Para 3.17.12 — MSO (Audit)
Original Rule Text
3.17.12 The annual accounts to be certified are the annual expenditure statements in respect of projects executed by Government Departments and the Accounts that are certified by Comptroller and Auditor General as sole auditors in respect of projects executed by other bodies and authorities. If any further details are required by the World Bank, these are to be furnished by the project authorities. The integrated Audit Certificate is considered adequate for the purposes of the World Bank and it would not be necessary for the Bank to await the all-inclusive Audit Report of the Comptroller and Auditor General submitted to the respective legislatures. As the Audit Certificate is not to be published and is in the nature of a document exchanged between the clients and the Bank, the Certificate should indicate, in brief, the amounts held under objection in relation to wanting vouchers, D.C. bills, sanctions etc. and misclassification, defalcation, over payments etc. that come to notice.
3.17.13The Audit Certificates in respect of projects executed by Government Companies are issued by Chartered Accountants who are statutory auditors of the companies and not by the Comptroller and Auditor General who conducts only a supplementary audit in such cases under the Companies Act. 1956.
What This Means
The annual accounts certified for World Bank projects are the expenditure statements for government-department projects and the full accounts for bodies where the CAG is sole auditor. The integrated audit certificate is considered sufficient by the Bank — they do not need to wait for the CAG's full published Audit Report. Since the certificate is an unpublished document exchanged between the project and the Bank, it should briefly indicate amounts under objection such as missing vouchers, pending sanctions, misclassifications, or defalcations.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Annual expenditure statements are certified for government department projects
- 2Full accounts are certified for bodies where CAG is sole auditor
- 3The integrated audit certificate is sufficient; the Bank does not need the full Audit Report
- 4The certificate is an unpublished document between the project and the Bank
- 5It should briefly note amounts held under objection including missing vouchers, defalcations, and misclassification
Practical Example
The AG (Audit) issues an audit certificate for a World Bank rural sanitation project. The certificate notes: Rs 1.2 crore in payments without vouchers, Rs 40 lakh in expenditure without proper sanction, and Rs 15 lakh misclassified between project components. This information helps the Bank assess financial management without waiting for the CAG's published Audit Report, which may take another year.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Why is the certificate not published?▼
Who issues audit certificates for World Bank projects run by government companies?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.