Para 2.6.5 — MSO

2.6.5 Where the amount of grants and /or loans from the Consolidated Fund of India or of a State or Union Territory having a Legislative Assembly, as the case may be, to a body of authority in a financial year is less than 75 per cent of its total expenditure during that year, Sub-section (2) of Section 14 empowers the Comptroller and Auditor General to audit all its receipts and expenditure with the previous approval of the President or the Governor of the State or the Administrator of the Union Territory, as the case may be, if the amount of such grants and/or loans was not less than Rs one crore. However, if the amount of grants and/or loans is not less than Rs one crore and also forms not less than 75 per cent of the total expenditure of the institution, it will attract audit by the Comptroller and Auditor General under Sub-section (1). Only when the later part of this condition is not satisfied, audit under Sub-section (2) will arise. Once an institution comes under the audit of Comptroller and Auditor General by virtue of the provisions of Sub-section (1) or (2) of Section 14, such audit will continue for two more years following under Sub-section (3), even if the conditions prescribed in Sub-sections (1) and (2) are not fulfilled in those years.

Note: The provisions of Sub-sections (2) and (3) of Section 14 referred to above are applicable only with effect from the financial year 1983-84.

B. Audit under Section 15