Para 3.16.20 — MSO (Audit)
Original Rule Text
3.16.20 As indicated earlier, the Controller General of Accounts prescribes the form of accounts on the advice of the Comptroller and Auditor General. The term "form of accounts" covers also the principles of classification and thus the ultimate responsibility for prescribing the correct classification of the transaction rests on the Controller General of Accounts. In determining the classification of doubtful items, if an Accountant General does not agree with the opinion of the Government, he should refer the matter to the Comptroller and Auditor General for consideration and taking up the case with the Controller General of Accounts, where ever necessary.
- C. Allocation of Expenditure between Capital and Revenue
What This Means
The Controller General of Accounts (CGA) has the ultimate responsibility for prescribing correct classification of government transactions, acting on the CAG's advice. If an Accountant General disagrees with the government's classification of a doubtful item, the matter should not be settled locally. Instead, it should be referred to the CAG, who can then take it up with the CGA if necessary.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1The CGA prescribes the form of accounts, which includes classification principles
- 2Ultimate responsibility for correct classification rests with the CGA
- 3Classification disputes between AG and Government must be referred to the CAG
- 4The CAG may then take the matter to the CGA for final determination
Practical Example
The State Government classifies expenditure on a software development project as 'Capital Outlay on Information Technology.' The Accountant General believes it should be classified under 'Revenue - Office Expenses' since the software has a short useful life. Unable to convince the Government, the AG refers the dispute to the CAG, who examines the case and takes it up with the CGA for a binding classification decision.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Can an Accountant General unilaterally change the classification decided by the Government?▼
Why does the term 'form of accounts' include classification principles?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.