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October 4, 2012 at 5:48 am #67948
What are the three principal process involved in payment of Govt. accounts?
There are three principal processes given below:
(a) Submission of a claim,
(b) Disbursement of the money claimed,
(c) Incorporation of the transactions in accounts.
The claim my be lodged but the payment may be made by the Disbursing Officer subject to his satisfaction in all respects.October 4, 2012 at 5:51 am #74674
What are the essential conditions of making expenditure from Consolidated Fund or Public Exchequer or Public money?
What is the duty of audit of expenditure?
There are four essential conditions mentioned below:
(a) Sanction of making expenditure as per general or special order of competent authority.
(b) Provision of fund authorised by competent authority and the expenditure should be made within the provision of fund.
(c) The expenditure should be made as per the relevant provisions of the Constitution and laws made thereunder and should also be in accordance with the financial rules and regulations framed by the Govt.
(d) General principles of Financial propriety should be observed properly in respect of making expenditure out of public money as under:
(i) High standard of public financial morality.
(ii) Sound financial administration,
(iii) Devotion to financial interests of the Govt.
The above mentioned essential conditions should be observed properly for the purpose of control of expenditure and proper utilisation of public money.October 14, 2012 at 4:44 am #74783
What is the guiding principles of the audit of sanction of expenditure?
Audit of expenditure should not merely be confined to see that the expenditure is covered by sanction either general or special order. It will examine the financial powers vested in concerned officer under the provision of the Constitution and of the laws, rules or order or by the rules of delegation of financial power. A copy of order sanctioning expenditure will be sent to the State Accountant General for examinations.
Audit will examine the following points in respect of sanction of expenditure:
(a) If the sanctioning authority has got the full powers in respect of certain class of expenditure, the audit may challenge the power on the grounds of financial propriety.
(b) If the authority is competent to sanction the expenditure subject to fulfilment of certain criteria mentioned in general form, the same may be examined by audit which are given below:
(i) If the disregard to the criteria is considered to be serious as to make the sanction perverse.
(ii) If it is proved, one or more of the criteria have been disregarded.
(c) The financial power vested with the authority be expressed clearly so that the audit officer may ascertain that it is obeyed properly in every occasion.
(d) A group of works of a project shall be considered as one work and the necessity for obtaining sanction of higher authority is not avoided by reasons of the fact that the cost of each particular work in the project does not require such sanction of higher authority.
(e) If any one item of a scheme requires sanction of competent authority, the audit will raise objection until the same is sanctioned by competent authority.
(f) Validity period of sanctioning order should be examined by audit.
(g) In case of sanction of expenditure of a new scheme the audit will examine the accounts including the cost, time schedules, physical targets and other objects of expenditure.October 14, 2012 at 6:53 am #74789
What do understand by Appropriation Audit ?
How is it conducted?
Total expenditure under a Grant or Appropriation does not exceed the amount of the Grant or Appropriation as specified in the schedule of Appropriation Act. Audit has the responsibility of ensuring that total expenditure in each of the sub-heads fixed as unit of appropriation does not exceed the allotment.
Appropriation Audit is conducted in two stages which are given below:
(a) Sanction Audit
Audit of orders of allotment of funds and re-appropriation which are to the enforced in audit.
(b) Audit of expenditure against allotment of fund
The audit of orders of allotment and re-appropriation consists or seeing:
(i) That an authority making allotment under a Grant of Appropriation does not allot the amount in excess of Grant or Appropriation.
(ii) That the amount appropriated is available under the unit from which it is allotted.
(iii) That the order of allotment is issued by competent authority.
(iv) That the amount re-appropriated is not made for the purpose of making expenditure for “New Service” or “New instrument of Service.”
Audit may also see to the following matters:
(a) For a particular object of expenditure specific allotment is placed us per rule. Audit will examine the expenditure against such allotment.
(b) If a lump-sum allotment is made for a group of items of expenditure of an office, total expenditure there from is audited against the lumpsum placed at the disposal of Disbursing Officer.October 19, 2012 at 11:08 am #74858
How is the nature of Audit against provision of funds conducted?
Audit against provision of fund will be made as under:
(a) It is the primary duty of the audit to ascertain that the amounts of expenditure were made out of the provision of fund for which purpose the grant or Appropriations specified in the Schedule of Appropriation Act was passed by the Legislature.
(b) The amount of expenditure against each grant does not exceed the amount mentioned in the Schedule of Appropriation Act.
(c) The Schedule of Appropriation is based on the detailed estimates drawn up for the purpose of information of the Legislature. The distribution of the grant in these estimates between various Sub-heads and detailed heads is made for the purpose of which the same was approved by the Legislature.
(d) Expenditure in excess of the amount of the Grant or Appropriations not falling within the scope or intention of any Grant or Appropriation, unless approved by the Legislature, will be treated as unauthorised expenditure.
