Classification and Grouping of Audit Objections

1. 1.Difference between consolidated closing balance of Annual Account and closing balance of Cash Books.
2. 2.Difference between the Cash Book balances and Treasury Pass Book not explained by preparing the Reconciliation Statement.
3. 3.Monthly abstracts not recorded in the S.T. Pass Book and Certificate of balance not done by the Treasury Authorities – resulting in difference between the Cash Book balance and Pass Book balance.
4. 4.Difference between the figures shown in the Annual Account with those in the Subsidiary Registers.
5. 5.Difference between the amounts recorded in the Cash Book and amounts posted in the Arrear/Current Demand Registers in case of Municipalities and Gram Panchayats.
6. 6.Lack of follow up action on the discrepancies pointed out in the earlier Audit Reports.
7. 7.Errors in the Treasury Pass Book entries.

1. 1.Expenditure incurred in excess of the actual receipt of the grant in anticipation of receipt of further grant.
2. 2.Expenditure not confined to the extent of grant received.
3. 3.Expenditure incurred in anticipation of sanction of grant inspite of non receipt of any amount.
4. 4.Excess expenditure over and above the budget provision.

1. 1.Grants sanctioned for a specific purpose spent for another purpose.
2. 2.Incurring of expenditure for implementation of a particular scheme for which grant is yet to be released.
3. 3.Temporary diversion of deposits like salary deductions/recoveries, i.e., GPF, Insurance premium, Profession Tax etc. for the general purposes of the institutions without remitting them to the relevant Heads of account.
4. 4.Inter-transfer of funds from General Funds to Education Funds and vice versa.

1. 1.Non-drawal of grants sanctioned and consequent non-utilisation.
2. 2.Grants drawn but not fully utilised before the lapsable date.
3. 3.Unspent balances of grants at the close of the permitted period of utilisation not refunded to State funds.
4. 4.Inaction to seek extension of time to utilise the balances left out of grants already drawn after expiry of the utilisation period permitted.

1. 1.Utilisation of Teaching Grant for payment of wages/salaries to sweepers working in schools and towards contingent expenditure like purchase of stationery in schools etc.
2. 2.Utilisation of grants meant for repair works like R.R.M. and Special R.R.M. grants on original works.
3. 3.Utilisation of grants meant for creation of assets on non-durable assets like formation of earthen roads.
4. 4.Utilisation of institutions funds/grants received on expenditure of Government offices, including utilisation of Engineering Funds towards contingent expenditure of offices of Superintendent Engineer and expenditure on vehicles of Inspecting Officers for P.O.L. and repairs.
5. 5.Utilisation of a particular grant on expenditure not connected with the purpose of the grant.
6. 6.Utilisation of the funds of the institution for purposes/objects other than the permitted ones under the relevant Act/Rules.
7. 7.Indiscriminate sanction of contingent advances and non-watching of adjustment of such advances and booking of such advances as expenditure under the grant.
8. 8.Incurring of expenditure on items specifically prohibited by Government.
9. 9.Incurring of expenditure without sanction by the competent authority.

1. 1.Non-utilisation of earmarked funds fully towards S.C., S.T. and Women Development and Child Welfare activities.
2. 2.Non-implementation of Government instructions issued in G.O.Ms.No.704 of P.R.&R.D. Department dated 05-11-1994, G.O.Ms.No.34 of Women Development & Child Welfare Department dated 29-05-1998 and G.O.Rt.Nos.450 & 451 of Panchayat Raj and Rural Development Department dated 09-04-2001 in earmarking funds of Zilla Parishads and Mandal Parishads, including non-remittance of 1/3rd earmarked amounts towards S.C., S.T. and Women Development and Child Welfare activities to the respective Corporations at the beginning of the year and also the unspent balances to these Corporations at the close of the year.

Includes cases of office management resulting in short realisation of dues.

1. 1.Non-collection of projected demand in respect of various taxes, fees, cess, leases and rents etc.; cent percent or percentage of collections falling short of previous years' percentage of collection.
2. 2.Revenue by way of rent/lease amounts of residential staff quarters, guest houses, commercial complexes and usufruct of gardens/trees not realised and remitted to institution funds.
3. 3.Non-initiation of legal action for realisation of revenue like issue of Notice of Distraint and filing of lawsuits against defaulters in payment of taxes, fees and lease amounts.
4. 4.Hire charges of plant and tools and heavy machinery not realised from contractors.

1. •Personal Advances like Festival, Educational, Marriage, House Building and Conveyance advances paid to individuals not recovered.
2. 2.Contingent advances paid for specific purposes like purchase of materials, goods and services not adjusted soon after the purpose is over.
3. 3.Advances paid to Contractors as special cases not recovered and adjusted in Work Bills.
4. 4.Non-refund of unspent balances out of advances paid.

1. •Vouchers not produced.
2. 2.Files not produced.
3. 3.Service Books not produced.
4. 4.Stock Registers not produced.
5. 5.Log Books not produced.
6. 6.Registers not produced, including all Subsidiary Registers, Register of Money Value Forms, Register of M-Books etc.
7. 7.Used MR Books not produced.

