Civil Accounts Manual

Issued by
The Controller General of Accounts
Department of Expenditure
Ministry of Finance, New Delhi

CONTENTS

Preface

CHAPTER - I.
BROAD FEATURES OF THE DEPARTMENTALISED ACCOUNTING SYSTEM

General

1.1

Organisation of Controller General of Accounts

1.2

Main features embodied in the Scheme of Departmentalisation of Accounts

1.3

Detailed procedure in regard to Banking arrangements for Pay and Accounts Offices

1.4

Categories of cheques and their use

1.5

Bank Drafts

1.6

Payment by authority

1.7

Issue of fresh cheques in lieu of lost cheques

1.8

Payment Scrolls

1.9

Receipt Scrolls

1.10

Register of Valuables

1.11

Advices on RBI, (CAS) Nagpur and operation & clearance of the Minor head, Reserve Bank Suspense (CAO) etc.

1.12

Expenditure Control

1.13

Classification of expenditure on departmentalised Accounts Organisation

1.14

Functions of the Controller General of Accounts Incorporated in the Allocation of Business Rules-1961

Appendix 1

Memorandum of Instructions on banking and accounting Arrangements issued by Reserve Bank of India

Appendix 2

Procedure for indenting, safe custody, issue and accountal of cheque books

Appendix 3

CHAPTER - 2.
PRE-CHECK PAYMENT PROCEDURE IN THE CENTRAL CIVIL ACCOUNTS OFFICES

General

2.1

Tokens

2.2

Scrutiny and payment procedures

2.3

Issue of a fresh cheque in lieu of a lost one

2.4

Procedure for returning bills unpassed

2.5

Closing of the day's transactions

2.6

Issue of fresh cheque in lieu of cancelled/time barred cheque

2.7

CHAPTER - 3.
PROCEDURE TO BE FOLLOWED BY DRAWING AND DISBURSING OFFICERS AUTHORISED TO DRAW CHEQUES 

Delegation of cheque Drawing powers to DDOs

3.1

Quarterly assignment

3.2

Procedure for Payment

3.3

List of Payments and bank reconciliation

3.4

Cheque-books, Custody of, precautions

3.5

Receipt Scrolls

3.6

Action in the Pay and Accounts Office on payment scroll

3.7

CHAPTER - 4.
PRINCIPALS AND PROCEDURES OF PRE-CHECK AND POST CHECK TO BE CONDUCTED BY PAY AND ACCOUNTS OFFICES 

Introductory

4.1

Check against provision of funds

4.2

Scrutiny of distribution of Grants appropriation, check of re-appropriation orders and scrutiny with reference to the guidelines on ‘New Service/New Instrument of Service’

4.3

Check of sanctions for expenditure

4.4

Check of classification in accounts

4.5

Allocation of expenditure between Capital and Revenue

4.6

Accountal of transactions under Reserves and Reserve Funds

4.7

Classification of Aid Materials and Equipment received from Abroad

4.8

General checks to be exercised in respect of bills submitted for pre-check

4.10

Check of Establishment pay bills

4.11.1

Check of increment certificates

4.11.2

Check of Last Pay Certificate

4.11.3

Check of pay fixation cases

4.12

Check of overtime allowance claims

4.13

Check of Children Education allowance/tuition fees

4.14

Check of Travelling Allowance bills

4.15.1 and 4.15.2

Leave Travel concession to Central Govt. Servants

4.16

Classes of Contingencies - Check of Contingent bills

4.17 to 4.24

Cancellation of sub vouchers

4.25

Check of grants-in-aid bills

4.27

Check of Scholarship bills

4.28

Check of Loans and advances bills

4.29 to 4.30

Check of Contracts

4.31 to 4.33

Refunds of revenue

4.34

Miscellaneous bills

4.35

Post check of pre-checked bills

4.36

Post check of bills paid by cheque drawing D.D.Os.

