Para 4.3.19 — MSO (Audit)
Original Rule Text
4.3.19 Under the System of settlement of inter-divisional transactions in cash, all transactions relating to services rendered (including works executed) by one division on behalf of another division or supplies made by one division to another are settled by the divisions amongst themselves without the intervention of the Accountant General (A&E) irrespective of whether the divisions fall within the same account circle or in different account circles. The claims are to be settled within ten days as prescribed in paragraph 2 of Appendix 7 to the Central Public Works Accounts Code. It should be seen that claims not so settled have been taken up with the respective divisional officers concerned and have been adequately pursued.
What This Means
When one government division does work or provides supplies for another division, those transactions are settled directly between the divisions in cash, without involving the Accountant General. Claims must be settled within ten days. The audit should verify that any unsettled claims are being actively followed up with the relevant divisional officers.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Inter-divisional transactions are settled directly in cash between divisions
- 2Settlement must happen within 10 days as per Appendix 7 of CPWA Code
- 3No intervention of Accountant General (A&E) is required regardless of account circle
- 4Audit must verify that unsettled claims are being pursued with divisional officers
Practical Example
Division A constructs a boundary wall for Division B's office compound. Division B must pay Division A within 10 days of the work being completed. During audit, the auditor checks whether any pending claims from three months ago are still unsettled and confirms that Division A has sent reminders to Division B for payment.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Does it matter if the two divisions are in different account circles?▼
What happens if a claim is not settled within 10 days?▼
What is the auditor's role regarding these transactions?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.