1. •Amounts collected but not brought to account.
2. 2.Amounts collected not fully brought to account.
3. 3.Amounts drawn on self-cheques not entered in the Petty Cash Book.
4. 4.Undisbursed amount neither refunded nor physically available.
5. 5.Drawal in excess of the voucher amount and non-accounting of the excess.
6. 6.Drawal without proper voucher or without voucher.
7. 7.Tampering of amounts noted in remittance challans.
8. 8.Amounts shown in Cash Book as Treasury remittances using fictitious challans or without challans supporting the remittance.
9. 9.Drawal more than once against a particular claim/charge not supported by disbursement particulars.
10. 10.Self-cheque drawals for deductions/recoveries such as GPF, APGLI, GIS, HBA and Marriage Advance without remittance/disbursement and without recording the drawal in the Petty Cash Book.
11. 11.Self-cheque drawal in excess of actual amount due to wrong totaling of different vouchers, without showing excess as Petty Cash Book balance.
12. 12.Self-cheque drawal in excess of actual voucher amount by arriving at an incorrect amount and not accounting for the excess.
13. 13.Non-accounting for cheques, demand drafts and cash received.

1. 1.Erroneous calculations in bills/vouchers resulting in excess payments, including errors in addition, subtraction and multiplication in work bills and pay bills.
2. 2.Adoption of higher rates than agreement rates in work bills or purchase bills of stores.
3. 3.Excess payments due to wrong fixation of pay.
4. 4.Excess payments due to higher D.A./Mileage/Fares and claims for ineligible persons in T.A., T.T.A. and L.T.C. bills.
5. 5.Non-recovery/deduction of I.T., C.T., seigniorage charges, previous payments, F.S.D. etc. from work bills/suppliers' bills.
6. 6.Erroneous calculation of quantities of items of work executed in work bills.
7. 7.Non-recovery of cost of material supplied departmentally to contractors of civil works.
8. 8.Payment of vehicle hire charges in excess of rates fixed and period, if any, permitted by Government.
9. 9.Omissions in arrear bills such as non-deduction/wrong deduction of amounts already drawn and omissions in working out the ‘to be drawn’ amount.
10. 10.Non-deduction of previous payment made to contractors in final bills.
11. 11.Fixation of pay on promotion of employees already enjoying Automatic Advancement Scheme under FR-22B instead of FR 22(a)(i).
12. 12.Release of increment before completion of 12 months service from date of refixation/stepping up of pay.
13. 13.Allowing Family Planning Incentive Increment to ineligible employees.
14. 14.Irregularities in casting leave account and sanction of leave.
15. 15.Irregularities in permitting encashment of leave while in service and after retirement.
16. 16.Irregularities in drawing pension/dearness relief to pensioners.

1. 1.Expenditure on works abandoned halfway.
2. 2.Expenditure on sub-standard works.
3. 3.Drilling bore wells without precautionary measures like groundwater survey, resulting in failure.
4. 4.Expenditure on assets not put to use.
5. 5.Loss due to damage of stores such as cladding of cement, leakage of bitumen and rusting of steel due to improper storage.
6. 6.Expenditure on publication of booklets/souvenirs highlighting achievements and arranging welcome/greeting banners.
7. 7.Purchase of stores/services without immediate requirement and in excess of requirement.
8. 8.Payment of Honorarium to R.M.Ps in Mandal Parishad Ayurvedic Dispensaries without supplying medicines.

1. 1.Cash balance not handed over at change of incumbents.
2. 2.Closing balances not brought forward as opening balances.
3. 3.Stores such as cement, steel pipes, electrical materials, furniture, stationery and P.O.L. not properly entered in relevant Stock Registers and Log Books.
4. 4.Replaced vehicle parts and condemned unserviceable articles not recorded in concerned Stock Registers for disposal.
5. 5.Non-return of unused stock to stores in departmental execution of works.
6. 6.Wrong balancing of stock accounts resulting in shortages.
7. 7.Disagreement between book balances and physical stocks of stores/material.

1. 1.Utilisation period of the grant expired during the current year, but Utilisation Certificates not furnished to the grant-sanctioning authority though the entire grant was utilised.
2. 2.Grant amount not fully utilised before the lapsable date, unspent balance not refunded and Utilisation Certificate for the amount utilised not furnished to the grant-sanctioning authority.
3. 3.Utilisation Certificates submitted to the grant-sanctioning authority without countersignature by Audit authorities.

Information regarding Surcharge Certificates issued but recovery pending should be mentioned under this category.

Audit objections not covered under any of the preceding categories fall under this category.

1. 1.Losses and thefts occurred.
2. 2.Non-submission of Annual Accounts to Audit within the time fixed under relevant Acts/Rules.
3. 3.Non-maintenance of Registers.

Objections being raised for the year 2002-03 (i.e., audits being done from 01-04-2003 for the year 2002-03) may only be noted under ‘19. Status of Objections’.