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·APPENDIX 16
TO THE
AUDIT CODE
Instructions for the preparation of Appropriation Accounts and
tho Reportsof the Audit Ofoer thereon.
SECOND EDITION.
(Revised.)
D LII
HAYAGER OF TURLICATIONS
1036

·List of Agents from whom Government of India Pablications are available. ENGLAND Tur HICI COMMISSIONER FOR INDIA, INDIA HOUSE, ALDWYCH, LONDON, W.C. 2, PALESTINE Steimatzky, Jerusalem INDIA. 1. Uudu 1 TL (5) PRIVATE Boox SELLERS. I Netrenn o Dhl share on Taon My Maqe - CITL.. & Sons, 43, K. &L Edwardes Road, Rawalpindi, Murree and Peshawar, Mesars. J. Ray Chowdaury & Co, 63/5, Ashatosh Malberloo Road Calcutta. Rochouse & Sons, Madras Rose & Co, Karachi Lras, Mogera Roy Chowdhury & Co, 11, College Square, Caloutts, Pleasra N ML mio Mall, Cawo poro. re, Caloutta, Mlogars troet, Calaatta, Mosers (Sachid.wulan), Irell Scientafic Pablishing Co. 9, Taltola Lano, Calcutta. Indian Army Book Depot, Dayalbagh, Agru. S shachalam & Co, Misulipatam, Micasrs. IL Shivji & ipuan Armay Bun's Depot, Jollandar City and Darya Co PD Casubagan), Cattack Ran Delhi Shri Shankar Karostas Tutaka Bhandara, Malamuddy . . Litonton Palace, 11 LCCIOLIW, AULAUKI, Lulu and Bombay, Mount Neptun & Broe, Chowk, Benaria City. À L. Stetown & Broe, Teppabulsm P. 0. Tolbosopoly, 8. Jadi t, Young Lian & Co., Aloer. Hrust, L. & . Agent Lot palitoa toga su Ariston only.

