Final Manual of Daos

Manual of the D.A.O’s  An excellent compilation of financial / procedural rules, instructions, and policies.  An invaluable handbook for practical guidance of Drawing and Disbursing Officers.  An essential ready reference for D.A.O’s.  A practicable plan to make D.A.O’s more efficient and consumerfriendly. DISCLAIMER: The District Accounts Office, Okara and its employees are not liable, without limitation, for any consequences incurred or loss or damage suffered by a department or any other person / entity as a result of their reliance on the information contained in this Manual and to the maximum extent permitted by law, exclude all liability (including negligence) in respect of this Manual. 2 TABLE OF CONTENTS No 1 2 3 4 Contents A brief introduction Functions of the D.A.O. Organizational chart Plan to make D.A.O. Sheikhupura a model in the Punjab. a) Objectives of the plan b) Tools to achieve the objectives. i) Precise knowledge of functions and responsibilities. ii) Eliminating discretion through provision of check-lists. iii) Observance of punctuality. iv) To seek co-operation of D.D.O’s. v) Fixation of time limits for the disposal of cases. vi) Leading by example. vii) Inter section and intra-section rotation of staff. viii) Provision of work-friendly atmosphere. ix) Discouraging use of outside influence. x) Discharging of receipt challans and paid vouchers. xi) Regular issuance of schedules of payments and receipts. c) Establishment of monitoring system. i) Section-wise inflow and outflow reports on weekly basis. ii) Inspections by the D.A.O’s. iii) Easy accessibility. iv) Regular returns to the higher authorities. v) Inspections by higher authorities. Long-term plan. Special issues. i) Sub-Treasuries. ii) Updating G.P. Fund accounts of the subscribers. D.A.O at a glance D.A.O at work. Annexes Page No 3-4 5 6-7 8 8 9 9 10 10 11 11 11 12 12 12 12 13 13 13 14 15 15 15 16 16 16 16-17 18 19-20 21-237 5 6 7 8 A BRIEF INTRODUCTION Under article 119 of the constitution of Islamic Republic of Pakistan, the custody of the Provincial Consolidated Fund, the payment of moneys into that fund, the withdrawal of moneys therefrom, the custody of other moneys received by or on behalf of the Provincial Government, their payment into, and withdrawal from the Public Account of the Province and all matters connected with or ancillary thereto are regulated by the rules made by the Governor. 3 The Governor of the Punjab has issued Punjab Financial Hand Books I, II & III i.e. Punjab Treasury and Subsidiary Treasury Rules, Punjab Financial Rules and the Departmental Financial Rules for the proper management of receipts into and withdrawals from the Provincial Consolidated Fund and Public Account of the Province. The rules referred to above envisage establishment of a District Treasury at each District Headquarters. The Governor of the Punjab, in exercise of the powers conferred upon him under Article 139 of the constitution of Islamic Republic of Pakistan, has framed the Rules of Business, 1974 for the Punjab Government. Various departments of the provincial government have been established in terms of Rule 3 of the Rules ibid. Finance Department, Government of the Punjab has been established for the purposes specified in schedule II of the rules referred to above. In brief, the Finance Department is responsible for supervision and control of provincial finances, preparation of provincial budget, formulation of financial rules and civil services rules relating to pay, perquisites and pension of civil servants, management of public debt and administration of Local Fund Audit Department and Treasuries. Treasuries and Sub-treasuries, thus, work under the administrative control of the Finance Department. Whereas the Treasuries follow directions of the Finance Department, while authorizing payments out of Provincial Consolidated Fund and Public Account of the Province, the accounts of the province are maintained, as required under article 170 of the constitution, in such forms and in accordance with such principles and methods as the Auditor General of Pakistan has, with the approval of the President, prescribed. Under the Punjab Treasury and Subsidiary Treasury Rules, the responsibility for the proper management and supervision of the Treasuries/District Accounts offices rests entirely with the Collector. The appointment of a Treasury Officer, as a representative and delegate of the Collector, in no way relieves the Collector of his responsibility. District Treasury, Sheikhupura, was converted into a full-fledged pre-audit office in 1974. Prior to this the Accountant General, Punjab, was performing preauditorial functions regarding payments out of Federal and Provincial Consolidated Funds and Public Accounts pertaining to District Sheikhupura. Since 1974, District 4 Accounts Office, Sheikhupura is performing all treasury and pre-audit functions for Government of Pakistan and Government of the Punjab in the district. After promulgation of the Punjab Local Government Ordinance, 2001,the District Accounts Office is also maintaining accounts of the District Government, Sheikhupura and operating District and Tehsil Provincial Accounts. 5 FUNCTIONS The District Accounts Office, Sheikhupura, performs the following main functions:a. Preparation and maintenance of civil accounts of the Government of Pakistan, Government of the Punjab, District and Tehsil Provincial Accounts (receipts as well as payments) on daily basis and compilation of civil accounts on monthly basis. b. Custody of valuables and stamps in the strong room and catering of treasury services / functions to the general public and government departments. c. To authorize payments out of provincial/federal consolidated fund and public accounts and District and Tehsil Provincial Accounts through passing pre-audit bills or cheques. d. e. f. g. h. i. j. To maintain Personal Ledger Accounts of government departments, local/autonomous bodies etc., and authorizing payments therefrom; To maintain General Provident Fund accounts of the federal and provincial civil servants and to authorize payments therefrom; To conduct post-audit of pensions directly paid by the banks; To issue schedules of payments and receipts to the drawing and disbursing officers; To inspect subordinate offices at regular intervals to ensure the implementation of all rules and instructions of the Government; To advise on financial and service matters, if so warranted. Disposal of pension cases by issuance of pension payment orders, and regular payment of pension. 6 ORGANIZATIONAL CHART Accountant General Punjab Finance Department Punjab Executive District Officer (Revenue) Collector/ DO (Revenue). District Accounts Officer-I District Accounts Officer-II G.A.D-I G.D.A-II Treasury Sub Treasuries Double Lock Admn,Pension D.A. Section Pay fixation G.P Fund Section Civil servants of Government of Pakistan and Government of the Punjab man the D.A.O jointly. Out of a total sanctioned strength of 74 civil servants, 38 are employees of the Federal Government whereas 36 are employees of the Government of the Punjab. At present 31 posts belonging to the Federal Government are filled and 7 posts lay vacant. Likewise one post of provincial government lies vacant. Appointment, posting, transfer and allied administrative matters of Federal employees are handled by the Accountant General Punjab, 7 whereas those of the provincial employees, by the Finance Department and to some extent, by the District Collector. According to the Federal Treasury Rules, there should be a Federal Treasury at each District Headquarters. Since the volume of work relating to the Federal Government is too small to justify establishment of an independent federal treasury at Sheikhupura, therefore, the provincial district Treasury/D.A.O, Sheikhupura, has been assigned the treasury/pre-audit work of the Federal Government. The D.A.O Sheikhupura is also a sub- office of the Accountant General Pakistan Revenues, Lahore. 8 SHORT AND LONG TERM PLAN TO MAKE D.A.O SHEIKHUPURA, A MODEL DISTRICT ACCOUNTS OFFICE IN THE PUNJAB. Objectives a. To ensure timely preparation of monthly civil accounts of the district in accordance with the directions of the Auditor General of Pakistan in order to ensure that all revenue and receipts collected and expenditure and disbursements made are correctly classified and the final account presents a complete and true statement of all the financial transactions of the district; b. Minimizing the time lag between receipt and disposal of claims seeking authorization of payments out of provincial/federal consolidated fund and public accounts of the federation/province and District and Tehsil Provincial Accounts; c. Implementing rules/instructions regarding withdrawals of money from the treasury; plugging avenues of misappropriation, embezzlement, and frauds as far as is possible for a D.A.O; detection and prevention of irregularities; intelligently watching financial interests of the state; d. To keep a vigilant eye on, and to bring to book those employees of the D.A.O who, with an intent to seek illegal gratification, through abuse of their official authority, cause inconvenience for the public or the civil servants with the result that general public or the civil servants form an unfavourable opinion about the intentions and effectiveness of the Government; e. To make treasury services (double lock) more efficient; to efficiently perform The logical consequence of the attainment of the above objectives are the end of wastefulness in expenditure from the public purse, marked reduction in public complaints, provision of visible relief to the public and restoration of public confidence and trust in government functionaries and institutions. all assigned duties and functions. 9 Tools to achieve the objectives i. ii. iii. Precise knowledge of functions and responsibilities. Eliminating discretion through provision of check lists. Observance of punctuality and ensuring that no employee of the District Account Office remains unauthorisedly away from the office during working hours. iv v vi vii viii ix x xi To seek co-operation of drawing and disbursing officers by imparting them information and training; Fixation of time-limit for disposal of cases. Leading by example. Inter-section and intra-section rotation of staff. Provision of work friendly atmosphere. Discouraging use of outside influence in matters such as postings, transfers. Ensuring regular issuance of schedules of payment. Discharging of paid vouchers. Establishment of monitoring system 1) 2) 3) 4) 5) Section wise inflow and outflow reports on weekly basis; Surprise inspections by the D.A.O. Easy accessibility. Regular returns to the higher authorities. Inspections by the higher authorities. As is evident from the following elaboration of the above points, sustainable enhancement in efficiency and markedly improved productivity are really attainable if the tools are employed wisely:i) Precise knowledge of functions and responsibilities Each civil servant has to perform defined duties and render specific services. Efficiency suffers badly if there exists any measure of ambiguity regarding functions and responsibilities of a civil servant. Let there be no doubt that for what purposes an employee has been recruited and is being retained in service and is being paid from the public purse. Unfortunately, some of our employees do not have precise 10 knowledge of duties assigned to them. They take refuge behind their ignorance when in an event of negligence/irregularity/fraud/complaint, responsibility is fixed. Communication of the jobs they are expected to do is also helpful in making supervisory control more effective and fruitful. Keeping the above goals in mind, besides other considerations, functions and responsibilities of all the employees of the District Accounts Office, Sheikhupura have been detailed in Annex-A. These are being circulated among all concerned and it is being ensured that they understand fully what this Annex means for them. ii) Eliminating discretion through provision of "Check Lists' District Account Office authorizes payments and disposes of claims after applying certain checks. It is not required to be answerable for each and every thing of each and every claim. Basically it is an office, which compiles accounts of the district and keeps the expenditure within the released budgetary allocations. To ascertain that whether the amounts claimed for immediate disbursement or shown as already disbursed out of permanent advances of the departments, are really required for disbursement or have actually been disbursed is not its responsibility. This office has expressly been prohibited from undertaking independent inquiries as such an action has been declared an encroachment on the functions of the executive authorities. What this office has to see while pre-auditing various categories of claims has been discussed in some detail in Annex-B. The auditors should always keep it in mind that they cannot go beyond the boundaries of these check lists. If a claim fulfils the requirements as stated in the relevant check list, it should promptly be processed. In case of deficiencies, all objections should be written in one go in clear and precise language on a separate paper in a way that these are easily legible. As all objections are challengeable in the courts of law or can be agitated against before other competent authorities, therefore no frivolous or unsubstantiated objection should be raised. iii) Observance of punctuality All employees are duty bound to be on their seats at 8-00 AM sharp and remain available to the public at large till 3-00 p.m. They should not remain unauthorisedly away from their seats during office hours. Unauthorized absence from duty during office hours causes great inconvenience for those who come to this 11 office from far-flung areas or from other districts in connection with their problems. Through an elaborate plan, given in Annex- C, it has been ensured that punctuality is observed and no employee remains unauthorizedly away from office during working hours. Prompt disposal of claims in accordance with the rules is not possible if punctuality is not observed. Avoidable delays occur if punctuality is ignored. Public complaints can be minimized through strict observance of punctuality. iv) To seek co-operation of drawing and disbursing officers Without active co-operation of the drawing and disbursing officers, ideal working of District Accounts Office is not possible. They can lessen the load of work on the D.A.O if they subject their claims, before their submission in the D.A.O to detailed scrutiny in the light of the relevant rules. The check lists are equally useful for them. They should prepare their claims in the light of the check lists so that avoidable objections are not raised. Active co-operation of drawing and disbursing officers is being sought through imparting them information regarding financial matters. Important points, which they need to focus on, have been abridged in Annex-D. v) Fixation of time - limits for the disposal of cases Apart from provision of checklist and laying down of duties and responsibilities of employees, fixation of time limits for the disposal of cases, is also necessary for expeditions disposal of claims. Time - limits have been fixed keeping in view routine load of work on the employees. These limits are maximum period during which a claim must be disposed of. These limits, in no way, block the way of earlier disposal of claims. Claims should be disposed of as early as possible but not latter than the limits prescribed in Annex- E. vi) Leading by example The conduct of the D.A.O. should be an example for his subordinates to follow. He should be punctual in attendance and prompt in disposal of work. He should keep a watchful eye on the private and public conduct of his subordinates; should take pains to educate, correct and guide his subordinates who have gone astray and try to bring them back to the straight path. If he is casual in attendance and is not devoted to his duties, his subordinates will also follow the suit. If he is not 12 able to lead by example, he will loose moral authority to lead. A.A.O’s and A.T.O. should also exhibit enhanced sense of responsibility and fairness. Sustainable enhancement in efficiency is possible if all work with a team spirit. vii) Inter-section and intra - section rotation of staff Frequent inter - section and intra - section rotation of staff is necessary to avoid complications which may arise due to long exposure to a particular kind of work. It is also necessary to check frauds. It is useful in imparting training of all kinds of work of this office to all the staff members. The notion that a particular employee is indispensable for an assignment should be broken. Graveyards are packed to capacity with the so-called indispensable persons. However, the rotation should be after some reasonable intervals. Nevertheless, no employee should be allowed to stick to his seat after the expiry of a period of three years. viii) Provision of work-friendly atmosphere Work-friendly atmosphere enhances efficiency. Provision of furniture, stationary, cleanliness, drinking water, suitable hot and cold weather amenities, toilets etc., go a long way in improving working capacity of the employees. Their personal problems should be lent a compassionate hearing. At present, furniture is not available according to the requirements. Hot and cold weather arrangements are also not satisfactory. Efforts are being made to provide the same. ix) Discouraging use of outside influence No civil servant is allowed to bring or attempt to bring political or other outside influence, directly or indirectly, to bear on the D.A.O or the Collector, in support of any claim arising in connection with his employment e.g. posting, transfer. Decisions taken under outside influence loose the chain of command in the D.A.O. Discipline in the office affects badly because of outside influence. Action under the rules shall be initiated against those who attempt to bring outside influence. Such civil servants can be surrendered to the A.G Punjab in addition to other action under the rules. x) Discharging of receipt challans and paid vouchers Each credit challan and paid voucher is discharged from the bank's credit and payment scrolls respectively. It is necessary to plug potential occurrence of frauds through fake credit challans and wrong/double payments. Any attempt of fraud is detectable if this discharging is accorded due importance. Presently discharging is being carried out cent percent in the District Accounts Office, Sheikhupura. 