Para 3.13.3 — MSO (Audit)
Original Rule Text
3.13.3 Audit of interest payments on the borrowings managed by the Public Debt Offices is divided between the Audit and Accounts Department and the Public Debt office concerned. The former is responsible for ensuring that
(i) the amount of promissory note is correctly stated in the voucher; and
(ii) interest due has not been paid twice for the same half year. In all other respects, and especially in respect of the correctness of interest calculations, income tax deductions and other arithmetical computations, the vouchers are subject to regular examination in Audit. After the Accountant General (Audit) has audited the vouchers, the Accountant General (A&E) forwards these to the Public Debt Office. The Accountant General (Audit) or the Principal Director of Audit concerned also undertakes a test audit of the work done in the Public Debt Offices.
# Borrowings
What This Means
The audit of interest payments on borrowings managed by RBI's Public Debt Offices is split between the Audit and Accounts Department and the Public Debt office. The Audit Department checks that the promissory note amount is correct and interest has not been paid twice for the same half-year. For everything else -- especially interest calculations, income tax deductions, and arithmetic -- the vouchers undergo regular audit examination. After audit, the AG (A&E) sends the vouchers to the Public Debt Office. The AG (Audit) also conducts test audit of the Public Debt Office's work.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Audit responsibility is shared between IAAD and the Public Debt Office
- 2IAAD verifies promissory note amounts and checks against duplicate half-year payments
- 3Interest calculations, income tax deductions, and arithmetic are subject to regular audit
- 4AG (A&E) forwards audited vouchers to the Public Debt Office
- 5AG (Audit) or Principal Director of Audit conducts test audit of Public Debt Office operations
Practical Example
The AG (Audit) in a state receives interest vouchers for state government bonds managed by RBI's Public Debt Office. The audit team verifies that a bond listed at Rs 50 lakh face value is correctly stated, ensures the October 2025 half-year interest has not been paid before, checks the interest computation (Rs 50 lakh x rate / 2), and confirms proper TDS deduction. The audited vouchers are then sent back through AG (A&E) to the Public Debt Office.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
How does this para relate to Para 3.13.25 and 3.13.26?▼
Why does the AG (Audit) also conduct test audit of the Public Debt Office?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.