Para 3.5.20 — MSO

3.5.20 In view of large amounts disbursed as grants-in-aid in connection with developmental schemes by the Central as well as State Governments to co-operative societies, private institutions, etc., it has become an important function of Audit to watch:

(i) that there is no tendency on the part of Government to continue disbursing fresh grants to a grantee when substantial amounts out of the earlier grants remain unutilised;

(ii) that an adequate machinery is available with the executive authorities to maintain a constant watch over the progress of expenditure from the grant, the continued solvency of the grantee and the safety of the funds provided;

(iii) whether the intended developmental schemes are being implemented economically and efficiently and producing the results expected of them;

(iv) the extent to which the agency or authority being audited is adequately discharging its financial responsibilities in relation to the schemes being implemented; and

(v) whether there are instances of overpayment, loss, extravagance, avoidable excess or infructuous expenditure attributable to improper planning, incorrect sequencing of activities, delays in completion, etc.

Grant made for a specified object