13.1.1 The Finance Accounts of the Central Government comprises the accounts of the Central Government as a whole including transactions of Civil Ministries/Departments, Defence Services, Posts & Telegraphs Department and the Railways. It presents the accounts of receipts and outgoings of the Central Government for the year together with the financial results disclosed by different accounts and other data coming under examination, namely Revenue and Capital Account, account of Public Debt and of other liabilities and assets as worked out from the balances recorded in the accounts. It supplements the accounts separately presented in the form of Appropriation Accounts for grants and charged Appropriations. The Finance Accounts submitted to Government is an Auditor's presentation of the general accounts of Government to the Parliament.
13.1.2 The Finance Accounts are divided into two parts, namely, Part I and Part II. Part I comprises the summarised statements in respect of Revenue, Capital, Debt, Deposit, Suspense and Remittances transactions and Contingency Fund. Part II comprises the detailed statements in respect of these transactions and other related statements.
Part II is further sub-divided into two sections 'A' & 'B'. Section 'A' comprises detailed accounts and other statements relating to Receipts and Expenditure on Revenue and Capital accounts and Section 'B' comprises detailed accounts etc. relating to Debt, Deposit, Suspense & Remittances transactions and Contingency Fund.
13.1.3 The preparation of detailed review of balances has been discontinued from the Finance Accounts for the year 1960-61 onwards. Statement No. 7 of Finance Accounts indicates in brief the state of reconciliation of closing balances and acceptance of balances based on information received from various Accounts Offices which are required to render material for the Finance Accounts.
Under the system of book-keeping followed in the Indian Government accounts, the amounts booked under Receipts and Expenditure heads (Revenue and Capital Account) and under the major heads ' 768Inter-State Settlement ', ' 769Appropriations to the Contingency Fund ', ' 875Deposits with Reserve Bank ' and ' 880Miscellaneous Government Account ' are closed to a single lead termed 'Government Account '. The balance under this head represents the cumulative result of all such transactions and is such. that after adding it to the balance under Debt, Deposit, Suspense and Remittance heads and under Contingency Fund, the closing cash balance at the end of the year could be worked. out and proved.
13.1.4 Necessary certificate is recorded by the Controller General of Accounts on the Finance Accounts which is countersigned by the Secretary to the Government of India, Ministry of Finance. Thereafter, the Comptroller and Auditor General of India also records a suitable certificate thereon.
13.1.5 Material based on which Finance Accounts are prepared and the authorities who are to furnish it to the C.G.A. are indicated below :
FROM WHOM RECEIVED
|Certificate of the C. G. A.||Drafted by CGA and countersigned by Secretary, Ministry of Finance.|
|Certificate of the C. &. A. G.||Drafted by the C. &. A. G. of India.|
|Introductory||Drafted by C.G.A.|
|Statements of Finance Accounts||(a)
Statement of Central Transactions and other material from Pr.AOs relating
to all Ministries/Department and Accountants General and separated Accounts
Organisations of Union Territory Administrations/Governments.
(b) SCTs and other material from Dy. Director General (Postal Accounts).(c) SCTs And other material from the C.G.D.A.
(d) SCTs and other material, from Railway Board. pertaining to Indian Railways.
The circulars prescribing the time schedule for the closing of the annual accounts of Union Government for the year and detailed guidelines for the preparation of SCT and material for Finance Accounts are issued by the Finance Accounts Section of the organisation of the C.G.A. every year by the end of March.
13.1.6 The basic material for the preparation of Finance Accounts is the Statement of Central Transactions received from various Pr. Accounts Officers (including those of Delhi Administration, A.&.N. Islands Administration), Accountants General, Director of Accounts, Goa, P.A.O., Pondicherry, C.G.D.A., Dy. D. G. (PA) and Railway Board.
13.1.7 The following instructions should be followed for the preparation and submission of the Statement of Central Transactions to the Controller General of Accounts.
13.1.8 The uptodate copy of the Statement of Central Transactions, duly reconciled with the figures of detailed Appropriation Accounts is required to be submitted to the Controller General of Accounts. The form of the Statement of Central Transactions shall be as prescribed by the Controller General of Accounts. In cases where expenditure has been booked under a minor head prescribed in the List of Major and Minor Heads of Account for which a corresponding/equivalent sub-head does not appear in Part II or Part III of a Demand for Grant passed by Parliament, approval of the Ministry of Finance (Budget Division) should be obtained specifically for opening the head alongwith specific lettering, name and nomenclature to be adopted in the Appropriation Accounts.
13.1.9 The figures to be entered in the Statement of Central Transactions should include the progressive figures upto March (Supplementary) accounts and correcting entries made thereafter till the date of its submission to the Controller General of Accounts. If any correction to the Statement of Central Transactions becomes necessary after its submission to the C.G.A., it will be carried out by proposing a Journal Entry, and obtaining approval of the C.G.A. therefore. The proposals for J.Es. should be sent to the CGA providing justification for the corrections. These proposals should be supported by a Journal Entry proper in Form CAM-34 (T.E. Form) duly signed by the head of accounting organisation viz. C.C.A./C.A./Dy. C.A./A.G. as the case may be and a detailed list of correction to the Statement of Central Transactions, seeking approval of the C.G.A. for its inclusion in the accounts. Finally an abstract in form CAM 36 incorporating the effect of all J.Es. accepted for incorporation should also be sent to the C.G.A.
[Refer Correction Slip 112]
13.1.10 Material for Statement No. 15 (which is an important Statement) comprises figures of receipts/disbursements during the year and opening/closing balances under various Debt heads under the Consolidated Fund and under Reserve Funds, Deposits and Advances, Suspense and Remittance heads under the Public Account and is to be furnished in the following proforma:
|Head of account (Major & Minor head of account)||Opening balance as on Ist April||Balances adopted proforma from As.G/ Pr. A.Os during the course of year (AG-wise details and the particulars of communications returning certified proforma 'B' should be given separately in an Annexure)||Revised opening balance as on 1st April (Col. 2-3)||Receipt during the year||Disbursement during the year||Closing balance as on 31st March|
Note : Proforma corrections to be carried out in terms of para 5.14.2 in respect of Statement No. 15 of Finance Accounts etc. should be reflected distinctly under a separate line named "Prior Period Adjustment Account" below the relevant major/minor head and the closing balance under the head should be worked out after taking into account the effect of "Prior Period Adjustment Account".
[Refer Correction Slip 86]
13.1.11 The following points should also be kept in view while furnishing material for this statement and other subsidiary statements like Statement No. 17 and 18 :
(i) The minor heads of account indicated under each major head, in these Statements are strictly in accordance with the authorised minor heads of account.
(ii) The figures of 'Receipts' and 'Disbursements' during the year against each major / minor heads of account agree with the corresponding figures shown in the Statement of Central Transactions.
(iii) The figures appearing under column 6 (Disbursement) and Col. 7 (Closing balance) under the following suspense heads below the major head ' 858-Suspense Accounts' would give a clue that certain items/transactions remain thereunder, without clearance and adjustment to the final expenditure head of account in the Appropriation Accounts of the concerned Demand for Grant:-
Suspense Account (Civil)
Pay and Accounts Office Suspense
Cash Settlement Suspense Account
It should, therefore, be ensured that normally there should be no outstanding balance under any of these minor heads at the end of a year except that balance representing amounts of outstation bills pertaining to March encashed during that month would have to be outstanding under the minor head PAO Suspense etc.
(iv) If there are debit balances under beads against which there should normally be credit balances or vise versa, the reasons for the adverse balances should be fully explained in footnotes. The action taken to liquidate the adverse balances should also be intimated.
(v) There should normally be no minus figures under columns relating to receipts / disbursements for the year. If there are any, full reasons therefore are to be indicated.
(vi) The opening balances under Debt, Deposit and Remittance heads should agree with the respective closing balances shown in the preceding year's statement. In case the opening balance under any such head(s) requires to be changed, either on account of transfer of balance on proforma basis, or rectification of misclassifications, or on account of any valid justification, the reasons and justification therefore should be explained distinctly in a separate column, giving indication, inter alia, of the steps taken to avoid cases of misclassification in future, to enable the C.G.A's organisation to satisfy itself about the validity of the proposal and to propose a suitable footnote to the Finance Accounts. It should also be ensured that wherever a footnote appeared in the relevant statement of Finance Accounts during an earlier year promising further action/probe/remedial steps in the subsequent year, such action is actually taken and the material suitably altered; and if not, the reasons therefore are to be indicated.
(vii) The total of each sector/sub-sector/major head etc. should be struck at all stages. Thereafter grand total should be struck at the end.
(a) The work of printing of the Finance Accounts has been entrusted to the Government of India Press, Mayapuri in accordance with the Government of India, Directorate of Printing letter No.-L. 15038/3/4178 dated the 6th February, 1979. While forwarding the manuscript copies of the Finance Accounts to the Press, this letter may be quoted as authority in the requisition form. S.99A. The first batch of manuscript should be sent to the Press through Directorate of Printing and the subsequent batches may be sent to the Press direct.
(b) The first proof of the Finance Accounts should be sent to the Press for bringing out the 2nd proof in batches. Two copies should be sent to Director of Audit, Central Revenues for audit scrutiny.
(c) The paginated copy of the Finance Accounts is sent to the Press for final printing on receipt of final clearance from Audit.
(a) The distribution list of the publication is kept upto date in the C.G.A's organisation by including therein the changes ordered from time to time.
