Para 4.3.7 — MSO (Audit)
Original Rule Text
4.3.7 It is primarily the Divisional Officer’s responsibility to see that all revenues or other debts due to Government, which are to be brought to account in the Public Works Section of the accounts in terms of Article 20 of the Account Code, Volume-III, are correctly and promptly assessed, realised and credited to Government account. It is nevertheless also the duty of the Audit Office to see that revenues and other receipts of which it has cognisance, either through any entries in Government accounts or otherwise, such as orders of special recoveries received from the competent authority, are brought to account by the Divisional Officer.
In the course of audit of schedules of revenue realised, it should be seen that:
(i) cash realisations of revenue agree with the details of receipts indicated on the reverse of the monthly account;
(ii) amounts not actually realised have not been credited to revenue except as provided in
Note 2 below para 9.1.4 of the Central Public Works Accounts Code;
(iii) amounts shown under “Recoveries of expenditure” are actually creditable to the relevant heads and are traceable in the Schedule of Percentage Recoveries; and
(iv) credits to revenue of sale proceeds or transfer value of unserviceable stores or other property are supported by the Survey Report and Sale Account; the disposal of the property has been authorised by the competent authority; the full value (including supervision or other charges that are to be levied under the rules) has been accounted for; and loss, if any, in disposal has been regularised by the sanction of the competent authority.
What This Means
The Divisional Officer is primarily responsible for ensuring that all revenues and debts due to the Government are correctly assessed, collected, and credited. However, Audit also has a duty to check that all revenues it knows about are properly accounted for. When auditing revenue schedules, the auditor must verify that cash collections match receipt records, only actual collections are credited, recoveries of expenditure are traceable, and disposal of unserviceable stores is properly authorized with full value accounted for.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Primary responsibility for revenue collection lies with the Divisional Officer
- 2Audit also has duty to ensure known revenues are brought to account
- 3Cash realisations must match details on the reverse of the monthly account
- 4Unrealised amounts should not be credited to revenue (with limited exceptions)
- 5Recoveries of expenditure must be traceable in the Schedule of Percentage Recoveries
- 6Sale of unserviceable stores requires survey report, sale account, competent authority sanction, and full value accounting
Practical Example
An auditor finds that a division credited Rs 2 lakh as revenue from the sale of old building materials. The auditor verifies that a survey report declared the materials unserviceable, the Executive Engineer authorized the sale, the sale account shows the auction details, supervision charges were included, and the sale price was reasonable. A Rs 10,000 loss compared to book value was sanctioned by the Superintending Engineer.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Can unrealised revenue be credited?▼
What if audit becomes aware of revenues that have not been accounted for?▼
What checks apply when unserviceable stores are sold?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.