Para 3.4.6 — MSO (Audit)
Original Rule Text
3.4.6 The responsibility for the effective control of contingent expenditure rests primarily upon the heads of offices and departments. The Audit office merely examines the fulfilment of that responsibility by auditing such expenditure, the extent of which varies greatly with the different categories of contingent charges. It is the least in the case of contract contingencies. It is somewhat greater in respect of Scale Regulated and Special Contingencies because Audit has to satisfy itself in the former case that the charges incurred are in accordance with the scale that governs them and watch the expenditure against the necessary sanction of the superior authority in the latter case. Apart from certain definite responsibilities to be discharged by Audit, the countersigning authorities exercise the major portion of the control over Countersigned Contingencies. The responsibility of Audit is the greatest in the case of Fully Vouched Contingencies. For all categories of contingent charges alike, other than Contract Contingencies, these responsibilities should be discharged only in so far as the rules relating to those contingencies permit.
- Issues for audit scrutiny
- General checks
What This Means
The primary responsibility for controlling contingent expenditure lies with the heads of offices and departments, not with audit. Audit's role is to examine whether that responsibility is being fulfilled. The extent of audit scrutiny varies by category: minimal for Contract Contingencies, moderate for Scale Regulated and Special Contingencies, shared with countersigning authorities for Countersigned Contingencies, and greatest for Fully Vouched Contingencies where audit is the primary check.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Heads of offices/departments bear primary responsibility for expenditure control
- 2Audit examines whether departments are fulfilling their control responsibility
- 3Least audit involvement for Contract Contingencies
- 4Greater audit role for Scale Regulated and Special Contingencies
- 5Countersigning authorities share control of Countersigned Contingencies
- 6Audit responsibility is greatest for Fully Vouched Contingencies
Practical Example
For a contract grant of Rs. 1 lakh per year for stationery, the Head of Office manages spending within the grant with minimal audit oversight. But when the same office incurs fully vouched expenditure on office repairs, audit performs detailed scrutiny of every bill since there is no other controlling authority reviewing the charges.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Why does audit have less involvement in Contract Contingencies?▼
Does 'least audit involvement' mean no audit at all?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.