Para 3.6.21 — MSO (Audit)
Original Rule Text
3.6.21 The authorisations issued should be checked by the Accountant General (Audit) as in the case of authorisations for regular pension and gratuity. It should be verified that the commuted value has been correctly calculated and authorised. Audit of commutation payment vouchers should be conducted with reference to the entries in the authorisation. The process of audit will be similar to that applicable in the case of gratuity payment vouchers indicated earlier.
Note: Commutation of pensions authorised by Pay and Accounts Offices should be checked during local audit.
- Territorial and Political Pensions
What This Means
The AG (Audit) must check commutation authorizations the same way they check regular pension and gratuity authorizations. Specifically, auditors must verify that the commuted value has been correctly calculated based on the applicable commutation table and the pensioner's age. The audit of commutation payment vouchers follows the same process as gratuity payment vouchers — verifying amounts, receipts, and register entries.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Commutation authorizations are checked like regular pension and gratuity authorizations
- 2Correctness of commuted value calculation must be specifically verified
- 3Audit of commutation vouchers follows the same process as gratuity vouchers
- 4Commutations authorized by Pay and Accounts Offices are checked during local audit
- 5Both the authorization and the payment voucher are subject to audit
Practical Example
The AG (Audit) checked a commutation case where a 58-year-old pensioner commuted 40% of Rs 40,000 pension. The auditor used the commutation table to verify that the factor for age 58 was correctly applied and that the lump sum of Rs 22.08 lakh was accurately calculated. The payment voucher was then checked to confirm the correct amount was disbursed and a proper receipt obtained.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Why is commutation checked during local audit for Pay and Accounts Offices?▼
What errors are commonly found in commutation calculations?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.