Para 4.3.28 — MSO (Audit)

4.3.28 The Divisional Officer’s Annual Certificate of Balances (Form PWA 46) should be examined in Central Audit to the extent possible from the schedules received in Central Audit. To the extent these certificates are based on initial records maintained in the Division, their correctness should be broadly verified during local audit. Any points suggestive of deviations from the financial rules should be taken up with the Divisional Officer or higher authorities depending on the facts of the case. Other aspects requiring the attention of Audit are dealt with below:

(i) The audit of the Schedule of Debits to Stock and the Stock Account for the month of March should not be considered as having been completed until Certificate No. 1 relating to manufacture, land, kilns, etc., storage and other sub-heads of stock has been verified, and the closing balances reconciled with the Stock Account. Cases where the sanctioned limits of stock reserves and balances appear to be unusually high or in excess of the normal requirements of the divisions concerned should be brought to the notice of the Accountant General (Audit) for such action as he may consider necessary.

(ii) Certificate No.2 relating to Workshop Suspense and Certificate No.3 relating to Other Suspense Accounts (viz., Purchases and Miscellaneous Works Advances) and Deposits are necessary for completing the year’s audit of transactions relating to those heads. These certificates should be reconciled with the relevant schedules and their correctness verified in Central/Local Audit.

(iii) Similarly, the audit of Works Accounts for the month of March should not be considered as having been completed unless Certificate No.4 (Form

PWA 46) relating to Works Accounts has been examined in local audit to see that (1) the accounts are complete in all respects; (2) the closing balance in respect of “Contractors” under each of the three heads into which these accounts are divided (viz., “Advance payments”, “Secured Advances” and “Other Transactions”) agrees with the total of the balances in the Contractor’s Ledger (Form PWA 43) which is scrutinised during local audit; and (3) the certificate does not indicate any deviations from the rules requiring action on the part of the Audit Office. Large fluctuations in the balances may form the subject of special enquiry.

(iv) Certificate No.6 relating to Cash Settlement Suspense Account should be reconciled with the Broadsheet maintained by the Office of the Accountant General (A&E). Large balances under this head should form the subject of special enquiry.

Note: For rules governing the annual verification of balances, see Chapter-11 of the Manual of Standing Orders (Accounts and Entitlements), Volume I.

What This Means

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Key Points

• 1Annual Certificate of Balances (Form PWA 46) is examined in both Central and local audit
• 2Certificate No. 1 covers stock (manufacture, storage, etc.) and must reconcile with Stock Account
• 3Certificate Nos. 2 and 3 cover Workshop Suspense, Purchases, Works Advances, and Deposits
• 4Certificate No. 4 covers Works Accounts and must agree with Contractor's Ledger (Form PWA 43)
• 5Certificate No. 6 covers Cash Settlement Suspense and must reconcile with AG (A&E) broadsheet
• 6Unusually high stock reserves or large balance fluctuations warrant special enquiry

Practical Example

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Frequently Asked Questions

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.