(b) Copies of the publication could be supplied to the Ministry of Finance (Budget Division) and to the Parliament Secretariat in advance of their presentation to the Lok Sabha and Rajya Sabha (after obtaining approval of the President), with the clear stipulation that they are to be treated as 'Secret' until their presentation to the Houses of Parliament.
(c) Immediately after the publication is laid on the Tables of the Parliament, it should be released for sale. Necessary intimation to the Manager, Publication Branch is issued by the Ministry of Finance (C.G.A.) direct.
13.2.1 The Pay and Accounts Offices under the departmentalised accounting system win not issue any authorisation on other Accounts Offices to make payments on their behalf or vice versa. When a Government servant, Gazetted or Non-gazetted is transferred from the payment control of the Pay and Accounts Office to another Accounts Office/Accounts Circle, it will be necessary that his claims for pay and allowances should be drawn upto the date of relief in cases where the Joining time pay and allowances are not debitable to the department under the accounts control of the Pay and Accounts Officer and in other cases [i.e. attracted by the provisions of Notes 1 to 3 of article 31(2) of Account Code Vol. I] covering joining time pay and allowances for the admissible joining time period or upto the date of joining the new office elsewhere, whichever is earlier. Last Pay Certificates should be issued by the head of the office only after payment is made as above.In the latter type of cases, however, if for any reason, LPC is issued before payment of joining time pay and allowances, the payment thereof shall be arranged by the same Central Civil D.D.O. by drawing it from his accredited Pay and Accounts Office, and routing the crossed cheque/bank draft drawn in favour of the Officer concerned through the D.D.O. of the new Office, and in the case of a State Government Gazetted Officer (who is permitted to draw his personal entitlement directly from the State Treasury etc.) directly to the Officer. Simultaneously, a revised L.P.C. marked "final" shall also be issued to the new D.D.O. or the Accountant General as the case may be, stating that the Last Pay Certificate issued earlier was a provisional one.
[Refer Correction Slip 11], [Refer Correction Slip 19]
13.2.2 In respect of claims arising after LPC has been issued the drawing and disbursing officer of the office in which the Government servant is currently working may prepare a "Due and Drawn Statement" in respect of arrears of pay and allowances of such a Government servant and send it to his earlier office(s)/parent office, as the case may be, for verification of the claim. The later office may check these statements, make entries in their records (i.e. in the office copies of the bills) and return to the concerned drawing officer with a certificate that the arrears relating to the Government servant have been noted in the relevant office copies of the bills. On receipt of the "Due and Drawn Statement" duly vetted by the earlier/parent office, the drawing and disbursing officer may prepare the arrear bills of the Government servant in the proper forms, record the necessary certificate as required in Rule 276 of CTRs and draw the bills from the P.A..O. and disburse the arrears to him on proper acquittance. The expenditure in this behalf may be debited to the budget provisions of his office.
13.2.3 In the case of Government servants working in Defence, Railways, P&T (Government Commercial Departments/Departmental Undertakings) and other Governments transferred to civil and vice versa, the procedure referred to above is further modified to the extent that while accepting the "Due and Drawn Statement" of arrear claims, the concerned office should also accept the debit thereof, record the classification and return it to the drawing and disbursing officer of the office in which the Government servant is currently working for drawal of arrears and payment to him.
13.2.4 The arrears due to a Central Government servant arising after his/her transfer on foreign service to a public sector undertaking or Government autonomous body shall be drawn by the parent office and paid to the Government servant by cheque/demand draft.
13.2.5 The above procedure is applicable only for the drawal of arrears of pay and allowances involving preparation of due/drawn statement In respect of other claims like T.A., O.T.A. etc., requiring countersignature by the controlling officer, the earlier/parent office shall pass the bill, obtain a cheque/demand draft in favour of the official from its P.A.O. and despatch the same to the D.D.O. under whose payment control the official is serving for disbursement to him and also watch the receipt of acknowledgement.
13.3.1 Under the departmentalised accounting system the responsibility for keeping the detailed accounts of deposit transactions will be that of the Pay and Accounts Office except in respect of deposits for which the departmental officers haw been made responsible for maintaining detailed accounts (e.g. court deposits, deposits with Public Works or Forest Divisions etc.). The following instructions may be followed in regard to accountal of and repayment of deposits for which the P.A.O is responsible for keeping detailed accounts.
13.3.2 The detailed accounts of such class of deposits should be kept in separate registers of Deposits (Form CAM 63). Separate folios may be allotted for each departmental officer under whose authority or on whose behalf the deposit has been received. Entries will be made from the challans accompanying the receipt scrolls received from the receiving branches of the bank. In cases where the amounts have been remitted into the bank in lump-sum by the departmental officer who received the deposit the detailed posting will be done from the particulars given in the statement received from the departmental officer, and reconciled with the lump-sum credits in bank scrolls.
13.3.3 The bill for the repayment of deposits will be drawn by the departmental officer from whom or on whose behalf the original deposit was received and sent to P.A.O. for pre-check and payment. On the bill the departmental officer will certify that the conditions subject to which repayment is to be made have been fulfilled and that a note has been kept in his initial records to prevent a second claim. The PAO will check the availability of balance from the Deposit Register, make an entry in the repayment portion of the register ;give cross reference against the relevant receipt entry; make entries in the cage of the month in which the repayment is made, and make payment subject to other usual checks. Posting in the cage of month of repayment will enable the P.A.O. to attempt a reconciliation between the figure of repayment as noted in the Register of Deposits, with the ledger figure.
[Refer Correction Slip 80]
13.3.4 In the case of refunds of deposits which were originally received prior to the date of departmentalisation, the departmental officer will first send the refund bill to the concerned Treasury Officer who was maintaining the detailed accounts of the deposits for certifying on the bill the availability of balance in the deposit account and record of the note of the refund in the treasury records. This procedure will continue until action to transfer the balance in deposit accounts with details to the PAO is completed. The bill will be presented to the PAO with the T.O's certified mentioned above. The PAO will make payment on the basis of T.O's certificate after making an entry in the repayment side of the register.
13.3.5 : Except to the extent modified in these instructions the rules contained in Central Govt. Account (Receipts & Payments) Rules, 1983 regarding deposits of various categories should continue to be followed. Deposits which lapse to Government in terms of rule189 of Central Govt. Account (Receipts & Payments) Rules, 1983 are to be entered in a register in form C.A.M. 63A giving therein a cross reference to their Serial Nos. in the Register of deposits. (However, deposits which could not be claimed/refunded due to litigation/arbitration cannot normally be treated as unclaimed and hence not be creditable to Government. To seggregate such items, the PAO shall ascertain from the Departmental Officer whether any legal proceedings/arbitration are pending against the relevant contracts/supply orders. On receipt of an affirmative reply, a note to that effect shall be kept in the remarks column of Form CAM.63. Depending on the outcome of such proceedings, the relevant items of deposit shall be refunded, or forfeited and adjusted as the case may be). For effecting credit to Govt., a transfer entry should be incorporated in the accounts debiting the major and minor head etc. under which the original deposit was credited, with per contra credit to the major etc. head '068-Miscellaneous General Services-Unclaimed Deposits'. Before authorising refund of such a lapsed deposit, the PAO will (i) verify that the departmental officer counter-signing the application for refund has certified about the claimant's identity and title for the refund; and (ii) ascertain from the register (form CAM 63 or 63A) that the deposit item was really received and is traceable and that it was transferred to the revenue head of Government as lapsed deposit and was not paid previously. Necessary entries about payment will thereafter be made in the relevant columns of the register. Such lapsed deposits when refunded, shall be accounted for under the sub-head "Deduct-Refund" below the major etc. head '068-Miscellaneous General Services-Unclaimed Deposits'.
[Refer Correction Slip 25], [Refer Correction Slip 95]
13.3.6 The PAO should also obtain from the T.Os concerned complete lists of lapsed deposits credited to revenue in the three years prior to the dates of departmentalisation, the PAO will exercise the aforesaid checks with reference to these lists. Till the relevant records are transferred from the Treasury and also in doubtful cases even otherwise the claim will be sent by the PAO to the T.O., who will verify it with reference to bask records and return it to the PAO for arranging payment.
Lists of items lapsing to Government in terms of rule189 of Central Govt. Account (Receipts & Payments) Rules, 1983 (indicating distinctly along with relevant particular deposits which pertain to contracts/supply orders that are under litigation/arbitration) will be submitted by departmental officers with full particulars (vide columns 1 to 4 of form CAM 63A) to their Pay and Accounts Office. If the items are numerous, these lists may be used in original to form the folios of the register after opening additional columns No. 5 to 8; if not, then these may be entered in the register. Effect of the lapsing should also be reflected in accounts by the PAO through a transfer entry in the same manner as stated in para 13.3.5. Bills for refund of lapsed deposits of this type will also require to be submitted to the PAO for payment after scrutiny etc. in the same manner. (For discharging these duties in respect of deposits that lapsed during the three years preceding the date of departmentalisation, departmental officers were required to send full lists thereof to the PAO.)
[Refer Correction Slip 25], [Refer Correction Slip 95]
13.3.8 The PAO will also be responsible for reconciliation of the balances as per the Register (s) of Deposits with the corresponding ledger balances as per accounts by maintaining broadsheets.
13.4.1. When a Government servant is transferred from one office to another office either within the same Ministry/ Department or under another Ministry/Department, the balances outstanding against that Government servant under various Debt, Deposit and Remittance Heads pertaining to Long term Loans/Advances to Govt. servants and Provident Funds shall be transferred by issue of cheque of the 'C' category "Government Accountnot payable in Cash". drawn in favour of the Accounts Officer to whose circle the Government servant stands transferred.