(e) It is the duty of the Executive to watch over the progress of expenditure against each grant. He is responsible for keeping the expenditure within the Grant or Appropriation. The same is required for the purpose of control of expenditure. Audit will examine the said procedure and render all possible help in this regard.October 23, 2012 at 1:45 pm #74937
Explain the terms ‘Contingent’ expenditure, indicating briefly the different classes of Contingent expenditure.
‘Contingent expenditure’ means all incidental and other expenses which are required for running an office or for the technical working of a department.
There are five classes of contingent expenditure. viz. —
(i) Contract Contingencies: A lump-sum amount is placed annually at the disposal of the DDO for making expenditure at his discretion on certain specified objects without further sanction of any kind.
(ii) Scale Regulated Contingencies: Some contingency charges are regulated by scales fixed by the higher authority.
(iii) Special Contingencies: Without special sanction of higher authority the expenditure cannot be made by the DDO.
(iv) Countersigned Contingencies: In eases where bills are countersigned after payment, the money is actually drawn on the abstract bill and the approval of some controlling authority required before they can be admitted as legitimate expenditure. Such approval is usually taking in the form of countersignature after payment on a detailed bill submitted to the Accountant General.
(v) Fully Vouched Contingencies: The expenditure may be made within the own delegated power of Head of Office. No counter signature or sanction of higher authority is required in this regard.October 24, 2012 at 2:43 pm #74952
What are the responsibilities of the Drawing Officer, Controlling Officer and the audit authorities in respect of Contingent expenditure?
Responsibilities of Drawing Officer in respect of contingent expenditure:
(a) Drawing and Disbursing Officer to exercise the same vigilance for meeting expenditure out of Govt. fund as a man of ordinary prudence in spending his own money.
(b) Rules regarding preparation of bill.
(c) Allotment of fund.
(d) Money required for immediate payment.
Responsibilities of the Controlling Officer in respect of expenditure:
(a) Whether items of expenditure are of obvious necessity.
(b) Rates of items fair and reasonable.
(c) Previous sanction obtained for making expenditure.
(d) Vouchers are all received and in order.
(e) Calculations are correct.
(f) Expenditure made within the grant.
(g) If progress of expenditure is rapid, the DDO may be asked to check.
(h) Control of expenditure.
The responsibilities of Audit Authorities are given below:
(i) Expenditure is made within the grant.
(ii) Regarding Contact Contingencies whether the expenditure is in order and whether sanction of competent authority has been obtained in case of any expenditure in excess of contract grant.
(iii) Regarding Scale Regulated Contingencies whether the expenditure was made within the scale fixed by higher authority.
(iv) Regarding Special Contingencies whether the expenditure was made against necessary sanction of competent authority.
(v) Regarding Countersigned Contingencies whether the detailed monthly bills have been countersigned by the competent authority after payment, and adjustment bills and vouchers have been sent to the Accountant General.
(vi) Regarding Fully Vouched Contingencies whether the expenditure was made within the own delegated power of Head of Office.
(vii) Necessary certificate as required under financial rules has been submitted.
(viii) Rate is justified and standards financial propriety are observed.October 28, 2012 at 11:59 am #75000
How will one detect fraud?
Detection of fraud is one of the main duties in ease of commercial audit. Verification of original records and documents is necessary for the purpose of detection of fraud and as such detection of fraud by Audit Office i.e. Central Audit is very rare. The Audit Office frequently intimates the Executive Officer that something is wrong. On the basis of the same, subsequent investigations are conducted by the department regarding detection of the frauds of huge money. Frauds are mainly detected at the time of inspection of original documents, records and from suspicious factors by the Audit Officers of local audit party who are expert in this line.
The main point in every fraud investigation must be to ascertain whether ordinary common sense has been exercised by the concerned officer and existing rules and regulations have been properly observed. If so, the fraud and defalcation could not have happened. The fraud and defalcation occurred in most cases is due to negligence on the part of the concerned officer and disregard of rules and regulations framed by the Government which are full proved. But investigation authority sometimes indicates that the checking procedure are defective and revision of the same is essential.October 28, 2012 at 12:07 pm #75002
What are the general instruction to be observed by Govt. officers who are required to receive and handle cash or perform functions of Drawing & Disbursing Officers?
Drawing & Disbursing Officer will maintain the following procedure in this regard.
1. Every Drawing Officer is expected to exercise the same vigilance in respect of contingent expenses as a person of ordinary prudence would exercise in spending his own money.
2. To observe rules for preparation of bills.
3. Money should be drawn for immediate payment or money has already been paid from permanent advance.
4. The expenditure should be made within the available allotment of fund.
5. In case of exceed of allotment of fund or likely to be exceeded steps should be taken to obtain additional fund.
6. In case of contract contingencies the proposed expenditure does not in excess over the contract grant.
7. All monetary transactions should be recorded in Cash Book.
8. Money received by D.D.O. should be deposited to the Bank within the next working day.
9. At the end of the day D.D.O. will check the balance with reference to Cash Book. Daily closing of Cash Book is must.
10. At the end of the month Head of Office will verify the cash balance.
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