Regulation 42 — REGULATIONS_AUDIT

42. Verifications to be done during audit of grants-in-aid and loans Audit of Government assistance in form of grants-in-aid or loans shall be conducted to verify whether systems and procedures are in place and are being complied with for: (1) clear enunciation of purpose for the sanction of the Government assistance; (2) proper and transparent identification and selection of persons, bodies and authorities for Government assistance with reference to their antecedents, absorptive capacity, financial position, systems and management practices; (3) determination of amount of assistance and its timely release; (4) proper accounting of assistance by the grantee or the loanee, including maintenance of accounts in such form as may be prescribed; (5) ensuring the fulfillment of conditions of Government assistance; (6) monitoring and ensuring the economical, efficient and effective end use of assistance including achieving the objectives of assistance; (7) refund to the Government of any unutilized source; and (8) in the case of loans, their repayment as prescribed and recovery of interest including penal interest according to applicable conditions.