13.4.2. At the time of transferring the long term outstanding Loans and Advances under H.B.A./M.C.A., etc., the transferor P.A.O. shall raise a claim against the transferee P.A.O. by debiting the minor head "P.A.O.-Suspense-item adjustable by ... ... ...... .. ...... the name of P.A.O.in whose circle of Account the Government Servant has been transferredper contra credit to Major/Minor/Heads "7610-Loans to Govt. servants" H.B.A./M.C.A." as the case may be, to pair off the Debit balance outstanding under HBA/MCA in the books of transferor P.A.O.
On receipt of the claim, transferee P.A.O. shall arrange to issue cheque of the 'C' category "Government Account not payable in cash" in favour of the Accounts Officer from whose circle the Government servant had been transferred. Transferee P.A.O. shall classify and book the paid amounts as Minus credit and not Debit to Major/Minor Heads "7610-Loans to Government servantsHBA/MCA per contra credit to Major/Minor Head "8670-Cheques & Bills P.A.O. cheques".
[Refer Correction Slip 178]
13.4.3 Some times entire departments|offices of Government of India are also ordered to be transferred as a whole from one Ministry/Department to another Ministry|Department. The following drill will be followed for communication of balances from one Principal Accounts Office to another:
13.4.4 (A) General
The ledger balances to be transferred as on the date of transfer in respect of various debt, deposit, suspense and remittance heads of account shall be worked out in triplicate in the format given in clause (D) below by the Principal Accounts Office of the transferring (originating) Ministry separately for each major head. These balances are to be exhibited with a break up indicating those as on 31st of March of the preceding financial year, and the cumulative effect of transactions that had arisen from 1st April to the end of the month preceding the month in which the transfer is effected. The balance as on 31st March will be obtained from the Ledger of Balances (Form CAM-40) maintained by the relevant Pay and Accounts Office and the figures for the remaining period shall be based on the progressive figures of transactions appearing in the affected month's consolidated abstract. Before transferring the balances, it is to be ensured that in respect of major heads like 805, 842 etc. which involve calculation of interest, the interest on the balances (as at the end of the preceding financial year only) is worked out and added to the major/minor head totals through March (Supplementary) Accounts of the originating Department so as to ensure that the interest so calculated is also accounted for in his circle of Accounts and the balances transferred as on 31st of March of the preceding financial year takes into account all such calculations.
(B) Transfer of work involving transfer of a part of the work handled by a Pay & Accounts Office
(i) Balances under major heads 858Suspense Accounts, (except as specified in the note given below) 870Cheques and Bills, 875Deposits with Reserve Bank, 886Adjusting Accounts between Central and State Governments are not to be transferred to the new Accounts Office, but the circle in which the balances arose under these heads shall be responsible for clearing the outstandings based on the payment scrolls to be received from the Bank and response from the Accounts Officer against whom debits or credits had been raised through outward claims.
Note : In respect of the amounts held against the minor head "Suspense Account (Civil)" under the sub-heads "Unclassified Suspense", "Challans/vouchers suspense" and "outstation pay-bills for March" below the major head '858Suspense Accounts', the originating PAO shall be responsible for obtaining the details from the departmental officer/bank concerned for the former two and pass on the vouchers/challans alongwith the details and the balances under these Suspense sub-heads to the PAO to whom the Department is transferred, to enable the latter to book the expenditure under the final heads in the accounts in hand after clearing the Suspense heads.
(ii) In respect of all the major heads for which individual-wise detailed accounts are maintained by the PAO, e.g. 766Loans to Government servants HBA/MCA, and other loan heads, 805GP Fund etc. the original ledger folios and relevant broad sheets shall continue to be held in the custody of the originating Accounts Office. It should, however, send a statement, individual-wise indicating balances as on 31st of March of the preceding financial year, subscriptions/recoveries effected during the current financial year (when the transfer is during middle of the year), monthwise, and should also furnish details of the drawal of original advances, like amount sanctioned, number and date of drawal of advances, certificate regarding agreements/mortgage deed having been executed by the Government servant in favour of the President of comprehensive insurance taken by him etc. to enable the succes-for Accounts Officer to make necessary entries in his broadsheets. [See paras 6.7.3 and 10.7.2 also].
(iii) In respect of major heads appearing under the Sector FLoans and Advances, an extract from the relevant loan register should also be furnished.
(iv) In respect of Major heads appearing under the Sector KDeposits and Advances, apart from furnishing a list of the deposits as per the relevant register (Form CAM-63), list of deposits already lapsed to Government extracted from register in Form CAM-63-A in terms of provisions of Rule 189 of Central Government Account (Receipts and Payments) Rules, 1983 should also be sent to the successor Accounts Office.
(C) Transfer of work involving transfer of an entire Pay and Accounts Office dealing with the Department's work.
In cases where the transfer of a Department involves transfer of its accredited Pay & Accounts Office in toto, [as in the case of Pay & Accounts Office attached to the Department of Civil Supplies], the balances outstanding under all the debt, deposit, suspense and remittance heads held in the books of that PAO shall be transferred without any exception to the Principal Accounts Office to which the PAO stands transferred. It will carry with it all its accounts records. The question of bifurcation of the balances under various heads as allocable and non-allocable, would not, arise and the PAO shall continue to be responsible for the final clearance of all transactions booked under the Various Suspense and remittance heads and for watching the repayment and proper accountal of loans given, deposits made and subscriptions recovered etc.
(D) Manner & format for effecting 'Proforma' transfer of balances
Two copies of the format given below, duly filled in and accompanied by necessary details such as analysis of difference between ledger and broadsheet, duly supported by extracts of details as mentioned in (B) or (C) above shall be sent by the originating (i.e. transferor) Principal Accounts Office to the Principal Accounts Office (responding or transferee) of the Ministry to which the Department stands transferred. The responding Principal Accounts Office would adopt the ledger balance indicated in the format on 'Proforma basis' in his books and return one copy of the same to the originating Principal Accounts Office with a certificate that the ledger balances shown therein have been adopted on 'Proforma baisis' in his books. The originating Principal Accounts Office shall drop such balances from its books on receipt of a copy of the format from the responding Principal Accounts Office.
Principal Accounts Office, Ministry of...........................................Statement showing balances under various D.D.R. heads relating to the Office/ Deptt. of ................................................ transferred to Principal Accounts Officer, Department of ......................................Ministry of .......................................................Government of India as on ........................
(Separate for each Major Head)
Major/Sub Major heads of account..............
|Minor Head||Sub-heads||Brief nature of transactions.||Ledger balance||Broad sheet balance||Difference||Remarks|
|Total for Major head|
|Encl: Supporting documents/details.|
(Originating Principal Accounts Office)
Ministry of .............................................................
Certificate of the responding Principal Accounts Officer
Certified that the ledger balances as indicated above have been taken over in the books of this office as on........... ..........................
(responding Principal Accounts Office)
Ministry of .............................................................
Along with the material to be sent to the Controller General of Accounts for preparation of Statements No. 7 and 15 of the Central Government Finance Accounts, a copy of the folio, relating to each affected major head of account, maintained in Form CAM-40 may be furnished to the CGA's Organisation, indicating against entries in column 6 or 7 thereof, the Principal Accounts Office to which (or from which) the proforma transfer of balance was effected and the amount involved, if balance under a minor head was transferred to (or received from) more than one Pr. Accounts Office.
This would enable the organisation of the Controller General of Accounts to verify that the data regarding Proforma transfer/adoption of balances furnished by the originating and responding Principal Accounts office is consistent and that there are no discrepancies in the balances dropped or adopted on 'Proforma' basis by them.
[Refer Correction Slip 79]
13.5.1 An amendment to the Government of India (Allocation of Business) Rules, 1961 made by the President and involving transfer of some items of work and offices/departments dealing with them from one Ministry/Department of the Government of India to another, might require special arrangements in regard to provision of funds therefor and operation of some sub-heads under a Demand for Grants pertaining to former (referred to hereafter as transferor) Ministry/Deptt., by the later (transferee) Ministry|Deptt. In such cases Ministry of Finance (Department of Economic Affairs) would issue necessary sanction permitting the transferee Ministry/ Department to operate on the provisions under the relevant subhead in the Demand for Grants of the transferor Ministry/Departmentthis type of case being referred to hereafter as Type 'A'. Alternatively, the transferee Ministry/Department will take action to obtain supplementary funds under its own Demand for Grants wherever possible, and the transferor Ministry/Department will surrender the samethis type being referred to as 'Type B' hereafter.
13.5.2 Instructions pertaining to payment and accounting procedure to be followed in such cases are prescribed below:
General (Applicable to types 'A' and 'B')
(a) To avoid dislocation of work that might otherwise be caused due to sudden switch over, the transfer of payment and accounting work consequent on reorganisation of Ministries/Deptts. will be commenced in the office of the PAO (Transferee), from the 1st of the month following the date of Presidential Notification and on receipt of the sanction of the Ministry of Finance (DEA) referred to in para 13.5.1 above.
(b) The ' Transferor' PAO will furnish to the ' Transferee' PAO, a statement indicating
(i) The provisions against relevant sub-heads existing in the Demand for Grants, plus supplementary grant, if any, obtained for the purpose, and break up thereof, if any, among various DDOs as authorised by the Grant Controlling Authority;
(ii) The expenditure booked by him against the respective head upto the end of the month for which accounts are compiled plus the amounts for the subsequent month posted in his Expenditure Control Register;
(iii) He will subsequently indicate the actual figure booked by him upto the month for which he was responsible for payment and accounting, as soon as compilation fur the last month is finished; and
(iv) If any debits pertaining to the ' Transferred' DDOs are received later, they will be duly forwarded by him to the 'Transferee' PAO for necessary action under intimation to the accounts authorities from whom the debits originated.
