Para 3.7.20 — MSO (Audit)
Original Rule Text
3.7.20 The detailed instructions to be followed by the Office of the Principal Director of Audit, Economic and Service Ministries, in the audit of contracts entered into by the Directorate General of Supplies and Disposals (DGS&D) under the Central Department of Supply and of payments made there against are contained in the Manuals of that Office’s Concurrent Audit and Central Test Audit Sections. The DGS&D was relieved of the responsibility for ad hoc purchases w.e.f 1st January, 1992, when such purchases were decentralised and entrusted to the respective departments of the Central Government. Consequently the DGS&D’s role at present is confined mainly to the finalisation of rate contracts for commonly used items required on a recurring basis by the Central Government departments, State Governments, quasi-public bodies such as municipalities, city corporations and government undertakings. Central Government departments not having their own infrastructure for purchases can, however, utilise the services of the DGS&D even in respect of their ad hoc requirements. The audit of contracts, bills, etc. pertaining to the ad hoc purchases made directly by the departments is to be conducted by the Audit Officers of the concerned departments. In so far as the stores purchased through the agency of the DGS&D are concerned, the division of responsibility for audit between the Principal Director of Audit, Economic and Service Ministries, and the Audit Officers of the indenting departments is as follows:
(i) The Principal Director of Audit, Economic and Service Ministries, will be responsible for the audit of the bills against the contracts.
(ii) The Audit Officers of the departments indenting and receiving the stores will be responsible for auditing the charge to ensure that
(a) it is a proper charge against a work, office or other expenditure unit under their audit; and
(b) that it has been duly sanctioned. It is not necessary for them to check arithmetical calculations of the vouchers.
(iii) In cases where advance claims are made by the Pay and Accounts Officers, Ministry of Commerce, without the consignees’ certificates vouching receipt, the Audit Officer of the consignee should ensure that
adequate and prompt action is taken to obtain the requisite certificates/acknowledgements and to settle, in consultation with the consignees, the discrepancies or deficiencies pointed out in the certificates of receipt.
What This Means
This paragraph explains the division of audit responsibility for contracts handled by the Directorate General of Supplies and Disposals (DGS&D). Since 1992, DGS&D's role has been limited mainly to rate contracts for commonly-used recurring items, while ad hoc purchases were decentralized to individual departments. The Principal Director of Audit, Economic and Service Ministries, audits bills against DGS&D contracts. The departmental Audit Officers audit the charge to ensure proper classification, sanction, and that consignee certificates are obtained for advance claims.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1DGS&D handles rate contracts for recurring items; ad hoc purchases decentralized to departments since 1992
- 2Principal Director of Audit (Economic & Service Ministries) audits bills against DGS&D contracts
- 3Departmental Audit Officers verify the charge is proper and duly sanctioned
- 4Departmental Audit Officers need not recheck arithmetic already verified centrally
- 5Consignee certificates must be obtained and discrepancies settled for advance claims
Practical Example
A government hospital procures medical equipment through a DGS&D rate contract. The Principal Director of Audit in Delhi audits the payment bills against the contract terms. Meanwhile, the Accountant General of the state where the hospital is located verifies that the expenditure is charged to the correct budget head and was properly sanctioned by the hospital authority. When the DGS&D processed an advance payment before the consignee certificate was received, the state Audit Officer follows up to ensure the certificate is obtained promptly.
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 a DGS&D rate contract?▼
Can departments still use DGS&D for ad hoc purchases?▼
Why don't departmental Audit Officers need to check arithmetic on DGS&D bills?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.