13 xi) Regular issuance of schedules of payments and receipts As per rules 2.25 of the Punjab Subsidiary Treasury Rules and Para 12.5 and 13.4 of Punjab Budget Manual, the District Accounts Office, is required to send consolidated monthly schedules of payments and receipts to the concerned departments for re-conciliation. This practice, besides checking pilferage of government revenues, is an effective check against fraudulent withdrawals of money from the treasury. The consequent re-conciliation corrects misclassification and wrong booking in the accounts. The requisite schedules are being issued regularly. However the departmental officers do not pay due attention to re-conciliation. As the departmental officers may be aware, they are personally responsible for carrying out reconciliation work and in case of their inaction, accounts figures are treated as final and correct, as decided by the Finance Department, circulated vide No.F.D.(M REC) 3 -1/ 89- 90 - 91 (Vol - III) dated 25-05-1992. Establishment of monitoring system To ensure that tools employed for attainment of stated objectives are producing desired results and are efficient enough to sustain tangible improvements, establishment of a reliable monitoring system is of key importance. Without a satisfyingly effective monitoring mechanism, sustainable improvements are not foreseeable. The following mechanism has been devised to monitor the effectiveness of the tools employed. It is not static or a final word on the subject. There is always a room for improvement. With the passage of time, experience will teach us what improvements can be made in the mechanism to make it more effective and responsive to our requirements. i) Section-wise inflow and outflow reports on weekly basis The A.T.O and the A.A.O's shall cause preparation, every week, of reports exhibiting inflow and outflow of claims in their sections and the fate of each claim. The reports shall portray, among other things, the number of claims received in the section, number of claims passed, number of claims returned unpassed, number of pending claims, reasons if claims have not been disposed of within the stipulated time, accumulation of arrears on a particular seat, arrangements made, and required to made, to clear the arrears. These reports shall be carefully examined by the concerned D.A.O and suitable action shall be initiated, if required, to streamline the working of the section. 14 ii) Surprise inspections by the D.A.O Regular and surprise detailed inspections by the District Accounts Officers can go a long way in converting District Accounts Office, Sheikhupura, into a model D.A.O in the Punjab. Inspection is a more direct and as such more positive and valuable tool of supervision. These inspections can produce desired results if the D.A.O is thorough and searching in his observation and gives constructive and helpful advice to his subordinates for rectifying shortcomings and defects. On the spot inspections help in:a) Revealing concealed arrears which are being delayed due to:i) ii) iii) b) c) d) e) f) g) Limited capacity of the civil servants, Want of proper guidance; Intention to receive illegal gratification from those who are affected by the delay. Maintaining discipline by strengthening the hands of the A.A.O's who may hesitate to assert them. Establishing a more direct and personal contact with subordinates. Detecting wastage or misuse of stationery. Enforcing punctuality and securing undivided attention to work during office hours. Discovering cases of negligence, lack of enthusiasm or devotion to duty. Revealing other defects affecting efficiency, such as:i) ii) iii) iv) v) Unsatisfactory working conditions. Non-availability of reference books, circulars, instructions and regulations. Unsystematic maintenance of records. Lack of co-ordination between various sections. Unsatisfactory personnel management. To ensure production of desired results and to prevent deterioration of the exercise of inspections to a routine formality, the points, which need to be focused during inspection, have been noted in Annex- F. A seasoned and competent inspecting officer, Mr. Muhammad Arshad, Inspector of Treasuries, Government of the Punjab, Finance Department, has prepared Part B of this Annex. The office of the Accountant General, Punjab, Lahore, has prepared Part C of this Annex. 15 iii) Easy accessibility The D.A.O should be readily available to those who want to ventilate their grievances. Doors of D.A.O. Sheikhupura are open to all and sundry. Attentive ears are lent to all desiring to communicate their problems to the D.A.O. Prompt action under the rules, is taken when required. This is an effective check against arbitrary use of official authority by the subordinate staff. iv) Regular returns to the higher authorities Certain returns e.g. monthly accounts of federal, provincial and District Governments (receipts as well as payments), reports regarding cases of final payment of G.P Fund, outgoing and incoming credit memo's, pension cases, audit reports, plus and minus statements of stamps and personal ledger accounts, are required to be submitted to the A.G. Punjab/Finance Department/Board of Revenue on stipulated dates. These returns are an important part of monitoring mechanism. Through these returns, working and productivity of the D.A.O is subjected to a constant check each month. v) Inspections by higher authorities The District Accounts Office is regularly inspected by the Inspector of Treasuries, Government of the Punjab, Finance Department, Inspector of Stamps, Board of Revenue, Accountant General, Punjab, Director General (DAOs), Collector, Director General Civil Audit, Punjab etc. These inspections make monitoring mechanism meaningful and effective. Audit and inspection reports play a constructive roll in identification of lapses and shortcomings and adoption of remedial measures to check their recurrence. 16 Long term plan The following measures are required to be taken to further enhance efficiency of the office:i) ii) iii) iv) v) vi) vii) viii) Construction of boundary wall. Provision of 2 electric water coolers. Computerization of pay roll and accounting. Construction of official residences. Installation of one more telephone connection. Installation of private automatic branch exchange - come intercom. Purchase of fax machine. Purchase of furniture. Special issues Sub - treasuries Three sub-treasuries _________ one each at Ferozewala, Nankana Sahib, Ahmedpur ______ are working under the jurisdiction of the District Accounts Office, Sheikhupura. The charge of the sub - treasury is held by Tehsildars. They have not specifically been trained for the job; nature of their administrative and revenue assignments keeps them frequently on tours; they have to devote sufficient time to their judicial duties for adjudication of revenue cases; since they are under direct subordination of Deputy District Officer (Revenue), therefore, generally, they take instructions of the Treasury Officers very casually. Presence of a S.A.S qualified, trained, full - time and answerable to the Treasury Officer immediate supervisory officer in the sub - treasuries can markedly improve the working of sub - treasuries. We do not need signing machines in the sub treasuries; we need full time, trained supervisory officer. The Siah Nawis at Ferozewala Sub - treasury is heavily over - burdened with the load of work. At least one more post of Sub - Accountant needs to be created for this sub - treasury. Updating G.P fund accounts of the subscribers For various reasons, G.P fund accounts in Sheikhupura are not updated. This causes avoidable problems for the subscribers. The reasons for non-updating of the accounts and apposite solutions are given hereunder:- 17 i) Due to an acute shortage of staff, only five auditors have been posted in the G.P Fund Section to maintain 46754 accounts of the subscribers. A.G Punjab would be requested to post more auditors in the D.A.O. for the purpose. ii) Accounts are late because of non - supply of ledger cards by the A.G, Punjab. Financial year 2001-2002 is nearing close but ledger cards, which were required to be supplied by July 1998, have not so far been supplied. iii) Due to missing in G.P Fund accounts, the D.D.O's do not devote sufficient attention to the G.P Fund schedules. No bill will be passed unless G.P Fund schedules have been attached with the bill. It may, kindly, be noted that this measure will result in returning of more than 95 % bills. Large-scale protests and complaints may also ensue. Without active co-operation of the District Administration, the work cannot be accomplished. iv) D.D.O's have been requested to reconcile statements of G.P Fund accounts with this office. Letters have been issued for the purpose. Missing credits shall be adjusted if D.D.O's respond and produce requisite certificates along with acquaintance rolls. 18 D.A.O at a glance Year of establishment No of District Accounts Officers No of Assistant Accounts Officers No of Assistant Treasury Officers No of Assistant Accountants No of Sub Accountants No of Senior Auditors No of Junior Auditors Class IV Staff No of Junior Clerk 1974 2 3 1 3 21 21 3 10 1 19 D.A.O at work Payment made out of Provincial Rs.2088187205/Consolidated Fund during 1997-98 Payments made out of Provincial Rs. 2163481464/Consolidated Fund during 1998-99 Payments made out of Public Account Rs. 81096212/of the Province during 1997-98 Payments made out of Public Account Rs.849128994/of the Province during 1998-99 Total payments made on behalf of the Rs.2899152417/Provincial Government during 1997-98 Total payments made on behalf of the Rs.3012610463/Provincial Government during 1998-99 No. of non gazetted civil servants 30362 (Provincial) who are paid monthly salary form the D .A.O No. of non gazetted civil servants 338 (Federal) who are paid monthly salary from the D.A.O No. of pensioners (Provincial and 8275 Federal) getting pension from the D.A.O Personal Ledger Accounts maintained 60 in the D.A.O No. Of gazetted civil servants who are 2921 paid monthly salary from the D.A.O Receipt of the Provincial govt. during Rs.2061092971/1998-99 of which accounts were maintained by D.A.O Receipts of the Federal government Rs. 1758560605/during 1998-99 of which accounts were maintained by the D.A.O Payments made on behalf of the Rs.341243490/Federal Government during 1998-99 No. of General Provident Fund 46754 Accounts maintained in the D.A.O No. of bills, cheques passed monthly 8521Avg Total value of stamps in the double Rs.405406075/- 20 lock. Total sale of stamps from the District Rs.67367677/Treasury during 1997-98 Total sale of stamps from the District Rs.70183513/Treasury during 1998-99 No. of Sub treasuries Total sale of stamps by the Sub. Treasury Ahmedpur during 1998-99 Total sale of stamps by the SubTreasury Ferozewala during 1998-99 Total number of valuables in the District Treasury Number of D.D.O's Number of Departments No. of Primary Schools No. of Middle Schools No. of Secondary Schools No. Intermediate Colleges No. of Degree Colleges No. of Hospitals, clinics No. of contingent bills received daily 3 Rs.946945/Rs.32506823/296 330 29 2414 320 184 7 6 149 62Avg 21 Annex- A Precise knowledge of functions and responsibilities 1. 2. Duties of Junior Auditor. Duties of Senior Auditors/Sub-Accountants, Assistant Accountants in D.A, GAD, Treasury and Compilation Section. 3. 4. 5. 6. 7. 8. Duties of Sadder Treasurer, Assistant Treasurer. Duties of A.T.O. Duties of A.A.O’s in D.A, G.A.D and Compilation Section. Duties of the D.A.O. Responsibilities of the Collector. Duties of the Inspector of Treasuries 22 Duties and responsibilities of the staff Disclaimer: An effort has been made to make the following as comprehensive and exhaustive as is possible. The officers /officials are bound to perform the following functions besides other which have been laid down elsewhere in any rules, manuals, codes, instructions etc. The District Accounts Officer, Sheikhupura is not liable, without limitation, for any consequences incurred or loss or damage suffered by a department or any other person/ entity as a result of their reliance on the information contained in this Manual and to the maximum extent permitted by law, exclude all liability (including negligence) in respect of the information given hereunder. Duties of Junior Auditors 1. Maintenance of the following sectional Diaries/Registers:• • • • 2. Ordinary Diary Urgent Diary Special Diary (Governor’s Directives etc.) Any other diary ordered to be maintained by the A.TO/ AAO/DAO. Collection of diary letters daily. • Noting down important contents of each letter /reference, indicating therein the name/designations of the sender, subject of the letter/reference and any other remarks etc. • Delivery of these documents daily to the concerned dealing assistants against dated initials. The special as well as other sectional diaries will also be maintained likewise. • Collection of bills daily from cheque section, comparing them with the covering list and delivery to the dealing assistant, after noting in the sectional bill register against dated acknowledgement. • • Delivery of return bill to the cheque section against dated acknowledgement to be obtained in the sectional bill register. Preparation of sectional bill report indicating the number of bills outstanding against each assistant in the section. -Preparation of ordinary Diary Report on every Saturday up to the last Saturday. Get the A.A .O/ A.T.O’s letters noted by concerned assistant 23 with their dated initials each Saturday. The report would be submitted to the A.A.O on coming Monday and Final Report would be submitted to the D.A.O on Tuesday for his approval or otherwise. Duties of Senior Auditors/Sub. Accountants/Assistant Accountants in D.A, GAD, Treasury and Compilation Sections. 1. 2 3. 4. 5. 6. 7. 8. Checking and processing claims in the light of check lists. 100% checking of complete functional as well as object classification on various bills/refund vouchers. 