Para 4.3.22 — MSO (Audit)
Original Rule Text
4.3.22 The Schedule of Debits to Stock (Form PWA 28) should be checked generally in the manner and to the same extent as prescribed in respect of the Schedules of Works Expenditure. In cases where the rules provide that a detailed estimate can be dispensed with, the expenditure as authorised by the competent authority may be accepted as the amount of a sanctioned detailed estimate. When the manufacturing operation is shown as having been completed, it should be seen that the Divisional Officer has taken action in accordance with Article 163 of the Account Code, Volume III, to adjust the difference between the progressive figures of “Operation” and “Out turn”. In case this has not been done, his attention should be invited to this requirement and the matter pursued until the difference is settled.
- Stock Account
What This Means
The Schedule of Debits to Stock (Form PWA 28) should be audited in the same way as the Schedules of Works Expenditure. When rules allow a detailed estimate to be skipped, the expenditure approved by the competent authority serves as the sanctioned estimate amount. When a manufacturing operation is completed, the auditor must check that the Divisional Officer has adjusted any difference between the 'Operation' cost and the 'Outturn' value as required by Article 163.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Schedule of Debits to Stock (Form PWA 28) follows the same audit checks as Works Expenditure schedules
- 2Where detailed estimates are dispensed with, competent authority's approved amount is treated as the sanctioned estimate
- 3On completion of manufacturing, difference between Operation and Outturn must be adjusted
- 4If adjustment is not done, the Divisional Officer's attention must be drawn to this requirement
Practical Example
A division manufactures wooden furniture for government offices. When the manufacturing is completed, the Operation cost is Rs 8 lakh but the Outturn (value of finished goods) is only Rs 7.5 lakh. The auditor checks whether the Divisional Officer has adjusted the Rs 50,000 difference as required. If not, the auditor issues a reminder and follows up until the adjustment is made.
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 'Operation' and 'Outturn'?▼
When can a detailed estimate be dispensed with?▼
What should the auditor do if the adjustment is not made?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.