Para 4.1.10 — MSO (Audit)
Original Rule Text
4.1.10 Central audit of works expenditure should be conducted in accordance with the general principles and rules laid down in this publication. Due regard should, however, be paid to the financial rules and orders of the Government concerned. The main points with reference to which the audit should be undertaken are the following:
(i) sufficiency of the authority for incurring the expenditure;
(ii) accuracy of classification of the charges against the works, persons, services and heads of account concerned;
(iii) proof of payment to the correct individual (i.e. through the existence of a properly receipted voucher for all payments, where necessary); and
(iv) observance of standards of financial propriety.
Note: Where the Divisional Accountant employed on conducting the preliminary internal check in a Divisional Office is a member of the establishment of the Accountant General (A&E) and is posted by him to the Divisional Office, the Audit Office is responsible for seeing that the duties entrusted to the Divisional Accountant are performed efficiently. General supervision of the work of the Divisional Accountant is, therefore, an important function of the Audit Office.
What This Means
Central audit of works expenditure should follow the general principles in the MSO while also considering the specific financial rules of the concerned government. The four main audit checks are: (1) sufficient authority exists for the expenditure, (2) charges are correctly classified against works, persons, and account heads, (3) payments are made to the correct individuals with proper receipts, and (4) standards of financial propriety are maintained. Where a Divisional Accountant is posted by the AG, the Audit Office must also ensure that this Accountant performs their internal check duties efficiently.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Follow general MSO principles plus government-specific financial rules
- 2Verify sufficiency of authority for incurring expenditure
- 3Check accuracy of classification against works, persons, services, and heads of account
- 4Confirm proof of payment through properly receipted vouchers
- 5Ensure observance of standards of financial propriety
Practical Example
While auditing a canal construction division, the central audit team checks: (1) The Rs 50 crore expenditure is covered by administrative approval from the Government and technical sanction from the Chief Engineer; (2) Expenditure on canal lining is correctly classified under the 'Irrigation' major head and not under 'Buildings'; (3) All contractor payments have receipted vouchers with proper signatures; (4) The Divisional Accountant posted by the AG is regularly conducting preliminary checks on bills before payment, as evidenced by his check register.
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 role of the Divisional Accountant?▼
What are standards of financial propriety?▼
What is the difference between central audit and local audit of works?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.