100% checking of totals of the bills etc. Verifications of signatures of the presenters /signee of the bill. Audit of sanctions. 100% sorting of budget allocation/appropriation on the bills, their comparison with figures recorded in his registers. Recording Proper certificates on of appropriate Establishment places on the bill of "Classification checked" "Total checked" and "Signatures verified". maintenance Register/Gazetted Audit Register/Contingent Charges periodical charges Register and other record concerning the audit of pay and allowances, T.A, contingencies, scholarships, stipends, refund vouchers, P.W.D cheques, P.L.A. cheques, pension payments. 9. 10. 11. 12. 13. 14. 15. 16. 17. Maintenance of T.A Register for gazetted civil servants. Disposal of claims within the stipulated period. Issuance of pay slip when occasion arises. Issuance of Last Pay and Service Certificate. Countersigning L.P.C's of non-gazetted civil servants on the occasion of their out of district transfer. Issuance of Service statements, G.P.F deductions certificate, verification of Income Tax Returns. To note all the sanctions and appropriations in the various registers daily for the review of the A.A.O. 100% post audit of pensions directly paid by the banks. To watch all changes in sanctioned strength of the establishment or addition to the post. 24 18. 19. 20. To dispose of all letters received through diary. Maintaining broad sheets of various advances. Preparation of receipt as well as payment account of the district as per distribution of work (cash book, departmental classified/consolidated abstract, schedule of payment, schedule of receipt). 21. 22. 23. 24. 25. 26. 27. 28. 29. Preparation of transfer/journal entries. Detection and correction of misclassifications made by the bank. Communication of receipt /expenditure figures to the concerned collecting/drawing and controlling officers. Collecting acceptance of receipt figures from the concerned authorities, within, stipulated period, in case there is no difference. Issuance of Schedule to payment of the concerned D.D.O's /controlling officers. Conducting monthly reconciliation of receipt/expenditure. Maintenance of all record pertaining to his assignment in the Sections and their safe custody under lock and key. Maintenance of personal files of Gazetted officers with proper indexing. Issuance of warning slips to D.D.O's/C.Os etc. where pace of expenditure is found to be excessive and budget allotment/appropriation seems to last earlier than the 30th June of the given financial year. 30. The dealing assistants are bound to perform their duties strictly in accordance with the rules. No unlawful order of A.T.O/A.A.O/ D.A.O should be accepted unthinkingly. In all such cases, written orders of the D.A.O. should be obtained. 31. 32. 33. 34. 35. To get each and every entry of Revenue Deposit receipt attested by the A.T.O and the D.A.O. To prepare lapsed Deposit statement Register. To link credit challan and bank scroll with vouchers seeking repayments of more than Rs.10000/To minus amounts withdrawn through reappropriations refunds from the schemes. Identification of pensioners. 25 Duties of Sadder Treasurers, Assistant Treasurers. 1. To watch that sufficient stock of stamps etc. is available in the Double Lock to meet with the requirements of the public and the government departments. 2. 3. To requisition stamps through annual forecast from the Chief Controller of Stamps, Karachi. To requisition cheque books of P.W.D from the Director General Accounts (Works), Lahore and that of P.L.A from the Accountant General, Punjab. 4. 5. 6. 7. 8. 9. 10. 11. To arrange supply of Refund voucher Books, receipt books, from the Government Printing Press, Lahore. To prepare monthly plus and minus statement of stamps. To issue stamps in the prescribed manner. To receive and deliver valuables on the orders of the District Collector. To maintain registers of Double Lock /Single Lock. To report regarding issuance of stamps in case in the prescribed manner. To supply stamps etc. to sub treasuries, other D.A O's and to get supply of stamps from other D.A.O's in cases of shortage. To maintain files containing policy letter/amendments in rules and various rates fixed by Govt. for sale of stamps/forms/plain papers etc. DUTIES OF A.T.O Main duties To supervise and control sections working under him. To hold permanent imprest money, verify establishment pay, T.A and contingent bills, service books, leave account of the staff and to deal with administrative cases of staff e.g. annual increments, disciplinary matters etc. Subsidiary duties Proper functioning of his section, to maintain atmosphere of general good with the public and to act as liaison person between the general public and the staff directly working under him. 26 Miscellaneous functions He assists the DAO in all matters relating to the working of the treasury side and acts as a link between his staff and the D.A.O and general public.Since administration of office is entrusted to the A.T.O, therefore be should focus on the following important points: 1. 2. 3. 4. Periodical returns are sent regularly on due dates, to the quarters concerned Inter section and intra section rotation of staff is carried out after proper intervals. Court cases and inquiries are attended to properly. The following courses of action is adopted in case of occurrence of fraud /serious irregularity/loss to public exchequer:i. ii. iii. iv. v. vi. Identification of irregularities/embezzlement/fraud. View point of the relevant officer/official. Constitution of fact finding departmental enquiry. Registration of case with the relevant authorities where the losses are established. Intimation to the District Collector /EDO (Revenue), A.G Punjab and Finance Department. Intimation to the Administrative Department concerned with details of 5. 6. 7. (a) Action required to be taken (b) Action already taken by the supervisory officer. To accompany the D.A.O on regular periodical and surprise inspections of the Sub. Treasures. To conduct inspections of his section after proper intervals. To get record destroyed when it becomes ripped for destruction. Records in the D.A.O are due for destruction on the expiry of the periods noted against each item of record as prescribed in Appendix 6 of the Punjab Financial Rules. Vol II, Para 243 and Annexure H of the Auditor General's Manual of Standing Orders, Para No. 335 of the Manual of Department Audit Sections and pare No. 249-B and Appendix II of the Manual of Routine Departmental, read with letter No. Reorg/BWN/D.O.R/86-114 dated 5-2-1987 of the A.G Punjab, and Rule 49 of Appendix 9 of PFR Vol II, Chapter 7, part III of the Punjab Stamp 27 Manual and the Punjab Renewal of Repetitive Licenses Rules, read with the Finance Departments, Letter No. I.T (FD) 3-8/99 dated 31-599. Duties of A.A.O’s in D.A, G.A.D and Compilation Section The Assistant Accounts Officer, (AAO) besides being ultimately responsible for complete discipline in his section, is required to scrutinize personally the following items of work before submitting to the D.A.O. 1 All sanctions accorded by the Competent Authorities of expenditure, grant of monetary advancement to various categories of civil servants and others, Appropriation and re-appropriation. 2 3 4 5 6 7 8 9 10 11 12 Arrears bills. Service statement, LPC and leave Account. Scale audit registers (gazetted and non gazetted) Last pay bill of the officers/officials who are retiring from Government Service. Pay slips in which fixation of initial pay is involved. 33 1/3 % review of pre-audit bills. Review of post audit. Certificate at the time of opening new audit register to the effect that the entries made in the new audit register are correct. To attest the charge reports in the Gazetted Audit Register. To get verification of the supplementary grants from the Finance Department as prescribed. To compare and initial all scales of establishment entered in the Audit Registers with the sanctions of the proper authority and note any alteration or revision. 13 14 15 To check and initial the classification noted on each page of the audit Registers and other cash registers and bills. To get all sanctions verified from the concerned authorities. To get all objections raised on the ground that the sanction of any authority above the D.D.O is insufficient, and to ensure that the sanctions are regularized. 28 16 17 18 19 20 To ensure that reports of bills are prepared regularly and bills are disposed of within the prescribe time - limits. To review all the sectional work before submission to the D.A.O. To ensure that all necessary prescribed pre-audit checks have been applied before a bill submitted to the D.A.O. To see and mark daily Dak received from the general diary. To maintain record/registers, with the help of a Senior Staff member. He is required to maintain the following record:i) Register of Insufficient sanctions. ii) Recovery of overpayment. iii) iv) vi) vii) viii) ix) Calendar of returns. Misclassification report. Register of special points. Reconciliation of receipt/expenditure register. Attendance register (C.L register). Register of outgoing LPC’s/Service statements and LPC’s of nongazetted staff countersigned. x) Register for record of LPC received from the D.A.O’s/A.G. Punjab and LPC’s of non-gazetted civil servants. xi) Important circulars, instruction. v) Overhauling of seats of assistants (Monthly). Duties of D.A.O. 1. All the audit registers/contingent register, receipt/account registers, registers of Double lock/single Lock placed before him are properly maintained and authenticated where necessary. Each page in the register is serially numbered and certified to the effect and no page has been torn out or replaced. 2. Only one register has been maintained for each category and no other register is started in case of misplacement of one, except with proper sanction. 3. To examine all sanctions accorded to the incurrence of expenditure. 4. Bill reports are being prepared properly, and according to schedule. 5. Departmental classified/consolidated abstracts have been maintained properly. 6. Reconciliation of receipt/expenditure figures is carried out timely and properly reported upon. 29 7. Maintenance of various records/Registers in the sections under him. 8. Charge report register along with statement at register files being hand our, is submitted to him on the eve of transfer of Sub-Accountant/Assistant Accountant/Senior Auditor/A.T.O and A.A.O. in the section under his charge. It would unfailingly be seen that proper handing over/taking over of charge has taken place before the civil servant concerned leaves the section. 9. To write a brief for his successor on his transfer. Responsibilities of Collector The responsibilities of Collector has been prescribed in the the Punjab Treasuries and Subsidiary Treasury rules, The appointment of subordinates such as District Accounts Officers in no way relieves the Collector from the above responsibility. Under the Subsidiary Treasury Rules, his responsibility extends not only to the security aspects, stock of valuables and immediate detection of any irregular practice but right down to the correctness of returns and the punctuality of their submission Under rule 1.3 (ibid), Collector is personally responsible to Government for the due accounting of all moneys received and disbursed and for its safe custody and that of other government property. Further he is bound, under the same rules to satisfy himself about the working through periodical examination of the D.A.O’s/Sub Treasuries. Under the same rules, unless the Collector is absent, he is also required to sign the prescribed periodical returns. The responsibilities and other requirements in this regard stand stipulated under rule 4 (2-5) of the Punjab Treasury Rules, read with Rules 1.1 to 1.3 (1-7) and 1.15 and 1.20 (b) of the Punjab Subsidiary Treasury Rules. Duties of Inspector of Treasuries 1. Main duties. a. Inspection of the District Treasuries. b. Preparation of inspection note on treasuries functions. c. Preparation of periodical reports on treasuries. d. Liaison with the District Accounts Officers. 2. Subsidiary duties. a. Meeting with the District Accounts Officers. b. Annual Inspection c. Treasuries affairs. 30 3. Miscellaneous functions. a. Surprise visit with higher officers of the treasuries. b. Departmental enquiries on accounts matter. c. Administrative inspection reports. 31 Annex-B Eliminating discretion through provision of check lists i) ii) iii) iv) v) vi) vii) viii) Gazetted Audit Department. Departmental Audit section. General Provident Fund Section. Cheque Section. Compilation Section. Pension Certificate and Report Section. Treasury Section Double Lock Section. 32 Gazetted Audit Department 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. Organizational chart and functions of the G.A.D.I. Organizational chart and functions of the G.A.D.II. Pay-meaning Pay Slip Issuance of pay slip on initial appointment. Issuance of pay slip on promotion from non-gazetted to gazetted post. Issuance of pay slip on award of promotion, selection grade, move-over, advance increments. Issuance of pay slip on transfer. Issuance of last pay and service certificate. Regular pay bills of the gazetted civil servants. Adjustment for the purpose of withdrawal of pay and allowances. Bills of arrears of increases in pay. Bills of leave salary, L.P.R, encashment of leave in lieu of L.P.R. Maintenance of leave account and furnishing certificate regarding admissibility of leave. Bills of subsistence allowance. History of service/service statement. Certificate of G.P Fund deductions. Income Tax returns. Certificate regarding reaching the maximum of a pay scale. Bills of re-imbursement of medical charges. T.A. claims of Gazetted civil servants/T.A advance. Attachment of pay of officers. 33 0RGANIZATIONAL CHART OF THE GAZETTED AUDIT DEPARTMENT-I D.A.O. A.A.O. S. Auditor Sub. Accountant. Sub. Accountant Sub. Accountant Junior Auditor Functions 1. To pre-audit claims of salary, T.A., D.A., reimbursement of medical charges and other claims of all Gazetted Officers of Central & Provincial Departments except S.S.Ts. 2. To maintain and consolidate and, if so required, to transfer the service record of all Gazetted civil servants of Provincial and Federal Departments except S.S.Ts. 34 0RGANIZATIONAL CHART OF THE GAZETTED AUDIT DEPARTMENT-II D.A.O. A.A.O S. Auditor S. Auditor S. Auditor Functions 1. To pre-audit claims on account of salary/T.A, D.A/ Medical reimbursement of the S.S.Ts working under audit control of the D.A.O. 2. To maintain and consolidate and if so required to transfer the service records of S.S.Ts. 35 Pay - meaning Pay means the amount drawn monthly by a Government servant as: the pay other than special pay or pay granted in view of his personal qualifications, which has been sanctioned for a post held by him substantively or in an officiating capacity or to which he is entitled by reason of his position in a cadre, and overseas pay, technical pay, special pay, and personal pay and any other emoluments, which may be specially classed as pay by the competent authority. Pay slip The District Accounts Officer informs each civil servant in BPS 16 and above what he is entitled to draw from the Treasury on monthly basis. This written information regarding entitlement of a civil servant is known as pay slip. Issuance of pay slip on initial appointment. The pay slip should normally be issued on production of the following documents: 1) 2) 3) 4) 5) 6) 7) 8) Sanction to the creation of post if one does not exist already along with provision of budgetary allocation Offer of appointment. Copy of notification of appointment and order of posting. A charge report showing the date fore or afternoon on which the charge is taken. Medical fitness certificate. Copies of Secondary School certificate to ascertain the age at the time of induction into Govt. service. Request for issuance of pay slip. A set of specimen signatures duly attested by an officer whose specimen signatures are available in the office. If the officer desires to draw house rent allowance, a certificate the effect that he is not residing in or provided with an official residence. If a designated residence is available for the officer and he wants to reside somewhere else, certificate from the administrative secretary of the department exempting the officer from residing in designated house. 