Para 3.17.9 — MSO (Audit)
Original Rule Text
3.17.9 After the closure of every financial year; the audit certificate shall be issued within 9 months or earlier as required under the Project/Loan Agreement i.e. certificate should be issued any time after receipt of SOE. The issue of the Audit Certificates is delayed mainly due to non-receipt of the SOE’s from the project implementing authorities and there is a general tendency to shift the responsibility for delay on Audit. To overcome this problem, timely and prompt action by taking up the matter with the Finance Secretary of the State should be initiated. Audit certificate should be issued to project implementing authority under intimation to Ministry of Finance (Department of Economic Affairs).
# Main Points to be checked in Different Audit Areas
What This Means
The audit certificate must be issued within 9 months after the financial year ends, or earlier if the loan agreement requires it. Delays are usually caused by implementing agencies not submitting the SOE on time, though the blame often falls on audit. To prevent delays, the AG office should escalate the matter to the State Finance Secretary. The certificate is sent to both the implementing agency and the Ministry of Finance (DEA).
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Audit certificate must be issued within 9 months of financial year close
- 2Can be issued anytime after receipt of SOE — no need to wait
- 3Delays are mainly caused by non-receipt of SOE from implementing agencies
- 4AG office must proactively escalate delays to State Finance Secretary
- 5Certificate is issued to the implementing agency with copy to Ministry of Finance (DEA)
Practical Example
For the financial year ending March 2025, the audit certificate for a World Bank road project should be issued by December 2025. The implementing agency submits the SOE in August 2025. The AG office immediately begins its examination and issues the certificate by October 2025 — well within the deadline. The certificate is sent to the project implementing authority with a copy to 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 happens if the audit certificate is delayed beyond 9 months?▼
Why is the Ministry of Finance (DEA) kept informed?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.