Para 3.13.21 — MSO

3.13.21 There exist a number of Reserves and Reserve Funds under the Sector ‘J. Reserve Funds’ in the accounts of the Union and the State Governments which have been created for specific and well-defined purposes and are fed by contributions or grants from the Consolidated Fund of India, of a State or of a Union Territory, or from outside agencies. In relation to the transactions pertaining to such funds, it should be seen in audit that:

(i) the transactions are classified and accounted for according to the principles laid down under the heading “Transactions pertaining to Reserves and Reserve Funds” in paragraphs 3.16.35 to 3.16.37 in the chapter on “Certification of Finance Accounts and Appropriation Accounts”;

(ii) these transactions conform to the rules or orders framed by the competent authority governing the administration of each Fund;

(iii) the balance standing in the account of each Fund at the close of the year has been verified; and

Suspense accounts

(iv) the instructions relating to investments contained in this chapter are kept in view in cases where the whole or any part of the balance of a Fund is invested.