36 9) It should be seen that appointment has been made by the competent authority in the prescribe manner at a time when there is no ban on fresh recruitment. If there is a ban on appointment through initial recruitment, relaxation of the ban must have been obtained from the competent authority. 10) Since it is compulsory to subscribe to the General provident fund from the date of entry in to government service, therefore, it is advisable to suggest the officer to get a G.P Fund number allotted first or before submission of his first pay bill. 11) Pay 1) 2) A copy of secondary school certificate. slip should normally be issued on receipt of the following Issuance of pay slip on promotion from non-gazetted to gazetted post. documents/points:Service book complete in all respects. A last pay certificate from the drawing and disbursing officer showing the date up to and the rate at which he has been paid as a nongazetted civil servant and also the date of relinquishing charge of the non-gazetted post. If the officer was serving under the audit jurisdiction of another D.A.O/A.G. Punjab the last pay certificate should bear countersignatures of the D.A.O/A.G. Punjab. 3) 4) 5) 6) 7) 8) 9) A charge report of taking over charge as gazetted officer Notification of promotion. Order of posting. Sanction to the creation of post if one does not exist already. A set of specimen signature duly attested by an officer whose specimen signatures are available in the office. Application for issuance of pay slip. If the officer desires to draw house rent allowance, a certificate to the effect that he is not residing in or is provided with an official residence, is required. If a designated residence is available for the officer and he wants to reside somewhere else, a certificate from the administrative secretary exempting the officer from residing in designated house is required. 37 10) It should be seen that a competent authority in accordance with rules of the relevant service has ordered promotion in the prescribed manner. Issuance of pay slip on award of selection grade, move over, advance increments. Pay slip should normally be issued after examining the following documents/points. 1) Valid orders issued by a competent authority granting promotion, selection grade, moreover, advance increments in accordance with the service rules in the prescribe manner. 2) 3) Charge reports, where required, of relinquishing the charge of the previous post and taking over the charge of the new one. If move over, selection grade, advance increments have been granted with retrospective effect, a revised pay slip will be issued by the D.A.O/A.G. Punjab under whose jurisdiction the officer was working on the date from which change of emoluments occurred if the officer was not working under the audit control of this office. 4) 5) Pay has to be fixed in accordance with the instructions of the Finance Department or the Finance Division, as the case may be. An application for issuance of revised pay slip. Issuance of pay slip on transfer When an officer is transferred from the audit jurisdiction of other D.A.O’s/A.G. Punjab to the audit jurisdiction of this office, a pay slip should promptly be issued to him on the production of the following documents/examining the following points:1) 2) 3) 4) 5) 6) Transfer orders against an existing vacancy or vacancy created through transfer orders or against a specially created post. Sanction of creation of post if one does not exist already. A report of taking over the charge. Application for issuance of pay slip. A set of specimen signatures duly attested by an officer whose specimen signatures are available in the office. A sealed copy of the last pay certificate issued by his previous audit office. 38 7) If the officer desires to draw house rent allowance, a certificate to the effect that he is not residing in or provided with an official residence or no designated residence is available for the officer. If designated residence is available and he wants to reside somewhere else, a certificate from the administrative secretary exempting the officer from residing in designated house is required. If last pay certificate of the officer shows that the officer was not drawing house rent allowance at his previous place of posting, a certificate from the Building Department to the effect that the officer has vacated his residence and has cleared all legitimate dues, is required. 8) Pay drawn in advance at the previous station or any other overpayments have to be adjusted/recovered by this office. Issuance of last pay and service certificate Last pay and service certificate on the prescribed form duly approved by the auditor General of Pakistan, should be issued on the production of the following documents/keeping in view the following points: 1) 2) 3) 4) Transfer order. Charge relinquishing report. Application for issuance of last pay and service certificate. Complete name, designation, address, department should be noted on the certificate so that the certificate reaches the proper functionary in the audit office to which the officer has been transferred. 5) All columns of the new Last Pay and Service Certificate should be properly filled in, with special emphasis on income tax deducted from the pay of the officer, balance of G.P Fund at his credit, any advances or other recoveries to be effected, service statement and leave account. Regular pay bill of the gazetted civil servants. The auditor should normally focus on the following points while pre-auditing regular pay bills of the gazetted civil servants:1) 2) The bill has been received through normal channels i.e. through token or diary. Function cum-object classification is correct. 39 3) 4) 5) Signatures of the officer tally with the specimen signatures. bill has been prepared in accordance with the pay slip issued by this office, on the prescribed form and properly filed in. No bill of an officer working in Ferozweala or Nankana Sahib has been presented through token or of an officer working in Tehsil Sheikhupura, through diary. 6) A bill has been presented on time. If there is considerable delay in submission of the bill, the delay has been justified or where necessary, sanction of the competent authority has been obtained. 7) If the bill pertains to the previous financial year, a certificate from the budget-controlling officer to the effect that the expenditure of the claim can be met from the budgetary allocation of the current financial year is required. This rule does not apply to payments made in July for the pay of June of the previous year. 8) 9) 10) 11) Continuation of sanction of Schedule of New Expenditure has been received if the officer is working in a temporary establishment. No court of law has attached the pay of the officer. His controlling officer has not sent his absence report. Recoveries of House Building Advance, Motor Car/Motor cycle Advance, G.P Fund advance, T.A. advance, pay advance, over payments etc. have been effected as required by the rules. (Formula for calculation of interest on H.B.A/M.C.A is as follows. 12) G.P Fund has been deducted according to the prescribed rates. Schedule of G.P Fund, indicating G.P fund Account Number and signed by the officer, has been attached with the bill. Rates of deduction of G.P Fund for different basic pay scales are given hereunder for the information of the auditors:S/No 1 2 3 4 5 6 7 B.P.S 1 2 3 4 5 6 7 W.e.f 1-7-87 Rs.25 Rs.40 Rs.45 Rs.45 Rs.50 Rs.50 Rs.55 W.e.f 1-6-94 Rs.50 Rs.85 Rs.85 Rs.90 Rs.95 Rs.100 Rs.100 40 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 13) 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Rs.60 Rs.60 Rs.65 Rs.70 Rs.75 Rs.130 Rs.140 Rs.150 Rs.175 Rs.250 Rs.300 Rs.400 Rs.500 Rs.550 Rs.600 Rs.110 Rs.120 Rs.125 Rs.130 Rs.145 Rs.250 Rs.265 Rs.285 Rs.325 Rs.450 Rs.560 Rs.780 Rs.920 Rs.1040 Rs.1120 Contribution on account of Group Insurance has been effected. Schedule of deduction has been attached with the bill. For the information and guidance of the auditors, the rates of monthly premium and sums insured are given hereunder:B.P.S 1-4 5-10 11-15 16 17 18 19 20 Monthly(Rs.) 9.13 10.65 18.25 27.38 36.50 53.22 63.87 76.04 Premium(Rs.) Sum Insured(Rs) 30,000/35,000/60,000/90,000/120,000/175,000/210,000 250,000/- As regards the Government employees in B.P.S 1-4, the premium of Rs.2.28 per employee per month is paid by the government of the Punjab and the balance of premium or Rs.6-85 per month is deducted from the pay of the employees in Besides death in service, the sums assured are also payable in case of death within five years after retirement. Formula for calculation of interest on N.B.A/N.C.A (If recovery started from 4th month of drawl) Month:9/79 41 Rate of Interest: 12.50% Amount of Advance Rs.40560 No of Instalments, 120.monthly INTREST= N= A= R= N(No of Installments + Rate of Interest) 2400 + 3 AR 1200 Principal Amount/Amount of Advance. Amount. Rate of Interest of respective year, Ca l c u l a t i o n 40560 X 12 X 12.50 + 2400 40560 X 3 X 12.50 1200 Rs.25661.25 + Rs.26828.75 Rs.1267.50 Rs.26829/- in round figure. (In case of recovery started from very next month) INTREST= N= A= R= N(No of installments + rate of interest) 2400 Principal amount/amount of advance. Amount. Rate of interest of respective year, 40560 X 12 X 12.50 2400 Rs.25661.25 Rs.25661 in rounds figures. In case of Federal Government’s employees, rates of premium and sums assured are as under:S/No Monthly pay (Rs.) Monthly premium Sum assured (Rs.) 42 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 14) Upto 1500 1550 to 2000 2001 to 2500 25001 to 3000 3001 to 3500 3501 to 4000 4001 to 4500 4501 to 5000 5001 to 5500 5501 to 6000 6001 to 6500 6501 to 7000 7001 to 7500 7501 to 8000 8001 to 8500 8501 to 9000 9001 to 9500 9501 to 10000 10001 to 10500 10501 to 11000 11001 to 11500 11501 to 12000 12001 to 12500 12501 to 13000 13001 to 13500 13501 to 14000 14001 to 14500 14501 to 15000 15001 to 15500 15501 to 16000 16001 and above (Rs.) 24.50 29.75 35.00 40.25 45.50 50.75 56.00 61.25 66.50 71.75 77.00 82.25 87.50 92.75 98.50 103,25 108.50 113.75 119.00 124.25 129.50 134.75 140.00 145.25 150.50 155.75 161.00 166.25 171.50 176.75 182.00 70,000 85,000 100,000 115,000 130,000 145,000 160,000 175,000 190,000 205,000 220,000 235,000 250,000 265,000 280,000 295,000 310,000 325,000 340,000 355,000 370,000 385,000 400,000 415,000 430,000 445,000 460,000 475,000 490,000 505,000 520,000 Benevolent Fund contribution has been made at the prescribed rates and schedule of deduction to this effect has been attached with the bill. For the information and guidance of auditors, the rates of subscription to the fund are given here under:- with effect from 4-9-88. S/No 1 2 3 4 5 6 7 8 Pay Group 501-600 601-700 701-800 801-900 901-1000 1001-1100 1101-1200 1201-1300 B.Fund 11 13 15 17 19 21 23 25 S/No 32 33 34 35 36 37 38 39 Pay Group 3601-3700 3701-3800 3801-3900 3901-4000 4001-4100 4101-4200 4201-4300 4301-4400 B.Fund 73 75 77 79 81 83 85 87 43 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 1301-1400 1401-1500 1501-1600 1601-1700 1701-1800 1801-1900 1901-2000 2001-2100 2101-2200 2201-2300 2301-2400 2401-2500 2501-2600 2601-2700 2701-2800 2801-2900 2901-3000 3001-3100 3101-3200 3201-3300 3301-3400 3401-3500 3501-3600 27 29 31 33 35 37 39 41 43 45 47 49 51 53 55 57 59 61 63 65 67 69 71 40 41 42 43 44 45 46 47 4401-4500 4501-4600 4601-4700 4701-4800 4801-4900 4901-5000 5001-5100 5101 and above 89 91 93 95 97 99 100 100 At the rate of 2% at present scales. 15) Revenue stamps are leviable on the pay bills as per details below:a) b) c) 16) Where salary does not exceed. Rs.2000/One Rupee Two Rupees. Where salary excess Rs.2000/- but does not exceed Rs.10,000/Where salary exceeds Rs.10,000/- Five Rupees. If required, in come tax has been deducted. For the guidance of auditions rates of deduction of income tax from the pay of officers are given here under:- 44 For salaried persons Where the total income:Exceeds Rs.100,000/Does not exceed Rs.100,000/Rs.200,000/Tax rate 5% Rs.5000/- + 10% of the amount exceeding Rs.200,000/Rs.300,000/Rs.100,000/Rs.15000/- + 15% of the amount exceeding Rs.300,000/Rs.200,000/Rs.30000/- + 20% of the amount exceeding Rs.300,000/Note:i) The deductions to be made for tax credit is as under:a) b) c) ii) Salaries cases (excluding Director) Women salaries cases (excluding Director) Rs.3000/-. Other cases Rs.2000/Surcharge at the rate of 10% of income tax is also payable in all the Rs.2500/- above cases except salary cases. 17) Trade Tax From 1-7-95 Rate of Professional tax of Income Tax payees have been increased from Rs.100/- Per Annum to Rs.200/- per annum. Adjustment for the purpose of drawl of pay and allowances Sometimes officers remain awaiting posting or it becomes necessary for one reason or the other, to adjust them against a vacant post for the purpose of drawl of regular pay and allowances only. Auditors should examine the following points in such cases:1) Orders issued by a competent authority regarding adjustment for the purpose of drawl of pay and allowances for a specific period against a vacant post. 45 2) If the officer has been adjusted against a newly created supernumerary post, then provision of budgetary allocation for the post is necessary or the budget controlling officer should certify that the expenditure involved can be met from the budgetary allocation for the current financial year. 3) If the adjustment has been made for a period pertaining to the previous financial years, a certificate from the budget-controlling officer to the effect that the expenditure involved can be met from the budgetary allocation for the current financial year is necessary. 4) 5) 6) 7) 8) Sealed last pay and Service Certificate issued by an audit office from where he drew his last pay. Reports of assuming and relinquishing charge of the post. Application of the officer. A set of specimen signatures of the officer duly attested by an officer whose specimen signatures are available in this office. A certificate to the effect that the officer is not residing in official residence. If his last pay and service certificate shows that he was not drawing his house rent allowance at his previous station, then a house vacation certificate from the Building Department if he wants to draw house rent allowance. 9) Orders regarding adjustment for the purpose of drawl of pay should be verified from the order issuing authority and payment should be authorized through a “payee’s account only” pay order in order to check frauds. 10) If the officer so desires, the audit office of the current place of posting of the officer should be authorized through sealed Last Pay and Service Certificate to make payment to the officer. 11) In case of submission of bill after issuance of pay slip, the bill should be carefully audited, keeping in view points discussed under heading of pre-audit of regular bills. Bills of arrears of increase in pay The auditors should particularly examine the following points while pre auditing bills of arrears of increases in pay of the officers:- 46 1) 2) 3) 4) The bill is on the prescribed form, properly filled in, signed and stamped and correctly classified. Calculations are correct and are in accordance with the revised pay slip issued to the officer. Claim is not time - barred and if so the requisite sanction has been obtained from the competent authority. With the exception of general revision of pay scales and regular promotion to next higher scale of pay, certificate of availability of budgetary allocation issued by the budget-controlling officer is attached with or recorded in the bill. 5) The requisite deductions have been made on the bill. Bills of leave salary, leave preparatory to retirement and encashment of leave in lieu of leave preparatory to retirement. The auditor should focus his attention on the following points:1) Orders have been issued by a competent authority under the leave rules for grant of leave, leave preparatory to retirement or encashment of leave in lieu of leave preparatory to retirement and these are in accordance with the leave account of the officer and recommendations of the audit office. 