·1 . CONTENTS Paragraph. Part I - Introductory. Nature of Reports to be prepared Extent of application of these instructions 3 Responsibility for preparation 4 General Instructions as to preparation 8 Procedure, on receipt of the Reports, in the office of the Auditor General 10 Part 11 --Detailed instructions for the preparation of the Appropriation Accounts and Report. Title of the compulation 16 Object of the Appropriation Report 17 Gencral principles on which Audit comments should be framed:- Clencral 18 Selection of subjects for comments 21 General proceduro for dealing with irregularities, etc., to be included in the Report Principal types of irregularity 23 Comments on remedial action 24 Comments on disciplinary action Gencral instructions to be followed in making comments 20 Form and arrangement of the Accounts and Report 35 Instructions for tho preparation of Part II - Appropriation Accounts, 90 . cto - 30 41 W 3 6t 88 Gencral Grand Summary . Tho Appropriation Iccounts Sub-heads Notes on tho Iccount: Subsidiary statements and Accounts Staternents of New York Trading Accounts Storo Accounts Accounts of Expenditure from Grants-in-ald Accounts of Depreciation and Reserve Funds Accounts of Lamp Sun Pror sios Laplantion of complica1 Anvantuz prardare Audit Comments Instructions to be followed in the preparatioa of Appropriation Sprouts and lieports for the Press LICO 70 75 077 SO 61 ·[ ï ) Paragraph. Part 111 - Instructions dealing with the procedure subsequent to the sub. musson of the Appropriation Accounts and Reports to the Committee on Public Accounts Consideration of the Appropriation Accounts and Reports by the Committee on Public Accounts 86 The orders of Government on Reports 90 Watching of the action taken on Reports 93 . Annexuro (Skeleton Draft Appropiration Report). Forms Page 31 63 ·APPENDIX 16. Instructions for the Preparation of Appropriation Accounts and the Report of the Audit Refor Officer thereon. PARTI INTRODUCTORY. Nature of Reports to be prepared 1 Under rules 15 and 25 (2) of the Auditor General's Rules, the Auditor General is required to obtain annually certain Appropriation Accounts together with the reports of audit officers upon them and upon the results of the audit which has been applied to them These documents are the same in wol al rafo-nun No. 17 Page 1, paragraph 2- Substitute the following for tho first sentence of this paragraph ndanleg +1 the financial year ending on the 31 with tho transactions brought to ar to which the Appropriation Ao that rare casos of ixceptional - importany which ought to be brought to notive urgently, may bo included oven though they may n late to a later year and that tho latest information i relating to litor ycar, may be included in a cato belonging to the year of tho accounts acc (Arr: 16 to Audit Code ?nd Fait on (Reri ed) No 17, dated the 3rd September 1933.) voru 1 & บนแutา ง pvc แv+++ from the context the general instructions contained in this rolume apply Reports On the 'orm and arrangethe Annexure to rimaril intended ion accounts and Ar can be applied in the preparation of central Ippropriation Accounts and Reports Also Speual instructions relating to the Apniorriayon. Agsanntş Anl, 1.72318 of the Baltas animalem Departmenty are given in the Jabuk cf 160 Responsibility for Preparation In cert un cases, oring to the separation of accounts from audit, the duts of preparing Appropriation Accounts has been entrusted to 1.100 ·2 APPNDICES. [NO 16 $ officers other than audit oflicers It is for the audit officer concerned to submit the Report upon these accounts In all other cases, the Appropriation Accounts and Report are prepared by the Accountant General concerned Note- In case of doubt as to the particular ippropnation Ileport in which # financal irregulanty should ho mentioned, the deciding factor should be the Bource from bich the fonds irngularly applied acre prondel The report should be made to tlo le zlatun or Gorcmminent which actually provide l the piones 5 The Accountant General (intral Revenues prepares a consolidated report upon the entire coul expenditure of the central Government much of which is not brought to account finally on bus books or submitted to his audit To enable him to do so, all other chul Accountants General and Directors of Audit and the Controllers of Military Accounts must supply him with formal reports concerning the central cıvıl expenditure with which they have dealt The Accountant General, Central Revenues is authorised to edit such material before including it in his report and if he considers this to be desirable to omit any portion of it If he makes any material modification in the paragraphs to be included in his report which have already been shown by other audit authorities to the responsible administrative authorities (sco para graph 22) the latter should be apprised of all changes cffected VOTE. Where to report so forwarded was originally prepared by nudit oficcis et hordate to the officer who forwards the report the Inttei oficer 13 expected to cdit it and to take the entire responsibility for ita contenta 6 The datcs for submission of the material mentioned in paragraph 5 will be settled in consultation between the suprising officer and the receiving officer is the latter is responsible for the punctual issue of 1.9 Peports The material should be supplied in duplicate, but should not be printed One side only of the paper should be used, so that one entire copy may be placed on record for future reference when the other has been cut and pasted as may be convenient 7 In respect of expenditure incurred in England by the Secretary of State and the High Commissioner for Indii the Appropriation Ac counts are compiled by the accounting officers in the United Kingdom and the Reports upon them by the Auditor at the India Office The Auditor is responsible for appropriation audit to the extent described in para graph 14 of the Annexure and for this purpose is supplıcd by the Gor ernment concerned with all orders sanctioning expenditure and with particulars of re appropriations and of all conditions specifically imposed by the Standing Dinance Committee in accepting proposals for expendı ture or by the legislature in voting grints General Instructions as to Preparation 8 (a) The Appropriation Accounts and Report are documents of considerable importance and should invariably recerve the personal attention of the Accountant General or the audit officer responsible for their preparation, who must himself sign them Adequate measures must be tal on to ensure the accuracy of the information which they con tain and the English in which they are written should be above reproach It is most undesirable that the Auditor General should be druen to pass adverse criticisms on the Report itself when fornia drug it to the executive Government 2 ·No 16] APPENDICES (1) Every endeavour should be made to convey through the report & just, impartial and yet sympathetic picture of the financial administration and to avoid expressions suggesting a political opinion or bras Το the Government concerned the report will shew the extent to which its subordinate officers are complying with its rules and orders and will often suggest directions in which those rules and orders can with ad. vintage be amplified or modified To the tax payer it will exlul it tre degree to lich the Government is complying with the expressed views of the legislature in matters of importance To the Secretary of State as to the Governments in India it will rei cal the extent to which lys orders are obered and will at the same time shed a useful light upon the norling of the reformed constitution in India It should be borno puticu vrls in mind that the control csercised by the legislature over the financ al operations of the Government concerned must depend larger for effective results upon the lielp rendered by the writers of these reports 9 The Appropriation Accounts and Reports should be self contuned in respect of all matters with which tliey deal If it is absolutely necessart to refer to any correspondence with the Auditor General or frith the executive Government the subject matter of the correspondenco sl oull be summarised, as briefly is is compatible with clear exposition. Similarly if it is necessarı to refer to the infringement of any rolc, whether statutory or not the gist of the rule should be concisely summarised All details necessary for the understanding of each irregu lanty should be briefly given including (1) an explanation of the transaction (2) a description of the nature and magnitude of the irrcgularity (3) any extenuating circumstances that may exist (4) the defect if any in the system which led up to the irrega larity (5) the remedial or preventive measures adopted , and (6) the adequacy of those measures NOTE--In mentioning cases relating to financial irregalarties it should bo borne in mnd ti at it is of more value to drive home a general lesson than merely to mention ar tunlar irregularity 10 The reports and other material prescribed in paragraph 5 above should be very carefully prepared and should be signed by the officers preparing them The responsibility for the accurct of the fac s and figures which they contain will devolve upon the officers furnishing them and not upon the officers entrusted with their compilation To secure uniformity they sliould be prepared in such form as may from time to time be indiented by the compiling officer who is authorised subject to the general tenor of the rules in this Appendu to issue subsidiary instructions to the compiling officers 11 In actual practice all officers preparing material for the Appropriation Report shonld as far as possible prepare important comments during the conrse of the year as each case becomes ripe for treatment and all comments should be taken in hand as soon as tha 7 ·4 APPENDICES. [No 16 final figures for March have been included in the accounts This will prevent congestion of work at a late stage and will thus assist punctual submission Comments prepared in advance should be carefully edited before the final signature is appended to them NOTE.-Steps should invariably be taken betimes to secure any explanations of departmental authorities which are found to be necessary 12 The Appropriation Accounts of expenditure in the United Kingdom described in paragraph 7 above will be receired by the audit officers concerned who will incorporate them with the explanations which they contain in the Accounts prepared in India If the heads of account on which the Secretary of State in Council and the High Com missioner operate are so different from thosc cmployed in the Indian accounts as to make it impo sible to include both English and Indian expenditure in a single statement the former should be shewn in a separate statement placed immediately below that which records the Indian outlay Audit 13 When an audit off cer las completed and signed his report orr the Appropriation-Accountry he should forward the Accounts and Re port to the Auditor General with a covering letter in which he will men tion points in his Report which he considers to be the most important. No discussion of these points in the letter is necessary but the audit officer will furnish in it such further information on any subjects in cluded in the Report which it was impossible to incorporate in the Ro. port and which in his opinion may be usefully employed by the Auditor General in frammg his comments on the Report to the local Govern ment 14 (a) Printed copies of the Appropriation Accounts and Report in final form should be submitted to the Auditor General in time to reach him on or before the following dates in the financial year after that to which the accounts relate- Report of the Director of Railway Audit on the Appropriat on Accounts of Ra lways in India April 18th Appropriat on Accounts of Railways in India pre pared by the Financ al Commissoner Rail ways April 15th Report of the Accountant General Central Reve nues and the Biretor al Army Audit Report of the Argy Appropriat on Accounts March 31st and for ne Durchbe of arugih Report of the Accountant General, Posts and Tele graphs and the Appropriation Accounta of Axaroppenditure Defonce Sesters Barch lat All other reports February 16th Two [10of copies of each Report in its final form should however, reach the Auditor General one month earlier than the relevant date specified above except that proof copies of the Report of the Accountant General Central Revenues should reach the Auditor General on the 7th March ·No 16 ] APPENDICES 8 Proof copies of the Commercial Appendix to the Central Government (Civil) Appropriation Report need not however be sent to the Auditor General Andel- VOT: 1-The audit oflicer responsible for the preparation of the Report on the Appropriation Account of a provincial Government should ascertain from the Gorernment concerned, as definitely as possible, the time when that Government will hare the Accounts and the Report examined by the Committee on Public Accourts of the Province and should communicate this information to the Auditor General hen forwarding the Appropriation Accounts and the Report in inal form to that officer If, for any special reasons, the due date for the submission of the Report to the Auditor General cannot be observed, the required information should be furnished to that officer separately, so as to reach him on the due date for the submission of the Report in the final form andit NOTE 2-TVhen submitting to the Auditor General the final copies of the Report on Appropriation Accounts of a provinual Government for a particular year, the Principal Auditor concerned should send with them a copy of the Revised Estimates of the following year and of the Budget together with a copy of the Budget Speech of the Finunce Member of Government for the year succeeding that If for any reason simultaneous despatch is impossible, the Revised Estimates and the Budget as presented to the Legislative Councul should be sent as soon afterwards as possible (b) It will be found that there will ordinarily be an appreciable interval between the time at which it is possible for the compiling or reporting officer to complete a preliminary draft and the date on which the few adjustments communicated by the Auditor General on journal entries can be incorporated in the Appropriation Accounts This in terval should be utilised for a thorough check of the explanations given in the explanatory notes NOTE –Correction slips should not be issued for errors and misprints discovered in the Appropriation Accounts and Reports after their scrutiny by the Committee on Public Accounts, unless the mistahes are important Procedure on Receipt of the Reports in the office of the Auditor General 15 The Appropriation Accounts and Reports of central transactions are transmitted by the Auditor General, with his comments to the Governor General in Council and those of provincial transactions to the Finance Department of the Government concerned The Reports of the Auditor of Indian IIome Accounts on the accounts of the High Commissioner and Secretary of State are similarly transmitted It is for the Finance Department concerned to place these documents before the Committee on Public Accounts as required by the Legislative Rules The Auditor General subsequently forwards to the Governor General in Council for transmission to the Secretary of State in Council, three copies of each report, with the comments which he has made on it, and anv general comments which he desires to offer upon the Reports as a whole or upon any question arising out of them ·APPENDICES. [No 16 PART I DETAILED INSTRUCTIONS FOR THE PREPARATION OF THE APPROPRIATION ACCOUNTS AND REPORT No. 23. title page Page 0, paragraph 16- Substitute the following for this paragraph: 10 The compilation relating to the accounts of a provincial Govern. mont should be described on its as tho "Appropriation Accounts and the Audit Report (year of accounts) (calondar year ot of the ", tho name of tho Government being roport) printed at the top. The title page should by printed in the manner pres. cribed in the ANNEXURE. This form should also be adopted mutatis mutandı- fru ornan - l.. Government (Cyril)', '(Posts words * Appropriation Accounts". issue 41 Apps 16 to Audit Odo, 2nd Edition (bevised) Yo 23, da*ed the 3rd Septomber 1935 ) باید برو به LA Usuwd LA ACTUAL 101HUMU counts in the discharge of its statutory functions, and that the most important of these functions is to sce that expenditure has been incurred " within the scope of the demand voted by the legislature" and not upon nny “ new service" not contemplated by the budget or by a supple mentary estimate Tlic Committee is further entitled to express opinions upon the conduct of administrative departments in respect of their accounts and upon decisions of the l'inance Department affecting the latter, and to criticise improper and wasteful expenditure or unwise methods of financial administration 19 In order adequately to fulfil these functions, the Committee must necessarily rely upon the assistance of the reporting officer, who irreguları- Committee's laining the obvious inferences to be drawn from them and the points which appear to require eximination, in such a way as to enable the Committee to reach a conclusion on each subject or to determine the nature of any further investigation which may be necessary 20 In view of the requirements of the Committee on Public Accounts, it is clear that the audit comments incorporated in the Appropriation Report should not be confined to points arising out of audit against appropriation They should embrace all important irregularities detected in audit, whether they be deficiencies of sanction discovered in sanction audit , failures to enforce or respect preseribed rules and procrdure ·7 No 16 ) APPENDICES brought to light in expenditure audit, offences against the canons of in mal nrontiete nlserscd in lugher audit or any other class of 11 re No 11 Pages 6 7. Paragraph 26 Insert the following as a new sub paragraph before the existing note in this paragraph " Then an audit officer proposca to raise a bigler audit question on a subject which is predominantly administrative or t rhnical in character, he should assure himself that he has properly apprehended the facts, that the raising of the question would be a legitimate audit proceeding and likely to 6 Ta ment must be the first step and drifting a paragraph for the Report almost the last The discussion should be for the purpose of clarifying tho issues end eliminating points of controversy so far as it possible to do this Any pointa which remain unsolved should then be carefully stated in a definite form and the wording of the statement should be agreed upor betreen the audit and the administra ite department It is inadmisablanca initate a premature and widely ra No 53. Page 7, paragraph 21, clause (a) Insert the following at the end of this clauso Thero is no need tu mention a mistake detected by Audit, which has been completely corrected, unless there 18 a substantial point to be made » (Appx 16 to Audit Code, 2nd Eda (Revised), No 83, dated the 1st October 1936 ] 54 1 111 tue neport, by means of a note or other Wise (c) Cases which are sub judice slould not be mentioned in such away as to prejudice the claim or defence in court This rule applics to cases actually decided in a lower cougt until such time as the department concerned intimates that the litigation is finally concluded General procedure for dealing with irregidanties, etc, to be included in the Report 22 The following procedure has been prescribed fou dealing with irregularities occurring in the circumstances Aescribed in the two main sub sections of this parigraplı (A) In cases in which accounts are not separated from audit (1) (1) The report on an irregularity connected with a provincul subject should be submitted in the first instance to the appropriate department of the local Gorerament concerned If the action til en bs that department is not considered adequate a report should at once be made to the ·8 APPENDICES. [No. 16 Finance Department If the local Government so direct, a report to the latter department may be made simultaneously with the original report to tho administrative department (11) In handling reports on irregularities connected with central subjects, the accounts of which come under his audit, the Accountant General, Central Revenues, should adopt the following procedure (a) If the subject 18 administered directly by a department of the Government of India, he should act on the lines laid down at clause (1) above (b) If the subject is administered through a minor local Gov ernment he should address his first report to that Gov. ernment and also send a cops simultaneously to the ad ministrative department of the Government of India Nott-Tlic proceduro prescribed for the Accountant General, Ce al Rerenucs, should also be adopted by the Accountant General, Posts and Telegraphs, and by the audit officers other than the provincial Accountants General who have to furnish material to the Account. ent General, Central Rerenues, for the preparatinu of the Report prepared by hum (111) In the case of Central subjects the accounts of which are audited by a provincial Accountant General the procedure adopted for these reports should be as follows (a) If the subject is administered directly by a department of the Government of India, irregularities connected with it should be reported to that department as well as to the Finance Department of the central Government, and the former will inform the latter of the action taken () If the subject is admiuistered by a provincial Government as the Agent of the Government of India, irregularities should be reported simultaneously to the department of the provincial Government entrusted with the administration, to the Finance Department of that Government and to the Finance Department of the Government of India The cases which forn the subject of such reports should be described as having been registered provisioually for comment in the next Appropriation Report (2) In respect of such cases, 2€, cases likely to be mentioned in the audit afficer's report ont Appropriation accetrats or in the notes aprended to the appropriation accounts them. selves, draft paragraphs should be prepared during the course of the year as soon as the necessary preliminary investigation of the case has been completed or reaches an advanced stage, and a copy of the draft paragraph should be supplied at once to the same authorities to whom the reports under clause (1) abore were addressed for consideration and comments If the l'inance Department of a Government so desires a copy of all such draft paragraphs may be sent to that department ·No 16] APPENDICES 9 (3) Similarly, after comments from the administrative authori ties and the Finance Department have been received the final draft of the paragraph for the appropriation accounts or the audit offieers report thereor should be prepared without waiting for the compilation of the appropriation accounts or the report, and copies should be supplied to the same authorities (B) In cases in which accounts have been separated from audit The same procedure as at (A) above should be observed with the following modifications (1) The statutory audit staff should send their reports and draft paragraphs to the accounts authorities and it would be for the latter to take such action as may be called for and to make the necessary reports to the administrative autho rities and the Finance Department The Accounting offi cers would be required to initiate and continue a corres ponding procedure in so far as it provides for making the necessary reports to administrative authorities and the Finance Department in respect of irregularities and other matters of importance detected by themselves in the course of their internal check (2) If the administrative authorities concerned and the Finance Department desire that the statutory audit staff should send to them copies of the reports and the draft paragraphs at the same time as these are sent to the accounts authori ties the statutory audit staff should arrange for this (3) The accounts authorities and the statutory audit staff will be responsible between them for examining the draft paragraphs prepared by the statutory audit staff with the object of ensuring that when the paragraphs ultimately appear in the appropriation accounts and the report thereon, they may be free from discrepancy on any point of fact and free also from any other defect requiring further investigation on the part of the Committee on Public Ac counts Principal types of irregularity 23 The following are among the principal types of irregularity which should subject to the provisions of paragraph 21 form the subject of audit comment in the Report The list is not intended to be exhaustire it is withun the discretion of the reporting officer to comment on other matters when this appears to him to be desirable (a) Any case on which & report to the Committee on Public Accounts is required under ether of the prorisos fo rule 14 of the Auditor General's Rules (b) Any ercese over a grant voted by the legislature or over an appropriation sinctioned by the Finance Department (c) Any re-appropriation from or to a grant voted by the legis. lature ·12 APPENDICES [No 16 etc , which (5) Irrecoverable balances of advance payments made on account of services, trere ultimately not rendered (121) Any uneconomical or apparently wasteful expenditure due to (1) The inception of works without adequate intestigation of their utility or feasibility (2) The exccution of works by a Government agency which lacks the ability or the facilities to execute them pro perly (3) The unsatisfactory working of Government commercial undertahıngs (4) The fixation of the rents of residential buildings (5) Other similar causes NOTE 1 --A Marhed tendency of Josses, extraordinary or uncocomral Pnents or claims to compensation to increase should form tho subject of comment Note 2. Where losses or deficiencies are recorded in the initial accounts they will automatically appear in the Appropriation Accounts also There losses or deficiencies are not recorded in the initial acc vunts, they should, if important, be mentioned in the potes under the Appropriation Accounts, provided that individual cases of losses under the main revenue heads shall not be mentioned in those notes unless the list of extra statutory remissions and abandonments of claims to revenue which is submitted to the audit officer (erde Article 29 A of Civil Account Code Volunio I) suggests the desirability of offering general remarks on the sub ject In the case of losses of stores, the test of importance should be the net value after crediting any sums recovered and not the gross value of the stores lost Smal losses by fire, or jo traust, or in other circumstances beyond the control of any responsıble per son need not be mentioned in the account, but å heavy loss will probably lend to an increased charge and consequently a note explaining the charge may become necessary All important cases of remissions and abandonments of claims to revenue in the Railways, Posts and Telegraphs and the Indian Stores Departments abofe & certain fairly high monetary liinit to be fixed by administrative authority should be mentioned in dividually in the report on Appropriation Accounts- (p) Any appreciable expenditure on a deposit work in excess of the funds deposited against it (9) Any irregularity in connection with the drawal and disburse ment of money, designed to bring expenditure into closer accord with appropriations, such as () Drawal of money in advance of requirements particularly towards the close of a financial year (11) Postponement of payments which are due and fully matured (r) Any irregularity connected with a grant in and such as neglect (1) by the sanctioning authority of conditions precedent to the grant or (11) by the grantee of the conditions, expressed ·No 16] APPENDICES 13 or implied, attached to the grant by the sanctioning authority Rules for the andit of grants in and are contained in Chapter 11 A of the Audit Code, Volume I NOTE.