Para 3.10.34 — MSO (Audit)
Original Rule Text
3.10.34 In respect of these transactions, Audit should verify that:
(i) advance deposits of the public sector undertakings, autonomous bodies, etc. precede payments made on their behalf by the Missions and the payments do not exceed the amount of deposits;
(ii) necessary clearance of the Ministry of Finance is available for sanctions issued by the competent authorities, involving expenditure in foreign exchange;
(iii) party-wise deposit accounts are maintained and necessary steps are taken to realise outstanding payments, if any;
(iv) payments originating from the Commercial and Cultural wings of the Missions are properly accounted for by the Missions and adequate followup action is taken for realisation of payments made by them;
(v) there is proper reconciliation of outstanding dues at any given point of time between the Missions and the Office of the Controller of Accounts; and
(vi) Government officers proceeding on tour on behalf of various public sector undertakings, autonomous bodies/institutions, etc. are extended facilities in respect of cash allowance, accommodation, and class of travel by air, etc. strictly according to their entitlements under the Government rules and the entire expenditure has been borne only by the public undertakings/autonomous institutions concerned.
What This Means
When Indian Missions abroad make payments on behalf of public sector companies or autonomous bodies, Audit must check that these organisations deposited money in advance, that the payments do not exceed the deposits, and that Finance Ministry clearance exists for foreign-exchange spending. Audit also verifies that government officers travelling for these bodies receive only the entitlements prescribed under government rules, with all costs borne by the sponsoring organisation.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Advance deposits must be received before any payment is made on behalf of PSUs or autonomous bodies
- 2Ministry of Finance clearance is required for sanctions involving foreign exchange expenditure
- 3Party-wise deposit accounts must be maintained and outstanding dues actively recovered
- 4Payments from Commercial and Cultural wings must be properly accounted for with follow-up
- 5Officers travelling for PSUs/autonomous bodies must follow government travel entitlements, with costs borne entirely by the sponsoring entity
Practical Example
An Indian Embassy in Berlin makes hotel and travel payments for engineers of a public sector undertaking visiting Germany for a trade fair. Audit checks whether the PSU deposited the estimated amount in advance, whether the engineers' travel class and allowances matched government rules, and whether the Mission reconciled all payments against the deposit account.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Can a Mission pay more than what a PSU has deposited in advance?▼
Who bears the travel expenses when a government officer travels abroad on behalf of an autonomous body?▼
Is Finance Ministry clearance needed for all foreign-exchange payments by Missions?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.