Para 2.6.27 — MSO (Audit)
Original Rule Text
2.6.27 Whenever scrutiny of the books and accounts of bodies and authorities receiving specific purpose grants or loans is taken up under Section 15 of the Act (vide paragraph 2.6.6), it should be seen that the body/authority has complied with the procedure prescribed for reporting their utilization; that the grants or loans have actually been utilized; and the conditions governing them have been duly observed.
What This Means
When the CAG audits bodies that received specific-purpose grants or loans under Section 15 of the DPC Act, the auditor must verify three things: that the body followed the prescribed procedure for reporting utilization, that the grants or loans were actually used (not just sitting idle), and that all conditions attached to the grant or loan were observed.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Applies to bodies receiving specific-purpose grants or loans audited under Section 15
- 2Compliance with utilization reporting procedures must be verified
- 3Actual utilization of grants/loans must be confirmed
- 4All conditions governing the grant or loan must have been observed
Practical Example
A State Government gave a Rs 2 crore grant to a tribal welfare society specifically for constructing 200 houses. The CAG audit team checks whether the society submitted its utilization certificates on time, whether 200 houses were actually built (by cross-checking with physical verification reports), and whether the society followed the conditions — such as using only approved building materials and completing construction within 18 months.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What is a 'specific-purpose grant'?▼
What happens if the grant was not utilized?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.