4.37

Merged DDO Scheme

4.38

New Instrument of Service-Limits requiring approval of Parliament

Appendix ‘A’

Type of transactions treated as charged expenditure

Appendix ‘B’

Illustrative example of Register/Broadsheet of long term Advances

Appendix ‘C’

CHAPTER - 5.
COMPILATION, CONSOLIDATION OF ACCOUNTS, PREPARATION OF "LEDGER" AND SUMMARY OF BALANCES

Compilation of vouchers in the Accounting Section

5.1

Compilation of Receipts

5.2

Transfer Entries

5.3

Preparation of Departmental Classified Abstract

5.4 to 5.5

Consolidated Abstract

5.6

Rendition of monthly accounts by Pay and Accounts Offices/Pr. Accounts Offices

5.7 to 5.8

Statement of Central Transactions and Journal Entries

5.9

"Ledger" of balances under Debt, Deposit, Suspense and Remittance Heads

5.10

Computation of "Government Account"

5.11

Summary of Balances

5.12 to 5.13

Submission of material for Statement No. 5 of Finance Accounts

5.14

Proforma Corrections

5.15

Procedure for consolidation of Controller Accounts

Annexure ‘A’

Illustrative example leading to preparation of "Summary of Balances"

Annexure ‘B’

Illustrative example of Prior Period Adjustment Account

Annexure ‘C’

CHAPTER - 6.
MAINTENANCE OF PROVIDENT FUND ACCOUNTS 

MAINTENANCE OF PROVIDENT FUND ACCOUNTS

6.1 to 6.12

Monthly Reconciliation Sheet (Merged DDO Scheme)

Annexure 1

Annual Reconciliation of balance

Annexure 2

CHAPTER - 7.
PROCEDURE FOR FINALISATION, AUTHORISATION AND ACCOUNTAL OF PENSION PAYMENTS AND PAYMENT FROM THE COMPASSIONATE FUND

Formation of CPAO

Annexure ‘A’

Procedure for payment of pensions through Postal Money Order

Annexure ‘B’

Abstract of the Pension Payment Order to be furnished to CPAO

Annexure ‘C’

CHAPTER - 8.
PROCEDURE FOR INTER-GOVERNMENTAL AND INTER- DEPARTMENTAL ADJUSTMENTS

General

8.1

Transactions arising in the accounts of the P.A.O. which are Adjustable by the Accounts Officer of another Government/ Department on cash settlement basis

8.2

Transactions arising in the books of Accounts Officers of other Government/Departments which are adjustable in the books of the P.A.O.

8.3

Procedure for Settlement of Transactions arising in the month of March

8.4

Settlement of Inter Departmental transactions through Book adjustment, i.e. without resorting to cash settlement

8.5

Procedure for recovery of cost of work done by departmental officers functioning on P.W.D. System of account

8.6

Settlement of debits on account of supplies effected

8.8

Settlement of transactions arising in Missions/Posts abroad

8.9

Settlement of debits relating to Customs duty, etc.

8.10

Supplies made by Medical Stores Depot

8.11

Settlement of transactions between Railways/Defence/Posts/ Telecommunications

8.12

Settlement of transactions between Central and State Govts.

8.15 to 8.18.9

Accountal of Tax Deducted at Source (TDS) from the bills of State Government

8.19

Settlement of transactions relating to National Highways

8.20

Payment of loans/grants to Union Territory Governments (with legislature)

8.21

Procedure for drawal by Union Territory Administrations on Central Govt. Demands for Grants

8.22

Procedure for adjustment of items of Central civil receipts/ expenditure arising in the books of Posts, Telecommunication and Defence Departments

8.23

Detailed procedure for payment of loans/grants to State Governments by the Central Government

Annexure - 1

CHAPTER - 9.
RECOVERIES, PAYMENTS AND ACCOUNTINTG FUNCTIONS ARISING IN RESPECT OF CENTRAL GOVERNMENT EMPLOYEES SENT ON FOREIGN SERVICE/ DEPUTATION

Definition of Foreign Service

9.1

Pension / Leave Salary Contributions

9.2

Maintenance of Leave account, grant of leave and leave salary payments etc. while on foreign service

9.3

Pay and Accounts Office specified for the purpose

9.4

Maintenance of Register of recoveries of foreign service Contributions

9.5

Heads of account for credit of leave salary/pension contributions

9.6

Discharge of liability in regard to earned leave/leave on average pay due to a Government Servant deputed to Public Sector Undertaking on his final absorption therein

