Para 3.5.22 — MSO (Audit)
Original Rule Text
3.5.22 The Central Government have decided that where assets are to be acquired wholly or substantially out of Government grants paid to non-government or quasi-government bodies or institutions, it should be laid down that the assets should not, without the Government’s prior sanction, be disposed of or utilized for purposes other than those for which the grants were sanctioned. Audit has to watch compliance with this requirement or any other similar stipulation made by the State Government in this behalf.
# Audit of scholarships
What This Means
When the government gives grants to non-government or quasi-government bodies to acquire assets (like equipment or property), those assets cannot be sold or used for anything other than the original grant purpose without the government's prior approval. Audit must verify that grantee bodies are complying with this restriction and not disposing of or repurposing grant-funded assets without authorization.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Assets acquired from government grants cannot be disposed of without prior government sanction
- 2Assets must be used only for the purposes specified in the grant sanction
- 3This applies to non-government and quasi-government bodies receiving substantial government funding
- 4Audit must watch for compliance with these asset-use restrictions
- 5Similar stipulations by State Governments must also be monitored
Practical Example
A government grant of Rs 50 lakh was given to a training institute to purchase computers and lab equipment. Two years later, the institute sold some computers to fund a building renovation. During audit, this sale was flagged because the institute never obtained the government's prior sanction before disposing of the grant-funded assets.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What happens if a grantee body sells assets bought with government grants without permission?▼
Does this rule apply if only a small portion of the asset cost came from government grants?▼
Who is responsible for ensuring compliance with this requirement?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.