Department of Expenditure Seeks Inputs to Prevent Waiver of Recovery of Excess Payments
Government Seeks Inputs to Prevent Waiver of Recovery of Wrongful or Excess Payments
The Department of Expenditure, Ministry of Finance, through its Internal Audit Division under the Controller General of Accounts, has issued an Office Memorandum dated 12.08.2026 seeking inputs from Ministries and Departments on measures to prevent the waiver of recovery of wrongful or excess payments made to Government servants.
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The memorandum refers to the Department of Expenditure OM dated 03.10.2022, which advised Ministries and Departments to conduct audits of pay-fixation orders arising from MACP/ACP, financial upgradation, increment, promotion and similar matters within three months of issuance. It also advised auditing previous pay-fixation orders of employees due to retire within the next four years.
Despite these instructions, the Department of Expenditure continues to receive proposals seeking waiver of recovery of excess payments.
Inputs Sought from Ministries and Departments
The Department of Expenditure has requested Internal Audit Wings (IAWs) to provide detailed inputs on the following issues:
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Compliance with prescribed instructions regarding timely audit of pay-fixation orders.
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Reasons for delayed detection of such observations, particularly why irregularities are sometimes noticed at the fag end of an employee's service despite the requirement for audit within three months of pay fixation.
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Challenges faced during audit and inspection by auditors placed in Ministries and Departments, which may result in such cases remaining undetected.
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Action taken to overcome such challenges and ensure timely detection of incorrect or excess payments.
One-Week Time Limit
The Internal Audit Wings under the respective Ministries and Departments have been requested to furnish their detailed inputs/comments within one week from the date of issue of the communication.
The inputs are to be furnished through the specified email channel and through the Google Form circulated to Ministries and Departments.
Focus on Timely Audit and Recovery
The communication highlights the importance of strengthening the existing audit mechanism for pay fixation so that incorrect or excess payments are identified at an early stage rather than being detected close to an employee's retirement.
The initiative is aimed at improving compliance with prescribed audit procedures and addressing the challenges that lead to delayed detection of wrongful or excess payments, thereby reducing situations in which recovery becomes difficult or waiver is subsequently sought.