Para 3.8.2 — MSO (Audit)
Original Rule Text
3.8.2 A review of the working of a project/scheme/organisation with a view to assessing and evaluating the achievements should cover both financial and socioeconomic aspects. The financial aspects to be seen are whether
(a) the agency maintains an effective control over its income, expenditure, assets and obligations;
(b) the agency is responsible for its resources, obligations and operations; and
(c) its reports include specific, true and useful data. The socio-economic aspects to be seen are how far the time-specific goals/targets set have been achieved and the intended benefits to the community/area have accrued.
What This Means
A performance review should cover both financial and socio-economic aspects of the project or scheme. On the financial side, the review should assess whether the agency effectively controls its income, expenditure, assets, and obligations; whether it is properly accountable for its resources and operations; and whether its financial reports are accurate and useful. On the socio-economic side, the review should evaluate whether time-bound goals and targets have been achieved and whether the intended benefits have actually reached the community or area.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Performance reviews must cover both financial and socio-economic dimensions
- 2Financial aspects: control over income, expenditure, assets, and obligations
- 3Accountability for resources, obligations, and operations must be assessed
- 4Financial reports must be specific, true, and useful
- 5Socio-economic aspects: achievement of time-specific goals and accrual of intended benefits
Practical Example
An audit team reviews a state solar energy programme. On the financial side, they examine whether the implementing agency properly tracks its subsidies (income), installation costs (expenditure), solar panels (assets), and warranties (obligations). They verify the quarterly progress reports against actual ground data and find significant discrepancies. On the socio-economic side, they assess whether the target of electrifying 10,000 rural households by March 2025 was met and whether the intended benefit of reducing kerosene dependence actually materialized in the target areas.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What are 'time-specific goals'?▼
How does audit verify that intended benefits 'accrued in real terms'?▼
Why must reports be 'specific, true, and useful'?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.