-If Standing Finance Committec has agreed that a grant in in the Appropriation Report (s) Any negligence bad farth or fraud in a money transaction, or in the disposal of stores or other property previously charged off in the accounts (+) Any irregularity connected with accounts such as (1) Manipulation of accounts (1) Mis statement of facts either on initial or compiled accounts or on certificates submitted in support of accounts or in reply to inquiries by audit (11) Chronic or abnormal delays in the submission of accounts to audit, the settlement of audit objections or the disposal of inspection reports (14) Any important irregularity in the realisation of revenue (v) Any instance of the absence of administrative regulations and procedure sufficient to secure a proper and effective check upon monetary transactions NOTE –Any serious delay in the issue of necessary financial or account rules (Statutory or non statutory by a local Government should receive unless ir not 15 sati his comments, he should however, state the causes of the delay, particularly in cases in which it would be unfair to rmment without indicating the causes Comments on remedial action 24 In commenting upon an irregularity, mention should be made of any remedial action taken by the executive authorities to prevent sunilar occurrences in future It is legitimate to express an opinion as to the ade quacy und probable efficacy of such action or of the financial regulations and procedure of the department concerned The reporting officer slould, beverer., um, le framing bus comments rather at selvexw tue Cowwettes on Public Accounts of the need of further investigation or at helping it in such investigation than at inviting criticism of the administration At the same time, while it is not ordinarily the task of the reportin; office to conduct an investigation of a case of irregularity it may on occasion be huis duty to criticise the manner in which the administrative authorities have per formed their duty of investigation Comments on disciplinary action 25 (a) There may arise cases in thich the reporting officer considers that the disciplinary action taken in connection with an irregularitr sin edcqunte, that departmental censure or punishment has not fallen upon the right official or upon all the officials deserving at If he desires to oſier comments of this kind, he should give full reasons for his opinion, or ·APPENDICES [No 16 and the comments should be so worded as to encourage adequate artiou in sular cases of the future, it is ordinarily undesirable to attenipt to re open a specific 09 which has been closed in relation to a particular oft cial (0) If the reporting officer notices & marked difference in the stundards of disciplinary action observed by different departments of Government, le sliould conmuut on this feature girang adequate evidence supporting his belief in his Report General instructions to be followed in making comments 26 In commenting on an irregularity the reporting officer should endevour to give a clear and correct account of it in plain language, so that a person not versed in the details of accounts and audit mot under stand its bearng tipon the financial interests of the tax payer Technical eple sions should seldorn be used , and, when their nse is unavoidable they should be explained 27 Relevant points bearing directly upon the nature and extent of thu irregularity should alonc be mentioned and the comment should be based on facts anil not on inferences Dates should be given then they are necessary for 1 clear presentation of the case It is uno.cessary to fie a narrative account of the discover of the irregularity 28 Where a rule or order has been violated, its substance and the actual or possible effect of the volation on the financial interests of the State should be clearly explained 29 In reporting cases of financial irregularity, extravagant expen diture or savings eflected at the instance of audit, the actual amounts inyolind should as far as possible be stated Otherwise figures should nnt be given unless they are necessary for a cle ir presentation of the case 30 Mlie name of the official personally responsible for an u regularity si ould not be mentioned and his designation should not be cited if that gries an unmistal able clue to his identity Subject to such preservation of anonvinity the report should indicate the status of the officral respon table 31 Care should be taken to avoid asperity in comments of such words as " fraud" or embezzlement which dcnote crime should also be hoidel muless the crime has been proved It would generally be suficient to irse some colourless word eg “ lass", in such cases 32 The wording of a comment should ordinarily make it cler whether it relates to a voted 01 to ? non voted item and to expenditure upou a reserved or a transferred subject The report upon the civil accounts of the centi al Government should when possible indicate the province, if any in wluch an irregularity forming the subject of com inent occurred 33 Unless in any case it be otherwise prescribed in this Appendis, it is not necessary for the reporting officer to obtain the approval of the Auditor General before mal ing a comment but doubtful and difficult cases may be freely referred to him and his aduce may be sought when necessary 34 Cases may arise in which it may not be possible or advisable to mve publicity to the full details of an irregularity by including them in The use 13 ·No 16 ) AI PLNDICES 16 the Report If the details which may properly be published are con. sidered inadequate to enable the Auditor General to judge of the gravity ol the (nce further information should be furnished to him, by con. fidential letter if necessity Form and Arrangement of the Accounts and Report 35 Subject amongst other things to the reservation stated in paragraph 3 preceding the compilation should follow the model of the Skeleton Doft Appropriation Report printed in the Annexure to thus Appendis It should be understood that the model is purely illustrative and it is open to the Audit Officer to modify or amplify it as may be necessary to suit the material which from year to year it falls to him resnects however, there should be ne substantial No. 46. Page 15, para prajh 35- Insert the following at the end of this paragraph As & necond sub para. graph It 14, however, never netopirj to nicntion subject he dinge when thre 14 nothing unlır the h dinge to Irinn to notice d Appx 16 to Aud i lule ni Lour (Revişed) No 46 dated the 1st June 1036 1 In un (1) Prefatory remarks (11) Changes of the year under report (112) Review of finance (1) General review of the results of nudit (v) Points outstanding from previous Reports Part II (1) The Appropriation Accounts with esplanatory notes and audit comments (11) Appendıx (Accounts and Reviews of commercial concerns) A detailed description of the nature of the information to be gren in Part I and instructions relevant thereto art given in the body of the Skeleton Draft Appropriation Report already mentioned as contained in the Annex ir Similar information in regard to the matters connected with Part II is given in prigraph 39 et scq below and in the Appendix to the Annexure 37 The follow mg points should be borne in mind in connection with the preparation of central Appropriation Reports - (a) No review of the finance of the central Gosernment as a whole should be prepired by audit officers submitting Appropriation Reports on central expenditure review, when considered necessary will be prepared by the Auditor General himself and transmitted to the Secretary of State in Council with his other comments mentioned in paragraph 15 of this Appendis (1) The Acconntant General Posts and Telegraphs, should how ever include m luis Appropriation Report a rever of the finance of that department The refies should follow, as far LAGO Such a ·16 AI PENDICES [No 16 as inay le the lines prre ribed for mouncual finances with such additions and adaptations ns the special features of the department demands 38 In the chapter of his Report dialmg with "General review of results of audit 'the Accountant General Central Revenues who 19 responsible for the audit of transactions in connection With the Debt Redemption Scheme of the Government of India promulgated with their Inance Department Resolution No F 13 II T dated the 9th December 1924 should in addition to the other nece siri informition insert a formal andit certifcite so that there mit be from ear to verr an assur ance that the conditions of the Debt Rrdemption Scheme lave been scrupulously observed This certificat need not be in 7 set form but should state clearly the terms of the rindertaling given and should contain the Iudit Officers assurance abont the ol«crvance of the undertaking Instructions for the preparation of Part II–Appropriation Accounts, etc 39 Gencral-The instructions contamed in this section apply pumarılı to accounts compiled by the hrids of combined offices of (counts and audit under the control of the Auditor Genernl Even however in respect of separatel offices where the maintenance of the act ouints has been transferred to the erecutuse Government the concurrence of the Auditor General is necessarı before the form of the Appropriation Accounts I determined 40 By whatsoever agency the nccounts be maintained considerablo weight must be attached in questions affecting the form of the Appro priation Accounts to the wishes of the Committee on Public Accounts and the ciccutie Government Tf eitler of these anthorities desire a radical leparture from the terms of the general instructions the officer responsible for the Appropriation Report should if he is unable to con vince snch authority of the superiority of the prescribed form refer the matter for the orders of the Auditor General 41 Grand Summar/ -Prefixed to the Appropriation Accounts there should be a grund sominary of the appropriation results of the year compiled in Form D 9 S tion Acc Append attached to at It is claimed for this form that it supplies all the really essential information on ? single printed page The-insertion of columns 5+717-6-Imr partienlar,-should-reliete the notes on the accounts of great deat of_explanatory_matter which would in the absenup of these columns encumber them 43 There should ordınırıly be a single appropriation account for each grant zoted by the legislature including non voted appropriations connected with the service for which the grant is voted and for the com plete appropriation sanctioned by the Finance Department for each wholly non voted herd of expenditure If however the Committee on Public Accounts or the Finance Department desires that two or more accounts should be prepared in respect of a single big grint this may be done an ·No 16 ) ALI I VDICES 17 abstract of the complete grant being prefixed to the separated accounts For the purposes of appropration audit a grant so duuded slould continue to be treated 15 single grint, and transfers from services falling under one of the appropriation accounts to services falling under another should be treated as transfers within 1 grant TOTE - In case of this kind it will ordinarls be desirable to press fur the introduction of a nen grant to cover that part of the expenditure which It is prop sei to ethibit in a separate appropriation account 44 Sub heads-An appropriation Account should be detailed, not necessarily by the minor or other subordinate heads of account prescribed for the classification of expenditure in the general accounts, but by such sub heads as may be locally selected for the purpose These sub heads should be arranged as far as possible under the major and minor heads of the general accounts classification 45 The selection of sub heads for the appropriation accounts rests * tb the Finance Department, but that department has no authority, without the consent of the Auditor General to prescribe sub-heads under which expenditure cannot be compiled from the general accounts without a change of classification in the latter A contemplated prescription of tl is kind should if the Government desire to press it be referred by the reporting officer for the orders of the Auditor General Similarly, if the selection of sub-heads is such as to mahe it difficult though not impossible to apply the essential principles of appropriation audit the reportig officer should represent to the Finance Department the desirability of revising them in the next years e timate and if he considers this to le necessar of anticipating the revision in compiling the appropriation accounts of the grant If the Finance Department do not accept t 19 proposal the advice of the Auditor General should be sought 46 While it is for the executive Government to select the sub heads, the reporting officer is entitled to criticise the selection in his Report if it is such as to hamper ippropriation andit or to obscure the presentatio 1 to the Committee on Public Accounts of the true results of the ye? In offering such comments the following points among others, should be horne in mund - (a) A single sub head should not cover expenditure 60 large or activities so various as to necessitate extensive analysis in the explanatory notes (1) On the other hand ercessive sub duision into sub heads is undesirable 74 it adds to the bulk of the compilation and tends to distract the attention of the reader from essential points (c) Such items is recoveries talen br deduction from expenditure and outlny on grants in aid should if of appreciable si?. be reconiocated in separate sub heads (d) Lumr sum deductions for probable sings should be shein under separate sub heads 47 The figures relating to each selected sub lead should be separatele compiled in the appropriation accounts The esplanatory notes, if any, ·18 ALI LYDICES No 16] relating to each sub licad should, 75. prescribed in paragraph 54 below, be printed immediately below the relevant line of figures 48 The figures of expenditure entered in the appropriation accounts must be the final figures of the year under report, as they stand after the general accounts have been closed Every eliort should be made to include in them all changes inade by journal entries, as it is of the utmost importance that the figures of the Finance and Revenue Accounts should tally "trictly with those of the appropriation acconnts Such agreement must be cllected before the general accounts of the year are closed, and no change should be made in the latter if it cannot be incorporated in the appropriation accounts before their submission to the Auditor General 19 The appropriation accounts should be arranged serially by grants and appropriations, the distinguishung number of cach grant or appropriation being printed in thick type at the top of cach page which deals with it If a particular account deals with non voted items only, the fact should be provinently recorded upon its face 50 Below the title of cach account which fornis the subject of com. ment in the Report the words “See also, Report on the Accounts " should he printed in tluck type To facilitate reference in such cases, an index in Form F should be carefully prepared and unscrted at the end of the compilation 51 Where the Appropriation Accounts prepared in India, whether by the audit authorities subordinate to the Auditor General or by the accounts authorities not under his control, relate wholly or in part to transactions, the audit of which devolves upon the audit authorities in England or upon an audit officer other than the Principal Iuditor who furnishes the report the Appropriation Accounts to the Auditor General, the reportmg officer should obtain an audit certa ficate in respect of such transactions included in the Appropriation Accounts on Exception-No certificate should be demanded by a reporting officer from the Auditor of Home Accounts in respect of any Home Appropriation Accounts incorporated in the Indian Appropriation Accounts so long as the Home Apprution Account is covered by an audit report bearing the anture of the Auditor of Ionne Accounts 52 Where accounts have not been separated from audit, it is not necessary to append the audit certificate to individual appropriation accounts It will suffice if ? single uudit certificate is recorded somewhere in the combined publication (preferably below the grand summary of Appropriation Accounts) accepting responsibility for having applied necessary audit or for having recelled an assurance that the other audit authority concerned English or Indian, as the case may be, has applied the necessary andit The same procedure may be followed in cases where accounts have been separated from audit, but in such cases if arrangements cannot ·No 16] APPENDICES 19 be made for the audit certificate to be recorded, before the Account Jag Officer book of Appropriation Accounts 19 published, the necessary nudit certificate may be incorporated in the letter press of the Audit Officer s Report VIL 1-When in appropriation account is prepared in an accounts or andit circle diferent from the circle proper of the Principal Auditor responsible for writing the lu lit Report on the book of Appropriation Accounts, wherein that all nation necount ) to be ineladed, the Principal Auditor of the firmer circle should furnih to the Principal Auditor responsible for the Report an audit certificate on the sainc bnes as he would have recorded, if he were unting a separate fudit Rejort on the a, propriation account NOTE 2-The certificate of the reporting officer should as far as possible, bu in the form giren bel w "I have examined the above account an 1 according to the best of my infor mation as a result fr test audit of the looks and a considerati n of explanations given to me the account is correct subject to the observations in my report on the account " II, however, the results of the test audit conducted under his direction lead the reporting of cer to a different conclusion, the certificate should be modified Accordingly 53 Notes on the lccounts –The explanatory notes on the appropria tion accounts should be prepared by the officers compiling the accounts Where accounts have been separated from dit these will be the accounts officers concerned The Government of India have agreed that until such time they themselves prescribe rules for the guidance of such officers the instructions given in this section of this Appcurly shall be binding upon them 54 The notes explanatory of each sub head should be printed commalately below the relevant line of figures. This arrangement slug wanteful of naner than the 29 No 49 Page 19, paragraph 61– Insert the following at the end of the first sentence of this paragraph "and the column or columns to which the explanation relates may be mentioned at the commencement of each note" (Appx 16 to Audit Codo 200 Edn (Revised) No 49 dated the 1st August 1936 ] LIUS au under the sub hend 5G The responsibility for furnishing the necessary erplanntions rests upon the oflicer compiling the accounts If he finds it necessary to collect information from departmental officers he must make his own arrangements for doing so invoking if necessary the assistance of the Finance Department Even where his explanations are based upon such information he will be understood in the absence of a specific statement to the contrare to endorse the departmental esplanations and accept them as correct Note-If to desired by the Finanee Department the comp: oficer should send to each anthorits responsible for controlling errenditore agi nat: frant an advance copy, in manuscript or proof of the appropriation account of the grant ·20 APTE DICES [No 16 57 (a) It is unnecessary to explain the reasons for individual re appropriations withdrawals, surrenders or supplementary provasins unless- (6) they are of appreciable size, or (11) the expectations with which they were made or obtained hale fallen notably short of fulfilment (6) Trivial discrepancies between the final figure of the grant of appropriation for a sub hend and the actunl crncnditure under it need not be explained If possible an agreement should be reached with the Government and the Committee on Public Accounts prescribing a money limit possibly modified by a percentage limit below which discrepancies may be disregarded as trivial 58 In drifting crplanations () Breuity should be carefully studied and unnecessary repeti tions avoided Information sliould be supplied in the simplest form compatible with the object of bringing the facts clearls to the notice of the authority which otca or sanctioned the supply of funds (11) General terms shonld not be employed It is for example no adequate explanation of a saving on the purchase of stores to state that 'fen er stores were purchased " The reasons for the smaller purchases should be given (121) Criticism sliould be avoided Its proper place is in the audit comments which follow the accounts and notes Atten tion ninr hoseier he drzwi to ans mis statement con tained in a departmental explanation which it is found necessary to reproduce 59 The following are the more important points to be borne in mind in explaing discrepancies (1) The provision under the sub head is the unit voted by the legislature If there is no appreciable saving or crecss on tlie sub hend as a whole it is unnecessary absence of very special circumstances to cxplun disemepancies in respect of items falling within the unit (11) In csplaining uncovered variations between the final grant or appropriation and the actual expenditure the reasons why it is impossible to surrender unvantert funds or to obtain an additional provision should be fully set forth (111) If variations are due to several causes, the approximate amount due to each of these should be stated (xv) In explaining sayings those which are due to temporary postponement of erpenditure should be distinguished from the results of economy retrenchment or deliberate abandon ment of projected schemes If a service or trork for which provision ras made in the budget is deliberately abandoned in order to make funds available for expendi ture for which no such provision was made the fact should be mentioned in the ·No 16 ) APTFDICES 21 an (1) Comments should be made where necessary, upon failure to rerlise Probable Savings " for which allowance was mado in the budget 60 When a variation under a sub lied cannot be explained in & note of reasonable brevity the explanation should be incorporated in an appendix t the account a reference to this fact being made an a note below the sub head G1 If there is net escess ster & total grant or appropriation, the main reasons for the excess should be summarised in a separate note at the end of the account A similar course should be followed wh n the percentage of total sayings is not ibly high G2 In d lition to explanations of variations between appropria tion and erpenditure it is frequently_desirable to supply other in formation in th• explanatory notes The folloiring are eramples of such information 1a) Although the appropriation accounts do not deal with receipts, cases often arise winch there 18 some correlation between important items of expenditure and the corres ponding receipts thich may be expected to vary in proportion to each other If this expectation is for anv reison not fulfilled the reason should be explained unless It is fully apparent from 1 subsidiary statement or account attached to the preparation account NOTE--The Appropriation for Huta 5. Sergices is a net one re the total net expenditurc on Military Seiyices after a luctug re ceipts is limited to the amount appropriated for thes services The Appropriation Accounts of the Army- Tarino and Military Defenses pide of the account also though not in great detail in order that the appropriation accounts may completely fulfil their function (6) If recoveries of expenditure are not shewn under a eparie sub head but the expenditure, less the recoveries exhibited as a net figure the notes should shew the fross cxpenditure and the gross recoveries both esti mate1 and realised with appropriate comments on Variations Notr This is an cxception to the general rule set forth in paragraph no (1) above (c) If important items of crpenditure are mutually so related that initions in one of them slionld normalls affec another the actual figures of all should le set out in the notes and comment made upon notable divergences (a) It a debit to a particular account is off et by a credit ej were the fact should le stated in the notes (c) If similar features of different appropriation account, are is plained by n single cause or series of connected is $ A note slould he inserted in some sutalle place erlubiting the cumulatire effect of stich ind a reference to this note should be made in dealing with earb of the accounts concerned 13 cause or CANS S ·20 APPCDICES [No 16 57 (a) It is unnecessary to explain the reasons for indırıdual reappropriations, withdrawals, surrenders or supplementary provisions rinless (3) they are of appreciable size, or (11) the expectations with which they were made or obtained hale fallen notably short of fulfilment (0) Trivial discrepancies between the final figure of the grint or appropriation for a snb hed and the actual expenditure under it need not be explained If possible an agreement should be reached with the Government and the Committee on l'ublic Accounts prescribing a money limit possibly modified by a percentage limit belon which discrepancies may be disregarded as trivial 58 In drafting explanations (1) Breut should be carefully studied and unnecessary repeti tions avoided Information should be supplied in the simplest form compatible with the object of bringing the facts clearls to the notice of the authority which voted or sinctioned the supply of funds (11) General terms should not be employed It is for example no adequate explanation of a saving on the purchase of stores to state that fewer stores were purchased" The reasons for the smaller purchases should be given (111) Criticism should be avoided Its proper place is in the audit comments wuch follow the accounts and notes Atten tion na however he drawn to any mis statement con tained in 1 depırtmental explanation which it is found necessary to reproduce 59 The following are the more important points to be borne in mind in explarning discrepancies (2) The provision under the sub head is the unit voted by the legislature If there is no appreciable saving or CECCS3 on the snb head as a whole it is unnecessary in the absence of very special circumstances to explain disemp pancies in respect of items falling within the unit (11) In explaining uncovered variations between the final grant or appropriation and the actual expenditure the reasons Tly at wis impossible to surrender unwanted funds or to obtain an additional provision should be fully set forth (711) If variations are due to several causes the approximate amount due to each of these should be stated (rv) In explaining savings those which are due to temporary postponement of expenditure should be distinguished from the results of economy retrenchment or deliberate abandon ment of projected schemes If york for which provision was made in the budget is deliberately abandoned in order to make funds available for expendı ture for which no such provision should be mentioned svas made the fact a Servicc or ·account attached to the parklation account No 16] APPENDICES. 21 (1) Comments should be made, where necessary, upon failure to realise "Probable Savings " for wluch allowance was made in the budget 60 When a variation under a sub head cannot be explained in 8 note of reasonable brevity the explınation sliould be incorporated in an appendix to the account a reference to this fact being made in a note below the sub head 61 If there is a net excess over a total grant or appropriation, the mun reasons for the excess should be summarred in a separate note at the end of the account A similar course should be followed whºn the percentage of total sa mgs is notably high 62 In addition to explanations of variations between appropriation and expenditure it is frequently desirable to supply other in formation in the explanatory notes The following are examples of such information - a) Although the appropriation accounts do not deal with receipts, cases often arise in which there is some correlation between important items of expenditure and the corres ponding receipts which may be expected to vary in proportion to each other It this expectation is for inv reason not fulfilled the reason should be explain-d unless it is fully apparent fiom a subsidiary statement or 18 NOTE.