Audit Manual - Core Treasury System Uttarakhand

Government of Uttarakhand
Audit Manual
Sr. No Activity Risk Audit Steps
months
C
Capital & revenue Expenditure
10 Capital Expenditure
(Refer Chapter VII, Volume VII,
Financial Handbook)
• Potential risk of incorrect accounting
• Verify whether the Capital Expenditure in Forest Department is
accounted for as follows:
Expenditure on all capital works met from revenue should be
debited to the relevant heads subordinate to "10 — Forest"
Expenditure on all capital works met from borrowed funds should
be debited to head "65—Capital Outlay on Forests"
The interest on capital outlay met from borrowed funds should be
chargeable to forest revenue under "10 Forest"
11 Classification under Capital
Expenditure
(Refer Chapter VII, Volume VII,
Financial Handbook)
• Potential risk of expenses being charged
as revenue instead of capital
expenditure
• Verify whether the cost of all operations in connection with increase in
the area under forest growth is charged to capital, e.g:
Purchase of land for plantations and forest purposes and cash
compensation for extinction of forest rights;
Expenditure on forest settlements and demarcation;
Page 420 of 705