Para 7.1.8 — MSO (Audit)
Original Rule Text
7.1.8 On receipt of a report on defalcation or loss of public money or property, the Accountant General (Audit) should obtain such further information as he may require on the subject, and carefully examine the case to ascertain whether the defalcation or loss was rendered possible by any defect in the rules or whether it was due to neglect of rules or lack of supervision on the part of the treasury or other authorities. He should then
report the results of his examination to the authority competent to sanction the write-off of the loss unless he considers, for any special reasons, that the Government concerned should also be informed. The Accountant General (A&E) in consultation with the Accountant General (Audit) will act upon the sanction for the write-off on its issue by the competent authority.
What This Means
When a report of defalcation (embezzlement) or loss of public money or property is received, the Accountant General (Audit) must investigate whether the loss happened due to defective rules or because existing rules were not followed or supervision was lacking. The AG then reports his findings to the authority competent to write off the loss. The AG (Accounts & Entitlement) processes the actual write-off once sanctioned.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1The AG (Audit) examines whether defalcation resulted from defective rules, neglect of rules, or lack of supervision
- 2Additional information can be obtained as needed for the investigation
- 3Findings are reported to the authority competent to sanction write-off of the loss
- 4The AG may also inform the concerned Government if special reasons warrant it
- 5The AG (A&E) processes the write-off in consultation with AG (Audit) after competent authority sanctions it
Practical Example
A treasury reports that Rs 3 lakh in cash went missing from the strong room. The AG (Audit) investigates and determines that the loss occurred because the Treasury Officer failed to conduct the mandatory daily cash verification. The AG reports this to the Finance Department (competent to sanction write-off), highlighting that the existing rules were adequate but were simply not followed. The Finance Department sanctions the write-off, and the AG (A&E) makes the accounting adjustment.
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 AG (Audit) and AG (A&E) in handling defalcations?▼
What does the AG look for when examining a defalcation?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.