—The Appropriation for Wat e Services is a net one le the total net expenditure on Military Services after delicting re ceipts is limited to the amount appropriated for thes, services myr Marine and AGlitcr xamination of the receipt great detail in order that letely fulfil their function (6) If recoveries of expenditure are not sheten under a separare sub head but the expenditure less the recoveries, exhibited as net figure the notes should shew the gross expenditure anl the gross recoveries both esti mnted und realised with appropriate comments on 1211tions NOTE - This is an exception to the general rule set forth in par igraph 59 (1) above (c) It import int items of expenditnre are mutuilly so related that utions in one of them sliould normalls affect another the actual fi rures of 11 shonli he set out in the notes and comnient made upon notable duergences () If a debit to 1 particular account is off et by credit el where the fact sliould be stated in the notes (e) If similar features of different appropriation accounts are i5 plained by a single cans or series of connected cansa a note should be inserted m some 19 tahle place exhibiting the cumulative effect of such cause or cansıs and a reference to this note sluuld be made in dealing with earb of the accounts concerned ·2 APPENDICES [No 16 (f) On the completion of a special scheme or other temporary object of expenditure, which is of apprecible importance suit able remarks regarding its unadjusted assets and liabilities should be made in the note below the relevant sub head If any stores or other classes of property were acquired bs charge to the grint for the sclemc thic actual or intended disposal of such property should be explained and ini dehcienciey noted or losses incurred should be nicntioned When an uistitution or department has been closel or transferred to another department or Govern ment the effect upon the accounts of the closure or trans fer should be indicated (9) When any important immoi cable property is purchascal rehn (ugliel or remged for other property such details of the transaction may be l noun should be incorporated in the note below the relevant sub head Thus in the casa of a sile, particulars of original cost may, if available, be given and compared with the sile proceeds and with an estimate which may have been included in a project estimate (h) Where the appropriation accounts are not compiled by the audit officer the compiling officer should endeavour, when drifting his explanatory notes to anticipate and meet any comments which the reporting officer may be expected to offer upon the figures of the sub head concerned (1) In general it should be remembered that it is desirable to give an explanation of every transaction which cannot be presumed to have been contemplated by the legislature or the Finance Department when voting or allottins the funds from which it was financed Subsidiary Statements and Accounts 63 in respect of certain classes of expenditure at is desirable to attach to the appropriation accounts subsidiary statements and accounts Examples of these are given in the following paragraphs 64 Statements of New IYorks-(a) In the detailed budget estimates provision is ordinarılv made for individual works of the expenditure upon them is expected to exceed a prcscribed monetary limit and in addi tion funds are provided in lump for minor items of works expenditure and in some cases for unforeseen charges also Expenditure on indi vidual works is not however is a general rule shen separately in the appropriation accounts the ontlay being shewn as a whole against one or more sub heads (b) In order to bring out the extent to which the approved pro gramme of expenditure has been followed detailed statements in Torm G should be appended to the approprigtion accounts A separate statement of this kind shonld be appended to each account which deals with appreciable expenditure upon new norks and if necessary such statements should be sol divided Thus outlay upon ne Civil Works shoula he exhibited separately under the fonr herdings "Buldings « Communications" "Viscellaneons" and " Tools and Plant--Net ·APPENDICES 23 No 16 ] Supplies, and the portion dealing with Buildings inay itself be sub divided to such extent as the Finance Departncnt may desire Sınılır. " Exten. k Irrigation works should be sub divided into " Works " sluns and Improvements and Tools and Plant-New Supplies" (c) Notes should be included in each statement in Form G, cxplaining marked variations between the estimated and actual capenditure upon individual works or groups of works as the case inay be Cramples of suitable notes are appended to the specimen form 65 Statements on similar lines may at times be usefully employed in setting out the progress of expenditure arising out of a concerted such for programme of outlas upon objects other than nou lorl s cuample as a political or other mission or a schemc of inquiry or re organisation 66 Trading Accounts - Trading accounts are designed to shew the commercial results of undertakings of a quasi commercial character wacha are financed directly or indirectly, out of public funds 67 The audit officer concerned will mal e arrangement to incor porate in the relevant Appropriation Accounts the Profit and Loss Iccounts wd Balance Sheets of Government commercial undertakings or departments and or such other accounts as may be prescribed in consultation with the Finance Department of the Government concerned Such accounts should ordinarily set out in addition to thic figures of the year under report those of the yer immediately preceding it 68 Similarly in respect of quasi cuinmercial undertal ings the officer compiling the accounts should move the Finance Department to decide the nature and form of the sul sidiary accounts and statements if any, which should be appended to the relej int appiopriation account The orders of the Auditor General should however, be taken if the decision of the Finance Department involves 1 substantial change in the form of any regular account or a material departurr from any general form prescribed for a sıılır purpose with the approval of the Auditor General 69 Every trading account ippended to an appropriation account should bear the signature and designation of (1) thc officer in imme diate charge of the undertakung (2) the accountant or other per on responsible for the book keeping and the compilation of the accounts and (3) the officer responsible for their audit The last named oficer should append a certificate of audit in such form as may be prescribed for the purpose 70 Store Accounts -The appropriation account of a grant covering expenditure on the purchase of stores wluch will be brought gradually into use furnishes no evidence that the stores actually purchased were really required and that they have been properly utilised Irregularity in the disposal of public stores is equivalent to irregularity in the liandling of public money In order tlierefore that the appropriation account of such a grant may be complete it is desirable that it should be supple mented by a storc account Shewing the transactions in connection with storcs actually carried out during the year Tius is particularly desir able where the value of stores 19 considerable 71 There is another reason for regarding a store account as the necessary complement of the appropriation account in such cases The ·24 APIENDILS [No 16 If it appropriation account is no guide to the adequacy of stocks sheus savings ou an excess over the appropriation for purchase of stores, the real nature of such savings or excess cannot be determined without reference to the condition of the stock account at the beginning and end The latter alone can sheir the true extent of the drafts actually made tipon the stock in land A store account is therefore essentul if it is desire to keep 1 watch over the actual consumption of stores of the year 72 As in the case of triding accounts store accounts of depart ments or undertakings not uncler the audit of the Audit Department shoull not be appended to the appropriation accounts without the con sent of the l'urance Department of the Government concerned The officer compiling the appropriation accounts should ask for such consent Wher the extent of the stocks purchased or held renders this desirable 73 Store accounts should be in such form is mn be locally pres rrihed for the purpose and lould give the following formation - (a) The values of - (1) the opening balance, (tr) receipts during the sens distributed if so desired over the principal sources of receipt (12) utilisations sales and other disposals during the star 11v) depreciation shortiges etc written oft during the year, and (v) the closing balance (1) The results of stock verification and of revaluntion if any (c) The agency employed for such verification and revaluation Where as in the case of Salt and Opium Stores the stocks are large and of a inore or less homogeneous character the accounts may with ad' vantagu skew quantities and if possible rates in addition to values 74 As in the case of trading accounts store accounts should be the signature of the officer m immediate charge of the stores and of ti? accountant responsible for the preparation of the accounts If virtue of a requisition under rule 12 (12) of the Auditor General s Rulc the audit of tie state accounts las been entrusted to an nudit officer an audit certificate should be sionel by the latter Wlien an accoun) nder sich indit is appended to the appropriation account the explanatory note under the relevant snb ! cid should mention this fact ! on Arcounts of Expenditure from Grants in and separate accounts of expenditure bi rantees from grants in ud should be appended to tle ippropriation accounts in cases where the submission of an audited account or the subjection of the accounts of expenditure to Goicinment a lit 14 made a specific condition of the grant All such 7ccounts should be sgoed by the printee or by his responsible accountant and Bhould bear 1 certificate of andit 76 Where grants and are sanctioned for expenditure on the public service hy or under the control of Government official separata accounts of such expenditure should not be attached to the appropriation accounts unless the Finance Department of the Govern mint concerned so desire ·Ko 161 APPENDICES. 77 Accounts of Depreciation and Rescric Funds - WVlierc a Deprecia. tion or Reserve Fund has been instituted for a particular department or undertaking of Government, the accounts of such fund should be apreniled to the appropriation accounts, in such form as may be prescribed for the purpose by the Auditor General 78 Accounts of Lump Sum Proursion-\\ here a lump sum prusision is made in a grant or appropriation for distribution bs re appropriation over ditferent sub htads of the grant or appropriation, it is desirable, if the transactions are numcrolis to append to thi nppropriation accounts a statement shering the actual utilisation of the provision If the transactions are comparatively few it should ordinarily be possible to deal with them in the explanatori notes under the iclesant bub head 79 Explanations of complicated Accounting Procedure — Wicre it 13 desired to give a detailed explanation of compliciter accounting procedure, such as the nature and meaning of a particular Suspense he id, this should ordinarils be done in an appendix attached to the appropriation accounts It desirable to alou over loading the eplinatory notes below the sub heads Audit Comments 0 Appended to each appropriation account should be audit conpints of the reporting officer These should deal with the appropriation account itself with any subsidiary accounts statements or appendlies attached to it, and, where the accounts liave been prepared by an nfficer otler than an audit officer, with the explanatory notes below the various ndrit 1 cases where subsidiary accounts subject to audit are incorporated mistrative Reports of the Departments concerned, but not appended ration Account eg the commercial accounts of Bornbiyud - Vint the audit comments below the appropriation account will, in Inentin whether the subsidiary accounts bare seen audited by tlie rincipinl Auditor concerned and also the general results of such wucht, , bu t1 at the re ults are satisfactory or other appropriate remarl 8 d 61 The comments should deal with rregularities of the types rescribed in paragraplı 23 and with those connected with budgeting or wtral grer expenditure, where these lare mot deea deement of sufficient mportance to justify inclusion in the general review of the results of audit In particular, ther should contaw, where necessary, comments on the accuracy of the budget of the department or departments concerned and on the accquacy of the control exercised over the expendi ture from the grant or appropriation NOTE —The main test of the adequacy of expenditure control is the extent to which there cast, at the close of the financial year, differences between expenditure and grant or appropratin 1 under indısidual hends or sub-heads, unrectified, in the cif escesses, by the p703 1310n of additional_funds end, in the case of savings, by surrender to the Finance Department The statistics of expenditure placed under objection also shed a valuable side-light on the cicienes of control Any comments role sliould be illustrated In facts and figure, and should be directed mainly at establishing the need for rcrutiny of methods of control An apparent mis se of delegated powers of re appropriation 14 horaer a ulogeet for legitima'e comment ·20 APPENDICES. (No 18 82 The following, among other matters may with advantage be mentioned in the comments () Instances of postponement to a later year of payments or ad justments which should have been made during the year under report (11) Instances of payments or ndjustments carried over from a piu vious car (112) Important assets awaiting realisation and the progress mide in realising them (10) Progress inade in the recovery of recoverablc expenditure including such expenditure regularly charged off as final outlay 83 As indicated in paragraph 74 an audit officer cannot crtify tu the correctness of the Stores Accounts where the audit of stores transactions of the department concerned has not been entrusted to the Auditor General under rule 12 (1) of the Auditor General's Rules and unless a Store Account has been audited in detail and with care it is difficult to comment on it with authority The audit officer may, how ever, assist the Public Accounts Committee in their investigation into the stores transactions by comments on some aspects of these transac tions in the Appropriation Accounts Comment may for example deal with the following points (1) Whether the closing balances as disclosed in the Stores Accounts appear to have been crcessie (2) Whether the amounts written off by way of depreciation shortages etc during the year appear to be abnormally bagh (3) Whether the stock verification and revaluation if any has been made by proper authorities (4) In one province the Public Accounts Committee has desired that the Stores Accounts should indicate surplus stores of กny The audit officer may comment in cases where such surplus appears to he abnormal and after enquiry from the departmental officers he may also be in a position to bay whether adequate measures are being taken to dispose of the wynet3 The foregoing list is by no means exhanstıre and what is really desired is that all audit officers should continuously realise that they are ex pected not merely to reproduce the Store Accounts but to audit them with reference inter alia to the points mentioned above No comments nced however be made in the Appropriation Accounts unless there is anything special to be said Remarks such as "the closing balances appear to be suitable" or other equally colourless remarks do not help any one and muy even be misleading and dangerous 75 they may lead the Public Accounts Committee to refrain from investigation in a case where a correct appreciation of the position can be formed only after examination of the departmental witness ·27 No 16] APTESDICCS Instructions to be followed in the preparation of Appropriation Accounts and Reports for the Press 84 la preparing the Appropriation Report for the press every endeavour should be made to keep the cost of printing at the lowest level consistent with the presentation of a clear intelligible and read able production The following points in particular should be borne in mind a) Before a report is sent to the pres the general arrangement of its printing should be carefully considered and the instructions given should le sufliciently clear and precise to obtiate the necessity f calling for 7 second proof The manuscript should be legibiv tipe written and should be sent in its final forin (6) The size of each report should be royal octivo (c) The use of type of various sizes enhances the cost of printná but the emplos ment of difterent type of the same size dues not increase expense and types are convenient me lia for the letter press of the rep rt The Appropriation Accounts with their explana tory notes should be uniforml printed brevier" mono brevier 8 point No. 13. Fleow! A Small pics 11 point 17 in ог 11 to 'age 27, paragraph 84– Insert the following as a 'Note' under clauso (e) * Note --Columns of statements containing more than thrco columns Bhould be numbered in all cases' (App: 16 to Audt Code 2nd Edit on (Levbed) no 13 dated the 3rd September 19 6 ) Vol2 Year Madras Bombay Rengal Unted 1 rovinces Punjab 1234 Rs M 15 Rg 19 31+ P's 21 946 Rs 17 45 R: 12 3419 1924 95 12 967 1460 29 670 10 789 13 006 cin readily be replaced by the following simple and inexpen sive form Madras Bombay Bengal lated Provinces Ponjab 1993 Rs 13705 19 31+ 21 16 17 452 19 319 1994 25 R8 19 967 14 650 m00 16*89 13 006 ·28 APPENDICES. [No 82 The following, among other natters, may with advantage mentioned in the comments - (*) Instances of postponement to a later year of payments or Justments which should have been made during the under report (11) Instances of payments or adjustments carried over from & : vious year (111) Important assets awaiting rcalisation and the progress m in realising them (iv) Progress made in the recovery of recoverable expenditi including such expenditure regularly charged off as final outlay 83 As indicated in paragraph 74 an audit officer cannot cities it the correctness of the Storce Accounts where the audit of stones transactions of the department concerned has not been entrusted to the Auditor General under rule 12 (12) of the Auditor General's Rules and unless a Store Account has been audited in detail and with care it is difficult to comment on it with authoritv The audit officer may, how. ever, assist the Public Accounts Committee in their investigation into the stores transactions by comments on some aspects of these transac tions in the Appropriation Accounts Comment may, for example, deal uith the following pomts (1) Whether the closing balances as disclosed in the Stores Accounts appear to have been excessive (2) Whether the amounts written off by way of depreciation, shortages, etc, during the year appear to be abnormally high (3) Whether the stock verification and revaluation af any has been made bi proper authorities (4) In one province the Public Accounts Committee has desired that the Stores Accounts should indicate surplus stores if any The audit officer may comment in cases where such surplus appears to be abnormal and after enquiry from the dep ırtmental officers le may also be in a position to say whether adequate measures are being taken to dispose of the surpluses The foregoing list is by no means exhaustive and what is really desired is that all audit officers should continuously realise that they are ex. pected not merely to reproduce the Store Accounts but to audit them with reference inter alia to the points mentioned above No comments need however be made in the Appropriation Accounts unless there is anything special to be said Remarks such as the closing balances appear to be suitable" or other equally colourless remarks do not help any one and may even be misleading and dangerous 75 they may lead the Public Accounts Committee to refrain from investigation in a case where a correct appreciation of the position can be formed only after examination of the departmental witness ·APPENDICES. 27 No 16] Instructions to be followed in the preparation of Appropriation Accounts and Reports for the Press 84 In preparing the Appropriation Report for the press, every endeavour should be made to keep the cost of printing at the lowest level consistent with the presentation of a clear intelligibic and readable production The following points in particular, should be borne in mind as Before a report is sent to the press, the general arrangement of its printing should be crefully considered, and the iustructions giren should be sufficiently clear and precise to obsiate the necessity of calling for a second proof The manuscript should be legibly type written and should be sent in its final forin (6) The size of each report should be royal octavo " (c) The use of type of various sizes enhances the cost of printu : but the employment of different type of the same size does not increase expensc and " 11 point types are convenient media for the letter press of the The Appropriation Accounts with their explana tory notes should be uniformly printed brevier,' mono brevier 8 point Id Ann No. 13. Page 27, paragraph 84- Insert the following as a 'Note' under clauso (e) * NOTE -Columns of statements containing more than thuco columns should be numbered in all cases' (App: 16 to Audt Code 2nd Edition (Revised) No 13 dated the 3rd September 19 5 ) Small pica . 17 гер ft in 46 or 11 1 PAC leon - 1 Year Aladras Bombay Bengal United l'rovinces Punjab Rs 13725 1993 24 Rs 19314 R Rs 21.943 RE 12345 1924 25 12 907 14 6,0 29 070 16 788 13 000 cin readily be replaced by the following simple and inexpen Site form Madras Rombay Bengal United Provinces Punjab 1993 34 Rs 13725 19 314 2116 1" 15.) 1° 319 1994 25 Rs 1° 967 14 650 0-0 1683 13 006 ·28 APPENDICES [No 16 () A balanced account with no more than two or three entiles o the credit side and very numerous entries in the delit coluinr occupies an unnecessary amount of spice Instead of print ing it as a tabular statement, it will often be possible to divide it into three separate statements, recording scire tively balance, receipts and issues, on the lines of the examp given below STATOZENT I --Balance Balance on 1st April 1924 Receipts (Statement II) R. 2 68 325 6 41,455 9,09 780 Issues (Statement III) 7,19 345 Balance on 31st March 1925 1,61,435 STATTUCXT II --Receipts Two itens (set ont in detail) STATEMENT III - Issues 7'venty items (set out in detail) (9) Unnecessarily large spacing between lines, and unnecey13 blinks should be avoided (1) A single set of totals will suffice for each Appropriation Account, even if it covers several pages It is unnecessary 166 844 to "carrs forward " page totals *95 No more copies of the Report than are really necessal y should bfpirinted The number required for the use of the Government conccined sliduld be ascertained from the l'inance Department The Auditoi Gencral expects 12 copies of the Central (Cırıl) Appropriation Report and 10 copies of other Appropriation Reports The compiling officer himself shoult estimate his reqmrements for his office library, for cuculation anong his establishment and for supply to the officers with whom he excllanges publications Noti _A number of copies of the Report may be offered for sale of the local Gouernment concerned so desires The number of copies to be sold may be determined in consultation with the Central Publication Branch The Repeits relating to the accounts of the Central Government should not however be released for sale or otherwise made available for the use of the pnblic until the Report of the Public Accounts Committee on tbe accounts of the finanmal vai to which the publications relate 19 also available to the public A sucular proredar may be adopted in the case of the Reports relating to the transac trong (f the provincial Governments also unless any local Government ouers ise directs ·3 No 16 ) APPE DICIS PART III. INSTRUCTIONS DEALING WITH THE PROCEDURE SUBSEQUENT TO THE SUBMISSION OF THE APPROPRIATION ACCOUNTS AND REPORTS TO THE COMMITTEE ON PUBLIC ACCOUNTS Consideration of the Appropriation Accounts and Reports by the Com mittce on Public Accounts 86 In considering the Appropriation Accounts and lieport the l'um mittet ( Public Iccounts does not function as an erecutive bol it ling no puer even after the most minute examination and on the clinics eva dence to Diallois 1 item of expenditure or to the am lind of ordr It 1 uffer aduce upon any question irising out of the Aut tinta or Repurt lut its function is advisory only, and its findings must be cast in th" of recommendations to the executive Government or to the legis 1. ، ،۲۳ 67 The audit officer who prepared the Appropriation Report should be present i per nat such rueetings of the Committee on Public Accounts as he luus be invited to attend 11:4 presence is in all cases desirable and pirticularly at those meetings at lul eu lence is tal on, but it will est with the Finance Dirtmit of the Government concerner to secure the ԱՏկ Itail 1) If no mutation is received the matter should be rej rte i to the Auditor General 88 When attending the meetings of the Committec ort Public Accounts the audit officer should remember that, as the presence of the un Office Auditor is impossible the responsibility for giving to the Com Pytp cuul assistance a that muchor on 1110 a son inami in Il 18 liit uuty of the Finance Department of the Government con cerned to consider any recommendations of the Committee on Public Acc mnts or of the legislature arising out of the Appropriation Arcounts inci le port it will for ardi to tie aucht officer who prepared the Report Hi finelings of the Committee and the decisions of the legislature upon them acluling sanctions to ercesses over voted grants, and will similarly fuminte its own sinctions to excesses over non voted appropriations It will in addition communicate to him all orders passed by the Governt rent on the recommendations of the Committee or the legislature, and will forward to the Auditor General the necessary number of copies of the find inge of the Committee as soon as they are available The Auditor General domy not desire that detailed replies to hus comments on the Accounts or Report should be addressed to him by the Finance Department 91 The l'inance Department is under no obligation to adopt the recoma endations of the Committee on Public Accounts but it is expected to state in its orders on the Reports its for declining to do so 10 any cisc This will enable the Committee if it so desires, to consider the ·DE APPENDICEX (No 10 points of difference aner at its nest session, and either tone the Finance Department to consider the matter further or to call the atten ti in of the legislature to it 92 The Government of India have requested local Governnent, ind Administrations to communicate direct to the audit officers concerned the orders which they pass on financial irregularities, relating to trans-clions undertaken by them as agents of the central Government, wluich are men tioned in the Appropriation Report on central accounts The saine nuthorities liv further been requested to intimate, not only to the audit officers but also to the Finance Department of the Government of India the actim taker un ench central Report as a whole in so far as it relates to the parti culo local Government or Administration A silnilar procedure is ohsei ved by the administrative departments of the Government of India in respect of central transactions for which they are responsible Watching of the Action taken on Reports 93 The general responsibility for watching the action til en upon each Appropriation Report rests upon the audit officer who prepared at Where, honeter, the accounts to which a particular comment reintes aro audited by an officer who is not subordinate to the preparing officer at 19 for the auditing officer to watch the action on that comment 94 We officer responsible for watching the action taken on a Report should muintain 1 suitable register for the purpose If he has my doubt whether a particular Report or question has been adequately handled by the Conimittee on Public Accounts or by the Finance Department, bo should refer the matter for the decision of the Auditor General Nott 1-After the Report of a provincial Public Accounts Committee has been examined, the Accountant General should direct the attention of the Auditos General (1) to those paragraphs of the Report of the Public Accounts Committee which contain recommendations of considerable importance, and (11) to any adverse comments raade by the Public Accounts Committee or the local Government on any remarks of the Auditor General or on the views taken by the Audit Department, or to any comnients which contain a reflection, express or implied, on the Audit Department for failure to take proper action, together with his own opinion on them Noti. 2-In respect of the central transactions, however, immediately on receipt of a copy of the Public Accounts Committee's Report the Acronunt int Gentini concerned should see that necessary action is taken by his office those recommendations of the Committee Thieh have a bearing upon the accoruts of the Department or Departments coming under his audit control Any inntrer requiring the orders of the Auditor General should, of cour e be Tefeuice to him for orders 95 The orders of the various Governments upon the reports of the Coinuttee on Public Accounts, whether they be embodied in resolutions or issued in a less formal manner, constitute a body of case law relating to the accounts of each Government Each officer responsible for ile pre parition of Appropriation Reports should therefore maintun for the gudance of his own office a systematic record of such orders It is how. over desirable that each Finance Department should publish an mitome of such orders wluch should be from time to time amended and kept up to slate, and when this procedure is in force it is unnecessary for the officer preparing the Report to maintain a similar record OII