2) The officer has proceeded on leave after sanction of leave Submission of leave application can not be equated with the grant of leave. In case of ex-post fact sanction of leave, relaxation in the application of the leave rules has been obtained. The nature and description of leave should be specified. 3) The bill is on the prescribed form, properly filled in, signed, stamped, correctly classified with accurate calculations and the rates claimed are admissible. 4) Deductions have been made as per rules, in case of encashment of leave in lieu of leave preparatory to retirement, the following points merit mention:• If a civil servant has a leave at his credit for a period of 365 days or more he is entitled to get encashment of 180 days. 47 • • If the leave at his credit is less than 365 days, half of the Encashment of leave move of death:- IN case of death leave can be encashed. of a civil servant, his family is entitled to draw encashment upto 180 days, subject to availability of leave at the credit of the deceased. • When leave earned:- All service rendered by a civil servant qualifies him to earn leave in accordance with rules but shall not be earned during the period of leave. • Earning and accumulation of leave:- A civil servant shall earn leave only on full pay which will be calculated at the rate of four days for every calendar month of duty rendered. • Civil servant in vacation department: when he avails himself of full vacation in a calendar year at the rate of one day for every calendar month of duty rendered. ∗ ∗ When during any year he is prevented from availing himself of full vacation as for a civil servant in a non-vacation department for the year. • Leave on full pay:- The maximum period of leave on full • • • Without Medical Certificate With Medical Certificate 365 days 120 days. 180 days. pay that may be granted at one time shall be as follows:- On Medical Certificate from leave i.e. in entire Service • Leave on half pay: Leave on full pay may at the option of a civil servant, be converted into leave on half pay. There shall be no limit on the grant of leave on half pay so long as it is available by conversion in the leave Account. • Extraordinary leave (without pay): E.O.L without pay may be granted on any ground upto a maximum period of five years at a time provided a civil servant to whom such leave is granted has been in continuance service for a period of ten 48 years and in case of a civil servant has not completed ten years of continuous service E.O.L without pay for a maximum period of two years may be granted. • Maternity Leave: Maternity leave may be granted on full pay, outside the leave account, to a female civil servant to the extent of ninety days. Such leave may not be granted for more than three times in the entire service of a female civil servant except female civil servants employed in Education department. • Leave preparatory to retirement: The maximum period upto which a civil servant may be granted leave preparatory to retirement shall be three hundred sixty five days. Maintenance 1) of leave account and furnishing certificate regarding admissibility of leave: District Accounts officer is responsible to maintain leave accounts of all officers claiming their pay from this office. Leave accounts must be updated and complete. Leave accounts of the officers should be consolidated by getting their accounts transferred to this office from their previous audit offices. 2) Whenever controlling authority of an officer for wards his application for grant of leave to obtain report of the audit, the auditor should assign top priority to the job. Report regarding admissibility or otherwise of the leave should always be made with reference to the relevant rules. Bills of subsistence allowance The officers, who are placed under suspension, are entitled to the drawl of substance allowance at the rate of full pay and allowances they were drawing immediately before their suspension. Bills of subsistence allowance should be entertained during the currency of their suspension. The auditors should check such bills from the following angles:1. The bill is on the prescribed form, properly filled in, signed, stamped correctly classified with accurate calculations on admissible rates. 2. Deductions have been made in accordance with the rules. 3. Normally a suspension order remains operative for a maximum period of three months, it requires extension after the expiry of this period. History of services/ service statement 49 Maintenance of service statement of officers is the responsibility of the District Accounts Office. Upon transfer, service statement should always form part of last pay certificate. Service statement of officers should be consolidated by collecting the same from previous audit offices of the officers. In majority of cases, delay in issuance of pension payment orders on retirement of officers is caused by the nonavailability of consolidated service statement. This delay is avoidable if the auditors educate the officers and take some measure of interest in the consolidation of service statement. Certificate of G.P fund deductions Certificate regarding deductions of General Provident Fund from the pay of officers should be issued on verbal or written request of the officer or on request of the auditor or Assistant Accounts Officer concerned in the G.P. Fund Section. Full name designation, place of posting of the officer should always be mentioned in the certificate along with rates and months of deductions. Income tax returns Officers earning taxable income are required under the law to submit their tax returns before target dates. They are required to get their tax returns from the District Accounts Officer verified. The auditors should carefully check these returns and after meticulously examining and comparing them with the audit register, verify them as quickly as possible. Certificate regarding reaching the maximum of a pay scale Administrative departments, generally before granting move over to an officer to the next higher pay scale, demand production of a certificate issued by the District Accounts Officer concerned to the effect that the officer reached the maximum of a given pay scale on a particular date. This certificate should immediately be issued, after verifying the fact from the audit register, to the officer upon his written or verbal request. However the sentence that the officer is entitled to move over from B.P.S……….w.e.f………should never be included in the certificate as grant of move over is subject to fulfillment of certain requirements to the satisfaction of the Departmental Promotion committee. No hesitation should be shown in the issuance of the certificate twice, thrice or any times on the request of the competent authority. 50 Bills of re-imbursement of medical charges Bills of re-imbursement of medical charges should be audited keeping in view the following points:1) The bill is on the prescribed form, properly filled in, signed, stamped, correctly classified, indicating budgetary allocation with no errors in calculations. 2) The expenditure has been incurred for purchase of medicines necessary in the opinion of the authorized medical attendant, for the restoration of health of the officer or his family members wholly dependent upon him. 3) Prescription by the authorized medical attendant, duly countersigned by the Medical Superintendent of the Govt. Hospital before actual purchase of medicines, has been attached with the bill. 4) 5) Cash memo of purchase of medicines, duly attested by the authorized medical attendant has been attached with the bill. Non - availability certificate issued by the M.S, machine -numbered and embossed, to the effect that the medicines purchased or their effective substitutes were not available in the hospital and that tonics, vitamins, minerals or other non - reimbursable items have not been included in the certificate, should accompany the bill. 6) Sanction for re-imbursement of medical charges accorded by a competent authority is necessary for the re-imbursement. This is stated for the information and guidance of the auditors that as per rules, Heads of Attached Departments and District Coordination Officers can accord sanction of upto Rs.10000/- and Administrative Departments upto Rs.20000/- Sanction of the Finance Department is necessary for claims in excess of Rs.10000/7) 8) Budget is available in the relevant code of classification. Under certain circumstances, civil servants of the federal government can claim re-imbursement of medical charges for treatment in private hospitals. 9) Officers are entitled to re-imbursement of medical charges for out-door as well in-door treatment subject to sanction by the competent authority, availability of budgetary allocations and fulfillment of other 51 formalities, there are no limitations on the amount of re-imbursement. In case of non-gazetted civil servants, expenses in case in-door treatment are reimbursable. T.A. claims of gazetted civil servants, T.A. advance In auditing a traveling allowance bill, the following should be checked:1) The bill is on the prescribed form, properly filed in, signed, stamped, correctly classified with no errors in calculations and with budget provision noted on the bill. 2) 3) 4) 5) 6) 7) 8) Rates of pay, daily, mileage allowance are correct. The controlling authority of the officer has countersigned the bill. Journeys have been undertaken for the purposes for which T.A. is admissible. Distances covered noted in the bill are correct. There is no halt for more than ten days at a particular station. No T.A is admissible for journeys of 16 kilometers within the radius of the headquarters. Rates of daily allowance are given hereunder for the guidance of the auditors:Daily allowance Pay 1245-2000 2001-3000 3001-4000 4001-5000 5001-6000 6001-7000 7001-8000 8001-9000 9001-10000 10000 and above Special 80 100 120 145 175 215 260 300 350 400 Ordinary 65 85 100 120 150 180 255 280 300 350 52 Transportation charges on tours or on transfer Rates/km. with effect from 1-7-87 00.60 00.20 S/No 1 2 source Motor car Motor cycle with effect from 1-6-94 1.20 00.40 Mileage allowance S/No 1 2 3 4 source Motor car/Taxi Motor cycle Bicycle, Animal or foot Public Transport B7 5 and Above Public Transport B6 and Below Categories with effect from 1-7-87 B-17 and Above or Pay Rupee 2840 and Above 910-2840 All Excluding B-1 and 2 B-1 and 2 00.20 00.30 Rates/km. with effect from 1-7-87 2.00 00.65 00.50 00.32 with effect from 1-6-94 3.00 .1.00 00.75 00.50 S/No 1 By Air (E),Highest in Railway First Class Sleeper First Class Sitter Lowest Class with effect from 1-6-94 B-17 and Above or Pay Rupees 5330 and Above 1725-5330 2 3 4 53 Attachment of pay of officers The District Accounts Office executes orders of attachment of salary of officers issued by a competent court of law. On receipt of such orders, the auditor should follow the following course of action:1) 2) Orders of the court should immediately be noted in the audit register of the officer and be placed on the personal file of the officer. On receipt of bill, two pay orders should be affixed on the pay bill. Through pay order in the name of the officer whose pay has been attached, payment of the first hundred rupees and one-half of the remainder of the salary of the officer be authorized . For the rest of the salary, a separate pay order payable through Govt Bank Draft or pay order, as the case may be, to the court issuing attachment orders be affixed on the bill. The court shall deposit the contents of its pay order under head “Revenue Deposits”, and shall authorise payment, when deemed proper, through refund voucher in the prescribed manner. 3) The court, on receipt of attachment orders, be informed, through a letter, that its orders have been noted for compliance and shall be executed in accordance with the law when the officer submits his pay bill. 4) If the court withdraws its orders before execution, the officer shall draw his salary as if no such orders had ever been issued. Orders of withdrawal of attachment should be noted in the audit register and be placed on his personal file. 54 Departmental Audit Section 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. Organizational Chart. Functions of the Section. Regular pay bills of permanent establishments. Creation of temporary establishments and regular monthly pay bills there of. Abstract pay bills. Adjustment for the purpose of drawl of pay and allowances. Countersigning last pay certificate of officials. Attachment of pay of officials. Early payments in special cases. Effecting recoveries. Arrears bills. Bills of leave salary, L.P.R. and encashment of leave in lieu of LPR. Re-imbursement of medical charges. T.A. bills of officials. Re-appropriation of budgetary allocations. Abstract T.A. bills. Contingent bills. Personal ledger accounts, pension contributions, Grants-in-aid to Municipalities. Advances to officials. Pay fixation 55 0RGANIZATIONAL CHART D.A.O. A.A.O. S.Auditor S. Auditor S.Auditor S.Auditor S.Auditor S..Auditor S.Auditor S.Auditor S.Auditor Junior Auditor S.Acct N. Qasid Functions 1) 2) 3) 4) 5) To pre-audit pay bills of non-gazetted civil servants (Provincial & Federal). To pre-audit contingent claims of government departments (Provincial & Federal). To prepare civil accounts of payments of the government of the Punjab. To prepare provincial cash book of payments of the district. To authenticate pay of non-gazetted civil servants fixed by their departments. 56 Regular pay bills of permanent establishments:The auditors should devote their attention to the following points while preauditing regular monthly pay bolls of permanent establishments:1) 2) 3) 4) 5) 6) The bill has been submitted by a competent drawing and disbursing officer. The bill is on the prescribed form, properly filled in, signed, stamped. Signatures of the drawing and disbursing officer tally with the specimen signature. The bill has been correctly classified. Arithmetical calculations of the bill are correct. Amount of the bill and number of posts claimed are not in excess of what was drawn in the previous month .In case of variation, a variation statement, justifying the difference, has been attached with the bill. In case of excess the number in posts claimed in comparison with the previous month, documents concerning officials freshly included in the bill should be attached with the bill. Increase in the number of posts claimed can occasion due to (1) fresh appointments (11) transfer (111) promotion. In case of fresh appointment, the following documents are required for examination of the audit:i) Offer of appointment. ii) Medical fitness certificate. iii) iv) Posting orders. Joining report v) Matriculation certificate and NIC. It may also be ensured that no initial recruitment is made during the currency of an order issued by a competent authority banning initial recruitment. In case of appointment through transfer, the following documents are required:i) Transfer orders. ii) Last pay certificate issued by the drawing and disbursing officer and in case of transfer from another countersigned by the concerned D.A.O. iii) iv) Joining report. In case of promotion; promotion orders issued by a competent authority along with orders of posting, relieving and joining reports are to be seen by the auditor. 57 7) 8) 9) 10) 11) 12) Posts claimed are not in excess of the sanctioned posts. Names, designations, rates of pay, allowances, deductions, gross and net totals have been entered in the relevant columns of the pay bill. Net amount of the bill has been recorded in figures as well as in words. The drawing and disbursing officer has signed the requisite certificates. The absentee statement is filed in or “no leave” certificate is furnished. In case of leave salary, orders sanctioning leave and relieving reports are furnished. In case of return from leave, orders of posting as required under Rule 29 of the Revised Leave Rules 1981 and joining reports are attached. If joining time has been availed in excess of what is permissible under the rules, approval of the competent authority for extenuation in joining time has been obtained. For guidance and information of the auditors, the formula of admissibility of joining time is reproduced hereunder:- Maximum 30 days joining time is admissible under the Rules. i) Six days are allowed for preparation, in addition a period to cover the actual journey to be calculated as follows:a) For the period of the journey (which he travels or might travel) one day for each 250 miles, by rail. b) A day is allowed for any fractional portion journey distance prescribed as above. c) A holiday does not count as a day for the passage of calculation in this rule but holidays are included in the maximum period of 30 days. d) When air journey is performed six days for preparation and days actually taken in air journey should be allowed as joining time. 14) House rent allowance is admissible at the rate of 45 percent and 33 percent of the initial stage of B.P.S of 1991 in big and ordinary cities respectively. It should not have been claimed on the running pay of the officials. 