Para 3.11.1 — MSO (Audit)
Original Rule Text
3.11.1 The main objectives of audit of deposits are to ensure that:
(i) funds are not diverted from the Consolidated Fund and unnecessarily accumulated in deposits, thus affecting the basic discipline of budgetary control;
(ii) deposit accounts are opened only when necessary and strictly according to the prescribed rules and regulations; and
(iii) credits to, withdrawals from and closure of deposit accounts are supported by the necessary documents and strictly conform to the rules and regulations.
What This Means
The audit of government deposits has three main objectives. First, it checks that money is not diverted from the Consolidated Fund and parked unnecessarily in deposit accounts, which would undermine budgetary control. Second, it verifies that deposit accounts are opened only when genuinely needed and according to prescribed rules. Third, it ensures that all credits, withdrawals, and closures of deposit accounts are properly documented and comply with regulations.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Funds must not be diverted from the Consolidated Fund into deposit accounts unnecessarily
- 2Deposit accounts should be opened only when necessary and per prescribed rules
- 3All credits, withdrawals, and closures must be supported by proper documents
- 4Transactions must strictly conform to applicable rules and regulations
Practical Example
An audit team reviews a government department's deposit accounts and finds that a large sum was transferred from the Consolidated Fund into a deposit account at the end of the financial year without clear justification, effectively parking unused budget. The auditors flag this as a diversion that undermines budgetary discipline and recommend the amount be surrendered back.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Why is it a problem to move funds from the Consolidated Fund to deposit accounts?▼
What documents are needed for deposit account transactions?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.