·ANNEXURE.
(SKELETON DRAFT
APPROPRIATION REPORT.)
LAGO
31

·No text on this page.

·No 39.
Insert the following title page as role of tho • ANNEXORE'
à recumber the existing page 1.] on sage 3 of the Appendix se pago 11 (x)}.
GOVERNMENT OF
APPROPRIATION
ACCOUNTS
1931-32
and the
AUDIT REPORT
1933
Irsued by the
Accountant General,
31(a)
Apps. 16 to Addit Code 2td Edition (Terved) do 3 dated the Brd Eestemter

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·TABLE OF COXTENTS. Reference to Parsgraph. Page. (iv) Lemarks fidel PART I —THE REPORT. 1 2 1 3 1 4 1 3 6 3 6 31 6 3 7 3 8 5 8 6 9 B 5 10 10 . CHAPTER I f the year under reportges in the form of the accounts or the Report, etc. geg in classification which hare affected the accuracy of the budget, etc ortant account changes. CHAPTER II -Review OF FINANCE, y of financial transactions of the year under report compared with estimates lof revenue and expenditure Nenue fpenditure pe position of Government 1 Outlay not charged to revenue rogressive capital vutlay ommitments (Capital) Pocitron ) Statement showing the capital borrowed and its utilisation () Loans raised in the open market (+) Advances from the Provincial Loans l'und (111) Loans taken from the Famine Relief Fund (iv) Repayınent of loans taken from the Provincial Loans Fund (v) Accumulations in Sinhing Fund (11) Vet liabilities (111) Outlay on capital works (1-1) Discount on loans raised in open market (n) Outstanding amount of loans borrowed to meet revenue deficits (2) Outstanding loans and advances by local Government (31) Sums held in provincial balances (811) Borrowed funds devoted to revenue purposes and contribu. tion froin revenue towards capital expenditure ?) Forecast of future borton Inus ) Loans and Advances by Provincial Covernment (d) General comments on debt position 32 6 6 11 6 12 13 14 1 8 15 8 16 9 17 10 18 10 19 10 20 10 21 10 24 10 11, 23 24 11 23 IIN ·[ i ] Referenco to Paragraph. Pago Famine Relief Fund 26 11 Analysis of provincial balances. 27 12 Review of moatly provincial balances 28 Review of financial prospects of any big scheme or project under con struction) 29 13 Review of financial results of irrigation systems 30 13 Review of expenditure on residential buildings 31 15 Review of financial results of other quasi commercial undertakinga 32 15 General review of the working of Government commercial undertakings 33 16 General review of the financial position 34 16 CHAPTER III GENERAL REVIEW OF THE RESULTS OF Audit Review of total demand placed before the Council 35 16 Roductions made by the legislature in Demands for Grants 36 16 Restoration of Legislative cuts by His Excellency the Governor 37 16 Supplementary grants 39 16 Authorisation of expenditure by His Excellency the Governor 39 16 General results of appropriation audit- 40 17 17 Savings on voted grants 42 18 Sayings on non voted appropriations Savings on the voted grants and non voted appropriations (separately and combined) as compared with previous years 43 18 Cxcesses over voted grants 19 Excesses over non voted appropriation 45 19 Exccgses over voted grants and non voted appropriations as compared with previous years 46 19 General comments on accuracy of budgeting 47 19 Control over expenditure 48 20 General conclusions relating to control over expenditure 49 20 Finanmal irregularities Withdrawals of objections in connection with brearheg of canons of financial propriety Irregularities cunnected with reappropriations etc Cases of cspenditure incurred on objects not approved by the 50 20 Council Cases of expendituro incurred in anticipation of provision of funds by the Council Other financial regularit es (General Comments) 52 24 General remedial measures of importance taken during the year 52 22 33

·(iii)
Referenco to
Pan.
graph. Pagh
13
G1
23
Other topics of interest
Local audit and Irspections
Review of Expenditure, Public Works Departrent
Stor Accounts
Suggestions bs audit for eccsosiy
General comments on state of financial administration.
CHATTER IV.
Points outstanding from previous reports
PART II.-APPROPRIATIOX ACCOUNTS.
Grand summary of appropriation accounts.
Appropriation Accounts
Appendu-Accounts and Reviews of Gorcromcat Commercial Concerns
89
23
.
25
25
20