15) General Provident Fund has been deducted from the pay of the officials at the following rates:- 58 S/No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 B.P.S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Wef 1-7-87 Rs.25 Rs.40 Rs.45 Rs.45 Rs.50 Rs.50 Rs.55 Rs.60 Rs.60 Rs.65 Rs.70 Rs.75 Rs.130 Rs.140 Rs.150 Rs.175 Rs.250 Rs.300 Rs.400 Rs.500 Rs.550 Rs.600 Wef 1-6-95 Rs.50 Rs.85 Rs.85 Rs.90 Rs.95 Rs.100 Rs.100 Rs.110 Rs.120 Rs.125 Rs.130 Rs.145 Rs.250 Rs.265 Rs.285 Rs.325 Rs.450 Rs.560 Rs.780 Rs.920 Rs.1040 Rs.1120 Subscription to G.P Fund is compulsory and over - subscription is not allowed. Schedules of G.P Fund have been attached with the bill and are signed and are in accordance with the deductions shown in the pay bills. 16) 17) 18) Benevolent Fund has been deducted and a schedule of deduction has been attached with the bill. Premiums of Group Insurance have been deducted from the pay of officials and a schedule to this effect has been attached with the bill. If the bill pertains to the previous financial year, a certificate from the budget-controlling officer that the expenditure of this bill can be met from the savings from the budgetary allocation of the current financial year is attached with the bill. 19) The bill has been presented on time. In case of delay in submission, sanction to investigation of time-barred claims has been obtained. No claim against Government, with some exceptions, not preferred within six months of its becoming due can be paid without sanction of the Accountant General. Investigation of claims more than one year old 59 shall be sanctioned by the following:Administrative Department and Full powers in respect of T.A. claims not more than three years old and other claims not more than 6 years old. Officers in Category II, III, IV. Full powers in respect of claims not more than 3 years old of government servants whom they are competent to appoint. 20) 21) 22) 23) No bill of diary has been presented through token and vice versa. Payment to the institutions of elementary education has been authorized through a pay order bearing stamps “payee’s account only” In bills of December, annual increment certificate has been attached. Adhoc appointments are not allowed in B.P.S 1 to 15 under the rules. Creation of temporary establishments and regular monthly pay bills thereof The auditors should keep in view the following points while entertaining sanctions for the creation or continuation of temporary establishments and regular pay bills thereof, in addition to normal checks applied to regular pay bills of permanent establishment:1) Sanction for creation or continuation of a temporary establishment, accorded by the Finance Department, for a defined period, along with provision of budgetary allocation is available. It is advisable to get the audit copy of sanction confirmed from the Finance Department. 2) 3) If a entirely new establishment drawing and disbursing officer has been notified for the said establishment by the Finance Department. In case of sanction of the Finance Department being collective for a number of establishments, the departmental authorities have notified distribution of posts and budgetary allocations among various establishments. 4) If the Finance Department has accorded sanction without provision of additional budgetary allocations and subject to the condition that the department shall arrange funds from within its allocated budget, the 60 budget controlling authority should furnish a certificate that the expenditure involved can be met out of budgetary allocations of the current financial year. 5) No payment is allowed to a temporary establishment beyond the period specified in the sanction. The assumption that a District Accounts Officer can allow payment, on the request of the DDO on his furnishing indemnity bond, on provisional basis, for a period of three months in anticipation of sanction, is without foundation and is baseless. All requests for provisional payments should, therefore, be rejected summarily. Abstract pay bills The pay abstracts of the district police are regulated by departmental rules, and are stated, so for as regards the lower grades, in detail of grades. There is no need of mentioning names in the monthly pay bills of lower subordinates. However detailed schedules of deductions are required as in the case of other departments. The drawing officer should furnish the following certificate, “Certified that I have satisfied myself that all pay included in bills drawn 30 days previous to this date, with the exception of those details below (of which the total has been refunded by deduction from this bill) have been disbursed to the proper persons and that their receipts have been taken in acquaintance rolls filled in my office, with receipt stamps duly cancelled for every payment in excess of Rs.20. Further certified that all persons for whom pay has been drawn in this bill have actually been entertained” Adjustment for the purpose of drawl of pay and allowances The auditor should pre-audit claims of officials on account of adjustment for the purpose of drawl of pay, with particular emphasis, in addition to normal checks applied to regular pay bills, on the following points:1) 2) 3) A competent authority has issued valid orders of adjustment for the purpose of withdrawal of pay and allowance. Last pay certificate issued by the drawing and disbursing officer, and where required countersigned by the DAO, is attached with the bill. Charge relinquishing and assuming reports duly countersigned are attached. 61 4) 5) The bill is for the period for which official has been adjusted for the purpose of drawl of pay and allowances. The rate of house rent allowance is that which is admissible for the post against which adjustment has been made e.g. an official who remains awaiting posting in Ferozewala (where rates of house rent of that of Lahore are admissible) and adjusted in Sheikhupura, shall draw house rent allowance at rates admissible in Sheikhupura. 6) 7) The post against which adjustment has been ordered remained vacant during the period for which adjustment has been made. In case of adjustment for periods relating to the previous financial year, a certificate regarding availability of budget from the allocations for the current year, issued by the budget-controlling officer, is required. 8) In case of adjustment for considerably long period, production of service book of the official and his personal appearance should be insisted upon to plug any avenue of fraud. Though D.D.O. is responsible for the amounts drawn, yet exercise of due diligence is in public interest. 9) If the official has been adjusted against a newly created supernumerary post, then provision of budgetary allocation for the post is necessary or the budget controlling officer should certify that the expenditure involved can be met from the budgetary allocation for the current financial year. 62 Countersigning last pay certificate of officials Last pay certificates, in case of transfer/adjustment of officials of all departments of the provincial government to other districts, are required to be countersigned by the concerned D.A.O/A.G. Punjab. When an L.P.C is submitted for countersignatures, the auditor shall examine the following documents to ascertain its genuineness:i) ii) iii) iv) v) Transfer/adjustment orders issued by a competent authority. Service book of the official, complete in all respect. Charge reports. Office copy of the establishment bill through which the official drew his last pay. Last pay certificate issued by a competent D.D.O and, in case of Education Department, countersigned by the District Education Officer concerned. Signatures on the L.P.C. tally with specimen signatures. vi) In case of inter - divisional transfer in Education Department, a certificate should be got recorded on the L.P.C by the D.D.O. to the effect that orders regarding inter-divisional transfer have been reconfirmed from the issuing authority and found genuine. vii) In case of L.P.Cs of officials working in elementary wing of the Education Department, a certificate by the D.D.O. that the appointment of the official has been/has not been found bogus and fake in Army Survey or the services of the official have been/have not been terminated and the official has been allowed to work as the operation of the termination orders has been suspended by a competent court of law. viii) ix) Pay fixed by the department and verified by the audit should be rechecked to ascertain its correctness. If all things are found in order, the following certificate should be recorded on the L.P.C. Signatures of the D.D.O verified x) It may be kept in mind that the officials face innumerable problems for the production of all the above documents, or in some cases, original appointment orders are not available to them. The introduction of the 63 measure of mandatory countersignatures by the D.A.O is to check, prevent, and detect fake appointment through bogus transfer orders and L.P.Cs. Therefore if the official establishes his bonafides beyond reasonable measure of doubt and to the satisfaction of the DAO, L.P.C may be countersigned even in the absence of one or more of the above documents. This leniency is essential in view of limited joining time and other hardships the official may face for collection of all the documents. xi) If sufficient space is not available in the audit register to note those L.P.Cs which have been countersigned by the office, separate ordinary register should be opened to note the same Attachment of pay of officials Some courts of law, because of their limited knowledge of auditing and accounting procedures and financial rules, order the D.A. O’s to attach salary of civil servants in B.P.S 1to 15 . As the auditors may be aware, such orders are void----------------as they run contrary to the rules and a D.A.O cannot lawfully implement them. Such orders require no action. These may be filed without getting any orders from the Assistant Accounts Officer or the District Accounts Officer. A letter of the District Accounts Officer, Sheikhupura, on the subject and reply of the Honourable District and Session Judge. Sheikhupura, thereto are reproduced hereunder for ready reference and guidance of the auditors. 64 OFFICE OF THE DISTRICT ACCOUNTS OFFICER, SHEIKHUPURA NO.DAO/SKP/DA/H.M/278 To The District and Sessions Judge, Sheikhupura. Subject:ATTATCHMENT OF PAY AND ALLOWANCES OF NON-GAZETTED CIVIL SERVANTS BY THE COURTS. Sir, 1. With utmost respect, I would like to make the following submissions:a) According to rule 5.9 (b) (3) of the Punjab Financial Rules, Vol-I, orders of the courts regarding attachment of pay of civil servants working in B.P.S 16 and above are to be effected by the District Accounts Officer concerned. In case of attachment of pay of civil servants in B.P.S 1 to 15, the orders of the courts are to be implemented by the head of the office where the civil servant whose pay is ordered to be attached performs his official duties. (A photocopy of the rule is enclosed for ready reference). b) According to Para 117 of the Audit Manual, audit of pay of nongazetted Government servants on provincial scale and others should be conducted by numbers. (Copy enclosed for ready reference). 2. In view of the above, the orders issued by the Honourable courts whereby attachment of pay of non-gazetted civil servants is directed to be attached cannot be implemented by this office. Only the departmental heads of non-gazetted civil servants can implement such orders. 3. I am in receipt of a number of orders issued by various courts of Sheikhupura district where through I have been directed to attach pay of certain non-gazetted civil servants. In case of non-compliance of the court orders, I am either directed to appear in the court or directions have been issued for issuance of arrest warrants. DATED 03-11-1998. 65 4. In this regard, certain verbal submissions were made before your honour by the District Accounts Officer I & II Sheikhupura, in the last week. I shall be all thanks if you may kindly issue necessary instructions to the judicial officers working under your kind control. It goes without saying that frequent appearances of civil servants in the courts, which are avoidable, badly affect Govt. work and cause problems. Thanking you Your obedient servant, Muhammad Akhtar District Accounts Officer Sheikhupura. 66 From: District and Sessions Judge, Sheikhupura. To: 1. All the Addl. District & Sessions Judges in District Sheikhupura. 2.The Senior Civil Judge and all The Civil Judges in District Sheikhupura. 3. All the Judicial Magistrates in District Sheikhupura. No. _____________ Subject:Dated _________________. ATTACHMENT OF PAY AND ALLOWANCES OF NON- GAZETTED CIVIL SERVANTS BY THE COURTS. Aslam-o-Alaikum. According to rule 5.9 (b) (3) of the Punjab Financial Rules, Vol-I, the orders of the courts regarding attachment of pay of the Civil Servants working in B.S.16 and above are to be executed by the District Accounts Officer concerned and in case of civil servant working in B.S 1 to 15 those are to be implemented by the head of the office where the civil servant is serving. 2. In future, the orders regarding attachment of pay shall be passed in accordance with rule supra. (ALI NAWAZ CHOWHAN) Endst: No. 2581/A-19_______ Dated _____5-11-98___ Copy is forwarded to the District Accounts Officer, Sheikhupura with reference to this letter No.DAO/SKP/DA/H.M/278 dated 03-11-1998, for information please. (ALI NAWAZ CHOWAN) 67 Early payments in special cases If the first two days of a month are public holidays, the payment of pay and pensions shall be made on the last working day of the month to which it relates. If the festival of Eidul fitr, Eidul Azha,,Dussehra, Diwali, Easter, Gurau Nank’s Birthday or Christmas falls within the last ten days of a month, pay and allowances and pensions of that month may be disbursed to all civil servants and retired civil servants, belonging to the community which is observing the festival. The advance pay should not be disbursed earlier than five days before the date of festival. In case the festival does not fall within the last then days of the month, the auditors should continue to receive and pre-audit bills in order to ensure prompt compliance if the Government directs that payments be authorized even if the festival does not fall within the last ten days of a month. If the government does not issue any instruction on the subject, the bills should to handed over to the department on the first day of the following month. Effecting recoveries When it is tentatively resolved to effect recovery of any payment, the District Accounts Officer should serve the Government servant, or the head of the office concerned, with a notice in the following form, elaborating the grounds on which recovery is proposed to be made, the amount to be recovered and the mode of recovery. This notice will give an opportunity to the government servant concerned to explain, if he so desires, his point of view to the District Accounts Officer. The order of recovery, if finally decided, or its modification, should be issued on a retrenchment slip on a form given hereunder:OFFICE OF THE DISTRICT ACCOUNTS OFFICER, SHEIKHUPURA NO.DAO/SKP/Section/H.M __________ To: _________________ _________________ Subject:Notice For retrenchment DATED _____________ Please notice that the following recovery is proposed to be made in/starting from the next pay/T.A/contingent bill presented by you/your office:1. Amount to be recovered Rs.__________________ 2. To be recovered in ___________________ installments. 