(c) The ' Transferee' PAO will enter the details referred to above in his relevant books (e.g. DDO-wise Bill passing cum Expenditure Control Register etc.) and proceed with payment and accounting work relating to the new offices/departments, transferred to his circle in the usual manner.
Action at the end of the year and preparation of Appropriation Accounts
(d) Type A : In cases where supplementary grant is not obtained by the 'Transfree' Ministry|Department, as soon as the accounts for the relevant financial year are closed, the ' Transferee' PAO will forward to the ' Transferor' PAO the following material
(i) The figures of expenditure booked by ' Transferor' PAO and intimated to him as per (b) (iii) above;
(ii) The expenditure incurred and booked in his books against the relevant primary units after he started the payment and accounting work relating thereto;
(iii) total actual expenditure during the entire year vis-a-vis the provisions under each of the primary units in the original Demand for Grant, Supplementary Grants and reappropriations (Orders, sactioning reappropriations in such cases would be issued by the ' Transferor' Ministry/ Department if any; and
(iv) The Pr. A.O. of the ' Transferor' Ministry/Department will be responsible for including the figures intimated by the 'Transferee' PAO (vide (iii) above) for the purpose of preparation of the Appropriation Accounts for the Demand for Grant as a whole.
(e) Type B : If the ' Transferee' Ministry/Department obtains supplementary funds to cover the relevant expenditure in its own Demands for Grants, the Pr.A.O. of the ' Transferee' Ministry/Department would be responsible for the preparation of the Appropriation Accounts after including these heads, as usual.
13.5.3 In either case, soon after the accounts for the relevant month are closed, further action would have to be taken by the ' Transferor' Pr.AO/PAO to effect the transfer of balances under various D.D.R. heads to the ' Transferee' Pr.AO/ PAO, keeping in view the provisions of paras 13.4.4to 13.4.6 applicable to Types 'A' and 'B'.
[Refer Correction Slip 78]
13.6.1 Certain Ministries/Departments are having powers to import equipments and components directly from abroad without the intervention of the Department of Supply. Consequently they would have to open letters of credit in favour of foreign suppliers in that connection. The procedure which was followed prior to the departmentalisation of accounts was, to draw the funds required for opening the letter of credit from Government account and deposit them with the State Bank of India for opening an irrevocable letter of credit in favour of the foreign supplier. The State Bank of India used to charge the Department usual commission for the services rendered and incidentally derived the benefit of retention of the funds though temporarily, free of interest.
13.6.2 After departmentalisation of accounts, Ministries/Departments have the facility of opening an irrevocable letter of credit with their accredited public sector banks without depositing funds with them in advance but by paying them the following charges:
(a) usual commission for the services rendered:
(b) interest at normal bank rates for the period between the date of payment to the foreign supplier at the rates laid down by the Foreign Exchange Dealers Association and the actual receipt of reimbursement from the Department concerned by debiting their scrolls.
13.6.3 Terms for payment of charges as indicated above have been formulated in consultation with the Reserve Bank of India who have clarified in their letter No. 1775/TA.64(12)-79/80 dated the 18th January, 1980 that the Reserve Bank of India are not statutorily required to issue letters of credit on behalf of either the Central or State Governments and hence the charges for the purpose have to be paid separately to the accredited Banks as the turnover commission at 9.25 paise per Rs. 100 of turnover being paid by the Reserve Bank to banks handling Government business in terms of para 26 of the Memorandum of banking instructions issued by them, is not meant to cover the charges for the work of opening irrevocable letters of credit on behalf of Government.
13.6.4 With effect from 1-9-1980 the Ministry/Department which places a supply order or order in regard to acceptance of tender (other than those placed on private firms or individuals in the U.S.A.) shall be responsible for arranging for payments against such contracts. For this purpose, the procedure prescribed below which is stated to have far lower financial implications than the establishment of letter of credit may be followed after mutual agreement with the foreign suppliers [i.e. as in January 1981, charges levied by Banks at London for a sight draft with a prescribed payment schedule clause attached was usually around £ 45 (maximum) no matter what the amount of the transactions, inclusive of charges for telegraphic bank transfer of funds from India which are normally S, 5 approximately.]
On receipt of the completed invoice and all relevant documents, as required by the terms of the contract, by the nominated officer in the Ministry/Department or by the bank nominated by the Ministry in India from the foreign supplier, payment would be made by telegraphic bank transfer from India directly into the payee's pre-specified bank account(s) abroad.
Note : In cases where the foreign supplier insists on opening of a letter of credit, the Department concerned may insert a suitable provision to that effect in the contract with the supplier and arrange to have the letter of credit opened keeping in view the orders on the subject.
[Refer Correction Slip 160]
13.6.5 Department of Supply have prescribed a special procedure for payment against contracts placed by them on foreign suppliers in U.S.A./U.K./-Europe. This procedure authorises payment through State Bank of India at New York/London based on authority to be issued to them by the Chief Controller of Accounts, Deptt. of Supply, either through letter of credit or otherwise depending upon the terms of the contract. The debits to be received from the branch of the S.B.I, abroad will be cleared by the usual procedure of initially booking under suspense or remittance head as the case may be and obtaining reimbursement from the Accounts Officer of the supplied Central Civil Deptt., or by issuing advice on R.B.I. under the settlement account procedure in other cases as per the procedure prescribed separately for this purpose.
[Refer Correction Slip 122]
13.7.1 Personal Deposit Account is a device intended to facilitate the administrator thereof to credit receipts into and effect withdrawals directly from the account subject to an overall check being exercised by the bank in which the account is authorised to be opened, to ensure (with the help of a Personal Ledger Account to be maintained by the bank for the purpose), that no withdrawal will result in a minus balance therein. The administrators thereof shall be only Government officers acting in their official or any other capacity.
13.7.2 A Personal Deposit Account may be authorised to be opened only with the special permission of the Ministry/Department of the Government concerned who shall satisfy themselves about the need for opening such an account, that arrangements are made for the proper maintenance of the initial accounts of the money to be held in the Personal Deposit Account and for audit thereof. The Principal Accounts Officer shall be consulted for the purpose. The Controller General of Accounts shall also be consulted for opening the necessary head of account and finalisation of the accounting procedure.
13.7.3 Where a Personal Deposit Account is required to be created by a law or rule having the force of law, and certain liabilities by way of bridging any deficit or shortfall in the account devolve on the Government out of the special enactments, which are discharged by transferring funds to it from the Consolidated Fund of India, the credit balance in the Personal Deposit Account at the end of each financial year would lapse to Government. For the purpose, the account may be closed by affording minus debit to that extent to the relevant service head(s) in the Consolidated Fund. The Personal Deposit Account may be revived in the subsequent year again, if necessary, in the usual manner.
13.7.4 Where payment etc. work relating to a P.D. Account is entrusted to an Administrator (i.e. Personal Deposit Account holder) the Chief Accounting Authority of the Ministry/Department, may determine with reference to the status, expertise etc. of the organisation functioning under the former whether or not the initial accounts, vouchers etc. shall be subject to post check by the Pay and Accounts Office concerned. Where the P.A.O. is required to exercise post check, the detailed monthly account with vouchers in support of the lump withdrawals/deposits made during each month shall be famished to the Pay and Accounts Office concerned by the Deposit Account holder in the same manner as required to be furnished by a cheque drawing DDO as per provisions contained in Chapter 3 of this Manual. Where the post check is not required to be exercised, the Pay and Accounts Office will confine its check to transactions of withdrawals therefrom viz. that proper paid cheques are received along with bank scrolls, and that the withdrawals do not exceed the balance at the credit of the account concerned. In such cases, the vouchers shall remain in the custody of the P.D. Account holder. The Personal Deposit Account holder shall be responsible for the regularity of all the payments out of the P.D. Account in an respects and specially with reference to the relevant roles relating to the creation and operation of t^e Personal Deposit Account.
13.7.5 In the case of every Personal Deposit Account, the Pay and Accounts Office shall invariably conduct a monthly reconciliation of the receipts and payments out of the PD Account as revealed in the bank scrolls received by him with the statement of receipts and expenditure to be submitted by the PD Account holder monthly to him wherein, inter alia, the latter should indicate the cheques issued by him but not encashed till the end of the month. For this purpose, an "Abstract of the Register of Receipts and Payments" pertaining to the Personal Deposit Account (Annexure A) shall be submitted by the PD Account holder to the concerned Pay and Accounts Office.
13.7.6 In some cases payment etc. work relating to a PD Account is entrusted to the Pay and Accounts Office itself on behalf of the officer appointed to administer the account. In such cases, it shall be the responsibility of the P.D. Account administrator to examine the correctness of the receipts to be credited into the PD Account and to ensure remittance of funds creditable thereto by the parties concerned to the Pay and Accounts Office or directly into the account in the bank for final accountal in the PD Account. Similarly, all claims out of the PD Account shall, if necessary, after scrutiny by the officer appointed to administer it be sent to the Pay and Accounts Office for effecting payments. In such cases the Pay and Accounts Office shall maintain a register known as PD Account Register as described below.
