Para 3.13.16 — MSO (Audit)
Original Rule Text
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.
# Investments
What This Means
Audit of loans and advances to government servants involves five main checks: verifying that competent authorities sanctioned the loans per governing rules, reviewing broadsheets and recovery records to ensure repayments and interest recoveries are on track, checking that utilisation certificates have been obtained where required, verifying compliance with mortgage and insurance conditions, and confirming that individual outstanding balances are periodically reconciled with recovery schedules for long-term advances.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Only competent authorities may sanction loans, and they must follow governing rules
- 2Broadsheets and recovery records must show regular repayment and interest recovery
- 3Utilisation certificates must be obtained from beneficiaries where required
- 4Mortgage and insurance conditions must be fulfilled
- 5Long-term loan balances must be periodically reconciled with recovery schedules
Practical Example
An auditor reviewing house-building advances checks that each advance was sanctioned by an officer with delegated powers, the house was actually built (utilisation certificate obtained), the mortgage deed was executed in favour of the government, insurance is current, and the outstanding balance in the loan account matches the cumulative recoveries shown in monthly salary deductions.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What is a utilisation certificate in the context of government loans?▼
Why must loan balances be reconciled with recovery schedules?▼
What mortgage and insurance conditions apply to government loans?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.