Para 7.2.8 — MSO (Audit)
Original Rule Text
7.2.8 For an efficient review of objections and of the progress of their clearance, it is desirable to maintain the objections of each financial year separately though they may be settled or cleared in a subsequent year.
Note: In the case of progressive expenditure, an objection relating to excessive expenditure not covered by proper authority or sanction should be held to relate to the year in which it was first raised in audit, though further expenditure may have been incurred in a subsequent year.
What This Means
Objections from each financial year should be maintained separately for efficient review and tracking, even if they are eventually settled in a later year. For progressive expenditure cases, an objection about excess expenditure without proper sanction is attributed to the year it was first raised in audit, not to any subsequent year in which further expenditure may have occurred.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Maintain objections of each financial year separately in the records
- 2An objection may be settled in a later year but remains attributed to the year it was raised
- 3For progressive expenditure, the objection belongs to the year it was first raised in audit
- 4This approach enables efficient review of clearance progress year by year
Practical Example
A road project runs from 2023 to 2026. In 2023-24, audit raises an objection that Rs 50 lakh was spent beyond the sanctioned amount. Even though the project continues and more expenditure occurs in 2024-25 and 2025-26, the objection remains recorded against 2023-24 — the year it was first identified. When reviewing clearance statistics, this item appears in the 2023-24 cohort.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Why not move the objection to a later year when additional related expenditure occurs?▼
What does 'progressive expenditure' mean?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.