68 3. Reasons. Representation, if any, against this recovery may be made to the undersigned within fifteen days failing which the recovery would be affected. District Accounts Officer, Sheikhupura. OFFICE OF THE DISTRICT ACCOUNTS OFFICER, SHEIKHUPRUA NO.DAO/SKP/Section /H.M ----------To: -----------------------------------------------Subject:Retrenchment slip In continuation of this office Notice No. -------------------------- dated ---------------please be advised that the following amount will be recovered starting from the next pay/T.A /contingent bill presented by you. 1. Drawing office 2. Amount to be recovered Rs.--------------3. To be recovered in ---------------- installments 4. Reasons. District Accounts Officer Sheikhupura. Arrear bills While pre-auditing arrear bills, the auditors should, among other things required to be watched under any rules/instructions, particularly focus on the following points:1) The bill is on the prescribed form, signed and stamped by the D.D.O, properly filled in, correctly classified, accompanied by the service book, with accurate calculations of due, drawn and difference, the payable amount being recorded in figures as well as in wards. 2) Arrear pay or arrears of increase in pay, should be drawn, with each month being entered separately with quotation of the bill from which the charge was omitted or withheld, or on which it was refunded by deduction, or of any special order of competent authority granting special pay or a new allowance. 3) Rules regarding presentation of claims within six months of their becoming due, or afterwards with the sanction of the competent 69 authority, are applicable to such claims with equal force, with a slight difference that the claim of an official becomes due on the date when the pay fixed by his department is verified by the District Accounts Officer. 4) Entries of amounts actually drawn as shown in the arrear bills should be carefully cross-checked with the entries of pay fixed in their service book by the department and verified by the D.A.O 5) In case of grant of move - over, selection grade or advance increments by a competent authority with retrospective effect involving closed financial years, or less drawl being caused by erroneous fixation of pay by the department in previous financial years, a certificate issued by the budget controlling officer that the claim can be met from the budgetary allocations for the current financial year, is necessary. In case of regular promotion or general revision of pay scales, no such certificate is required. 6) If a claim is submitted within six months of its becoming due and authorization of payment is delayed in consequence of objections raised by the D.A. O, the bill will be passed when the objections are satisfied even if the claim happens to have become more than six months old. 7) 8) The authority permitting investigation of time- barred claims shall intimate reasons of delay in submission of the claims to the D.A.O. In case of claims, which are more than one month old, the D.D.O. should be asked to state the reasons for the delay. Bills of leave salary, leave preparatory to retirement and encashment of leave in lieu of L.P.R. The auditors should lay particular emphasis on the following points, besides checks required to be applied under any rules /instructions, before affixing pay order on bills of ordinary leave preparatory to retirement and encashment of leave in lieu of leave preparatory to retirement: 1) The bills is on the prescribed form, signed and stamped by the D.D.O completely filled in, correctly classified, with accurate calculations and the net amount recorded in words as well as in figures. 70 2) 3) 4) A competent authority under the applicable leave rules has issued order sanctioning leave. Charge relinquishing reports have been attached with the bill. Leave encashment upto a maximum of 180 days can be sanctioned if a minimum balance of 365 days leave on full pay is available. In case of encashment of L.P.R, retirement orders and service book of the official should accompany the bill. Formula of earning leave is same as for gazetted civil servants. Rates of encashment of leave are those, which were admissible to the official one year prior to the date of retirement. 5) Grant of regular promotion, selection grade, move -over, advance increment annual increment is admissible during leave and L.P.R. Re-imbursement of medical charges Rules for re-imbursement of medical charges for officials are the same as for officers with the difference that officials are not entitled for reimbursement of medical charges incurred by them for restoration of their own /their dependent family members health as out-door patients. Only hospitalization entitles them for reimbursement of medical charges. T.A bills of officials As the auditors may be aware, the rules governing grant of traveling allowance to the officials are the same as for the officers. T.A bills of the officials are presented by their drawing and disbursing officers and unlike T.A claims of officers, no countersignatures are required on these bills. Transfer T.A is admissible only in case where transfer has not been ordered on the request of the transferee. T.A advance is admissible to officials on transfer. Claims of T.A advance should be entertained even if there exists insufficient or no budgetary allocation for the purpose, as these are debitable to the budget of the office to which the official is being transferred. Sanction for drawl of T.A advance is necessary. Reappropriation of budgetary allocations On receipt of orders of a competent authority issued under powers vested in it by the Punjab Delegation of Financial Powers Rules 1990, the auditors should follow the following course of action:The monthly medical allowance admissible is Rs.90 per month for officials in B.P.S 1 to 15. 71 1) To see whether re-appropriation is in accordance with the conditions laid down in serial No.5 of part I of Second Schedule to the Delegation of Financial Powers Rules 1990. If found in order, necessary amendments in the budgetary allocations already noted by him in contingency budget control register be made. 2) If found defective, the objections should be raised in clear and precise language and the re-appropriation be not acted upon pending satisfaction of the objections. 3) If the funds so reappropriated are not available for r e-appropriation because of the reason that these already stand expended, the fact may by intimated to the authority issuing orders. Such orders should not be acted upon. 4) Some departments re-appropriate funds upon production of a certificate of availability of funds issued by the D.A.O. register. If such a certificate has been issued, this fact may be noted in the budget control The department must not be allowed to expend funds proposed for re-appropriation unless a certificate issued by the authority competent to re-appropriate funds, is furnished to the effect that funds proposed to be re-appropriated have not actually been reappropriated and balance of Rs..... for expenditure. remains available to the D.D.O 5) In case where re-appropriations have been made between various heads and funds under some heads are available and these are not available under some heads for re-appropriation, the whole order of reappropriation should be objected to and be acted upon only if it has been properly corrected. 6) Re-appropriations have been made before dates specified by the Finance Department for the purpose. A re-appropriation made after that date is not a valid re-appropriation. 7) If an authority competent to accord sanction of incurrence of expenditure has provided funds for that purpose, this re-appropriation operates as sanction to incur expenditure. 8) Lahore High Court, Lahore, can order re-appropriation within the limits of budgetary allocations placed at its disposal without regard to 72 conditions laid down in the Punjab Delegation of Financial Powers Rules 1990. Abstract T.A bills Payment of a T.A claim is not admissible through abstract bills. The detailed T.A bill is required for each employee for making payment of T.A. bill, divisional accounts officer are posted and are functioning on behalf of the A.G Punjab, the detailed T.A bill of each employee is not needed. In this regard, the abstract bills are accepted in audit. Contingent bills The auditors should normally check the following points in pre-auditing contingent bills. 1) There is provision of funds for the expenditure duly authorized by a competent authority. 2) Expenditure is in accordance with a sanction accorded by a competent authority and is incurred by an officer competent to incur it. 3) The expenditure sanctioned for a limited period is not admitted beyond that period without further sanction. 4) If there is a rate and running contract for supply of certain items, payments are made in accordance with the approved rates to the approved contractors. 5) The claim is submitted on the prescribed Performa. 6) The claim is correctly classified. 7) Supplier’s name and nature of payment has been recorded on the bills. 8) Income Tax has been recovered on the prescribed rates. For the information and guidance of auditors, rate of deduction of income tax are reproduced here under:Every payer Govt, Local Authority, Registered Firms, Companies, Foreign Contractors, consultants Technical Services Fee paid to nonresidents. Supply of Goods. Supply of Rice, cotton, cottonseeds or edible oil supply of raw hides and skins cotton lint and raw wool. Morabaha transactions. Transportation of goods. For contracts (by residents and non residents). 15% 3.50% 1.5% 1% 1% 2% Final 73 or consortiums Where contract value. 1. Does not exceed Rs.30 millions. 2. Exceeds Rs.30 millions. Non-resident contracts. 1. Execution of turn key contracts. 2. Execution of contracts for design and supply of equipments in power projects other than hydel. 3. Execution of contracts for supply and design of equipments in hydel powers projects. Services by residents. 5% 6% 8% 4% 5% 5% Final except for doctors, lawyers, accounts, auditors, architects, surveyors, acturaries, Advisors and consultant s. 9) 10) 11) 12) 13) 14) 15) 16) 17) Amount of claim has been recorded in words and figures. The bill has been signed by the D.D.O and signatures tally. Quotation/tender has been called in all cases of purchases involving more than Rs.2500/A certificate to the effect that the items has been purchases at least possible rates has been recorded by the D.D.O. Stock taken entries have been recorded on the bill. Quality and quantity has been recorded on the bill. Budget along with up to date expenditure and balance has been recorded on the bill under signature of D.D.O. Vouchers duly signed and passed for payment by the D.D.O support claim. Page number of stock register has been recorded on the bill. 74 18) 19) 20) A certified to the effect that prescribed limits of telephone/POL have been observed, has been recorded. In case of repair of vehicles, no objection certificate has been obtained from the Govt. workshop. Computer prepared utility bills, duly passed for payment have been attached and no surcharges is included in them. Electricity bills for the period prior to 30-06-98 are not payable. 21) In case of rent of office buildings, a non-availability certificate issued by the Buildings Department and an assessment certificate issued by the Excise and Taxation Department are attached with the bill besides sanction of competent authority. 22) 23) Pay of contingent paid staff is on the prescribed rates and is not being drawn earlier than when it is due. All sales taxable goods are purchased from those suppliers who have got them registered in the concerned Sales Tax directorate. Sales Tax registration number has been noted and a copy of the sales tax registration is attached. 24) If a certificate regarding exemption of income tax on account of at source deduction of income tax is produced, the same may be got verified from the issuing authority. 25) 26) 27) Austerity measures for the year be kept in view and implemented in letter and spirit. Powers delegated vide Sr. No.3 of the Delegation of Financial Powers Rules 1990 are exercisable in items under Sr.No.3 (a). Purchase of coal is permissible from 15th October to 30 January and that of ice from 15th May to 31st August. Purchase of service stamps are not allowed through cash. These are payable through transfer credit only. Triplicate challan forms are signed by the D.D.O. in charge of Treasury Section. 28) 29) 30) The requisite certificates, printed on the proforma have been signed by the D.D.O. Pre - auditorial checks should not be relaxed in the months of June.Rather these should be strengthened and reinforced to prevent extravagance and irregularities. 75 31) Power to accord sanction to incur expenditure and power to make local purchase are two different things and therefore should not be taken as synonymous to each other. 32) In cases of payments of over Rs.10,000/- to persons not in government service and contractors, the D.D.Os should be advised to disburse the amounts through Govt Bank Draft or pay order in favour of the valid payee. 33) 34) Budgetary releases after 31 Ist of May without approval of the Finance Department are not acceptable. No bill should be received after 20th of June for pre-audit except bills of pay, G.P Fund etc. Personal ledger accounts, pension contributions, grants -in-aid to municipalities. In the above cited cases, the auditors should concentrate on the following points, besides other things:1) The Finance Department releases share of local bodies in the property tax collected by the Excise and Taxation Department or extends loans to autonomous and local bodies, or accords sanction for the payment of pension contribution, or sanctions grant -in- aid or matching grant to autonomous bodies or in the Education Department, Directors of Education release matching grants to colleges. In all such cases, the payees get disbursement through submission of receipt form. 2) On receipt of sanction of the competent authority for the release of funds and on submission of simple receipt forms, the auditors should ensure that signatures on the sanction and the receipt form are genuine, that payment is not made in cash to the institutions which have their personal ledger accounts; that if a special mode of disbursement has been prescribed in the sanction, it is adhered to; that correct code of classification has been recorded on the receipt form and it corresponds to that which has been recorded in the sanction; that sanction is valid and its currency has not expired; that if sanction is subject to certain conditions, those conditions have been fulfilled; that bills on simple 76 the simple receipt forms have been signed and submitted by a competent payee. Advances to civil servants There are two kinds of advances, which the Civil Servants are entitled to. One: Interest-bearing; and other: interest free. Interest-bearing advances are as follows: a) b) c) d) 1) 2) 3) 4) House Building Advance Motorcar Advance Motorcycle Advance Cycle Advance Can be paid with the sanction of Head of Department. Complete recovery should be possible before retirement of employee. Admissible for construction of house for bona fide residence of the employee or his family. Paid in two installments - first after establishing proprietary right (including non-encumbrance) and the second after the building has reached plinth level. 5) Advances are also admissible for reconstructions, purchase, extension, and renovation of houses. In these cases, the entire amount is payable in one installment, provided the documents for mortgage are complete. 