Para 3.5.5 — MSO (Audit)
Original Rule Text
3.5.5 Audit is to be conducted with reference to the original sanction as well as the extent of and conditions governing the delegation of financial powers to different authorities of the Union, the State or Union Territory Governments. This may be done either in Central Audit or in local audit.
What This Means
Audit of grants-in-aid must be conducted by checking the original sanction order and also examining the delegation of financial powers — which authority was empowered to sanction what amount and under what conditions. This audit can be performed either centrally (at the AG's office using records received there) or during local audit (at the department's or grantee's premises).
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Audit checks grants against the original sanction order
- 2Financial power delegations must be verified to ensure the sanctioning authority was competent
- 3The audit examines conditions attached to the delegation of powers
- 4This can be done in Central Audit or during local audit inspections
- 5Applies to Union, State, and Union Territory government grants
Practical Example
A District Collector sanctioned a Rs 10 lakh grant to a local sports body. During central audit, the auditor checked whether the Collector had delegated authority to sanction grants of this amount. The delegation of financial powers showed the Collector could sanction up to Rs 5 lakh only. The excess Rs 5 lakh was flagged as having been sanctioned without competent authority.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What is the difference between Central Audit and Local Audit for grants?▼
Why is checking the delegation of financial powers important?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.