Para 3.13.16 — MSO

3.13.16 Some of the important points to be looked into in the course of audit of these loans and advances are dealt with below:

(i) It should be verified that competent authorities alone have sanctioned the loans and advances to government servants in accordance with the rules and orders governing them.

(ii) The broadsheets and other records maintained by the pay and accounts officers and departmental officers to watch repayment of the loans and advances and the recovery of interest should be reviewed in local audit to see that they are properly maintained and that the payments or adjustments made in this regard are in accordance with the conditions prescribed.

(iii) In cases where utilisation certificates are required to be furnished by the beneficiaries, it should be verified that the departmental officers have been obtaining these.

(iv) Audit should also verify the fulfilment of the conditions relating to mortgage, insurance, etc.

(v) In the case of long-term advances, it should be ascertained whether appropriate and adequate action is being taken by the offices responsible for maintaining their detailed accounts to ensure that the individual balances outstanding in their books are reconciled periodically with the balances shown in the recovery schedules.