Para 2.5.9 — MSO (Audit)
Original Rule Text
2.5.9 Departmentally managed concerns are directly under a ministry or department of Government and are subject to government rules and procedures, sometimes with minor modifications.
- Audit Objectives and Scope
What This Means
Departmentally managed concerns are government commercial or quasi-commercial operations that are run directly under a ministry or department. Unlike government companies or statutory corporations, they do not have a separate legal identity. They follow standard government rules and procedures, though sometimes with minor modifications to accommodate their commercial nature.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Departmental undertakings are directly under a ministry or department
- 2They do not have separate legal entity status
- 3Standard government rules and procedures apply to them
- 4Minor modifications to rules may be allowed for their commercial operations
- 5Examples include ordnance factories, government printing presses, and railway workshops
Practical Example
A government mint that produces coins and currency operates as a departmentally managed concern under the Ministry of Finance. It follows general government financial rules for budgeting and expenditure, but has some modified procedures for commercial activities like selling commemorative coins to the public. Its accounts are part of the departmental accounts and are audited by the CAG as part of the regular expenditure audit of the ministry.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
How is a departmental undertaking different from a PSU?▼
Who audits departmental undertakings?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.