Para 3.16.14 — MSO (Audit)
Original Rule Text
3.16.14 While certifying the Finance Accounts, it should be examined whether:
(i) the heads of account shown in the Accounts are authorised ones and the nomenclature thereof conform to the classification contained in the List of Major and Minor Heads of Accounts;.
(ii) there are any anomalies or obvious mistakes of classification;
(iii) wide variations between the revised estimates and the actual expenditure have been properly examined to ensure that there has been no serious misclassification of expenditure;
(iv) per contra adjustments have been carried out correctly in all cases;
(v) abnormal transactions of receipts, disbursements or balances have been investigated and rectified or properly explained by foot notes.
Note: The balances under Debt, Deposit, Suspense and Remittances, etc. should be particularly reviewed in detail. While forwarding Chapter I of the Audit Report alongwith the audited copy of Finance Accounts, a report similar to that given by the Commercial Auditors on company accounts containing, inter alia, a critical appreciation and review of balances highlighting obvious omissions and commissions should be furnished to the Headquarters Office.
(vi) the opening balances agree with the closing balances shown in previous year’s accounts;
(vii) the adverse balances have been adequately explained and the action taken for liquidating these is sufficient;
(viii) the amounts shown against the minor head “Writes off from heads of account closing to balance” under the major head “8680 - Miscellaneous Government Account” are covered by sanctions issued by the Comptroller and Auditor General or the Controller General of Accounts or other accounting authorities in cases where the accounts have been departmentalised or separated from Audit or other authorities to whom the power has been delegated;
(ix) the codal provisions governing the transfer of the entire balance under “Cash Remittances between treasuries and currency chests” under the major head “8782” to ‘Remittances in transit’ under the major head “8999” and that under “8675 Reserve Bank Deposits” to “8999 - Cash Balance - Deposits with Reserve Bank” have been observed leaving no balance under the former heads;
(x) the balance under “Deposits with Reserve Bank” agrees with the balance communicated by the Bank and, if not, the difference has been properly explained;
What This Means
When the audit office certifies the Finance Accounts of a government, it must run through a detailed checklist covering 13 major points. These include verifying that account heads are authorised, checking for classification errors, reconciling revised estimates with actual spending, confirming opening balances match last year's closing balances, and ensuring Reserve Bank deposit balances agree with what the bank reports. Advances from the Contingency Fund must be tracked to make sure they are properly recouped.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Verify all account heads are authorised and correctly named per the official List of Major and Minor Heads
- 2Investigate wide variations between revised estimates and actual expenditure to rule out misclassification
- 3Check that opening balances match previous year's closing balances and adverse balances are explained
- 4Confirm the Deposit with Reserve Bank balance agrees with the bank's own records
- 5Watch Contingency Fund advances to ensure proper accounting and recoupment
Practical Example
An Audit Officer reviewing a state's Finance Accounts notices the closing balance under 'Deposits with Reserve Bank' differs from the figure communicated by the RBI by Rs 12 crore. She flags this discrepancy, requiring the Accountant General to provide a foot-note explanation or correct the entry before the accounts can be certified.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Why must Debt, Deposit, Suspense and Remittance balances be reviewed in particular detail?▼
What happens if a discrepancy is found between Statements 13 and 14?▼
What kind of report must accompany the audited Finance Accounts sent to Headquarters?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.