13.7.7 All receipts accruing to the PD Account shall be recorded on the receipt side briefly indicating the nature, date of the bank scrolls and amount credited into the Deposit Account and on the payments side (right hand side) shall be recorded all payments out of the fund with necessary details. Progressive total of receipts and expenditure shall be struck as and when an entry is made on the receipt or expenditure side so as to watch that at no time does a payment lead to minus balance in the account. The Pay and Accounts Office shall discharge all its general functions prescribed in this Manual in such cases. In the first week of every month, he shall furnish to the officer administering the account, a monthly account showing the opening balance, receipts, payments and closing balance of the transactions at the end of the previous month. At the close of each financial year, the closing balance in the PD Account shall be reconciled with that appearing in the figures under the relevant head in the March (Supplementary) accounts of the Pay and Accounts Office and a certificate to this effect shall be recorded in the PD Account Register. The PAO will also be responsible for the preparation of budget estimates and revised estimates in regard to the receipts and payments under the PD Account in consultation with the officer appointed to administer the account and furnish the same in November of each year to the Budget Division in the Ministry of Finance (DEA).
13.7.8 Every PD Account shall be subjected to scrutiny by the internal check organisation functioning under the respective Ministry/Department.
13.8.1 The following procedure shall be followed for the production of original documents relating to accounts which are in the possession of departmentalised accounts organisation to the Special Police Establishment required by them for investigation:
(i) The requisition(s) shall be sent by the SPE at the level of not less than a Superintendent of Police alongwith a certificate to the effect that copies of the required documents or photostat copies would not serve the purpose of the investigating officer.
(ii) On receipt of requisition as above, the Pay and Accounts Officer shall obtain the orders of the CCA/CA expeditiously who shall obtain the orders of the F.A. wherever necessary, before handing over the documents in original to the SPE.
The Pay and Accounts Officer shall comply with the request of CBI, subject to procedure prescribed in sub-para (ii) above, without causing undue delay and inconvenience in CBI investigation.
(iii) It shall be ensured that a note of the record so handed over is kept by the Pay and Accounts Officer concerned to watch prompt return of the documents. Photostat copies of the original documents shall also be retained in proper safe custody before releasing original documents in all cases except where the F.A./Head of accounts organisation specifically directs otherwise.
(iv) In cases where the original documents are requisitioned by a court of law, the PAO concerned shall, after obtaining orders of the head of the accounts organisation, produce the documents before the court of law after retaining the photostat copies in advance in proper custody. A note of such documents produced before the court should also be kept and return of the original watched carefully.
13.8.2 The provisions of the procedure at (ii) of para 13.8.1 above mutatis mutandis: and of (iii) & (iv) thereof, shall also be followed for release of Original documents to Departmental Enquiry Officers.
[Refer Correction Slip 14]
13.9.1 The following procedure shall be uniformly adopted for calculation o payment and accounting charges debitable to the 'Proforma Account' of departmental commercial undertakings:
(a) Full cost of clerk/typist and Sr./Jr. Acctt. exclusively deployed for the work.
(b) When a clerk/typist and Sr./Jr. Acctt. is not exclusively deployed for the work concerned, proportionate cost of the estimated time spent by them on that work.
(c) The cost of Jr.A.O, in proportion of the cost of clerk/typist and Sr./Jr. Acctt. deployed on the work to the total staff in the sections.
(d) The coat of the PAO in proportion of the cost of the Jr.A.O. [Item '(c)' above] dealing with the work to the total number of Jr.A.Os under him.
(e) The cost of group 'D' stall in proportion of the clerk/typist and Sr./Jr. Acctt. deployed on the work to the total staff served by them.
13.9.2 The cost may be worked out by adding items (a) to (e) above and to this 10 per cent (ten percent) may be added to cover the-expenditure of Principal Accounts Office, Internal Audit Parties, pensionary charges and other contingent expenditure.
13.10.1 Under the existing procedure (i.e. prior to departmentalisation of accounts) remittances made by and cheques drawn by officers rendering accounts on the Public Works pattern as well as transactions originating on the civil side of A.G.'s books adjustable in the Divisional Accounts are treated as remittance transactions between Public Works and Civil and are accounted for in the divisional accounts under 'IRemittances into Treasuries', 'IIPublic Works Cheques', or '111Other Remittances' as the case may be, under the minor head 'P.W. Remittances' subordinate to the major head "882Cash Remittances" etc. between officers rendering accounts to the same Accountant General/Accounts Officer. The contra entries (namely on receipt of the P.W. Remittances, encashment of Public Works Cheques etc.) appear in the treasury accounts or in the books of the Accountant General under the same head. For the purpose of reconciliation of the divisional figures with treasury figures in respect of cheques drawn, pass books duly completed are obtained by P.W. Divisional Officers from T.O. with the certificate of total issues and their agreement with the cash book of the Division is effected in Part II of Form 51 Schedule of Monthly Settlement with the Treasuries, giving details in respect of the differences, if any. For remittances into treasuries a consolidated receipt is obtained from the treasury by P.W. Divisional Officers and reconciled with the divisional cash book and differences explained in the schedule of monthly settlement rendered by P.W Divisional Officers
13.10.2 This system of accounting through these remittance heads, viz. '1 Remittances into Treasuries' and 'IIP.W. Cheques' will continue for the present even after introduction of departmentalised accounting system, though strictly speaking the drawals from banks and remittances into banks made by officers rendering accounts under P.W. system should not be regarded as remittance transactions with treasuries. The monthly divisional accounts will continue to be supported by a "Schedule of Reconciliation of cheques and Remittances" (which will be in the same form as the existing Schedule of Settlement with Treasuries with suitable modifications), except that the reconciliation will be done with the copies of receipt and payment scrolls received from the bank with which-the Divisional Officer is in account showing the receipts and payments accounted for by that bank in the scroll sent by the bank to the PAO. This schedule should explain the differences between the cheques issued and remittances made by the Divisional Officer on the one hand and the cheques encashed and remittances accounted for by that bank. A list of cheques issued but not cashed and remittances made but not accounted for during the month as well as cheques issued and remittances made during the previous months accounted for in the bank scrolls during the month on hand should also be furnished.
13.10.3 In the Pay and Accounts Office the 'Schedule of Reconciliation of Cheques and Remittances' will be carefully examined with reference to the divisional accounts and the bank scrolls for the month and it should be seen that:
(i) FOR CHEQUES
(a) The total of the cheques encashed as shown in the schedule agrees with the total cheques encashed as per the bank scrolls for the same period; (the paid cheques shall also be individually cheeked with the scrolls as well as with the relevant paid vouchers received with the accounts).
(b) The difference between the cheques issued by the Divisional Officer during the month and the cheques encashed has been explained fully and reconciled taking into account the effect of the cheques issued but not encashed during the month and cheques issued during the previous months and paid during the month on hand.
(c) The closing difference as at the end of the month is equal to the total of the cheques remaining uncashed as on that date.
(ii) FOR REMITTANCES
(a) The total of the remittances shown as accounted for by the bank in the Schedule agrees with the total as per receipt scrolls received direct from the bank.
(b) That the difference between the total remittances accounted for by the Divisional Officer and that acknowledged by the bank is duly explained taking into account the remittances not accounted for by the bank during the month and the remittances of the previous months accounted for during the month on hand.
(c) That the progressive difference at the end of the month is on account of remittances actually in transit. The P.A.O. will also maintain separate broadsheets in respect of 'IRemittances' and 'II Cheques' for reconciliation of the figures shown in the schedule with the ledger figures.
13.10.4 The P.A.O. will continue to follow the existing procedure for accountal of transfers between his books and divisional books through "P.W. Remittances IIIOther Remittances" only for the transactions advised by the P.A.Os. of the Department of Supply. In other cases the Divisions should resort to direct settlement by cheques/drafts. Accordingly, the Departments rendering supplies or services to the Divisions should prepare a bill for the claims recoverable from the Divisions and send them directly to the concerned Divisional Officers for payment by cheque or draft as the case may be. This expenditure also will be accounted for by the Divisional Officers in their accounts just like any other transaction arising in their books.
13.10.5 The foregoing instructions will also apply mutatis mutandis to officers rendering accounts under the Forest System of accounts (e.g. in the Department of Agriculture.)
13.11.1 The Reserve Bank of India have intimated that the public sector banks have agreed to extend, free of charge, the safe custody facilities for keeping duplicate keys of the concerned Ministries/Departments dealing with them, subject to the availability of adequate strong room facilities at the branch concerned and observation by the banks of the usual banking procedure. Similar safe keeping facility has also been extended free of charge for Promissory Notes/Savings Certificates etc. received as security and held by Ministries/ Departments of the Government of India.
13.12.1 It is an important duty of every Pay and Accounts Officer to see that objections raised and irregularities noticed as a result of various pre and post checks exercised by his office are reported to the proper authorities so that suitable remedial action is taken by them and recurrence thereof prevented.
13.12.2 Ordinarily when a transaction requires the authorisation of a higher authority, the PAO must insist that such authorisation be obtained. Similarly where a sum of money is recoverable, the PAO must insist on recovery save where authority to waive recovery has been delegated to him or the competent authority has directed that the recovery should be foregone.
13.12.3 All communications conveying objections must be couched in courteous and impersonal language and must be clear and intelligible and issued promptly to the departmental authority concerned. Majority of the objections would be such as would require to be conveyed through half-margin forms to the D.D.O. concerned. Return of these should be watched carefully.
13.124 These objections should be recorded in detail in the Objection Book (Form CAM-26) in the Pay and Accounts Office. Individual cases of serious irregularity should be reported to the Controlling Authority concerned under intimation to the Pr. Accounts Office.
