Regulation 89 — Audit Regulations 2020
Original Rule Text
# 89. Computation of quantum of Government assistance
For arriving at the quantum of Government assistance for the purpose of ascertaining auditability under Section 14 of the Act:
(1) the aggregate of the amounts of grant
(s) and loan
(s) paid to a body or authority shall be reckoned together; the amounts of grant
(s) and loan
(s) paid to a body or authority by the Union Government, the State Government
(s) and the Union Territory Government
(s) shall be aggregated; and
(2) the amounts of grant
(s) and loan
(s) paid during a year shall include any amounts remaining unspent out of grant
(s) and loan
(s) paid to the body or authority during preceding year
(s) but not refunded to the Government.
Regulations on Audit and Accounts 2020
What This Means
This regulation clarifies how to calculate the total government assistance for determining whether a body meets the audit threshold under Section 14. Grants and loans are added together, and amounts from the Union, State, and UT governments are all aggregated. Additionally, unspent amounts from previous years' grants/loans that have not been refunded are also counted as current-year assistance. This prevents entities from avoiding audit by splitting funding across sources or carrying forward funds.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Grants and loans from all sources (Union, State, UT) are aggregated for threshold calculation
- 2Grants and loans are added together (not counted separately)
- 3Unspent amounts from previous years' grants/loans count as current-year assistance
- 4Unspent amounts are excluded only if already refunded to the government
- 5This comprehensive counting prevents gaming of audit thresholds
Practical Example
A state-level NGO running mid-day meal programmes receives Rs 12 lakh from the Central Government and Rs 15 lakh from the State Government in FY 2025-26. It also has Rs 5 lakh unspent from last year's central grant (not refunded). Total government assistance = Rs 12L + Rs 15L + Rs 5L = Rs 32 lakh. If this exceeds 75% of its total expenditure, the NGO falls under CAG audit jurisdiction under Section 14(1). Without the aggregation rule, neither the central nor state grant alone would have crossed the Rs 25 lakh threshold.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Can a body avoid CAG audit by receiving separate small grants from different ministries?▼
Why are unspent balances from previous years counted?▼
What if the body refunds the unspent amount before the audit threshold is computed?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.