Para 3.5.15 — MSO (Audit)
Original Rule Text
3.5.15 When recurring grants-in-aid are made to an institution, Audit will verify, as far as possible, that the institution continues to function as intended and that the circumstances in recognition of which the grant was sanctioned still continue to exist.
What This Means
For recurring grants-in-aid (those paid regularly, often annually), audit must verify that the institution receiving the grant is still functioning as intended and that the original circumstances justifying the grant still exist. This prevents government money from continuing to flow to institutions that have become defunct, have changed their purpose, or no longer meet the criteria for the grant.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Recurring grants require periodic verification that the institution still functions as intended
- 2The original circumstances justifying the grant must continue to exist
- 3Audit should check this as far as possible during inspections
- 4Prevents public money flowing to defunct or repurposed institutions
- 5This is a continuing vigilance requirement, not a one-time check
Practical Example
A cultural institution has been receiving an annual grant of Rs. 3 lakh for the past 15 years to conduct folk art workshops. During audit, it is discovered that the institution stopped conducting workshops three years ago and has been using the grant for general office expenses. The auditor flags the continued release of grants despite the institution no longer fulfilling its original mandate.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
How does audit verify that the institution still functions as intended?▼
What happens if the circumstances have changed?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.