6.2.14 Necessary instructions for the scrutiny and test audit of various documents during inspection of Public Works Divisions are prescribed in the Secret Memorandum of Instructions regarding the Extent of Audit.
Annexure (See Para 6.2.2) Distribution of work among personnel in Public Works Inspection Parties
I Party with One Audit Officer, two Assistant Audit Officers/Section Officers and one Senior Auditor
# A. Audit Officer
(i) Study of the notes of Chief Engineer and Superintending Engineer on their inspection of divisions and those of the Executive Engineer and Divisional Accountant on their inspection of sub-divisions with a view to issuing appropriate directions to the audit staff.
(ii) Review of budget allotments and actuals in respect of major items of revenue and expenditure, instances of large excesses, savings or short realisation.
(iii) Review of all regular tenders and contracts, along with the related records and documents and of a percentage of the agreements executed since last inspection, including review of systems and procedures for invitation and finalisation of contracts and agreements.
(iv) General review of the accounts of works, with reference to muster rolls, transfer entries, Suspense and Deposit registers, Schedule of rates, Register of Rents, Establishment records and monthly accounts.
(v) Review of the system for and extent of check-measurements by the divisional and sub-divisional officers and other higher authorities and of check of Measurement Books by the Divisional Accountant.
(vi) Review of Register of Revenue other than rents, including review of procedures for its assessment and realisation, special attention being paid to cases of shortfalls in revenue realisation.
(vii) Review of the effectiveness of banking (treasury) arrangements.
(viii) Review of the systems for receipt, disbursement, custody and verification of cash.
(ix) Review of systems for acquisition, custody and management of stock and of stores transactions.
(x) Review of accounts of manufacture operations.
(xi) Scrutiny of Register of Bank Guarantees and verification of Guarantees and of action taken for their enforcement.
(xii) Examination of adequacy of arrangements and the action taken by the Department for the prompt disposal of audit notes, rejoinders, Inspection Reports and money value objections.
What This Means
Instructions for scrutiny and test audit of Public Works Division documents during inspection are contained in the Secret Memorandum of Instructions regarding the Extent of Audit. This para also provides a detailed annexure showing how work should be distributed among members of a Public Works inspection party — specifying duties for the Audit Officer, Assistant Audit Officers, Section Officers, and Senior Auditors covering everything from contract reviews to stores verification.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
1Detailed scrutiny instructions are in the Secret Memorandum of Instructions regarding Extent of Audit
2Audit Officer handles reviews of tenders, contracts, budget, revenue, cash, stores, and value-for-money audit
3AAO handles detailed analysis of selected works, contractors' ledgers, stores accounts, and arbitration cases
4Section Officer handles cash books, treasury records, transfer entries, rent registers, and budget reconciliation
5Senior Auditor handles service books, pay bills, provident fund, advances, contingent bills, and vehicle records
Practical Example
A four-member PWD inspection party arrives at a division. The Audit Officer takes up review of all tenders above Rs 1 crore and the budget utilisation pattern. The AAO selects 5 major road works for detailed analysis of estimates vs actuals. The Section Officer begins verifying the cash book against treasury records. The Senior Auditor starts checking service books and leave accounts of division staff. Each works from the prescribed duty list in the annexure.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Can the Audit Officer change the duty distribution given in the annexure?▼
Yes, as per Para 6.1.7, the Audit Officer can reallocate duties in writing based on the suitability of individuals or practical circumstances like absence of a party member.
What is the Secret Memorandum of Instructions?▼
It is a confidential document that prescribes the detailed extent and methodology of audit scrutiny for various types of government records. It guides audit parties on what and how much to check.
Should the department help select which works to examine?▼
No. The annexure explicitly states that under no circumstances should departmental personnel be asked to make this selection. The audit party must independently select 10-15 important works based on estimated cost.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
(xiii) Review of the Register of Divisional Accountant’s audit objections.
(xiv) Review of the action taken by the Divisional Accountant for the up to date maintenance of codes, manuals, circulars, etc.
(xv) Value for Money Audit, in general.
- B. Assistant Audit Officer
(i) Complete and detailed analysis of selected works with reference to all connected documents, such as sanctioned estimates, agreements, measurement books, materials-at-site accounts, etc.
(ii) Scrutiny of a few files relating to works.
(iii) Scrutiny of a few tender documents.
(iv) Examination of the Register of Works.
(v) Examination of Statement of Annual Certificate of Balances.
(vi) Study of Charge Reports of divisional and sub-divisional officers.
(vii) Scrutiny of Muster rolls
(viii) Complete check of contractors’ ledgers for selected months.
(ix) Scrutiny of Register of contractors’ bills
(x) Examination of Stores and Stock accounts (including general review of stores ledger, bin cards etc.).
