Para 3.4.19 — MSO (Audit)
Original Rule Text
3.4.19 Payments charged to contingencies are sometimes made against contracts entered into by Government for supplies of materials, stores, etc. Ministries/departments of the Central Government and State Governments enter into contracts either with domestic
suppliers or foreign suppliers. The detailed procedure for payments against such contracts and arrangements for their audit (including audit of the contracts themselves) are described in Chapter-7 of this Section.
- Chapter–5 Audit of Grants-in-aid
- Introduction
What This Means
Sometimes contingency funds are used to pay for contracts made by government departments for supplies, materials, or stores from domestic or foreign suppliers. The detailed procedures for making such payments and auditing these contracts — including audit of the contracts themselves — are covered separately in Chapter 7 of this Section of the MSO (Audit).
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Contingent charges may include payments against supply contracts
- 2Both domestic and foreign supplier contracts are covered
- 3Detailed contract payment and audit procedures are in Chapter 7
- 4Audit covers both the payments and the contracts themselves
- 5Ministries and state government departments both enter into such contracts
Practical Example
A government department enters into a rate contract with a domestic furniture supplier for Rs. 10 lakh worth of office furniture, to be delivered over six months. Each instalment payment is charged to contingencies. The audit of these payments follows the specialized contract audit procedures in Chapter 7, not just the general contingency audit rules.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Why are contract payments audited differently from regular contingencies?▼
Does audit check only the payment or the entire contract?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.