Para 7.2.5 — MSO (Audit)
Original Rule Text
7.2.5 When two or more objections are raised in respect of a single transaction relating to a work or distinct object of expenditure, and it is customary to maintain the statistics of each class of these objections separately, the several objections on the transactions should be registered separately as if they relate to different transactions. This special feature of the system of registration should, however, be borne in mind. In the compilation of all statistics and reports that include or present collectively the monetary value of objections
of several categories, every effort should be made to make due allowance for the exaggeration likely to result by this overlapping of objections. The fact of objections overlapping, its impact on the statistics and the steps taken to avoid any exaggeration should also be mentioned prominently.
- Notes:
(i) The detailed procedure for eliminating the presentation of exaggerated statistics due to overlapping of objections may be prescribed by the Accountant General and set out clearly in the Office Manual.
(ii) In the case of transactions not relating to public works, the Accountant General may permit all objections on a transaction to be recorded under a single, most serious, head, provided suitable safeguards are adopted in order to ensure that
(a) the settlement of each of the objections can be watched; and
(b) the general accuracy of the statistics relating to objections is maintained.
What This Means
When multiple objections arise from a single transaction (for example, both an excess payment and a procedural violation on the same work), each objection must be registered separately for statistical tracking. However, when compiling collective statistics, care must be taken to avoid exaggerating the total by accounting for this overlap, and the fact of overlapping must be prominently mentioned.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Multiple objections on the same transaction must be registered separately for each category
- 2Collective statistics must adjust for the exaggeration caused by overlapping objections
- 3The fact of overlapping and steps to avoid exaggeration must be prominently stated
- 4The Accountant General may prescribe detailed procedures to handle overlapping
- 5For non-public-works transactions, all objections may be recorded under the most serious head with safeguards
Practical Example
During audit of a road construction project, three objections are raised on a single Rs 10 lakh payment: excess expenditure, use of inferior materials, and split purchase to avoid tendering. Each is registered separately. When compiling the quarterly statistics, the section ensures the Rs 10 lakh is not counted three times by noting the overlap and adjusting the aggregate figures accordingly.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Can all objections on a single non-works transaction be recorded under one head?▼
Why not just register one consolidated objection per transaction?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.