a reasonable period. Where Government or any other authority has prescribed a scale for issue of stores of any particular kind, the scale should not have been exceeded.