Para 3.9.12 — MSO (Audit)
Original Rule Text
3.9.12 Apart from examining the current practices and procedures relating to Budget formulation and adherence to the relevant rules and instructions issued in this regard by the Finance Department, the following aspects could also be examined for possible comment:
(i) Adequacy of the rules and instructions relating to the formulation of budget and revised estimates, responsibilities of different functionaries and shortcomings, if any.
(ii) Adherence by the drawing and disbursing officers to the time schedules prescribed for submission of estimates.
(iii) Extent of scrutiny exercised by the Directorate and the Department on the estimates furnished by the drawing and disbursing officers and the justification furnished in support of original estimates and estimates of additional requirements.
(iv) Adequacy and effectiveness of the role played by and the involvement of the administrative Secretary and Head of the Department in formulating
the departmental budget and the extent to which designated responsibilities are discharged by them.
Besides, the quality and reliability of the budget estimates could be assessed by an indepth scrutiny of a few estimates with reference to the actual expenditure.
# Expenditure Control
What This Means
When auditing budget formulation as part of integrated audit, auditors should examine not just whether budget rules were followed, but also whether the rules themselves are adequate, whether DDOs submitted estimates on time, how thoroughly the Directorate scrutinised estimates, and how involved senior officials were in budget preparation. The quality of budget estimates should be assessed by comparing a sample of estimates against actual expenditure to see how realistic the budgeting was.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Examine adequacy of rules and instructions for budget and revised estimates
- 2Check whether Drawing and Disbursing Officers (DDOs) met time schedules for estimates
- 3Assess the quality of scrutiny by the Directorate on estimates received from DDOs
- 4Evaluate the involvement of Secretary and Head of Department in budget formulation
- 5Cross-check budget estimates against actual expenditure to assess reliability
Practical Example
During integrated audit of the Forest Department, auditors find that 80% of Range Forest Officers submitted their budget estimates 2 months late. The Directorate accepted estimates without questioning a 300% increase demanded by one division. The Principal Chief Conservator of Forests was not involved in budget finalisation, delegating it entirely to an Under Secretary. Comparison of estimates with actuals showed that 15 of 20 sampled estimates varied by more than 50% from actual spending.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Why is the involvement of senior officials in budgeting important?▼
What does 'expenditure control' cover in the next section?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.