Para 2.6.23 — MSO (Audit)
Original Rule Text
2.6.23 Sanctions constituting local bodies ordinarily prescribe what classes of receipts are to be credited to them, what classes of expenditure are to be admitted against them and who will be the controlling authority. The Accountant General should see that the prescribed rules are followed in regard to receipts and expenditure and he should, for this
purpose, obtain sufficient information in respect of all items of the account in each case, either in the form of vouchers or in some other form as may be considered necessary.
# Examination of systems and procedures
What This Means
When auditing local bodies (like municipal corporations or zilla parishads), the Accountant General must verify that they are following the rules prescribed in their founding sanctions regarding what receipts they can collect and what expenditures they can incur. The auditor must obtain enough information — through vouchers or other documents — to verify compliance for every item in the accounts.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Local body sanctions define permitted receipts, allowed expenditure, and controlling authority
- 2Accountant General must verify adherence to these prescribed rules
- 3Sufficient supporting information must be obtained for all account items
- 4Information can be in the form of vouchers or other appropriate documentation
Practical Example
While auditing a Zilla Parishad, the audit team checks whether the Parishad has been crediting only those receipts authorized under its constitution — such as cess collections and government grants — and not mixing in unauthorized revenue streams. They also verify that expenditure is confined to sanctioned categories like rural roads and primary education, with proper vouchers for each payment.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What if the local body's sanction order is unclear about permitted receipts or expenditure?▼
Can the auditor accept documents other than vouchers as proof?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.