Para 3.17.1 — MSO (Audit)
Original Rule Text
3.17.1 Audit is responsible for reporting to the funding agency whether the implementing agencies have carried out expenditure on the scheme in accordance with the pattern specified in the staff appraisal report relating to the schemes and terms of such assistance and Government of India instructions and to identify matters relating to inadequacies in systems and control, cases of fraud or presumptive fraud, wasteful expenditure, failure of administration to take corrective action on recommendations contained in earlier report.
- Source documents
What This Means
When auditing externally assisted projects (such as World Bank funded schemes), audit must report to the funding agency whether implementing agencies have spent money according to the approved project design and assistance terms. Audit must also identify system and control weaknesses, instances of fraud or suspected fraud, wasteful expenditure, and cases where the administration has failed to act on recommendations from earlier audit reports.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Audit reports to the funding agency on compliance with project design and assistance terms
- 2Must follow patterns specified in the Staff Appraisal Report and Government of India instructions
- 3Identify inadequacies in systems and controls
- 4Flag fraud, presumptive fraud, and wasteful expenditure
- 5Report failure by administration to act on earlier audit recommendations
Practical Example
The CAG's office audits a World Bank-assisted rural water supply project in Rajasthan. The audit finds that the implementing agency procured pipes from a single vendor without competitive bidding, violating both World Bank procurement guidelines and GoI instructions. Additionally, the previous year's audit had recommended installing flow meters, but no action was taken. Both findings are reported to the funding agency in the audit certificate.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What is the Staff Appraisal Report (SAR)?▼
What is 'presumptive fraud'?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.