Para 3.18.15 — MSO (Audit)
Original Rule Text
3.18.15 In case specific, expensive and sophisticated equipment is considered essential for a project, Audit should verify whether the equipment has been procured, installed and commissioned in time and whether it has been adequately utilised in the intended manner.
- Special guidelines for mission-oriented departments
What This Means
When a scientific project requires expensive and specialized equipment, auditors must verify three things: whether the equipment was procured and installed on time, whether it was properly commissioned, and whether it has been adequately used for its intended purpose. Idle or underutilized expensive equipment is a significant audit concern.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Verify timely procurement and installation of essential equipment
- 2Check whether equipment was properly commissioned
- 3Assess whether equipment has been adequately utilized
- 4Equipment must be used for its intended purpose
- 5Focus on specific, expensive, and sophisticated equipment
Practical Example
A space research laboratory procures a Rs. 8 crore electron microscope under a DAE project. The auditor finds that the equipment was delivered 14 months late due to delayed import clearances, and after installation, it was used for only 120 hours in its first year against an expected utilization of 1,500 hours. The low utilization was attributed to lack of trained operators. The auditor flags both the procurement delay and the underutilization as significant findings.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What constitutes 'adequate utilization' of equipment?▼
What if equipment becomes obsolete before being fully utilized?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.