9.7

Simplification of adjustment on account of allocation of leave salary and pensions between Departments of Central Govern- ment/Union Territory Government and Administrations

9.8

Deputation of Central Government Officials to State Governments and vice-versa

9.9

Payment of foreign Service Contributions/ subscriptions under CGEGIS, 1980 and repayment of loans during foreign Service out of India

9.10

CHAPTER - 10.
LOANS, ADVANCES, GRANTS-IN-AID, GUARANTEES AND INVESTMENTS

General

10.1

Classification

10.2

Procedure for payment of loans and advances sanctioned by Central Government

10.3

Procedure for repayment of loans and advances and interest thereon

10.4

Loan Registers and Broad sheets

10.5

Utilisation Certificates

10.6

Long-term advances to Government servants

10.7

Short-term advances to Government servants

10.8

Grants-in-aid

10.9

Guarantees given by the Central Government

10.10

Investments

10.11

Permanent Advances

10.12

Loans and advances by Central Government-Interest rates and terms and conditions

Annexure ‘A’

CHAPTER - 11.
APPROPRIATION ACCOUNTS (CENTRAL CIVIL)

CHAPTER - 12.
GUIDELINES FOR THE INTERNAL AUDIT OF THE DEPARTMENTAL ACCOUNTS ORGANISATIONS

Register showing particulars of paid vouchers furnished to Internal/Statutory Audit

Annexure ‘A’

Register showing settlement of Test Audit Notes issued by Statutory Audit

Annexure ‘B’

CHAPTER - 13.
BANK RECONCILIATION - EXPENDITURE ACCOUNTS TRANSACTIONS

General

13.1 to 13.3

Revised scheme of Reporting, Accounting and Reconciliation of Expenditure Accounts as introduced from 1-5-89

13.4 to 13.5

Checks and Accounting by P.A.O.

13.6

Adjustment clearing of PSB Suspense by Pr. Accounts Office

13.7

Residual transactions for the month of March

13.8

Forms used by Banks

Annexure 1 to 9

CHAPTER - 14.
BANK RECONCILIATION - REVENUE ACCOUNTS OF C.B.E.C.

General

14.1 to 14.4

Action taken by the Focal Point branch

14.5 to 14.6

Refund of revenue

14.7 to 14.8

Monthly Put Through Statements

14.11

Custom Houses at Major Ports

14.12

Action in Pay and Accounts Office

14.15 to 14.20

Action taken in Pr. Accounts Office

14.21 to 14.24

Forms

Annexure I to VIII

CHAPTER - 15.
BANK RECONCILIATION - REVENUE TRANSACTIONS OF C.B.D.T.

General

15.1

Action at receiving branch

15.3

Action at Nodal branch

15.6 to 15.14

Deposit of money seized from persons suspected to have evaded tax in P.D. Account

15.16

Designated Officer

15.18

Zonal Accounts Office

15.19

Principal Accounts Office

15.20

Forms

Annexure 1 to 14

CHAPTER - 16.
MISCELLANEOUS

Finance Accounts of Central Government

16.1

Procedure for payment of Arrear Claims

16.2

Procedure for receipt, repayment and accountal of Deposits

16.3

Procedure for transfer of balances between PAO of the same organisation

16.4

Budgetary and accounting arrangement consequent on reorganisation of Ministries

16.5

Opening of Letter of Credit by Public Sector Banks in favour of foreign suppliers

16.6

Personal Deposit Account

16.7

Investigation of cases by the Special Police Establishment - procedure for production of records

16.8

Calculation of accounting charges for Proforma account of Departmental Commercial Undertakings

16.9

Accounting and reconciliation of transactions falling under P.W. Remittances, Forest Remittances etc.

16.10

Custody of duplicate keys, Promissory Notes etc.

16.11

Raising and pursuance of Objections

16.12

Review of Balances

16.13

Adjustment of Gain or Loss by Exchange

16.14

Acquisition of stores on deferred payment terms

16.15

Period of retention of Accounts Records

16.16

Procedure for sending records to Old Record room

16.17

Delegation of Powers to JAOs/AAOs

16.18

Abstract of Register of receipts and payments relating to Personal Deposit Account Annexure ‘A’

List of Forms