Para 3.17.26 — MSO (Audit)
Original Rule Text
3.17.26 During local audit, it is necessary to obtain a listing of all SOEs submitted during the period under review and for each expenditure perform the following :
(i) Evaluate the adequacy of the supporting documentation which should normally include one or more of the following :
What This Means
During local audit, auditors must obtain a complete list of all SOEs submitted during the review period. For each expenditure, they must verify supporting documentation, check proper authorization, confirm eligibility for Bank disbursement, verify mathematical accuracy, confirm the Bank's reimbursement share percentage, and report all negative findings to the borrower.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Obtain a complete listing of all SOEs for the period under review
- 2Evaluate adequacy of supporting documentation (procurement docs, invoices, contracts, etc.)
- 3Verify expenditure was properly authorized and approved
- 4Confirm eligibility for Bank disbursement — flag duplicates, advance payments, or ineligible items
- 5Verify mathematical accuracy and correct reimbursement percentage
- 6Summarize results on a summary form and notify borrower of negative findings
Practical Example
An audit party examining a World Bank-funded health project obtains the list of 12 SOEs submitted during the year. While checking SOE #7, they find a duplicate invoice for medical equipment worth Rs. 15 lakh that was also claimed in SOE #4. They also discover that procurement of laboratory supplies worth Rs. 5 lakh was done from a non-member country vendor. Both findings are documented on the summary form and communicated to the project implementing authority.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What supporting documents should an SOE have?▼
What constitutes an ineligible expenditure under SOE audit?▼
What is the reimbursement percentage check?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.