Para 3.17.11 — MSO (Audit)
Original Rule Text
3.17.11 The World Bank has accepted, after going through the accounting and auditing arrangements in India, that the system ensured a satisfactory degree of financial discipline and, accordingly, accepted the Comptroller and Auditor General of India to be an independent auditor for the purposes of certification of accounts issue of audit certificates in respect of projects being executed in India with World Bank financial assistance. The standard audit covenant in the loan agreements, in respect of projects executed by Government Departments and Corporations, the audit of which vests with the Comptroller and Auditor General, is met by the Accountants General (Audit) by
furnishing to the project authorities for onward transmission to the Bank, and integrated audit certificate within 9 months or earlier of the close of the financial year in the prescribed form (Annexure) based on irregularities noticed in Central Audit as well as Local audit in relation to the accounts of these projects.
What This Means
The World Bank has accepted the CAG of India as an independent auditor for World Bank-funded projects executed by government departments and corporations under CAG's audit jurisdiction. The standard audit covenant is fulfilled when the Accountant General (Audit) issues an integrated audit certificate to the project authorities within 9 months of the financial year-end, based on findings from both Central Audit and Local Audit.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1World Bank accepts CAG as independent auditor for projects under CAG's audit jurisdiction
- 2The Bank reviewed India's accounting and auditing systems before accepting this arrangement
- 3AG (Audit) issues an integrated audit certificate covering Central and Local audit findings
- 4Certificate must be provided within 9 months of the financial year-end
- 5Project authorities forward the certificate to the World Bank
Practical Example
A World Bank-assisted primary education project is implemented by the Department of Education in Bihar. The AG (Audit), Bihar conducts Central Audit of the project accounts and sends a Local Audit party to verify expenditure at district offices. By December (within 9 months of the March year-end), the AG issues an integrated audit certificate and sends it to the project director, who forwards it to the World Bank through the Department of Economic Affairs.
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 an 'integrated audit certificate'?▼
Why did the World Bank need to review India's audit system first?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.