13.12.5 Money value should be recorded in respect of objections of the types enumerated below or similar thereto:
(1) Want of vouchers (if not received when the relevant accounts are under check).
(2) Want of sanction to advances, losses etc.
(3) Want of sanction to special charges.
(4) Want of any other specific sanction required by rule.
(5) Overpayments and short recoveries.
(6) Delays in the recovery of sums due to Government, if not recovered within a reasonable period usually in respect of each class of debt or other dues.
(7) Want of allotment of funds
(8) Excess over allotment.
(9) Excess over sanctioned limit of reserve stock.
13.12.6 In respect of objections of the following types, money value need not be indicated in the records:
(1) Simple directions to concerned offices for further guidance or calling for a document or information the absence of which is not likely to affect the amount admissible
(2) Stamp not affixed on a voucher which is otherwise complete.
(3) Habitual delays in the submission of account returns, vouchers etc.
(4) Doubtful adjustments and possible manipulations in accounts which do not involve actual losses
(5) Deviations from the rules which are indicative of disregard or evasion of rule(s), but which do not represent charges incurred without proper sanction.
(6) Errors in accounts etc. which do not indicate any deficit or surplus.
(7) Instructions and other remarks regarding the form of accounts or errors in procedures adopted.
(8) Enquiries seeking clarifications on points of doubt.
13.12.7 A record of insufficient or irregular sanctions accorded by any authority superior to the disbursing officer shall also be kept in the objection book in column 9.
After despatch of half margins relating to the month, the money column in the objection book should be totalled, the balance of the last month under the corresponding column be added, the totals of adjustments made during the month entered in the adjustment portion of the O.B. and balances struck. The objection book shall be closed by the 20th of the succeeding month over the signature of the Jr. Accounts Officer. This shall be put up to the Accounts Officer once each quarter e.g., in July. October, January, April.
In order to avoid time and labour being spent on pursuit of objections of simple and unimportant nature and thus reduce administrative costs, powers are conferred on officers working in Departmentalised Accounts Organisations functioning under Central Government (Civil) as indicated below:
(a) Powers to waive objections against irregular expenditure not exceeding the amount specified against each, in any individual case are shown below:
Chief Controller of Accounts .. Rs. 250
Controller of Accounts .. Rs. 100
Dy. Controller of Accounts/P.A.Os./A.Os. .. Rs. 75
Note: If the irregularity is such that it is likely to recur, the Government servant responsible should be told that the expenditure was irregular even if no recovery is made.
(b) Some items are placed under objection, not because the whole or any portion of the expenditure is unjustifiable in itself but because it is not exactly covered by rule; or the authority for it is insufficient or foolproof, (such as is afforded by sub-vouchers) that it has been incurred has not been produced. In such cases, powers to forego recovery upto the limits specified against each, in any individual case and subject to fulfilment of conditions (i) to (iii) are as shown below:
Chief Controller of Accounts .. Rs. 500
Controller of Accounts .. Rs. 200
Dy. Controller of Accounts/P.A.Os./A.Os. .. Rs. 100
(i) The expenditure must not be of a recurring nature.
(ii) Where the objection is based on insufficiency of sanction, the concerned officer must be satisfied that the authority empowered to sanction the expenditure would accord sanction if requested to do so.
(iii) Where the objection is based on insufficiency of proof of payment, concerned officer must be satisfied that undue trouble would be caused by insistence on submission of full proof and must see no reason to doubt that the charge has actually been paid.
When erroneous payments have been admitted in pre/post check for a considerable time, owing either to a wrong interpretation of financial rules or due to oversight, the following course should be observed:
(a) When a wrong interpretation of a financial rule has been followed, the new interpretation should, in the absence of special instructions to the contrary, take effect from the date of issue by competent authority, of the orders stating the correct interpretation.
(b) When erroneous payments have been left unchallenged through oversight, the Pay & Accounts Officer should not of his own volition undertake a re-audit of bills paid more than one year before. He should report the facts of the case for orders to the Government and a re-audit should not be made unless Government so desires.
NOTE: The Pay & Accounts Officer has to rely largely upon certificates and it is often possible and desirable to check such certificates by examination of original documents during internal inspection. Such examination is not a re-check for the purpose of this clause.
(a) The Department concerned should report defalcations and losses to the Pay and Accounts Officer and to the Statutory Audit Officer simultaneously.
(b) On receipt of a report on defalcation or loss of public money or property, the Pay and Accounts Officer should call for such further information as. he may require on the subject, and carefully examine the case and ascertain whether the defalcation or loss was rendered possible by any defect in the rules, or whether it was due to neglect of rules or want of supervision on the part of the authorities. He should report the result of such examination to the authority competent to sanction the write off of the loss. He should also report important cases to the Pr. Accounts Office.
13.13.1 At the close of a financial year. the Pay and Accounts Officer shall review and verify the balances under various Debt, Deposit and Remittance heads and ascertain wherever necessary whether the person or persons by whom the balance is owned or to whom it is due, admit its correctness and in cases of balances due to Govt. how far they are really recoverable.
Occasionally there could be a case in which broad-sheet balance under a loan, debt, deposit, remittance or suspense head may be higher than the ledger balance and full details would also be available in the broadsheet. In such a case to rectify the book keeping error, the ledger balance has to be increased so as to agree with the broad-sheet figure involving write-up of the balances. This shall be done by a per contra entry under '880-Misc. Government account' after obtaining sanction in terms of article 53 of Account Code Vol. I. If however, no details are available in the broadsheet the difference between broadsheet & ledger figures shall be dropped without any account adjustment by a mere correction in the broadsheet.
[Refer Correction Slip 32]
13.13.2 He should take steps to clear the outstanding balances and to settle any discrepancies noticed in them and obtain acceptance of correctness of balances from the person or persons by whom they are owned or from whom they are due wherever it is required. All Pay and Accounts Officers should furnish annually by 15th September each year, a detailed statement indicating against the various heads, the amount of unreconciled differences between broadsheet and ledger and number of cases where acceptances of balances are awaited from the persons concerned to the Pr. Accounts Office for the period ending 31st March of the preceding year. A consolidated report for the Ministry/Department as a whole, shall be furnished by the Pr. Accounts Office to the Finance Accounts Section of the C.G.A. by the 15th of October.
13.13.3 The following paragraphs provide guidelines regarding the review expected in respect of certain types of balances:
(a) Deposits of Provident Fund:The balances, in the Provident Fund accounts as worked out in the ledger cards should he communicated to the subscribers by 31st July each year.
(b) Deposits:Receipt of each deposit as well as repayment there against will be maintained in a suitable register by the P.A.O. vide para 13.3.2 of this Manual. The P.A.O. should take steps:
(i) to verify the balances at the close of the year with the ledger balance of the class of deposit concerned;
(ii) to obtain, where necessary, the acceptance of the parties concerned of the balances left outstanding in the Personal Deposit Account at the close of each year; and
(iii) to credit to the Govt. any unclaimed amounts which are to be treated as lapsed under the rule189 of Central Govt. Account (Receipts & Payments) Rules, 1983.
(c) Permanent Advance: As and when a permanent advance is paid to a head of office based on the sanction issued by the competent authority, a note of the advance paid shall be kept in Register of Permanent Advance (Form CAM 61). At the end of each financial year an acknowledgement shall be obtained from the officer holding the permanent advance and verified with that outstanding in the register of permanent advance.
The aggregate of all the outstandings thereunder shall be worked out from this register and tallied with the ledger balance at the end of each year.
(d) Loans and Advances:The outstanding balance of principal of loans in the loan register as on 31st March should be tallied with the ledger balance as on that date for each year. It should also be seen whether the conditions of each loan have been fulfilled and whether the balance due at the end of each year have been communicated to and not disputed by the debtor. The result of the verification should also be reported to the Deptt./Ministry vide para 164 of the G.F.Rs.
In case of Housing Building Advance, Motor Car and Motor Conveyance Advances for which detailed accounts are maintained by the Pay and Accounts Office, only acknowledgement should be obtained from the Govt. servants concerned of the balance outstanding against him at close of each financial year through the D.D.O./Head of Office.
[Refer Correction Slip 95]
1. The question of adjustment of Loss/Gain by exchange has been considered in detail in consultation with Budget Division of the Ministry of Finance, Controller of Accounts, Ministry of External Affairs and the Comptroller and Auditor General of India against the background indicated below :-
(i) Disbursements made against agreements for loans/grants after 1st April, 1976 by foreign banks etc. under the direct payment procedure, are credited as External Debt/External Grant Assistance at daily rate of exchange by contra debit to the minor head "Suspense Account for purchases etc. abroad" under the major head "858Suspense Accounts". The deposits made by importers at the Composite rate of exchange (fixed by the Controller of Aid Accounts and Audit) and interest under the minor head "Deposits for purchases etc. abroad" below the major head "843Civil Deposits" are cleared by (a) transferring amounts to the above noted Suspense head thereby clearing it; (b) adjusting the difference between daily rate and composite rate of exchange under "068Miscellaneous General ServicesGain by Exchange" and (c) adjusting the element of interest recovery under the head "049Interest Receipts".
(ii) In respect of loan / grant transactions appearing in the accounts of C.A.O., H.C.I., London and C.A.O., I.S.M., Washington, conversion is made at the composite rate of exchange, whereas the same are booked in the accounts by the C.A.A. & A. at the daily rate of exchange, the difference being adjusted under '068Miscellaneous General ServicesGain by exchange' or "268Miscellaneous General ServicesLoss by Exchange" as the case may be.
