Para 3.8.22 — MSO

3.8.22 Apart from the adequacy of resources, the examination of documents in the executing agencies as well as in the administrative department concerned should cover the following aspects:

(i) Budgetary assumptions and their reliability.

(ii) Release of funds without assessing requirements based on utilisation of earlier releases or in excess of requirements resulting in retention of unspent balances.

(iii) Timely release of the budgeted funds to the executing agencies is of vital importance. Instances of belated release of funds leading to their not being utilised and resulting in an adverse impact on the implementation of the project/scheme, as well as of unnecessary releases even when the pace of implementation is slow and progress inadequate should be specifically commented upon.

(iv) Arrangements for receipt and scrutiny of periodical reports on utilisation of funds.

(v) Inter-State/Inter-district comparisons with reference to their target population.

(vi) Irregular treatment of advances and deposits as expenditure and consequential false reporting of financial achievements.

(vii) Funds retained in excess of requirements by the State Government, District Rural Development Agency (DRDA), etc. should be aggregated and accountability established in the State and Central Governments for excessive release of funds and/or poor performance.

(viii) Investment of surplus funds and unspent balances, interest earned/forgone, and utilization of interest, etc.

(ix) Quality of maintenance of basic records, such as cash books, ledgers, bank accounts and the integrity and reliability of financial reports.

(x) Extent to which the maintenance of accounts facilitates audit and inspection trails distinctly in respect of each scheme executed or administered by the same agencies without the accounts of different schemes being mixed up so as to create confusion.

(xi) Extent to which the State Government adhered to the approved financing arrangements by the timely release of its pro rata contributions with reference to the budget provisions and actual releases.