Para 3.4.16 — MSO (Audit)
Original Rule Text
3.4.16 Payments of Fully Vouched Contingencies are made on detailed bills. The audit of these payments should be conducted as in the case of amounts drawn on bills countersigned before payment. It is the duty of Audit to challenge extravagant rates, prices or amounts in charges not otherwise objectionable in character and to refer for orders of the competent authority any item of expenditure which is positively objectionable or even of doubtful propriety. A charge should not, however, be held to require the special sanction of Government merely because it is unusual in the sense that it does not occur at frequent intervals. For example, a clock in a Commissioner’s office may be a necessary article of furniture, though the need of replacing it may not arise for years together. When the need does arise, the expenditure may be readily passed on the Commissioner’s signature if, prima facie, the price be reasonable.
- Contingent charges relating to wages of mazdoors and pay and allowances of staff paid from contingencies
What This Means
Fully Vouched Contingencies are paid on detailed bills and audited like pre-countersigned bills. Audit has a duty to challenge extravagant rates or amounts even if the charge is otherwise valid. Any clearly objectionable or doubtful expenditure must be referred to the competent authority. However, a charge should not be deemed to need special government sanction just because it is uncommon — if something is a legitimate need and the price is reasonable, it can be passed on the drawing officer's authority.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Fully Vouched Contingencies are paid on detailed bills without countersignature
- 2Audit must challenge extravagant rates, prices, or amounts
- 3Objectionable or doubtful charges must be referred to competent authority
- 4Unusual but legitimate charges do not automatically need special government sanction
- 5Reasonableness of price is the key test for uncommon items
Practical Example
A Commissioner's office needs to replace its wall clock after 15 years. Even though clock replacement is a rare expense, the audit team should not insist on special government sanction as long as the price is reasonable. However, if the office purchases a designer clock for Rs. 50,000, audit would challenge the extravagant rate and ask for justification.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What makes an expenditure 'objectionable' versus just 'unusual'?▼
Who decides if a rate is extravagant?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.