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·(11) ܙܐ ܝ PREFATORI REMARKS This volume containing alredelppropriation Accounts of the Govern. ment of and til Riport of the Accountant General town is prej died in pursuance of fult is the luditor General's Rules irmd under «ction 96 D) (1 of the Government of India Act Its object is to pre nt the audited accounts of all the expenditure of the year whether voted or non voted in the form of a separate appropriation account for each grint with an impurtant obseriations Much it 18 C.Nered necessarı tu mnth as a result of audit investigation It is transaitted in the Auditor (Teneril with his comments thereon 10 the I minie Department of the local Government to be laid before thc provincial Public Accounts Committee ? Th Public Scunth Committee is a statutory body constituted in ptir uance of rule 33 of the I gislative ( ouncil Rules to consul in this Report and the appended appropriation Iccounts and such other inalters as mn be Itferreri to it by the Finant Department (Here should be explained the exact constitution and other special matters connected with the Public Accounts Committee of the province ] rutinning the Appropriation Accounts of the Province it is th duit of the counttec to sitifs itself that the money voterl by the Council la typen prent watim tle scope of the demand grantal bs tho Cow It is als the duty of the Committee to bring to the notice of the Counci ever I appropriation from one grant to mother Los avers le appropriation within a graut wluch is not mnde in accordance with the rules relating the functions of Finance Department, or which has the effect of anciering expenditure on an item the provision for which has been specifically reduced by 1 vote of the Council, and rry all expenditure which the Finance Department has requested should be brought to the notice of the Council + The main function of the Committee is to see how far the wishes of the Council are carried olit in the matter of expenditure incurred In perfori ung this duty it has also to see that no expenditure is incurred on arly" tew SerTICE for sluch provision was not made either in the original desnanı or in a supplementar demand voted by the Council, that there has been po extravagance and that money set apart for one purpose has not been dnected to another The Committee may, if at desires sunnon Heads of Departments os itnesses to supplement information ou ony point 5 Iu dealing with the Accounts and the Report, the Committee 13 en. titled 'n offer criticisms and recommendations upon any matter discussed therein or in the Auditor General's comments thereon whether such matte concerns the accounts of expenditure voted or non voted or those of receipts , (it has honejer no jurisdiction over matters relating to the Bnel wird Tracts) * {7 the To be omitted where unnecessary 35 ·[v] 6 Thc Committee is not an executive body It has no powal, elen after the most minute cxamination and on the clearest evidence, to disallow any item or to issue an order It can only call attention to it irregularity or to failure to dcal with it adequately, and express its opmion tliei con and record its findings and recommendations 7 Further details of the nature of the dutics cntrusted to the Com mittee, the manner in wluch those dnties sliould be performed and the results wuch inay be anticipated if those duties are performed cici cntly, will be found in the Memorandum on the work of the Public Accounts Committees in India " drawn up by the Auditor General 19 India, ("wlucli is furnislied by thic Tinance Department to each nember of the Committee ) 8 It should be borne in mind while considering the Report that, whilst it is framed on the best information available and, in the great majority of cases after communication with the departments concerned, It is 1 (cessarily prepared before the departmental witnesses been ex amined, and that it does not possess the same degree of authority or finality as the Report ultimately presented to the legislature by the Coin mittee on Public Accounts after hearing evidence on the points rusid herein 9 It should also be borne in mind that the cases of financial irregu larity, npparently defective administration, etc, which are brought to notice in the Report represent only a small percentage of the total financial transactions of the year The comments on such cases must not bn truderstood as conveying any general reflection on the administra trout of public expenditure [If the Accountant General considers it fit, he may express an opinion separately as regards the standard attained in the administration of public expenditure as a whole ) (Any rulings of permanent value with reference to the duties of the Public Accounts Committee, when no other suitable place can be found for them, and any other introductory matter which must be repeated from year to year may also be included in these prefatory remarks) (sa) Accountant General. This may be modified suitably, where necessary, so as to represent the eract piruetice obtaining in each province 36 ·Quedate ke frost, 1933 Report of the Accountant General on the Appropriation Accounts of tho Gasernment of for. 1931 32 [Throughout thus Report the amounts shoirn represent thousands of rupees unless the contrary is specifically indicated ] CHAPTER I-CIA\GES OF TIIL YEAR UNDER REPORT NO.U. Page 37. Page 1 of the Annezure Paragraph - Substitule the following for the existing entry againut iter ...) in tl.19 paragraph "(131) Other important account changes.' (Apps 16 to Audit (ale ard Fdo l'erisall, 10 in the 21 17970915 1973} - (111) Impurtant account clause No. 7. Page 37. Page 1 of the Annexure Paragraph 3- Insert toe following as a thirk tyre instruction at the and if they jurn graph ** (Changes will be mentioned under this category only if they have Affected in a marbed degree the control of expenditure through having been brought into force after the budget was prepared, and in such cases songe indication should be given as to how the control has been affected y" [Appr 18 to Audit Code, 2nd Edu (Rerised) No 7, dated the 2ud Japonry 1933 ] 1 PUIKUT Account changes ". "(111) Olher important account changes" [Appz 18 to Audit Code od Eda (Revised), No 8, datel the 2nd January 1996 1 Under this category are dealt with (a) Changes in the classification of expenditure from Voted to Non voted from Reserved to Transferred from Central to Provincial and vice versa and from one tant to another (W1 Changes in the major, minor and subordinate head of the general accounts 33 ·(o) Chanyes in the classification of expenditure from soted to etc (1) voted, etc, 0 (b) Chonacs in the major, ? Gencral Acrounts " (111) [In mentioning the changes of t1 points should be noted - It is unnecessary to include in the changes in classification as bets ce. ! changes should not be mention collowing complar approrront No. 10. Page 3e. Pares the Annexure Inremo the following after the words • results of the year in the second satone of the skin sud paragraph of the existing thich type instructions ca tº nº- "Este ano ed important changes in accounts " 1477's Istan!! CHA 8x4279 (Repiped), Yo 10, dsted the 2nd January 1930 ] ollect should be given to w of whassincation from the beginning, and not in the course, of a financial year Any departures from thug principle should be brought to notice and explained () The clarity and adequacy of an appropriation account from the point of view of legislative control depend largely upon the proper arrangement and classification of the estimates It is open, therefore, to the reporting oncer to make suggestions for the clarification of the accounts or the better presentation of information derived from them In this connection, special scrutiny should be applied to the number of sub heads included 22 a grant and the amount of the expenditure included under each of them. see paragraph 46 of the Appendix (c) It a Dewly introduced sub heas 28 inconsistent with the classification followed in the Finance and Rosende Accounts or if its figures cannot be Teadily reconciled with those of the general accounts, its unsuitability should be brought to notice 38 ·hann inmdan MO 17 f age 19 Inerrt th floving ng 1 thi hy metruchi 11 list Ini Ith healing I CILAITIP IR VIEW O II\(1 The report should tend more rol more to being report on completed accounts and to deal as little as possible with cstitrates and prospects II bowever at the time of dealing with the fnancual posi'10D 01 the basis of the completed accounts certain ostablished facts subsequently arising have become common 1 raport be allotted to budget p ospacts ) Appr. 16 to Audit code and Eda (Rorand) No 17 dated tho let Juno 1930) report 75 cm; ire i titl the Bulgt for tie seir is given in the sul jomned V stemit The statement above should be followed by bricf cxplanitions of large and important variations between the Budget figures and tho actuals under all heads both of receipts and disbursements cxhibited in it REVIEW OF RCT ES UE AND EXTENDITURE 6 lhe following table shows the rogress of revenue and ext en litura and the screnue position of the Government of from 1928 29 ouwards (Ag in form B) This should be followed by a review of revenus and ex re under the heads given in the statement The progressive improvement or deterioration should be noticed and known causes leading to it should be mentioned In order to elucidate the existing financial posi tion it may also be desirable to examine the possibilities of growth diminution of liabilities and of expansion or deterioration of revenue under the various hends The effects of any changes in taxation during the year urder report or of measures taken to effect reduction in expen diture during the same period should be prominently indicated against the heads affected] or Rrisc POSITION OF GOVERNMENT together and the current revenue position as a whole appraised 1 (Here the current revenue and expenditure should be reviewed If in any province the amount of extraordinary receipts realised continuous source of revenue the review of revenue position may be supplemented by a state ment in the form below ] ·Statement showing the revenue results of the Government of since 1921 23 after eliminating the extraordinary receipts and expenditure other than ordinary revenue expenditure met out of those 14ccipts REVENUE ACCOUNT Extraordinary roce pts Year Total Surplus Total expendituro () Revenue charged OT to Defict rovence Less Cap Extraord tal expendi nary re ture met ceipts from revenue 5 6 Met Rece pts Net Rece pts (Column 2 7 71118 column 6) Net Net Lxpend ture Surplus (Column 3 (+) m 1148 or column defic t 8) 0 10 2 7 1991 09 1992 93 1993 1 1924 95 1995 26 1926 27 1927 28 1998 20 1929 30 1030 31 1931 32 Total (At the foot of the statement the Accountant General may make any suitable comments which in the light of the igures given in it he may consider desirable ] ·5 CAPITAL OUTLAY AOT OLAROID TO REVENUE. & Progressive capital outlay to end of the year —The following table shows a pirogressive account of the capital expenditure not charged to rercnue of the Government of up to the end of 1931 32 Expenditure Expendituro Sature of expenditure up to during Total 1930 31 1931 32 82 A. Capital Oatlay on Forests 65 Construction of Imgation, etc Works 80-B Payment of commuted value of pensions Total [Below this table may be made any comments which the Accountant Gereral may wish to make in respect of any capital major head incladed therein either by way of explanation of the outlay recorded under at, or on the productivity or otherwise of the outlay incurred ] 9 Commitments –The following table shows the extent at the end of 1931 32 to thich the Government was committed in respect of sanctioned works estimated to cost Rs or more the cost of able to escnuc. Total 11 wana No. 14. Pages 41 et seg Number the colomns of all the statements containing moro than threo columns which bare not alrcady been nunberod (Appz 16 to Andat Code Pnd Ed lion (Retired) No. 13, dato i tho Brd Septeinber 1925 and inodify it btiv It rests with the limut for works to be included in this statement may be mentioned the commitment of the local Government in re of diversions if any of the moneys in the Road Development Fund Account for expenditure on maintenance of existing roads ] DEKT Position 10 The subjoined statement shows the capital borrowed by the Gov ernment of up to 31st March 1932 and the way in wlach at las Ieen atilized (As in forma C) (This statement should be followed by suitable explanations of the various items as shown below) ·6 I louns 11 Items I and IV A Loans raised in the open market - trert rused by the local Government in the open market during the year under report The statement i elow gires a detailed account of the loans so far 12 sed by the local Government in the open market Descript on of loan Rate of interest Amount Bubg cribed Opening balance on 1st April 1931 Balance Debt dis of loan out charged standing on during the 31st March Fear 1932 Ro Rs Rs R8 R$ Tota? [Thus should be followed t the purposes for which it was from which amortisation is to be as constitution of a sinking fund etc) an, IC sources + 2t such 12 Item Il-adiances from the Prouincial Loans Fund (1) Pre reform Prouincial I 1ccount -The amount repic nts the balance outstanding on the 31st March 1921 on 11 count of loans and advances sectioned by the proun idi Gov ernment out of, the sums placed at their disposil by the Government of India and has been treated as an adı unce under Depolution Rule 23 This is being, clışab kasd 13 annual repay mępts with interest the balance outstanding on the 31st, Varch 1932 is Rs Tuli (2) Pre reform Irrigation Debt --Thts represents the capital sims spent by the Gorernor General in Council npon the construction of productive Irrigation works prior to 1st April 1921 and is treated as an adrence to the li cal Gov ernment tinder Devolution Rule 24 This is yirt ially the permanent debt of this Prouince as it is not repayable except at the option of the local Government The tunt of interest paid on this account up to 1931 32 vas I's lakhs, the amount payable for each year being Rs ·7 (3) Post reform aduances (t) For productie purposes ~ This represents the Allonnt Torroel from 1921 92 to 1931 32 The objects for which the loans hue been taken are detailu llou lpto 1730) 31 During Total 1031 3: 1 Laana and Adran enty Provincial Gorernment 2 Imgation works and Hydro Flectnc Derelopment 3 Civil Works and Commercial concerto 4 Carrery Jettur I roject Total ir le pain The Amounts borrowel in respect of items 1–3 are being repard anually be instalments including interest but in the case of itun lo 4, o rystalment of principal pasable till 1'36 37 (11) 10 finance rcienne deficits - This represents the loan obtained to meet resenue deficity during the period and is being discharged annually by cinated iristaiments including interest The balance outstand ing at tir end of the ser is Is graphi (111) For unproductive purposrs-- (Here should be given details similar to those against (1) above ) 13 Items III and IV C-Ioans taken from the l'amine Relief l'und- In ad liton to the loans raised in the open market and the advances from the Irouincial Loans Fand the Gosernment of has Inkhs for diances to cultivatois from the (scess balance in the famine Rclief rund under Rules 8 and 9 of Sulieduls V to the Desolution Rules Tlie debt is being repair in equnted in-talments the amount 50 far discharged being Rs borrosal ; sum of Rs lakhs Details of loans taken from the Fund and of repayments are fui nisu ed lelor Total Year of loon Amount hoof To of of loan instalmente instalments amount talten fired paid repaid 1920 30 1930 31 1931 32 Total 43 ·8 14 Item 17--B-Repayment of loans taken from the Prot • Loans Fund -The details of the repayments are Up to During 1930 31 1931 32 () Productivo- Provincial Loan Account (Pre reform) Provincial Loan Account (Post reform) Other purposes (each separately) Total / (1) To finance revenue deficit . Total (***) For other unproductive purposes.- Tatal (Here it should be explained whether the loans are repaid out c current revenues or from other sources ] 15 Item V-Accumulations in Sinhing Fund —The figures represer accumulations in the Sinking Fund created for the loans raised by th Government in the open market The Tundu credited with the prescribed amount set aput each year out of the ordin ary revenues and with any profits realised on investment of the balances 2 the Fund and is debited with charges connected with the redemption of deb either by purchase and cancellation of securities or by direct discharge An up to date account of the Sinking Fund is given below Recerpts Payments Received Total Paid Total during received during paid to Part colars the to end Particolare tho end of year of the year the year year Rs Ra Re Ra Annual contr bution to Imount spent for the the Fund discharge of debt Interest received from the Payment of advance in investments of the terest on securities amounts received in purchased tho Fund LOSS OD investment Profit on investment Balance Total Total It will be scen that the total receipts and payments from the Şink ing Fund to end of the year 1931 32 amountect to Rs Rs respectively, leaving a balance of Rs credit of the Fund and at the ·Pending pulisation for the purposes for which the Sinking Fund has created the amount standing at its credit has been inste] The florin statement eshi! its the ri mir in which the deposits in thic Sukung und bieten ini putea Lontent Variot value No l'uscar Telje incer! t'aluri the (711x (irir preurtre quotati ne t' Gorernerte! Inil je lan- Spec. 1x 1999 5 tot 1r! 117 the cent 1.12 " 31 for ent Imment Instin trent Bit 131 por ent II 131–3* 41 pot cant B 1 1971 Totui = Oer wunti Jet ("ht Trta ur Bill Totalinse tment Allbonuson Tinin -Ion (nince an!!) an 110,- rutal The un mestu bulancs is thus (The Accountant General may make here any general comment which he deems necessary on the suitability or otherwise of the invest ments of the balances in the Fund Then should be given the audit Cartificate showing whether the appropriations to the Sinking Fund and Payments made therefrom are in accordance with the undertakings ven by the Government concerned in regard to this matter and set forth in the prospectus of the loans ] 16 Item TI let I rabilities -The net liabilities of the Government on the 31st Vareh 1932 as shown in the statement on page are composed of Balance on 31st March 193) (1) Loans rai cd in the open market (11) Advances fron the Provincial I owny Fund fon) Advancos from the Famine Relief Fund Deductfccubulations in Sinking Fun ! Total +5 LS'AGO ·10 17 Item VII (1) to (6)-Outlay on Capital Works [The figures should represent the entire capital outlay charged in the accounts outside the Revenue Account and may thus include also the outlay incurred from sources other than loan funds ae, from the recoveries in the Provincial Loan Account and from the revenue balances They need no further explanation (See also explanation of items XI (2) and XII below )] 18 Item VIII-Discount on loans raised in the open market --The loan (in the open market) was raised at a discount of which was charged capital as it was recognised that it would constitute a heavy and unjustifiable debit against revenue which would eventually meet the whole of the redemption value of the loan through the operation of the Sinking Fund 19 Item II -Oustanding amount of loans borrored to meet revenue deficits —The sum of Rs is made up of - Loans taken to meet revenue deficits Rs Less iepayments Rs to (See page 20 Item X-Outstanding Loans and Advances by the Local Govern nicnt )-This amount represents the balance outstanding of the Provincial Loan Account on 31st March 1932 and includes also the amount Rs financed from Famine Insurance Fund prior to 1928 29 21 Item XI (1) -Sums held in Provincial balances -As only an outlay of Rs was incurred up to 1931 32 against the loans of Rs taken for the balance of Rs remained unutilised and formed part of the provincial balance at the end of the year [The Accountant General may make here any sutable comment il an lus opinion there is a tendency to borrow in excess of requirements ] 22 Item XI (2) and XII -Add-borrowed funds devoted to re tenue purposes and Deduct-contribution from revenue touards capital expenditure [Here should be given an analysis of the figures shown against these entries if the details are readily available and if there is definito an. formation about them No special research need however be conducted to exhibit the analysis entries against these items, because, 3,8 explained in the explanatory note below Form C, these entries are in tended to balance the two sides of the statement and indicate generally the excess of borrowed money over capital outlay for which loans are ndmiscible or zice versa As capital outlay shown against items VII and X will not represent only the outlay for which specific loans have been taken but may also include outlay incurred from sources other than loan funds, which may be difficult to trace, an analysis of them cntrcs in the absence of definite information may lead to an undesirable controversy ] 40 ·11 Forecast of future borrowings 23 The following table shows the projected borrowing: in 1932 33 and a forecast of the loan requirements in subscquent years of the Government - Forecasted borrorings Item Particulars Borrowings Total To in 1932 33 1933 34 1034 35 Loans and Adiances by the Protincial Goueriment 24 [Here the balances under the head should be reviowed and an analysis of balances by various sub heads slould be given which should direct special attention to writes off, delays in repayment, acknowledgrcent of balances doubtful assets in balances, etc This should be followed by a statement showing the transactions connected with the Provincial Loan Account from 1921 22, onwards the following form, with such comments as may appear necessary ] Advanco Iccount Revenue Account Year Gross Gross Receipt Opening disburse Closing of balance les balance interest 1921 22 recover ment 1931 39 General comments on the Debt Position 25 [Here the Accountant General may make any suitable comments on the debt position of the Government as a whole, as disclosed by the information furnished above, particularly, on the magnitude of debt, sufficiency of revenue to meet the service of debt both present and Tuture, and on the necessity of amortisation arrangements, their adequacy when made and the extent to which they are duly carried. out) Fanerne Relief lund 26 [The comments under this head should start with a brief description of the constitution and object of the Fund It should be fol lowed by the exhibition of the transactions of the year in the following form with such comments as may appear necessary ] R9 Opening balance on lat April 1931 Add receipts Unexpended balance of the assignment for the year Interest (a) on balance of the rund (6) on advances to the Provincial Loan Account Repayments of advances to the Provincial Loan Account Recoveries of Famine expenditure Deduct withdrawals- For expenditure on Famino Rele! For advance to Provincial Loan Acconnt for losos to caltırators etc. For other objects (to bo specified) Closldg balance 3- Llarch 1932 47 ·12 Analysis of Provincial Balances 27 [In addition to any information which the Accountant General deems it necessary to furnish by way of an analysis of the closing cash balance of the local Government for the year a summary of accounts of the local Government for thic post Reform period should be given here in the following form ] Debito Particulars Credits .. 