(xi) Review of arbitration cases.
(xii) Review of Survey Reports and Register of Survey Reports.
(xiii) Examination of Workshop accounts, use rates and proforma accounts.
(xiv) Review of Register of Quarries and distance for leads.
(xv) Review of Schedule of Rates.
(xvi) Examination of data relating to extra and supplemental items.
(xvii) Examination of abnormal or unworkable rates quoted by contractors.
(xviii) Scrutiny of estimates for special repairs.
(xix) Verification of action taken on previous Test Audit Notes.
(xx) Settlement of outstanding paragraphs in previous inspection reports.
(xxi) Examination and disposal of special points referred by Central Audit for local verification. C. Section Officer
(i) Scrutiny of cash books, amanath cash book, receipt books, treasury bill book, challans, cheque books and remittance books.
(ii) Review of Stock Register of receipt books and cheque books.
(iii) Examination of Register of Undisbursed Pay.
(iv) Review of Acquittance Rolls.
(v) Review of Schedule of Settlement with Treasuries.
(vi) Scrutiny of transfer entries.
(vii) Review of Tools and Plant.
(viii) Scrutiny of Register of Rent and Other Receipts and of arrangements for their assessment, demand, collection and accounting.
(ix) Review of Register of Valuables.
(x) Examination of imprest and temporary advance accounts.
(xi) Examination of Register of Liabilities.
(xii) Clearance of debit advices received from the Accountant General (A&E).
(xiii) Review of Register of Budget Allotments; instances of major savings, excesses, short realisation, etc. with reference to provisions; and of adequacy of reconciliation work done by the department.
(xiv) Verification of accounts schedules, vouchers, cheques, etc., received from the Main Office with the relevant original records.
(xv) Verification with Treasury records.
(xvi) Review of Register of Agreements/Work Orders along with the related agreements/work orders
(xvii) Scrutiny of Land acquisition cases.
(xviii) Review of Cash Settlement Suspense Accounts.
(xix) Examination of cases of theft, losses, etc.
(xx) Realisation of sale value of tender forms with reference to the Tender Register and their accounting with reference to treasury schedules and transfer entries.
(xxi) Examination of a few work files and tender documents.
# D. Senior Auditor
(i) Examination of Register of Service Books.
(ii) Review of Service Books and Leave Accounts.
(iii) Scrutiny of pay bills, TA bills, medical reimbursement claims, LTC claims and other personal claims.
(iv) Examination of Provident Fund accounts.
(v) Review of Register of Advances, sanctions to advances and their recovery.
(vi) Review of Register of payments due to other departments (Income Tax, Sales Tax, court attachment, and other deductions).
(vii) Examination of Register of Contingent Bills, along with original bills, subvouchers, etc.
(viii) Scrutiny of different kinds of securities obtained.
(ix) Review of deposit transactions.
(x) Scrutiny of Register of Fixed Charges.
(xi) Examination of Register of Vehicles and log books; Register of Spare Parts; petrol and diesel account.
(xii) Check of Stamp Account.
(xiii) Examination of Register of library books.
(xiv) Examination of accounts of stationery and forms.
(xv) Review of Register of Measurement Books, a few Measurement Books and results of Divisional Accountant’s review thereof.
(xvi) Examination of Register of leases and lease files, and Register of license fee for buildings and lands.
(xvii) Verification of stores ledger, delivery notes, Materials-at-site register
(xviii) Verification of unserviceable machinery.
(xix) Scrutiny of Objection books and adjustment registers.
(xx) Settlement of outstanding paras of previous Inspection Reports and verification of action taken on previous Test Audit Notes.
C. Senior of the two Senior Auditors Same as those detailed in I. above. D. Junior of the two Senior Auditors Same as those detailed in I.D above. Notes:
(i) Any other records in the Division coming under audit purview should also be scrutinised, the work being allotted to any of the members of the party.
(ii) The Audit Officer will generally undertake review work. Detailed scrutiny, wherever necessary, may be entrusted to any member of the party. It will be desirable, whenever considered necessary, for each member of the party to scrutinise the records to be examined by another member as well so that the scrutiny/examination is thorough and meaningful.
(iii) The Audit Officer/senior member of the party should reallocate the work based on actual circumstances so that no item is left unchecked because of the absence of the Audit Officer or any other member of the party.
(iv) In addition to the works selected for examination by the Headquarters Office, 10 to15 important works executed during the period covered by audit may also be selected for examination based on their estimated cost with a view to bringing out points worthy of inclusion in the Draft Inspection Report. Under no circumstances should the departmental personnel be asked to make this selection. The list of selected works should be forwarded along with the Draft Inspection Report.