Para 3.8.17 — MSO

Field studies/investigations 3.8.17 The next stage is carrying out studies and collection of information from field units. The examination and audit scrutiny of selected samples of transactions should be thorough and complete without the need for a second visit to the same office. In order to derive reasonable audit findings, it is necessary that the sample size determined for detailed check in audit is adequate and is fairly representative of the whole. For eliciting the maximum information, it will also be useful to discuss details of the project/scheme with the officers of the institutions visited.

Some of the other broad guidelines for field studies/investigations are as follows:

(i) It should be verified whether sound systems and procedures exist in all disciplines of management control and monitoring and whether these are being followed both in letter and spirit at all levels including the operational level. Weaknesses and lapses, if any, should be identified.

(ii) Where the performance prima facie appears to be less than efficient, the reasons therefor should be ascertained and examined in detail in consultation with the departmental authorities concerned, if considered necessary. Where performance indicators or efficiency norms have been evolved, the performance should be compared with these to evaluate the efficiency.

(iii) Reasons for delay in execution of projects should be analysed and bottlenecks, if any, identified.

(iv) It should be seen whether evaluation methodologies like PERT (Programme Evaluation and Review Technique), guidelines for holding inventories, yardsticks in respect of inputs and outputs, delegation of powers, etc. are available and effectively put to use.

(v) In order to assess whether the returns anticipated are actually accruing, the benefits realised should be evaluated by comparing the actual cost-benefit ratio with the projections made at the sanctioning stage.

(vi) The extent to which the social objectives have been realised should be assessed. For instance, where a scheme provides for subsidy for establishing industries in backward areas, the achievement of social objectives will have an impact on development of the backward areas in different spheres, such as improvement in standard of living, increase in per capita income, generation of employment, availability of literacy and health facilities, etc.

(vii) In examining the information collected, attention should also be paid to cases where inefficient planning and execution of a programme or project adversely affect the exchequer and also the flow of benefits to the intended beneficiaries.