Para 3.15.2 — MSO (Audit)
Original Rule Text
3.15.2 The primary objectives of Appropriation Audit are to:
(i) ascertain whether the money expended has been applied to the services and purposes that the Grants and Appropriations were intended to provide;
(ii) verify whether the expenditure against each Grant or Appropriation is within the amounts authorised by the Legislature; and
(iii) check whether the orders of allotment of funds and re-appropriation orders conform to the rules and regulations.
- Source documents
What This Means
Appropriation Audit has three primary objectives: first, to check that money was spent on the services and purposes for which the Legislature approved the Grant; second, to verify that total spending under each Grant or Appropriation does not exceed the authorised amount; and third, to ensure that fund allotment orders and re-appropriation orders comply with applicable rules and regulations.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Money must be spent only on the services and purposes intended by the Grant or Appropriation
- 2Expenditure must not exceed the amount authorised by the Legislature
- 3Fund allotment orders must be from competent authorities
- 4Re-appropriation orders must conform to rules and regulations
- 5These three checks form the core of appropriation audit
Practical Example
The Education Department has a Grant of Rs 300 crore specifically for school construction. The auditor discovers that Rs 20 crore was spent on department vehicle purchases, which was not the intended purpose of the Grant. Additionally, total spending reached Rs 310 crore, exceeding the authorised amount by Rs 10 crore. Both findings are reported -- the first as a diversion of funds and the second as excess expenditure requiring regularisation by the Legislature.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What happens if expenditure exceeds the authorised Grant amount?▼
What is re-appropriation?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.