Para 3.17.27 — MSO (Audit)
Original Rule Text
3.17.27 It is advisable to draft Audit Inspection Report paras identifying specifically that the project/work/ scheme is aided by World Bank/External Agency where the implementing agency is executing other work besides World Bank aided works.
- Annexure (Referred to in paragraph 3.17.11)
Office of The ………………………………………………………………………… (in the proper letter head) No. ……………….
# AUDIT CERTIFICATE
The Expenditure Statements/Financial Statements relating to the Project …………………………………. (loan/credit No. …………..) for the year ………….. attached hereto have been audited in accordance with the regulations and standards of audit of the Comptroller and Auditor General of India and accordingly included such tests of accounting records, internal checks and controls, and other auditing procedures necessary to confirm
(a) that the resources were used for the purposes of the Project; and
(b) that the expenditure statements/financial statements are correct. During the course of audit referred to above, Statements of Expenditure (Each Application Number.................. and amount to be indicated) and the connected documents were examined and these can be relied upon to support reimbursement under the aforesaid loan/credit agreement. Gross amount shown in the above mentioned statements of expenditure includes advance paid to contractor/s Rs. ................ Rupees ( .......................................................) which is still pending adjustments. * On the basis of the information and explanations that have been obtained as required and according to the best of our information as a result of test audit, it is certified that the Expenditure Statements/Financial Statements read with the observations set out below represent a true and fair view of the implementation (and operations) of the Project for the year ……………. This certificate is issued without prejudice to CAG’s right to incorporate any further/detailed audit observation if and when made in the Report of CAG of India for being laid before Parliament/State Legislature.
Signed ________________ (Name and Designation)
* Delete if not necessary.
# Chapter–18 Audit of Scientific Departments
- Guiding Principles
What This Means
When an implementing agency handles both World Bank-aided and non-Bank projects, audit inspection report paragraphs must clearly identify which project or work is World Bank or externally aided. This rule also provides the standard proforma for the audit certificate that the CAG issues for World Bank projects, covering expenditure verification, SOE reliability, and pending advances.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Audit reports must clearly identify World Bank/externally aided works
- 2This is critical when the agency also executes non-Bank projects
- 3The audit certificate proforma covers expenditure verification and SOE reliability
- 4Pending contractor advances must be disclosed in the certificate
- 5Certificate is issued without prejudice to CAG's right to add further observations
- 6Certificate must be signed by a designated officer on official letterhead
Practical Example
The Public Works Department executes both state-funded and World Bank-funded road projects. During audit, an irregularity worth Rs. 3 crore is found in concrete quality on a specific road section. The audit team ensures the inspection report paragraph clearly states 'World Bank Loan No. XXXX — National Highway Project' so that the observation is correctly attributed and the Bank is informed through the audit certificate process.
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 it important to specifically identify World Bank-aided works in audit reports?▼
What does 'without prejudice to CAG's right' mean in the certificate?▼
Who signs the audit certificate?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.