Para 3.5.10 — MSO (Audit)
Original Rule Text
3.5.10 Audit should check that
(i) the sanction conforms to the pattern of assistance or rules governing such grants-in-aid as approved by the Finance Ministry;
(ii) the suitability of the institution seeking the grant has been assessed by the sanctioning authority;
(iii) no grants are sanctioned where there is reasonable doubt or suggestion of corrupt practices unless the institution concerned has been cleared of the allegations;
(iv) every order sanctioning a grant indicates whether it is recurring or non-recurring in nature and the object for which it is given and clearly specifies the general and special conditions, if any, attached to the grant, and
(v) a provision to the effect that the accounts of the grantee institutions shall be open to inspection by the sanctioning authority/Audit whenever considered necessary by them is incorporated in all orders sanctioning
grantsin-aid. 3.5.11 In the audit of sanctions to grants-in-aid and expenditure thereagainst, the guidelines/principles enunciated in Section II are required to be observed.
What This Means
When auditing grants-in-aid sanctions, auditors must check five things: the sanction follows the Finance Ministry's approved pattern, the grantee institution's suitability was assessed, grants were not given to institutions facing corruption allegations (unless cleared), the sanction order specifies whether the grant is recurring or non-recurring along with its purpose and conditions, and the order includes a provision allowing the sanctioning authority and audit to inspect the grantee's accounts whenever needed.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Sanction must conform to Finance Ministry's approved pattern or rules
- 2Suitability of the grantee institution must have been assessed
- 3Institutions with corruption allegations should not receive grants unless cleared
- 4Sanction order must specify: recurring/non-recurring, purpose, and conditions
- 5Accounts of grantee must be open to inspection by sanctioning authority and audit
- 6Para 3.5.11 adds that Section II guidelines must also be observed
Practical Example
A ministry sanctions a Rs. 20 lakh grant-in-aid to an NGO for rural education. The auditor checks that the NGO's credentials were verified, the sanction order clearly states it is a non-recurring grant for building classrooms, and includes a clause that the NGO's accounts are open for inspection. The auditor also checks whether there are any pending vigilance complaints against the NGO.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Why must the grantee's accounts be open to inspection?▼
What happens if a sanction order does not specify whether the grant is recurring or non-recurring?▼
Can a grant be given to an institution under corruption investigation?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.