1 Opening balance on 1st Ipril 1921 2 Rosanuc Surp! 4 or Deficit from 1st April 1921 to 31st No. 50 Page 48, paragraph 27 of the Skeleton Draft Appropriation Report (1) Insert the following as a new item 2-A in the statement given in this paragraph "2A Writes off without financial adjustment of capital expendituro not charged to revenue" (2) Change the nomenclature of item "3--Capital Expenditure" to "3--Capital expenditure not charged to revenue [Apps 16 to Audit Code, 2nd Eda (Revieed), No 60, dated the lst August 1936 ] the local Covernment ) 9 D tto (Palances outstanding on 31st March 1932) 10 Duscellaneous Covernment Account (Provincial) 11 Provincial Suspense Account (Balance on 31st March 1932) 12 Civil deposits 12 Ippro¡ ration for relict on or avoidance of debt 14 Depreciation Pacerse Fun !s (Balance on 31st March 1932) 16 Famine t'elief I un! (ditto) 10 Transfer from tle Fam ne Relief l'un (ditto) 17 Road Developinent Iccount (ditto) 19 Cloun, Balance Total (B) Viscellancous Government Iccount Provincial Total Receipts for Il years Total Payments for ll seare Act credit [Here should be given explanations of such items included in the above statement is are not suficiently descriptive, eg, Miscellaneous 19 ·13 Jorernment Acconnt, Depreciation Resen e Funds, Rond Development Account, etc If howerer explanations for these items appear elsewhere o the Accounts or Report, & reference to those cxplanations would be sufficient here] Rauru of monthly prouinctal balances 24 [The balances at credit of the Government, month by month, during the year under report, should be detailed in the following table and reviewed in order that it may be seen whether these were suficient for the ordinary needs of administration, and mention should be made of any surplus balances placed by the local Government on deposit with the Government of India. ] Month Opening balance Receipts + xpenditure Cloning bulanco April 1931 May 1931 March 1932 Herrer of financial prospects of scheme (or project) 29, [Here will be given a review of the financial position of any big and important productive project under construction in whose case a special accounts investigation has been undertaken by the Accountant General with the object of framng an up to date forecast of its finan. in accordance with the instructions ly issued to the Heads of Accounts Offices, vide Auditor General's demi official letter No T 528 Admn 143 32, dated the 18th June 1932 ] cial prospec Rcreu of financial results of Irrigation systems (As illustrated below) Hlustration tise 30 Works in the Irrigation Department are classified as " Produc ΟΙ “Unproductive” according as tlie net revenue (gross revenue Jes, working expenses) derived from cach work on the expiry of ten years from the date of closure of the construction estimate covers or does not cover the prescribed annual interest charges on the capital invested If a work classed as “ Productive " fails to yield thic prescrites return in three successive years it is transferred to the Unprelucture class Similarly if a work classed as " Unproductive " succeeds in Jaelding in three successnc years the prescribed return, it is transferred to the “* Pro. ductive" class 3PAGO 1 ·14 The abstract below shows the Capital and Revenue accounts of all systems in a simple consolidated form Direct capital outlay on Irrigation Works Danng the year Year Outlay at the commencement charged to Outley charged out side the revenue of the year Outlay at the close of the account Outlay 10venue year Direct Revenue (Public Works ro Working expenses (direct charges) Net revenue due to Irrigation (ra venue realized in the Civil Depart ment) Interest on cap tal Net profit (+) or logs (-) ceipts} Percentage 1921 22 1922 23 1923 24 1924 25 1925 26 1928 27 1927 28 1928 29 1929 30 1930 31 1931 32 The net profit to Government for the year on account of the working of the various irrigation systems works out to 3 48 per cent on the mean outstanding capital of the year as against 458 per cent of the previous year The decrease in the percentage as compared with the previous year, is due chiefly to the decrease in the revenue from the Cauvery Delta System by Rs 10 39 lakhs on account of remissions granted as a result of the floods of November 1930 It is however observed that though there has been a large addition to the c?pital at charge, since 1926 27, there his been a decline in the percentage of income as compared with the figures from 1921 22 to 1925 26 50 ·13 Productire canals in the Province continued to satisfy the conditious of productivity and to sield the relevant return on cipital invested durig the rear with the exception of Yone of the unproductive canals was transferred to productive class during the year Pniew of empenditure on residential buildings for government ser vints 31 [The review here shoud show separatey the financial results of building under class 1 (1º, buildings ordinarily occupied by officers lable to pay the full standard rent subject to the limit of 10 per cent of their emoluments and class II (1e, buldings ordinarily occupied by oficials entitled to accommodation rent free or at reduced rates) The actual maintenance charges for the year under report should also be compared with the annual allowance for maintenance, if any, fixed by the local Government and, in case the actual charges are considerably in excess of the annual allowance the point should be specially com mented upon if necessary by comparison with similar figures for previous years If the local Government have issued orders writing down the capital cost of residence (tide proviso V (b) to Fundamental Rules 45 A. I or 45 B ] the extent of reduction made in the capital cost, should be specifically brought to notice in the Report for the year in which those orders take effect ] Peziew of financial results of other quasi commercial undertakings 32 (If there are quasi commercial undertakings other than those mentioned above a brief review of their working should also be given here, this should consist of concise remarks of a general nature, which bring ont the financial results or draw interesting conclusions from the figures Relieu of the uor king of gouernment commercial undertakings 33 [Here will be given a general and comparative synopsis of the any dis the individual commercial concerns together with the Audit Officer s com ments thereon will be brought together for convenience of treatment in a separate Appendix to the Appropriation Accounts ] General Review of the Financial Position 31 [Here should be given & genem) review of the financial position of the local Government based upon the facts brought out in this chapter In these comments the Accountant General need not attempt to discuss the probable financial position of the local Government as disclosed by the Revised Estimates of the current year and the Budget Estimates for the next year The necessary information in this respect may be com municated to the Auditor General through the covering letter referred to in paragraph 13 of the Appendix ] 51 ·16 CHAPTER III -GENERAL REVIEW OF AUDIT THE RESULTS OF [The subjects dealt with in this chapter should, as far as possible be arranged in the following order so as to present in their natural equence the successive changes which the demand presented to the Council has undergone both at the time of the voting of the Demands and subsequently in the course of the year ] 5 REVIEW OF TOTAL DEBIAND PLACED BEFORE THE COUNCIL THE RIDUCTIONS MADE BY THE LEGISLATURE IN DEMANDS FOR GRANTS IVD EXTENT TO WHICH THCSC REDUCTIONS HAVE BEEN RESPECTED 36 [Here the Accountant General may give a list of cases in which reductions were made by the Council and if, in any case, he considers that the cut was not respected, a statement of the case with reasons for holding that view should be given ] RESTOPATION BY HIS EXCELLENCY THE GOVERNOR UNDER SECTION 72 D (2) (a) OF TIIE GOVETYMCAT OF INDIA ACT 37 [Here the Accountant General should give particulars of cases in which His Excellency the Governor restored the reductions made by the Council under Section 72 D (2) (a) of the Government of India Act with comments on striking cases of failure to spend the sums restored ] SUPPLEMENTARY GRANTS DURING THC YEAR 38 [The Accountant General may give here the number of supple mentary grants (including token supplementary grants) taken during the year and the total amount voted by the Council under them the supplementary grants are not numerous a list of these grants with hrief explanations of their purposes may be given, otherwise details of larger grants only need be given in the following form ] lo and name of Grant and Sub head Date of Vote Amonnt Purpose Rs * * * * ALTHOUSATION ADC BY HIS EXCELLENCY TOO GOVERNOR UNDLR SEC TION 72 D (2) (b) OF THE GOVTPNVENT OF INDIA Act 39 (Here the Accountant General should give particulars of cases in which His Excellency the Governor mide authorisations of expendi tare under Section 72 D (2) (b) of the Government of India Act with comments on striking cases of failure to spend the sums autho. 113ed ] 52 ·17 GO CRAL RESULTS OF APPROPI IATIOY AUDIT 40 [The following statement comparing the total grants for the under report with the total disbursements mght be usefully em for the purpose of presenting the general results of Appropria Audit] Rc-erred Transic Total red R: Rg I otcd Onginal grant- (a) Toted is the ouncil (nel) (6) Certified by Hu Excellency the Gorernor Supplementary grants voted by the Legislative Council 3 Authorised brllis Excellency the corernor Net aggregate grant 5 Agregate disbursements 6 Legs (-) or more (+) than granted 7 Percentage of 6 to 4 Yon voted 1 Original Appropriation (net) 2 Additional appropriation sanctioned by the Finance Department 3 Reappropriation I y l'inance Department 4 Surrenders to and withdrawala by I'ınance Department 5 Met aggregate approrr ation 6 Aggregate disbursements 7 Les*(-) or more (+) than granted 8 Percentage of to 41 Savings on voted grants—Savings occurred in out of voted grants A list of the more important cases 29 &yen below The causes of these sayings have been explained where neces sary, in the appropriation accounts concerned Supile Percent number and name of Original mentary Tina! Estendi Havings grant yrant grant Arant Bavings age of tare [The Accountant General may comment bere on exceptional sav. Ings under individual heads ] 33 ·18 42 Savings on non voted appropriations -Savings also occurred under out of heads in non voted appropriations The inore important of these are detailed below Supple Final Percent Namber sud name of Orginal mentary appro Expendı Savinga appropriation appro appro priation savings priation priation age of ture [The Accountant General may comment here on exceptional sav ings under individual heads ] 43 Satings on the voted giants and non voted appropriations (separately and combined) as compared unth previous years --The state ment furnished below shows how savings in appropriations and grants in the vear under report compare with those in previous years Savings Final appro Priật ong and grants Percentago of savings Non voted 1927 28 1928 29 1929 30 1930 31 1931 32 Voled 7927 28 1028 29 1029 30 1930 31 1931 32 Voted and on toted 1927 28 1928 29 1999 30 1930 31 1931 32 [Here the Accountant General may make such comments as the Agures given above may suggest ] 54 ·19 44 Erceescs or er toted grants — (Here should be given a list of scesses over individual grants requring regularisation by the legisla are with brief reasons which seem to have led to the excess in each case determining these excesses it should be remembered that if a single Tant or appropriation is divided into an English and an Indian portion, be duty of the India Omice Auditor 18 fulfilled when he satisfies himself what an excess over the English portion is covered by properly sanctioned re-appropriation from the Indian portion It is for the audit officer in India to deal with a resultant excess over the Indian portion or the grant or appropriation as & whole In deciding whether an excess vote 18 necessury, the following points should be borne in mind - (1) An excess over the total of whole voted grant must be regularised by an excess vote, even though it may be covered by re-appropriation from a general reserve in claded in another grant (2) An excess over the amount appropriated to a sub head of a voted grant does not reqmre such regularisation unless it be due to expenditure on " a new service" (see paragraph 23 (1) of the Appendıx) ] 45 Excesses over non z oted appropratron --[The instructions under " Excesses over voted grants" apply here mutatis mutandis ) 46 Excesses orei voted grants and non voted appropriations de com pared urth precious years - (Here the results of the year under report should be compared with the results of four preceding years and neces. sary comment as regards improvement or otherwise in this respect should be made ) General comments on the accuracy of budgeting 47 [The Accountant General may make here such general comments of importance on the subject as he deems necessary in the hight of the lacts brougat out in the foregoing portion of this chapter in order to indicate the standard of budgeting attained by the various depart ments a statement should be given comparing the percentages of ex cesses and savings on individual grants for the year under report with those for the four preceding years In addition to any comments, which may be considered necessary on the results brought out in this statement mention should be made of any measures taken or which have been proposed to prevent over estimating of expenditure in general or in any particular departments with the Accountant General's views on the efficacy or otherwise of zuch measures Any other topics relemnt to the subject of accuracy of builgeting may be treated here ) 5.5 ·20 CONTROL OVER EUI INDITORE 48 [The Accountant General may explain here briefly the object in vier and the means employed to secure adequate control over ex penditure This may be followed by mentioning any important instances of defective control over expenditure noticed in the Appropriation Accounts for the year which may be grouped under the following cate gories Against each category suitable comments may be made, either explaining the defects or emphasising its importance 1 Unnecessary supplementary grants 2 Unnecessary supplementary non voted appropriations 3 Re ippropriations obtained unnecessarily or in excess of re quurements (If the Accountant General has reason to believe, that there is a common practice with some controlling officers to place funds at the disposal of their subordinate disbursing officers too late in the year to be wholly or even partially utilised on the objects for which these allotments are made the matter should be specially and separately dealt with and the evil consequences which may follow from such late allotment of funds should be pointed out ] 4 Tujudicious re appropriations and surrenders cansing exess over allotments 5 cases of non surrender of savings with any general comments & regards the standard attamed in this respect by the various controlling othcers 6 Cases of unremedied or uncovered excesses 7 Defecture budgeting [Here the Accountant General may mention any instances of defective budgeting such as wrong provision of funds, absence of provision, or double provision, etc, if they are considered by him of suficient importance to warrant mention in the main body of the Report These cases also indicate defective control over expenditure ) 8 Defective classification and its reaction on control [The Accountant General may review here the accuracy of his classification generally, and mention any important cases in which misclassifications have affected results as exhibited in the Appropration Accounts ) General conclusions iclating to control of expenditure 49 (Here the Accountant General may make general comments as to whether there seems to be any improvement or deterioration in the matter of control of expenditure as compared with previous years Here may also be mentioned any important measures so far taken to effect improvement in control over expenditure and whether there measures have proved to be effective) FINANCIAL ITRECUI ARITICS 11 hrau als of objection connection with breaches of canons of financial propriety on the assuroner of a report being made to the Pullic frcounts Committee 50 [Here the Accountant General should give & statement of (with such comments as he deems necessary) falling under this car ·21 not con en should be mentioned cases falling under any of the following cite conies with the Accountant General's comments thereon ] I Pe appropriations- (n) from one grant to another (0) which have to be brought to the notice of the Public Accounts Committee under rule 34 of the Provincial Legislatie Council Rules or which inrole either substantil deviation from the intention with mbich the grint was voted or which indicate thely faulty administration of the grant , (c) from voted to non voted and tice icrsa, to ml for expenditure on 1 nen serice": templated in the budget, and which lias the effect of increasing the expenditure on an item the provision for which has been specifically reduced in the Council II Cases- (a) in which penditure was incurred on objects not approvedl or specifically disapproved lit the Lingislative Council or the Tinance ('ommittee (b) in which the incurring of expenditure was authorised in antı cipation of the provision of funds by the Legislatue In commenting upon cises falling under 1(d) above, the Ac countant General should explain the procedure followed in order that a body of case law may be evolved for the interpretation of the term If any doubtful case of “ new service is brought to the notice of the Public Accounts Committee through the Report, the Accountant Gencral should invariably mention the reasons yor holding the view taken by him and the views of the local Government on the subject No such case should be mentioned in the Report unless the local Government has been given an opportunity to express its views on it It should also be pointed out that if in the question it is ultimately decided that the expenditure in question is 0112 new service" it will have to be regularised in such manner may have been decided upon by the Council for regularisation of such expenditure The cases mentioned &t II (a) above should be mentioned only when tl e Finance Department has so required or agreed See paragraph 23(g) of the Appendix The cases mentioned at II (b) above need be mentioned only when the Public Accounts Committee has specifically reqtured the Accountant General to do so In giving this information there should be no sug. gestion on the part of Audit-eather in the Report or in the discussions in the that there has been any irregularity ucles . the expenditure has been has been fully informed inciri is not in order for either of the facts and has Audit or the Public Accounts Committee to criticise the action of the Council ) new service 18 case in as 4. voleu the w 57 ·22 Other financial irregulartres 51 [As all individual cases of financial irregularities other than those already mentioned will ordinarily appear under the Appropriation Accounts of the grants concerned in Part II (vide paragraph si of the Appendix) the Accountant General may mention here only the common types of prevalent irregularity with such general comments as he thanks fit GENLRI REMEDIAL MEASURES OF IMPORTANCC TAKEN DURING THE LEAR 02 (Besides mentioning the measures the Accountant General may also make such comments as he may think fit as to their adequacy ) OTIIEP Topics OF INTEREST 53 (Here the Accountant General should mention such matters other than those already mentioned which seem to hum to deserve mention It shouid be remembered however that what is desired under this leading is only such material as is expected by the Accountant General to be of real and practical interest to a Public Accounts Commuttee and it should be set forth under suitably descriptive headings The following matters are cited below as being more important and of cominon interest ) (1) Local Audit and Inspection Here the Accountant General may mention the number of offices and institutions of the Civil Public Works and Irrigation Departments test audited during the course of the year, and comment upon the results of such test audits Any important types of financıl irregu lanty discovered during these test audits as also any important changes in the extent or methods of audit applied to accounts should also be stated The results of audit of grants in aid to local bodies and institutions will also be reported here ) (11) Review of Expenditure of Public Worhs Department [The comments here may comprise a review of the following 1 Establishment and tools and plant charges of the Public Works Department 2 Recoveries of departmental charges 3 Suspense transactions of the Public Works Department 4 Expenditure incurred in March and any irregulanties connected with it ] [Nothing should however be mentioned on any of these subjects In the Report proper unless there is something real or substantial to mertion eg, when it is proposed to comment on the excessive establishment charges, or on the inadequacy of the rates fixed for departmental charges, or on the serious irregularities due to rush of expenditure 10 March and so on. Other information which may be deemed necessary by way of explanation of the technical terms or of complicated account. ing procedare may be given in the Accountant General's review of one 68 ·23 other of the Pablic Works grants included in the Appropriation Conts (Part II) Eren there only such information as is really 's to be of interest to the Public Accounts Committee should be re. "] (111) Store Accounts [This section will deal with the object of these accounts, the departor departments which may be requured to prepare them and the 11 which they should be prepared The information under tlus should also be confined to what is necessary and, where possible, or suggestions should be developed ] 191) Suggestions by audit for economy If mention is made of cases of this mature, the instructions contaiced in paragraph 6 of the Auditor General's letter No 289 Rep (63-33, dated the 30th October 1933, should be carefully borne in mind, that is to say only those cases of suggestions by audit for economy should be mentioned which involve important points on which the advice or comment by the Public Acconnts Committee would be useful ] G.NERAL COMICS TS ON STATE OF TINANCIAL ADBIINISTRATION 5+ [Dedactions from preceding matter 1 views later year CHAPTER IV -POINTS OUTSTANDING FROM PREVIOUS REPORTS 55 [In this chapter should be dealt with points of importance which are outstanding from previous Appropriation Reports These will in. clude, firstly, points raised by the Committee on Public Accounts on which the Government has not yet passed orders, and, secondly, points raised in the Reports on which the Committee itself has expressed no Where possible, points of the second class should be raised anew by the reporting officer in connection with facts recorded in the accounts of a Where this is impracticable, the nature of the points should, like those of the first class, be briefly but clearly set out in this chapter 1 and, if they have come under discussion, the present position of the dis. cussions should be indicated The idea underlying this instruction is that only such matters as are really important from the point of view of audit should be mentioned in this chapter of the Report with such comments as the Accountant General may desire to make and consequently at 18 unnecessary to mention 1. this chapter points on which satisfactory orders have been issued It will be for the Finance Department to lay such orders before the Com mittee on Public Accounts If, however, the orders issued by the Gov ernment on any point raised in or as a result of a past Report appear to the reporting officer to be seriously inadequate, or where the orders once issued are withdrawn and replaced by other, and unsatisfactory, orders, he should seek the approval of the Auditor General before in cluding in his Report a comment to this effect In such cases also, it will ordinarily be preferable, f practicable, to raise the point afresh A connection with another year's accounts ] 69

