Para 3.11.14 — MSO (Audit)
Original Rule Text
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.
What This Means
Local audit of deposits must verify several critical points: that deposits are properly recorded and reconciled with treasury records, repayments go to the correct depositor with safeguards against double payment, unclaimed deposits lapse after three years and are credited to government revenue, Personal Ledger Accounts were opened with proper authority, year-end closures happened where required, and all expenditure from deposit accounts was incurred according to applicable rules. For deposits held on behalf of private individuals or public bodies, audit focuses on confirming compliance with rules and that expenditure statements are sent to the concerned authority.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Deposits must be reconciled with treasury records and noted in prescribed registers
- 2Repayments only to the correct depositor, with anti-double-payment safeguards
- 3Deposits unclaimed for 3+ years must lapse and be credited to government revenue
- 4Personal Ledger Accounts need proper authority and AG (A&E) concurrence to open
- 5Year-end closure of non-statutory Personal Ledger Accounts must be verified
Practical Example
During local audit of a district treasury, the audit team finds that several civil court deposits unclaimed for over four years have not been credited to government revenue. They also discover a Personal Ledger Account that was opened without the Accountant General's concurrence. Both findings are raised as audit observations requiring corrective action.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
After how many years do unclaimed deposits lapse?▼
What safeguard exists against double payment of deposits?▼
Is audit of private individual deposits the same as government deposits?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.