(iii) When loans are fully repaid, the balance lying under the head "Exchange variation' under the major head '' 602External Debt" is cleared by adjusting the same under Major etc. head ''068" or "268" according as the balance left represents a credit or debit.
(iv) Transactions of periodical remittances by way of transfer of heavy amounts of cash from India to High Commission of India, London and E.I. Washington and accounts received from HCI London and E.I. Washington except payment towards personal claims and chancery payments arising in HCI London and Chancery payments in E.I. Washington- shall be accounted for at the composite rates. Capital transaction relating to aquisition of property by missions abroad and all payments to international bodies towards India's contribution shall be converted at composite rates of exchange wherever such rates are prescribed for the relevant foreign currencies by the Deptt. of Economic Affairs, but in cases where composite rates are not prescribed, these transactions shall be accounted for at official rates of exchange prescribed by the Ministry of External Affairs.
Loss or gain arising on the above account shall be adjusted under the major etc. heads "268" or "068", as the case may be.
The remittances to Missions other than H.C.I. London and E.I. Washington and expenditure relating to personal claims appearing in the account of H.C.I. London and chancery payments in E.I. Washington will be accounted for at official rates of exchange prescribed by Ministry of External Affairs. The gain or loss arising on that account shall also be adjusted under the major etc. heads "068"/"268" as the case may be.
[Refer Correction Slip 103]
2. While each category of transactions that give rise to an element of loss or gain by exchange during the course of a year shall be adjusted under the Major etc. head "268/ "068", as the case may be but before the accounts of that year are finally closed and the Appropriation Accounts are prepared, the net effect of the transactions booked under these two major heads should be worked out and got reflected against a single head i.e., '068Miscellaneous General Servicesgain by Exchange' in case of overall gain, or against "268Miscellaneous General ServicesLoss by Exchange" in the case of overall loss during the year. In other words, net annual effect should be exhibited against either "068" or "268" as the ease may be.
3. "Loss by exchange" under the major head "268" is budgeted for centrally in the Demands for Grants "Other Expenditure of the Ministry of Finance". Accordingly, the Controller of Accounts, Ministry of Finance is responsible for the maintenance of the Appropriation Audit Register and preparation of Appropriation Accounts for this grant and accounts for the expenditure arising against this major head and the minor head "loss by Exchange" threreunder. The figures of expenditure received every month by him from various Accounts Officers will be entered in the Appropriation Audit Register for necessary action. Further, the Controller of Accounts, Ministry of External Affairs, Controller of Aid Accounts and Audit and other Accounts officers (other than of Railways) will continue to operate on these two major heads in the course of the year in their books and soon after the closure of the March (Supplementary) Accounts and as soon as the Statement of Central Transactions is prepared by them, they will intimate the figures of Receipt and Expenditure booked separately under the major heads "068Gain by Exchange" and "268Loss by Exchange" to the Principal Accounts Officer, Ministry of Finance.
4. The Principal Accounts Office, Ministry of Finance shall prepare a journal entry transferring the amount through a T.E. so that either of these two heads is brought to 'nil' by a deduct entry under the head thereby arriving at the net figure to be exhibited under "068Gain by Exchange"/"268Loss by Exchange" as the case may be. The correctness of the figures so consolidated in respect of Central Civil shall also be got checked by him by obtaining the figures from the Computer cell of this Ministry (C.G.A's Organisation). The figures so arrived at shall be used as material for the preparation of the Appropriation Accounts for the grant "Other Expenditure of the Ministry of Finance" and shall be used for any explanation for any saving or excess etc. under this Major head. A detailed statement leading to the netting of the figures shall also be furnished by him to the Appropriation Accounts/Finance Accounts Section of this Ministry (C.G.A's Orgn.) indicating sources from which the gross figures under "068" and "268" were obtained by him so as to enable this Ministry (C.G.A's organisation) to check the correctness of the figures intimated by the Controller of Accounts, Department of Economic Affairs in his Appropriation Accounts and in the statement for the Finance Accounts. This procedure shall be adopted for the financial year 1981-82 & onwards.
5. The existing system of various Principal Accounts Offices intimating each month the monthly figures and progressive figures booked under the head "268Miscellaneous General ServicesLoss by Exchange" to the Ministry of Finance, Department of Economic Affairs shall, however, continue.
6. They shall also furnish similarly a Statement each month for the receipts booked during the month under the head "068Miscellaneous General ServicesGain by Exchange", as well as progressive figures.
[Refer Correction Slip12]
Under agreements/contracts entered into by the Government of India with foreign Governments/ suppliers abroad, equipment, stores, etc. are sometimes procured on deferred payment basis. According to the terms of such agreements/contracts, specified sums are payable to the Foreign Governments/suppliers from time to time alongwith interest, if any, in terms of the conditions of the relative agreement/contracts. It has been held that the purchase of goods on credit while constituting a commitment to pay, does not ipso facto constitute a loan or borrowing. Accordingly, the fall value of the equipment/stores procured on deferred payment terms or on supplier's credit should be brought to account forthwith i.e. immediately on receipt of the plant and equipment or stores in question, by debit to the relevant service major head of account concerned, contra credit being afforded to a suitable 'suspense' head within the same service major head itself as in the case of Public Works Department. The credit under the 'suspense' head will be relieved as and when actual payments are subsequently made to the suppliers/foreign Government.
Interest payable on the deferred payment purchase has the effect of increasing the Value of the goods purchased and may, therefore, as and when paid, be debited to the same head to which the full value of the equipment, stores, etc. was initially debited.
The above procedure should be followed by all Ministries/Departments, with the exception of Defence, even if the purchases on deferred payment terms/supplier's credit are covered by issue of promissory notes or loans agreements, since the said imports constitute a commitment to pay the supplier over a period of time and the account adjustments prescribed as above are unaltered by the mode of such commitment.
In order to enable pay and Accounts Offices to carry out the required adjustments. Ministries/ Departments concerned should send advices (other than in the case of Departments in which the P.W. system of accounts is followed and the initial and subsidary accounts are compiled departmentally and rendered to the Pay and Accounts Offices), to the Pay and Accounts Office to carry out the adjustment in question as soon as the equipment, stores, etc. are received. In cases where accounts are compiled departmentally and rendered to a Pay and Accounts Office, the value of the equipment etc. obtained on deferred terms/supplier's credit should be reflected in the compiled accounts rendered to the latter.
[Refer Correction Slip 53]
The table below indicates the retention period of various accounts records to be maintained by the Pay and Accounts Offices. Irrespective of the period of preservation so prescribed, these records shall be preserved till completion of audit (statutory and internal) for the relevant period and objections settled. Further, the accounts records relevant to Appropriation Accounts and Finance Accounts will be preserved for the periods specified against each or till these documents are presented to Parliament, whichever is later. The provisions of Appendix 13 to G.F.Rs shall be applicable for the retention of records referred to therein.
NOTE: Life indicated in Col. (o) is to be reckoned from the date of close of the financial year to which the voucher register relates, unless otherwise specified.
Nature of Record(b)
|Provident Fund vouchers other than final payments||3|
|Provident Fund vouchers through which final payments are made to personal other than subscribers:|
|(a) To minors||30|
|(b) To other than minors not in accordance with declaration of subscribers||30|
|(c) To other than minors in accordance with declaration of subscribers||6|
|Provident Fund vouchers of final payments other than those mentioned in 7 (a) to (c) .||10|
|Vouchers pertaining to non-refundable withdrawals from Provident Fund||6 years from the date of sanction of withdrawal.|
|House Building Advance vouchers||6|
|Deposits payment vouchers other than personal deposits||7|
|Vouchers of payment from Savings Fund, Insurance Fund or of Insurance cover||10|
|D. C. R. G. vouchers||10|
|Commuted value of pension paid by the PAO||10|
II - OTHER RECORDS
|Register of files/vouchers/registers|
|(a) transferred to Departmental Recording Wing (i.e., old record room of the Department Office).||25 years.|
|(b) transferred to National Archives||permanent.|
|File Index-Register||10 years.|
|Register of valuables||5|
|Expenditure Control Register (now Bill Passing cum E.C.R)||3 years or till the Appropriation Accounts are discussed by the P.A.C. of Parliament, whichever is later.|
|Register of final post-check of pre-checked bills||I|
|7.||Inward Claim Register and supporting documents with Inward Claims||3 years or till the settlement of all items
in corresponding Broadsheet and of audit
for the relevant period and settlement of
audit objections, whichever is later.
|8.||Outward Claim Register|
|9.||Schedule of Debits / Credits|
|T. E. Register||1|
|Appropriation Audit Register||1|
|Summary of Transfer Entries||2|
|Office copies of J. Es.||I|
|Ledger and Trial Balance||5|
|Bank Scrolls with paid cheque/challans||5|
|Pension payment scrolls received from various Public Sector Banks||
"X" Pension contained in Appendix-13 of G.F.R. and para 13.16 of Civil Accounts Manual will be adhered to and these will be preserved till the completion of audit (Internal and Statutory) and settlement of objection.
