Para 4.3.26 — MSO (Audit)
Original Rule Text
4.3.26 The Schedule of Deposits contains details of only those items affected during the month. The following would require the special attention of Audit:
(i) Adjustment of debits against and to the extent of the corresponding credits so that there is no minus balance.
(ii) If the Schedule reveals that any of the deposit items has been converted into any form of interest-bearing security, it should be seen that the certificate prescribed for the purpose has been recorded correctly at the designated place in the Schedule.
(iii) In checking the Schedule for the month of March, it should be verified that lapsed deposits have been duly credited to Government in accordance with the provisions contained in Article 170 of the Account Code, Volume-III.
Note: Similar checks should be exercised in respect of unaffected items not included in the Schedule at the time of scrutiny of the deposit register during local inspection.
(iv) Various debits and credits should be checked to ensure their agreement with the corresponding entries in the schedules concerned, vouchers and memo of miscellaneous cash receipts paid into treasuries in Form 80.
(v) It should be verified that necessary details in support of deposits for work to be done are available in the Schedule of Deposit Works, instructions for the audit of which are contained in paragraph 4.3.12 supra.
(vi) All opening balances against individual items should be checked entirely with their closing balances as reflected in the statement of the relevant month
(s) in which these items were shown as having appeared.
- Special Tools and Plant Received Sheets and Indents
What This Means
The Schedule of Deposits only shows items that changed during the month. Audit must pay special attention to several areas: ensuring no negative balances exist, verifying interest-bearing security certificates are properly recorded, confirming lapsed deposits in March are credited to the Government, checking debits and credits agree with other records, verifying deposit works details are available, and checking all opening balances match prior closing balances.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Only items affected during the month appear in the schedule
- 2No minus (negative) balance should exist from debits exceeding credits
- 3Interest-bearing security conversions must have proper certificates
- 4Lapsed deposits in March must be credited to Government per Article 170
- 5Debits and credits must agree with corresponding schedules and vouchers
- 6Opening balances must match closing balances from prior relevant months
Practical Example
While auditing the March Schedule of Deposits, an auditor notices a deposit of Rs 75,000 made three years ago for a construction project that was never started. Since this deposit has lapsed under Article 170 of Account Code Vol III, the auditor verifies that it has been credited to the Government account. They also check that no deposit item shows a negative balance, which would indicate more money was withdrawn than was originally deposited.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What happens when a deposit is converted into an interest-bearing security?▼
What are lapsed deposits?▼
Are unaffected items also checked?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.