Para 3.4.8 — MSO (Audit)
Original Rule Text
3.4.8 Rules governing Contract Contingencies differ from Government to Government, the principal variations being in the types of expenditure brought under the contract system and in the department to which the system has been extended. In some cases, the contracts are entered into directly with the disbursing officers, while in others the contract grants are placed at the disposal of controlling officers, who distribute them annually among their subordinates, reserving a small portion for subsequent allotment in cases of need. In spite of these and other minor variations, the essential features of the system are common to all Governments. No details of the expenditure beyond such totals of the various contract items as may be required for purposes of classification, need to be furnished in the bills. Disbursing officers are held personally responsible for any expenditure in excess of the contract grant until the excess is regularised by sanction of the competent authority.
- Audit of Scale Regulated Contingencies
What This Means
Contract Contingency rules differ across governments but share common features. The key principle is that drawing officers receive a lump sum grant and can spend it on designated items without providing detailed breakdowns beyond classification totals. Officers are personally responsible for any excess spending beyond the contract grant until the excess is regularized by competent authority sanction. The grants may be allocated directly to drawing officers or distributed through controlling officers.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Contract Contingency rules vary between Central and State Governments
- 2Drawing officers receive lump sum grants for specified categories of expenditure
- 3No detailed expenditure breakdown needed — only classification totals
- 4Drawing officer is personally liable for any spending in excess of the grant
- 5Excess must be regularized by sanction from competent authority
- 6Grants may be distributed through controlling officers who retain a reserve
Practical Example
A Sub-Divisional Officer receives an annual contract grant of Rs. 80,000 for office expenses. He can spend this on stationery, postage, and cleaning without submitting detailed vouchers — only classification totals. But if he spends Rs. 95,000 by February, the Rs. 15,000 excess makes him personally liable until the controlling officer sanctions the additional amount.
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 contingencies given with less scrutiny?▼
What happens if the drawing officer overspends the contract grant?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.