|Counterfoils of cheque books||5|
|Review of Balances and papers connected therewith||5|
|Schedule of Deposits (including any subsidiary accounts) for the month of March in which any items (s) has (have) been credited to Government as lapsed deposits||30|
|Misc. correspondence regarding inter-Government and Reserve Ban adjustments||30|
|List of payments to be furnished by the D.D.Os||5|
|Account of receipts to be furnished by the D.D.Os.||3|
|Bank reconciliation statement||3|
|Register of R. B. D. H. Qrs./P. S. B Suspense||3|
|Compilation Book (Daily Posting Register)||3|
|Departmental Classified Abstract||5|
|P. W. Classified Abstracts||5|
|Departmental Consolidated Abstract||5|
|Office copies of Monthly Accounts prepared by PAOs/Pr. AOs for submission to Pr. A. Os./C. G. A. .||
One year or till the annual accounts have been prepared, whichever is later
|Monthly account rendered by P. A. Os.||One year or till the annual accounts have been prepared, whichever is later|
|30(A)||Monthly accounts of Public Works Disbursing officers with supporting schedules (except the schedules of Deposits), Schedules dockets, lists of payments and vouchers for payments other than those for land acquisition.||10 complete accounts years|
|30(B)||Schedule of Deposits (including any subsidiary account) for the month of March & Supplementary||30 complete Accounts years|
|30(C)||Vouchers for payment on account of acquisition of land.||Permanent Record|
|Broadsheet of PAO Suspense (Receipts and Payments) Reserve Bank Suspense and P, S. B. Suspense||3|
|Register of Govt. servants lent on Foreign Service.||10 years subject to condition that necessary information regarding recovery of contributions is recorded in Service Book.|
|Stock Register of Cheque Books||3|
|Account of Cheque Forms||3|
|Office Copies of intimation to bank regarding the cheque (forms) brought to use||3|
|Register of requisition of Rank Drafts||1|
|Office copies of letter forwarding cheque/Bank Draft||1|
|PAO's check register of outstanding pre-check cheques.||5|
|Register of Cheques drawn||15|
|Register of Cheques delivered||15|
|Establishment check register||3|
|Fly Leaf of Payment Register||3|
|Register of Special Charges||3 years subject to the condition that all sanctions still current arc noted in new Register with progressive exp. under proper attestation.|
|Register of Periodical Charges||Do|
|Register of Grants-in-aid & Scholarships||3 years after all the utilisation certificates have been received.|
|46.||Objection Book||3 years subject to the condition that all outstanding items are transferred to next OB with full details.|
|47.||Abstract of objections|
|Office copy of letter forwarding Schedule! of receipts/disbursements for adjustment in books of other accounting units||1|
|Office copy of letter tending cheque/Bank Drafts in settlement of accounts (inward)||1|
|Register of Broadsheet of Advances for HB/MC/and Interest thereon||2 years after recoveries have been fully effected and reconciliation with ledger figures effected.|
|Register of Sanctions to Contracts||3|
|Advices to the R. B. I (CAS) Nagpur by the Principal Accounts Offices and Clearance memos (mm CAS Nagpur.||5|
|Assignment/Letter of Credit in favour of cheque drawing DDOs. and correspondence relating thereto||2|
|Monthly branch bank statements and correspondence thereon||5|
|Monthly put-through statements -Reconciliation memoranda and correspondence thereon||
|Broadsheets/Registers maintained for reconciling differences between Central Government balance as shown in the book) of R. B. I. and as worked out in accounts (including P. S. B. Suspense, Reserve Bank Suspense and Reserve Bank Deposits)||5 years subject to the condition that the reconciliation with banks is completed.|
|57.||Reserve Bank Statement of monthly transactions for the Department/Ministry||5|
|58||IRLA Ledgers||10 years from the date of final settlement of accounts of the officers concerned after retirement etc. from Government Service.|
|59||File containing report and authorisation (including Form 7 of C.C.S. Pension Rules) for all types of pensions viz.; Superannuation, invalid, family pension etc.,||35 years from date of retirement/death or after the last instalment of family pension has been paid, whichever is later|
|60.||Register of P.P.OS maintained in the office of the P. & A.O. issuing the P.P.O.||35 years from the dale of last entry made in the register.|
|61.||Register of P.P.Os maintained in the Principal Accounts Office in which P.P.Os/authorities routed through that office for being Countersigned by the authorised officer and embossed with his special seal before being sent to the concerned Accounts Officer for arranging payment, are noted.||10 years from the date of last entry made in the register.|
|62.||Files relating to Commutation of pension if the same is not dealt with in the file referred to at (1) above.||35 years from the date on which commutation becomes final.|
|63.||Final withdrawal Register||10 Years|
|64.||Register of Temporary withdrawals||5 Years|
|65.||Register of Policies assigned to the President.||35 Years|
|66.||Index Register of Provident Fund||35 Years|
|67.||Provident Fund Ledgers & Registers and P.F. Extracts supplied by Accountants General at the time of departmentalisation of accounts in support of transferred G.P. Fund balances.||35 Years|
|68.||Provident Fund Broadsheet||2 years after reconciliation is effected with Ledger and all outstanding unposted items alongwith the debits appearing in the Broad Sheets have been duly carried forward to the subsequent year's Broad Sheet.|
|69.||G.P. Fund Schedules||3 Years subject to non-existence of unposted items for the period of the schedules and completion of agreement of Broad Sheet with Ledger for that period.|
|70.||Statement of Central Transactions||30 years|
|71.||Files containing correspondence regarding S.C.T.||10 years|
|72.||Files containing Union Govt. Finance Accounts and related correspondence.||10 years|
|73.||Printed Union Government Finance Accounts||Permanent (two copies)|
|74.||Files containing Appropriation Accounts and related correspondence.||20 years|
|75.||Printed Union Government Appropriation Accounts (civil)||Permanent (two copies)|
|76.||Printed Demand for Grants||5 years|
|77.||Files containing P.F. Final payment cases.||Preservation should be five years from the date of last authorisation.|
|78.||Files containing correspondence regarding Provident Fund allotment of GPF numbers, Transfer in and out of G.P.F. Balances etc.||5 years|
|79.||Printed reports of C. & A.G. of India||One year after the settlement of all the audit observations reported therein.|
[Refer Correction slip 61], [Refer Correction Slip 104], [Refer Correction Slip124], [Refer Correction Slip132]
[Refer Correction Slip142], [Refer Correction Slip 147], [Refer Correction Slip 166], [Refer Correction Slip 189]
[Refer Correction Slip 194], [Refer Correction Slip 204], [Refer Correction Slip 209]
Files, Registers, voucher bundles etc. shall be properly bound immediately after their closure. The outer cover shall conspicuously indicate, under the dated signature of the Accounts Officer, the proposed year of destruction of that record. They shall be kept serially arranged in the Sections concerned for not more than 3 calender years and transferred to the Departmental Record Room thereafter.
Files/Vouchers/registers etc. to be transferred to the Departmental Record Room will be accompanied by a List (in duplicate) with particulars as shown below :
|SI. No.||File No. or Details of vr. bundle or type of register||Classification & year of review||Date of actual destruction||Record Room Index No.|
The Departmental Record Room will, after verification of the entries in it, retain one copy of the List and return the other duly signed to the Section concerned. After indicating Record Room Index Number. In the Departmental Record Room these lists will be kept sectionwise in separate file covers. The concerned section shall also preserve the duplicate copies by pasting them in a Register,
No recorded file etc. may be issued from the Record Room except against a signed requisition which should indicate Record Room Index Number. The requisition slip will be kept in the place of the file issued. On return, the requisitioned file will be restored in its place and requisition slip returned to the section/official concerned. In case of non-receipt of the Record back within a period of one month of issue, the Record keeper shall remind the section concerned at an appropriate level to get back the tile/record expeditiously.
The Record Keeper shall be responsible for conducting an annual review to locate files to be destroyed as per the proposed preservation period indicated on the outer cover. These files/voucher bundles etc. will be referred to the Accounts Officer concerned for instructions regarding their destruction/further preservation along with a list in duplicate prepared in the form indicated below :
|SI. No.||File No. or Details of vr. bundle or type of register||Record Room Index No.||Instructions of
(To destroy or to preserve, upto the year........)
The instructions of the Accounts Officer for weeding out of the file/voucher bundle etc. or for its further retention as indicated in this Form shall be observed by the Departmental Record Room for destruction/preservation. In case of further preservation, the new date of destruction as indicated by the Accounts Officer shall also be conspicuously indicated on the outer cover. The duplicate copy of the latter list received back by the Departmental Record Room shall be returned to the Section concerned by it.
[Refer Correction Slip123]
The following powers are delegated to Junior Accounts Officers :
(i) Check of classification of vouchers of value upto Rs. 2,500 and rectification of any misclassification noticed therein by proposing transfer entries.
(ii) Closing of Broadsheets with 'nil' balance and of broadsheets in which there is no difference between broadsheet and ledger figures.
(iii) Attestation of opening and closing balances in Provident Fund Ledger cards except those relating to the staff of the PAO's own office which should be attested by the P.A.O.
(iv) Allotment of account numbers and attestation of entries in the Ledger and General Index Register in the Provident Fund Section. However, entries regarding acceptance of nomination and closing of accounts shall be made over the signatures of the Accounts Officer.
(v) Issue of annual statements of accounts to subscribers to General/ Contributory Provident Fund.
(vi) Signing of routine acknowledgements of receipts and reminders to Half-margin memos issued to D.D.Os.
(vii) Calling for acknowledgement of balance in the case of loans and advances. However, in the case of non-receipt of reply, reminders shall be issued at the level of Accounts Officer.
(viii) Attestation of entries in the objection Book.
[Refer Correction Slip 77]
|Opening balance||Receipts for the month||Total||Payments for the month||Closing balance||
|Date of bank scroll||Amount||Cheque No. and date||Amount|