Para 3.8.3 — MSO (Audit)
Original Rule Text
3.8.3 ECPA is directed towards an examination of the systems and procedures for the planning and implementation of projects, schemes, programmes, activities, etc. and an evaluation of their performance and achievements. The objective is to bring out, among other things, weaknesses and deficiencies as well as lapses of different kinds, including those relating to individual transactions, for appropriate action. The audit envisages a comprehensive review of the project/scheme/programme/activity to ascertain:
(i) the extent to which the physical and financial targets and the intended impact have been achieved;
(ii) how far the socio-economic objectives have been realised;
(iii) whether the operations are being conducted economically;
(iv) whether the scheme/programme was implemented with due regard to economy and instances of overpayment, loss, extravagance, avoidable excess or infructuous expenditure attributable to improper planning,
delays in execution, overstaffing, overcapitalisation, adoption of unsound policies, etc. were avoided; and
(v) whether the utilisation of resources was in accordance with the projected outlays and, if not, the reasons for deviations.
What This Means
Efficiency-cum-Performance Audit (ECPA) examines how well government projects, schemes, and programmes are planned and carried out. The goal is to check whether the intended outcomes were achieved, money was spent wisely, and socio-economic objectives were met. Auditors look at whether physical and financial targets were reached, resources were used as planned, and whether wasteful spending, delays, or poor planning occurred.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1ECPA evaluates planning, implementation, and performance of government projects and schemes
- 2Checks if physical/financial targets and socio-economic objectives were achieved
- 3Examines whether operations were conducted economically without waste or extravagance
- 4Identifies weaknesses like overpayment, delays, overstaffing, or unsound policies
- 5Verifies that resource utilisation matched projected outlays and explains any deviations
Practical Example
A state government launches a rural housing scheme targeting 10,000 houses in 3 years. The ECPA audit team examines whether the houses were actually built on time, whether the cost per house matched estimates, and whether eligible beneficiaries actually received the houses. They discover that only 6,000 houses were completed due to delayed fund releases and overstaffing at the project office, leading to cost overruns of 40%.
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 the difference between ECPA and regular financial audit?▼
What kind of issues does ECPA typically uncover?▼
Who conducts ECPA?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.