Para 3.5.13 — MSO (Audit)
Original Rule Text
3.5.13 It should be watched that, except in special circumstances, grants are not paid in excess of actual requirements of the grantee for the financial year or, say, for a period of one year from the date of issue of the sanction and that any general or special orders for releasing a particular grant in instalments are compiled with.
What This Means
Audit must watch that grants-in-aid are not paid in excess of what the grantee actually needs for the current financial year (or about one year from the sanction date). If government orders require a grant to be released in instalments, compliance with those instalment schedules must be verified. Except in special circumstances, over-payment of grants beyond immediate requirements should be flagged.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Grants should not exceed the grantee's actual requirements for the financial year
- 2Default period is one year from the date of sanction, unless specified otherwise
- 3Instalment release orders must be complied with
- 4Excess payment beyond immediate needs should be flagged except in special circumstances
- 5This prevents idle funds sitting with grantees while public treasury needs are unmet
Practical Example
A state government sanctions Rs. 1 crore to a cooperative society in April for a housing scheme, to be released in four quarterly instalments. Audit finds that the entire Rs. 1 crore was released in the first quarter itself and Rs. 70 lakh sat in the society's bank account for nine months earning interest. This is flagged as release of grants in excess of immediate requirements and non-compliance with instalment orders.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Why should grants not be released in excess of immediate needs?▼
What counts as 'special circumstances' for releasing excess grants?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.