Para 3.13.9 — MSO

3.13.9 The registers and the broadsheets maintained by the Pay and Accounts and departmental offices should be reviewed in local audit to verify whether:

(i) payment, on the due dates, of the instalments of principal and interest by the loanees is properly monitored;

(ii) penal interest has been levied on overdue instalments;

(iii) loans paid and repaid and the interest remitted have been properly accounted for;

(iv) conditions, if any, prescribed by the sanctioning authority have been fulfilled;

(v) any amount paid has been erroneously treated and credited as repayment of the principal when any sum is due on account of unpaid interest; and

(vi) acknowledgments have been obtained periodically from the debtors in respect of outstanding balances.

Note: In cases where the Public Works Department incurs expenditure on works executed under special orders and such expenditure is treated as a loan, the amounts debitable to several loan accounts will appear in the monthly accounts of the divisional offices and these would be deemed to have been advanced on the last day of the month in which the expenditure appeared in the divisional accounts.