·PART II.
Appropriation Accounts of sums expended in the year ended
31st March , compared with the sums granted by
the legislature in respect of Voted Expenditure
and
the Finance Department in the case
of Non-voted Expenditure.
Nore 1.-(a) Non-voted items in the Accounts are shown 111 atalıcs
(6) In the Accounts," stands for Original Grant or
priation "S" stands for Supplementary Grant or .
priation
NOTE 2-[Here shonid be given an explanation of the sub-head "I
gain by Exchange" in the appropriation accounts and the method of buzi
and control of expenditure in England under the various grants)

·23
Summary of Appropnation Accounts by Grants and Appropriations
(As in form D)
(Below the grand summary should be gren an audit certificate in
the form prescribed in pargriph 62 of the Appendix unless the audit
oficer seems it necessary to modify it in pursuance of note 2 bul)
1 ppropriation accounts
(can the form prescribed in paragrapli 42 of the Appenulis )
(Appended to each Appropriation Accounts should be comments
General may destre to make on budgeting
concerned, comments on any
ho

·No. 48. Page 60, Part II Insert tho following as 'Note 3' * NOTE 3.—This note should indicate the extent to which explanations variations ara furnished in the appropriation accounts as illustrated below.) Illustration. NOTE 3 – The main object of the note under a sub-head is to expla divergencies (1) between the grant or appropriation for the sub head as orginal voted or sanctioned and its final figure as modified by supp] mentary provisions, surrenders and reappropriations, ie, explain additions or modifications shown in column 1, a list important supplementary grants with brief explanations their purpose being giren in paragraph 38 of Chapter III, (2) between the final figure in column 2 and the actual expenditu in column 3, the difference between which appears in column In the case of (1) No explanation is generally given (a) of the modification is less th: Rs 1,000, and (b) if it is for Rs 1,000 or more, but is less tha 15 per cent of the original provision In the caso of (2)— (a) No explanation is given where tho saving is less than Rs 100 en (U) No explanation is ordinarily furnished :- and 19 al'o less tha i tho Beslag B lees than per cent of tł final appropriation R. 000 20 per cent 1,000 8,000 10,000 Other cases 2 and 19 also less the If the excess less than per cent. of the linal appropriation. Ito 600 6 per or at cent 1.000 Other tre 1 (Appr. 16 to Audit Colo, and Eds. (Rerul) No 48, dated the lat Au 1936) 10 6 3 I ·23 Summary of Appropriation Accounts by Grants and Appropriations (Ag in form D) (Belor the grand summıry should be gren an nudit certificate in the forma presanbed in paragraph 62 of the Appendix unless tho andit oficer deems it necessary to modify it in pursuance of note 2 bull ippropnation Accounts Cols in the form preserired in parigraph 42 of the Appendix) (Appended to cach Appropriation Accounts should be comments which the Accountant General may desire to make on budgeting or control of expenditure of the grant concerned, comments on any important financial regularities the relevant Stores Accounts, Depre ciation Funds Accounts etc, and any other information which is required to be given in the Appropriation Accounts in accordance with the instructions contained in the Appendix, for example, see paragraphs C2 and 79, thereof The Trading and Profit and Loss Accounts and Balance Sheets of Government commercial undertakings will not how. ever find a place here as they should be brought together in a separate Eppendix to the Appropriation Accounts ]

·26
$
APPENDIX
Accounts and Reviews of Commercial Concerns of the Government
of
[In this Appendıx the commercial concerns should be grouped
together by departments and the Reviews and Accounts relating to each
should be arranged, as far as possible, in the following manner
Name of Concern
(1) Section 1–Financial Review by the Superintendent or Manager
of the concern
(u) Section II–Remarks by the Audit Officer
(11) Balance Sheet as at 31st March
(iv) Trading and Profit and Loss Account for the year ended 31st
March
(v) Stores Accounts, if any]

·FORMS. 63 ·FORM A [See paragraph 5 of the Anncsuie) Statement shouing the summary of the transactions for the yeur under report (1931-32) Budget Budget Fstimate Actuals More(+) Estimato Actuala 1931 32 1931 32 Jess(-) 1931 32 1931 32 Rerente and Seruice Heads Moro (+) Legs(--) Di bursements Receipta. Ordinary to renuo receipte Transfer from Famino Relief Fund Extraordinary rocoipta Rovenue expenditure Cap tal expenditure charged to rovenuo (1) Total expen uture charged to te (A) Total revenuo recepta vento 10 28 Capital expenditure not charged to rovenue- Forests Irrigation Total capital erpendituro Jocurred Loud raised in the market Public Debt Discharged Loan raised in the market (Repayments) 1deances from Prouincial Loans Fund Advances from Prorencial Loans Fund (Repayments) Loans and Advances by Promincial Goernment Loans and Advances Adrano from Trovincial Loans Fund Recoverin ot Loans und Adrances ·Deponts and Advances Famine lehef Fund Appropriation for reduction or avoid &nce of debt Sinking Fund for Profinc &l Loans Other appropriations Doprec ation Reserves of Government Commercial concerna Depreciation Reserve Funds Transfers from Famino Rel et Fund . ratino Relict rund Appropriation for red action or aro 1 an of debt- &nkin lun 1 for I'rorinciul Lonns nking I und Insoatment Account Depreciation Reseries of Gorernment Commcre al concerts Depreciation Reserre l'unda Transfers to latino Relic I und Repayment of Advances Subvention from Central Rond Dovelop ident Account Cırıl Doposits Suspenge Account-Trovincial Miscellaneous Government Account Subvention from Central Road De velopment Account Cini Deposits a Suspenso Account Provincial Miscellaneous Government Account Total Total Total I'rovincial Recepta (D) Opening Balance. • Total Provincial Disbursementa (B) Clos ng Balance GRAND TOTAL GRAND TOTAL (A) RevoDuo Surplus/Deficit during the year (B) Increase/Decroase of provincial balance during the year ·FORM B. (See paragraph G of the Annexure.] Statement showing the progress of revenue and expenditure and the revenue position of the Government of...... .from 1929-29 onwards. (In lakhs of Rupees.) 1021-22 Actuals. IIcads. Budget. to 1928-29. 1927-28. 1929 30. 1030-31, 1931-32. 1932-33. Recue, A. Land Rerenuo Exciso Stampe Other principal heads of rochuo B. Railways C. Irrigation, etc. L. Interett F. Cisl Administration I. Civil Work J. Miscellaneous L. Contribution, ctc. (act) M. Extraordinary Items 30 Total Revenuo Erpendulure. A. & 2. A. Direct Demands B. & B. B. Railways . C. & C.C. Irrigation, ctc. E. Delt Service F. Civil Idministration II. Cval Works J. Miscellaneous L. Contributions, ctc.(net) N. Lxtraordinary items Expenditure in England and Cs. cliange ·• Sarplas (+), Dect() Surplus (+), Dufct (-), as per Por garl patimate of the sett No. 12, 'ages 66 and 67, Form B- (1) Delete the entries Surplug (+), Deficit (-), as per Revised stimato of the year"and" Surplus (+), Deficit (-), 18 per Budget estimate occurring in tho frst column of this form. (2) Delete Noto 2 and renumber Note 3 as Vote 2. the year " IVSLO. (Appendix 16 to Audit Code, 2nd Edition (Reviaed), No. 12, dated the lst April 1835) Public IIealth Agriculture Industries Miscellancous Departments 31 Total Cumulative revenue Surplus Deficit during the post Reforms period to end of NOTES Xotel. The relection of actual heads of accounts to be given in the statement 19 left to the discretion of the Accountant General in agree. ment with the local Gorernment concerned and the heads giren abore may be regarded as nierely illustrative TVhilo Accountants General should thus con-ult their local Governments about the heads to be included in the statement, they should try, in the interest of brevits, to perate them to adhere, as far as possible, to the group heads, major heads being entered only when they have apy special interest Notr. - If any local Government desires that, in order to enable the Public Accounts Committee to see more readily tho general accurncy of budget ng, the rentages of variation between the budget estimate, the revised and the actuals should also be given here, Accountants General should comply with the request Atx1.The fures for the Revised and the Budget Estimates for the current and the following years respectively, which do not appear in this statement, should be furmshed to the Auditor General, as soon as they become available in an official communication with any comments on the basis of thicro figureenluch tho Principal Auditor may wish to make in addition to the comments already made in hie Report on the Appropria. Llon Accountr. *In this coluna only tho cntry against surplus (+) or deficit should (-)' be given. To be girca when figurcs in the main table are given by group heads.

·FORM 0. (See paragraph 10 of the Annexure.] Statement shouing the Capital borrowed by the Government of. up to 31st Jarch 1932 and the way in which it has been uirlised, Outlay from Loans Fund. Little Up to Toend of 1031-32. 1931-32. Dann Up to 1330-31. To end of 1031.32. During 1931-32. 1930-31. 1. Len the open market IL ... from the Prorical loans Food (1) Ire-reform Trorial Loan Ac. :: VII. Upon Capital Works - (1) Irrigation Works (2) Iydro-Electric Development (3) Civil Works (1) Forests (3) Industries (o) Commutod value of pensions VIII. Discount on loang TALSOd in the open market (2) Prerena Imgation delt (3) Punt-ntorn dranice: C'p to Donng To 1329. 1331. end of 31. 32. 1931. 32. ) For from doctite part. (1) To An. noo Vetua dor adta. (116) Por other UDITO. doctivo purposes. Ill. ADTADO from Pamino Relief Fond Crona total of loads. Total .

·noding amount of loans borrow moet torenno deicite (B) outlny (C) Pages 68 and 69, Form C- Substitute tho following for tho item loans" and the details therounder in colu Correction Slip No 1, dated the 2nd January 1035 and advances by ment (D) Total l'rosin IV–Deduei-Ropayment of loang A Raised in the open market B. Taken from the Provincial Loans l'und (1) Pro-Rcform Prorino al Loan Account (2) Pro Reform Irrigation Debt (3) Post Reforın Advances Dell in pres (1) blunds devotc1 A1rt ייתן סנות fine pecifically min fuover Torenuo dcfi ution from morenuo capital crpen li VU Up to 1 30 31 Drins 1931 32 To und (of 1131 32 . (1) lor procluctive purposes (11) To finance revenue doficits (11) For other unproductive purposes C. Taken from Hamino Relief Fund. Total than (1) the diference will be eliminated by showing ito and if the prorical balance 19 not sufficieni to corrr the Net loans outstanding, completely repaed, need (Appz. 10 to Audit Code, 2nd Edition (Revised!, No 40, dated the 2nd January 1936) ·FORM C (See paragraph 10 of the Annexure ] Statement shouing the Capital borrou ed by the Government of up to 31st Jarch 1932 and the way in a hich it has been utilised Oatlay from Loans l'und Lcatstaten. Up to 1930-31 To end of 1931 32 During 1931 32 To end of 1931 32 Up to 1930 31 Daring 1931 32 I Loans raised in the open market II Advances from the Providual Loans Fund (1) Pre-reform Promincial Loan Ac count (2) Pro-reform Longation debt (3) Post-reforro adrances - Up to Danng To 1930 1931 end of 31 32 1931 32 VII Upon Cap tal Works – (1) Irrigation Works (2) IIydro Electric Development (3) Civil Works (4) Forests (0) Industries (6) Comuutod value of pensions VIII D scount on loans raised in the open market ZE () For prodactivo purposes (11) To fin ance vento do ficita (111) For other unpro doctivo purposes III Advanced from Fund Famine Relief Gmistotalollnon- ·Ostatnod ng amount of loans borrow met tored o deflc te (B) Jou lay (C) Pages 68 and by form U- Substitute tho following for the item loan: and the details thereunder in COIU Correction Slip No 1 datod the 2nd January 1035 s nnd advancou by ment (D) Total IV-Deduce--Ropayment of loana A Raised in the open market B Taken from the Provincial Loans l'und (1) Pro Reform Provinc al Loan Account (2) Pro Reforma Irrigation Debt (3) Post Reform Advances held in I rorn pocs (1) bu funds doro el no purposce apart sns specfically TAS cover rovenuo dcf it on from rovenuo rap talespend 33 Up to 1 30 31 Ding 1931 32 Toud (of 1 31 32 (1) lor procluctivo purpos s (1) ro financo rovequo deficits (111) For other unproductive purposes C Takon from Famine Relief Iund Total 1 than (1) the d fference wille el m nated by showing to and the proric al balance 9 not sufli ent to over the Net loans outstanding (App x 18 to Audit Codo 2nd Edition (Revised No 40 dated the 2nd January 1938 ) completely refaed, need ·34 FORM D [See paragraph 41 of the Appendu.] Grand Summary of Appropriation Accounts by Grants and Appropriations Espenditure compared with grant or appro priation Grant or Page Number and name of grant or Approe Appro Expeadı. Less than More than priation prition granted. granted. ture R: Ra R3 Rs 45 63 I Land Revendo-Reserved and Trans ferred Voted Non voted 2 Stamps -Reserved Voted Mon voted 3 Forest3-Reserved Voted Non voted . 55 14 Interest on Irrigation Capital Oute lay-- Non noted 19 Interest on ordinary debt Non toted 20 Interest on other obligations- Non toted .. 21 Reduction or Avoidance of debt-- on toted Islands non voted . Voted Total Reserved Mon toted Hoted Total Transterreà (Non voted (toted 1901 voted Totals GRAND TOTAL Amounts of Excesses to be covered by excess grants or appropriations Rg Voted Non coted Total 70

·NO 44
Page 71 and 72 Form E as amended by Correction Slip No 5, dated the
2nd January 1935 -
Substilt te the following for this form and the instruction therounder -
FORME
Deduct ons
441 016 -56 916
-15 930
-15,930
NO. 5
Pages 71 72 Pages 35 36 of the Annerute Form E
Delete footnotes (a) und (b) and paragraph 2(d) of the Instructions for
tbo compilation of Appropria son Accuunts in form E' printed at foot and
bach of tbis form respectively
(4119 16 to Addit Corle 214 Edn (I erased) do 5 daled the 2nd January 1935.)
Prics anna I or 3d

·FORM G Cuksteliki Yus (See paragraph 64(b) of the Appendix ] No 45 it new works 74 and 75, Form - ubstitute the following for this form retaining the ez sting footnote imple explanatory notes Balance FORM G. [See paragraph 64 (b) of the Appendıx ] Expendi ture Un Detailed statement of expenditure on important new works expended - Ne modi fication by Te appro Remainder priation, un adjusted withdraw + or al or Burrender Excess crvico Expendi ture Ba ances Tinal Grant or Appropriation Ra Rs. Rs Rs Rs Unex Excess pended 5 6 Rs Rs w 3 Re 4 R8 38 49 522 50 478 -50 478 ry note 30 672 0 474 +9 472 -Major Works above Rs • for which speciic provision was made in the Budget- (a) Estmated to cost abovo R8 Extension of the District Prison, y note 100,000 49 529 50 479 Fxplanatory note Laboratories at the 21 "00 R 94-9 30 872 30 672 } Explanatory note (D) Ong nally est mated to cost Rs or less but now osti mated to cost above Ra (To be deta led as at (a) ahool II -Other Major Works for hich speic provon Has made o the doet ·(Collectively) Non potrd 0 10,000 0,500 6 345 155 M.-3500 Total O 50,000 $ 7,000 61,00 63 399 R 4.C001 Audit Code, 2nd Edn (Rovised), No 45, dated the Ist February 1938 1 39 s! by tho Finance Dopartment. below de Appendsz), ulich should be 2,399 Ase of Class 111, 1 should be er plainco which specific pror 18101 628 not made in the budget, has been Example 1 - Estimate Rs 1,04,700, expendituro w Larch 1926, Rs 74,480, balance Rs 30 220, in progress I'xample 2 - Rerised Estimate Rs 1,09,700, expenditure to 31st March 1926, Rs 1,10,210, O'XC883 Rs 50 met by a spptagtuation, ta progress Example 3 –Demands under this head were reduced as much as possible Erample 4 - There were no demands under this head Example 5The onginal tenders were high The scheme was accordingly, revised, and It was not possible to commence work within the year Ro voted in the egtimate for 1026 27 Frample 6 - Completed, further charges to come Estimate, Rs 6,68,750, expendituro to 3lat March 1926, RS 6 48 010, balance Rs 22,740 Frample 7 --Progress was slow owing to difficulty in obtaining supplies of materials Tho under spending was also in part, due to reduced cost of labour Not completed A re voto was included in the estimate for 1926 27 Revised estimate, Rs 7,90 000, expenditure to 31st March 1820, Rs 3,64,310, balance Rs 425,890 Framples -Estimate Rs 2,70 515, expenditure to end of 1925 26 Rs 2,01 C91, in pro. $ CB8, covered by allotmonts sanctioned by Ezample 9 -Estimate Rs 78,534, expenditure to end of 1925 26 Rs 69,197, completed. Esiped uncoverou.

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