Para 3.16.16 — MSO

Provisional Adjustments 3.16.16 In cases where provisional adjustments have been made due to non-availability of correct figures before the closure of the accounts for the year, it should be verified whether the competent authority's sanction has been obtained for such adjustment. It should also be seen whether adequate action has been taken to collect the particulars necessary for carrying out the final adjustment at the earliest and if possible in the same year’s accounts by a belated journal entry. The practice of restricting adjustments in accounts to the extent of the available provision is against the principles of Parliamentary control of public finance. The proper course to be followed, where details are available for adjustment, is to make the adjustment and explain suitably the excess/saving in the Appropriation Accounts.

Note: The basis of adjustment of interest on Provident Fund in Government account by the Accountant General (A&E) should be verified while checking the Appropriation Accounts and any case of defective budgeting in the ‘Interest Appropriation’ should be reported to the Headquarters Office.