Para 3.9.14 — MSO (Audit)
Original Rule Text
3.9.14 Grants provided by the department to various autonomous institutions, nongovernmental organisations, etc. should be examined with a view to ascertaining whether:
(i) the department has evolved systems and procedures to regulate the release of funds and to monitor their utilisation and these are adequate to safeguard against mis-utilisation and other irregularities; and
(ii) the systems and procedures are appropriate and adequate for the achievement of the department’s objectives.
- Programme Management
What This Means
When a government department provides grants to autonomous institutions, NGOs, or other external organisations, auditors must check whether the department has proper systems to regulate fund release and monitor how the money is used. The audit should verify that safeguards exist against misuse and that the systems are adequate to ensure the department's objectives are being achieved through these grants.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Grants to autonomous bodies, NGOs, and external organisations must be audited
- 2Check if systems exist to regulate fund release and monitor utilisation
- 3Safeguards against mis-utilisation and irregularities must be assessed
- 4Systems must be adequate for achieving the department's objectives
- 5Both the existence and effectiveness of monitoring mechanisms should be evaluated
Practical Example
The Women and Child Development Department provides grants of Rs 50 lakh each to 200 NGOs for running shelter homes. The auditor finds that the department releases second and third instalments without verifying utilisation certificates for previous instalments. Of 200 NGOs, only 80 submitted annual audit reports. Physical verification of 20 randomly selected NGOs reveals that 5 exist only on paper, having received Rs 2.5 crore without operating any shelter homes.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What safeguards should exist for grants to external organisations?▼
Can CAG audit NGOs receiving government grants?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.