Para 3.11.14 — MSO

3.11.14 Local audit of deposits should be conducted with reference to the relevant rules and regulations. The following are the main points to be verified:

(i) Deposits made on behalf of departmental officers have been properly noted in the prescribed records and reconciled with the treasury records.

(ii) Repayment or part repayment has been made only to the correct depositor and the fact thereof has been noted against the entry in respect of the original deposit as a safeguard against double payment.

(iii) Deposits remaining unclaimed for more than three completed financial years have been credited to government revenue as having lapsed and the relevant entries deleted from the Deposit Register, and the lapse statements sent to the treasury and the Accountant General (A&E) for adjustment in the accounts.

(iv) No deposit that has lapsed has been repaid without the authority from the Accountant General (A&E) or the treasury.

(v) Personal Deposit (Ledger) Accounts have been opened with proper authority and with the prior concurrence of the Accountant General (A&E).

(vi) Personal Ledger Accounts required to be closed at the end of financial year have been duly closed and unutilised balances, if any, have been refunded by cheque for credit to the relevant functional service major head.

(vii) Scrutiny of all expenditure with reference to the vouchers and other relevant documents retained in the local office to ascertain whether the expenditure was incurred for discharging Government’s liabilities according to rules and orders in force from time to time.

(viii) Adherence by administrators of deposit accounts to the applicable acts, rules and regulations and to requirements relating to maintenance of initial accounts records and of the prescribed scheme-wise records.

(ix) Regular reconciliation of balances in deposit accounts by the concerned administrators with the treasury.

In respect of deposits received on behalf of private individuals, public bodies, Public Works and Forest Departments and various other funds, Audit shall confine its scrutiny to ensuring that

(i) the deposits made and expenditure met therefrom conform to the relevant rules and orders; and

(ii) in respect of deposits maintained by the departmental officials, regular statements of expenditure from the deposits are sent to the authority concerned and acceptance of expenditure by the authority is watched.