Para 3.12.6 — MSO (Audit)
Original Rule Text
3.12.6 Audit of vouchers relating to drawals from the accounts of individual subscribers consists in examining inter alia the following:
(i) The competent authority has sanctioned the advance or withdrawal to which the voucher pertains.
(ii) The amount sanctioned is in conformity with the rules governing the admissibility of such advances or withdrawals and is not in excess of the balance at the credit of the subscriber.
(iii) Advances from the Fund are recovered regularly in terms of the sanctions.
(iv) Payment of the advance or amount withdrawn has been posted in the subscriber’s ledger account.
# Local audit of Provident Fund Accounts
What This Means
When auditing vouchers for Provident Fund withdrawals, auditors must check four things: that a competent authority sanctioned the advance or withdrawal, that the sanctioned amount follows the admissibility rules and does not exceed the subscriber's balance, that advances are being recovered regularly as per the sanction terms, and that the payment has been properly posted in the subscriber's ledger account.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Competent authority must sanction every PF advance or withdrawal
- 2Sanctioned amount must conform to admissibility rules and not exceed subscriber's balance
- 3Advances must be recovered regularly per sanction terms
- 4Payment must be posted in the subscriber's ledger account
Practical Example
A government employee withdraws Rs. 3 lakh from GPF for house construction. The auditor verifies that the Head of Department sanctioned the withdrawal, that Rs. 3 lakh does not exceed the employee's GPF balance, that recovery instalments for any previous PF advance are being deducted from salary as scheduled, and that the withdrawal is recorded in the employee's ledger.
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 PF withdrawal exceed the subscriber's balance?▼
What happens if PF advance recovery is not regular?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.