6) 7) 8) 9) 10) Recoveries toward repayment start six months after first installment or immediately after second, whichever is earlier. Repayment is to be made in 120 installments. In case of class IV employees, in 240 installments. Recovery of principle + interest must be completed before retirement of the employee. Amount of advance is equivalent to 36 months' pay. Rate of recovery @ 30% of pay. If the employee is over 47 years (or 38 years in case of class IV) the rate of recovery is enhanced. House building advance 77 11) 12) Interest is recoverable at the same rate after the principle has been recovered. House to be mortgaged in favour of the Governor of the Punjab and deed registered. Advance for purchase of motor car 1) 2) 3) 4) 5) 6) 7) 1) 2) Almost on the same conditions of employees incumbency under Government. If the employee is on leave, the advances is not paid a week before the expiry of leave. Maximum amount of advances is Rs. 100,000. Purchase has to be made with a month of payment. Bond has to be executed hypothecating car in favour of the Governor. The car has to be insured. Recoveries of principle in 60 installments plus interest thereafter Advanced for Motorcycle payable in like conditions of mortgage hypothecation as Motorcar Advance. The maximum amount is Rs. 35,000 and recoveries of principle are made in 60 installments and interest thereafter. Advances for purchase of cycle 1) 2) 3) Cycle would be the property of Government till advance is recovered. Maximum amount is Rs. 2,000 and recoverable in installments. Temporary employees have to furnish security for two permanent employees. Accounting and drawal of interest-bearing advances 1) 2) 3) The Accountant-General first earmarks funds before it can be sanctioned. Sanction is subject to execution of prescribed bonds and hypothecation of property. The Civil Servant himself draws the amount if he is a gazetted officer after it is sanctioned by the competent authority from the Advance for purchase of motorcycle 78 DAO. If the employee is non-gazetted, it is drawn by the DDO in a pay bill. 4) The orders sanctioning advance and certificates of hypothecation, execution of bonds, etc. are recorded on the bill by the DDO. 5) The Accountant-General keeps the account of advance. In case of non-gazetted staff, a good DDO also keeps the account of recoveries made from the pay bills. 6) When the employee is transferred from their establishment, the information about recoveries is given on the LPC. Interest-free advances These are advances on transfer and advances on tour Advances on transfer 1) 2) 3) 4) 5) These are paid to a Civil Servant under orders of transfer from one station to the other. Advance is equal to one month's pay and amount of the TA to which he may be entitled on account of transfer. Pay advance is recoverable in three equal (nearly equal) installments and TA in one installment from the TA bill. These advances are recorded on the LPC issued by the DDO or by the District Accounts Officer.. Recovery is made from the pay bill/TA bill drawn at the new station. Advance on tour 1) It is paid to a Civil Servant (not being an inspecting officer) proceeding on tour upto an amount sufficient to cover for a month's contingent charges, hire of conveyance for carriage of records, etc. 2) 3) Adjustment of advance is made before 30th June or return to headquarters. It is also paid to non-gazetted employees accompanying officers on tour equal to amount sufficient to cover their personal TA for a month subject to adjustment on return to headquarters or on 301 June. 79 4) It is also admissible to the gazetted employees when proceeding on long and expensive tours for a month subject to adjustment on return to headquarters or 30 June. Procedure a) Advances on tour are debited to the functions and objects to which the TA is debited. But the advances on transfer are debited to '5201000- OB Advances'. b) A competent authority has accorded sanction for drawl of advance to a civil servant of a certain specified sum. c) Earmarking for the drawl of advance has been received from the Accountant General, Punjab, Lahore. d) A mortgage deed has been executed. e) The bill has been prepared on the prescribed form, signed, stamped, correctly classified with amounts written in figures as well as in words, within the period specified in the sanction. Pay fixation The auditors while verifying pay fixed by the department should, besides keeping in view the pay revision rules, service rules of the official, instructions issued by the Finance Department, clarifications made by the Accountant General Punjab, keep in mind the following main points:1) 2) 3) 4) First page of the Service book is re-attested after every five years. Each and every entry in the Service Book is attested by the D.D.O. The department has provisionally fixed pay. If an official joins a new service, either in lower or in higher pay scale, and there is no gap between his quitting the previous service and joining new one, his pay stands protected. No sanction of the Finance Department is needed for this purpose. 5) 6) 7) 8) 9) One pre mature increment is admissible upon regular promotion and selection grade. No premature increment is allowed on move-over. Move-over, selection grade, promotion is admissible during leave and L.P.R. Increments cannot be stopped permanently or with future effect. Six month’s regular service at a stage is necessary for earning annual increment. 80 10) There is no channel of promotion on non-gazetted posts in Education Department; only appointment on fulfillment of certain conditions is allowed. 11) A copy of the letter of the Finance Department on the subject of revised Basic Pay Scales, 2001 and a chart of Basic Pay Scale are being reproduced hereunder for the guidance and information of the auditors: - 81 82 83 84 85 86 87 88 No.FD.PC-2-1/2001 GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, the 22nd October 2001. From: Mr. Salman Siddique, Finance Secretary. To 1) 2) 3) 4) 5) 6) 7) 8) 9) 10) 11) Subject:Sir I am directed to state that the Governor of the Punjab has been pleased to sanction with effect form 1st December, 2001, a Scheme of the basic Pay Scales, Allowances and Pension, 2001 for the employees of Government of the Punjab in BPS-1 to BPS-22 as detailed below. PART 1. BASIC PAY SCALES AND ALLIED MATTERS. 2. BASIC PAY SCALES: - The existing basic pay scales and the revised basic pay scales are shown in Annexure- 1 of this letter. The revised Basic Pay Scales shall replace the existing Basic Pay Scales, 1994, and shall be effective from 1st December 2001. 3. DISCONTINUATION OF ALLOWANCES: The following allowances shall ceases to be payable on introduction of the revised pay scales w. o. f. 1-12-2001:All Administrative Secretaries to Government of the Punjab. The Secretary to Governor, Punjab, Lahore. All Heads of attached Departments, Govt. of the Punjab. All District Coordination Officers in the Punjab. The Registrar, Lahore High Court, Lahore. All District and Sessions Judges in the Punjab. The Military Secretary to Governor, Punjab, Lahore. The Secretary, Punjab Public Service commission, Lahore. The Secretary o Provincial Assembly, Punjab, Lahore. The Chief Pilot, VIP Flight, Lahore. The Provincial Director, Local Fund Audit, Punjab, Lahore. REVISION OF BASIC PAY SCALES AND FRINGE BENEFITS OF CIVIL EMPLOYEES (BS-1-22) OF PUNJAB GOVERNMENT. 89 i) ii) iii) 4. Cost of Living allowance to BS 1 to BS 22 @ 7% of basic Pay. Adhoc relief of Rs. 300/-P.M and Rs.100/- P.M to BS 1 to 16 (inclusive of BPS-17 by virtue of Move Over) Secretariat/ personal allowance. SPECIAL ADDITIONAL ALLOWANCE:Special Additional Allowance shall be frozen at the level drawn as on date of issue of this Order. 5. INITIAL FIXATION OF PAY: (1) Pay of the employees in service on 30-11-2001 shall be fixed at the stage in the revised pay scales, which is as many stages above the minimum as the stage occupied, by him above the minimum of the 1994 of basic Pay Scale. 6. PAY FIXATION ON PROMOTION . The existing provisions regulating the fixation of pay in case of promotion from lower to a higher post shall continued to apply. 7. SELECTION GRADE AND MOVE OVER: Selection grade in the scheme of Basic Pay Scales and Move over scheme shall stand discontinued w. e. f the date of issue of this circular letter. 8. PAY FIXATION OF EMPLOYEES IN SELECTION GRADE AND THOSE WHO HAVE MOVED OVER THE HIGHER SCALE. Pay of an existing employee drawing pay by move over shall be fixed with reference to the pay scale of the post for the time being held by him. In case the employee was drawing pay in a selection grade, his pay will be fixed in the selection grade pay scale. The stage of fixation will be arrived at after allowing increments on notional basis in the original scale of the post or the selection grade, in 1994 Basic Pay Scales, upto the point of existing pay. Pay of the employees will then be fixed at the relevant stage in the revised pay scales 2001. EXAMPLE- 1. Assistant, BS-11 Selection Grade, BS-15, Moved Over BS-16 and in receipt of Pay of Rs. 5490/- Pay will be fixed in BS 15 i.e. Selection Grade Pay Scale at Rs. 8326/ - as under: 1994 Scale Stage 15 4845 2001 Scale 7260 Stage 16 5022 7625 Stage 17 5199 7790 Stage 18 5376 8055 Stage 19 5553 8320 90 EXAMPLE –II Pay fixation of an employee in BS-11 who has moved over to BS-14 and is in receipt of basic pay of Rs. 4480/- will be fixed after allowing notional increments in BS-11 of 1994 Basic Pay Scales upto the stage of basic pay drawn. Pay in revised BPS-11 will be fixed at the corresponding stage of Rs. 6790/- as under: BS-11 1994 Pay Scale Stg Stg Stg Stg Stg Stg Stg Stg Stg Stg 15 16 17 18 19 20 21 22 23 24 3465 3581 3697 3813 3929 4045 4181 4277 4393 4509 5565 5470 5915 6090 6265 6440 6615 6790 BS-11 5215 5390 2001 Pay Scales. EXAMPLE –III. Pay fixation of an employee in BS-5 who has moved over to BS-11 and is in receipt of basic pay of Rs. 3465/- will be fixed after allowing notional increments in BS-5 of 1194 BPS upto the stage of basic pay drawn. Since basic pay of Rs. 3465. – is beyond the 30 stages in notional BS-5 (1194 BPS) & resultantly more than the 30 stages BPS 2001, therefore his pay will be fixed at the notional 32nd stage i. e at Rs. 5300/- The difference of Rs. 200/- (Rs. 5300-5100) will be personal to him as under:BS-5 1994 BS-5 2001 Stage –30 3380 5100 Stage-31 3446 5200 Stage-32 3512 5300 In such cases future increments up to a maximum of 3 years will be allowed as personal to such employees. 8. 9. DATA OF INCREMENT: - Annual increment shall continue to the SPECIAL PAY/S ALLOWANCES FOR OFFICER: The special Pay/ admissible subject to the existing conditions, on the 1st December each year. Allowances sanctioned to offices as percentage of pay shall be discontinued on the introduction of revised pay scales w. e. f 1-12-2001 and adjusted in future increments. 91 10. ADVANCE INCREMENTS: - The existing scheme of advance increments is discontinued w. e. f 1-12-2001. A fresh scheme if any, will be introduced in due course. PART II- ALLOWANCES. 11. CONVEYANCE ALLOWANCE: The rates of Conveyance Allowance and Motorcycle/ Motor Car maintenance allowance presently fixed with reference to pay drawn shall be increased and related to Basic Pay Scale as follows. Sr. No. i ii iii Existing Civil Servants in BS –16 and above maintaining a motor car not registered for commercial purpose Rs.355/- P. M. Civil servants drawing pay of Bs –3240/- per month and above other than those at (i) above. Rs. 193/ -P.M. Civil servants drawing pay of Rs. 1688/- P. M. and above but less than Rs. 3240/- P. M. and maintaining Motorcycle/ Scooter. Rs. 130/ - P. M. Others. Rs. 96/ - P. M. DAILY ALLOWANCE: Special Rates per day (Rs) 110 120 200 350 450 550 Revised BS –16 (Gazetted) & Above Rs. 620/- P. M BS 11 and Above Rs. 340/- P. M. BS 1–10 maintaining Motor Cycle/ Scooter Rs. 230/- P. M. BS 1-10 Rs. 170/- P. M. iv 12. BPS 1-4 5-11 12-16 17-18 19-20 21-22 13. Daily Allowance rates presently fixed with Ordinary Rates per day (Rs) 80 100 180 320 400 450 reference to pay drawn shall be increased and related to Basic Pay Scales as under: MEDICAL ALLOWANCE: Medical allowance to employees in BS. 1-15 shall be increased from Rs. 90/ - P. M to Rs. 160/ - P. M. 14. COMPUTER ALLOWANCE: The Computer Allowance shall be increased subject to the existing conditions of admissibility as under: Existing Rate Rs. 300/ - P. M Rs. 1000/ - P. M Revised Rate Rs. 450/- P. M Rs. 1500/- P. M 92 15. SPECIAL PAY/S ALLOWANCES: - All the Special Pay and Allowances admissible on certain POSTS as percentage of are revised subject to the following limits: a) Special Pay/ Allowances Sanctioned @ 20% and above of pay. Revised On existing rates subject to a maximum of Rs. 2000/- P. M. Special Pay/ allowances Sanctioned @ 10%- 19% of pay. On existing rates subject to a maximum of Rs. 1500/- P. M. c) Special Pay/ allowances Sanctioned @ 5% - 9% of pay. On existing rates subject to a maximum of Rs.1000/- P. M. 16. PENSION: - The Govt. has made the following reforms in pension/ Commutation scheme w. e. f 1-12-2001 in respect of civil pensioners of Punjab Govt. including civilian paid from Defence Estimates as well as retired Armed forces Personnel. a) b) c) d) e) f) g) Commutation Table shall be replaced by replaced by the new Commutation Commutation upto 40% of gross pension shall be admissible at the option of The additional benefit of 2% -10% for extra years of service after completion The increase in pension @ 20% to Civil pensioners allowed vide this The benefit of restoration of surrendered portion of pension in lieu of In future, the increase in pension to the pensioners shall be allowed on the pension instead of gross. All the pensioners shall be allowed an increase in net pension (inclusive of dearness increases allowed in the past) as follows:Table at Annexure – II to this letter. the pensioner. on 30 years of qualifying service in respect of civil pensioners shall be discontinued. Department letter No. FD. SR. 111-4-72/99, dated 27-7-1999. shall be discontinued. commutation/ gratuity shall be withdrawn. 93 INCREASE IN NET PENSION (ii) (ii) Pensioners who retired prior to the introduction of 1991 Basic Pay Scale. 15% Pensioners who retired prior to the introduction of 1994 Basic Pay Scales but on or after the Introduction of 1999/ Pay Scales. 10% (iii) Pensioners who retired on or after the introduction of 1994 Basic Pay Scales and up to the date of introduction of revised Basic Pay Scales i. e.1-12-2001. 17. (a) OPTION: All the existing Civil employees (BPS 1 to 22) of the Provincial Govt. shall 5% within 45 days from the date of issue of this circular letter, exercise an option in writing addressed to the Audit Office concerned in the case of employees in BPS 15 and above, either to DDO concerned in the case of employees in BPS. 15 and below, either to drqw pay in the existing Basic Pay Scales 1994 or in the Revised basic pay Scales and pension/commutation scheme 2001 as specified in this circular letter Option once exercised shall be final. (b) An existing employee as aforesaid who does not exercise and communicate such an option within the prescribed time limit shall be deemed to have opted to be governed by the Revised Basic Pay Scales. Pension and Commutation Scheme, 2001. 18. The Govt. servant who will retire w. e. f 1-7-2001 shall be given the benefit of revised pay scales on presumptive basis discounted by 5% increase in pension if availed subject to the condition that all those who may like to avail this benefit should opt for the entire package i. e revised schemes of Basic Pay Scales as contained in Part-I and this circular letter and revised package of pension as contained in part-III of this letter. 19. All existing rules/ orders on the subject shall be deemed to have been modified to the extent indicated above. All existing rules/ orders not so modified shall continue in force under this scheme. 94 20. ANOMALIES: - Anomalies Committee shall be set up in the Finance Division (Regulations Wing) Government on the Punjab, to resolve the anomalies if any, arising in the implementation of this office Memorandum. Your obedient servant, (MIAN MUHAMMAD YOUSAF) ADDITIONAL FINANCE SECRETARY (REG) 95 ANNEXURE-I TO FINANCE DEPARTMENTS LETTER NO FD. PC. 2-1/2001 DATED 22ND, OCTOBER, 2001. PAY SCALES OF 1994 , REVISED PAY SCALES, 2001 Scale Min 1 1245 2 1275 3 1320 4 1360 5 1400 6 1440 7 1480 8 1540 9 1605 10 1660 11 1725 12 1830 13 1950 14 2065 15 2190 16 2535 17 3880 18 5085 19 7750 20 9195 21 10190 22 10900 Iner 35 44 50 58 66 73 81 88 97 107 116 130 144 161 177 197 290 366 385 440 545 610 Max Stages 1770 15 1935 15 2070 15 2230 15 2390 15 2535 15 2695 15 2860 15 3060 15 3265 15 3465 15 3780 15 4110 15 4448 15 4845 15 5490 15 7360 10 8745 10 11600 10 13595 10 15640 10 17000 10 Scale 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Min 1870 1915 1980 2040 2100 2160 2220 2310 2410 2490 2590 2745 2925 3100 3285 3805 6210 8135 12400 14710 16305 17440 Iner 55 65 75 85 100 110 120 130 145 160 175 195 215 240 265 295 465 585 615 950 1070 1250 Max 3520 3865 4230 4590 5100 5460 5820 6210 6760 7290 7840 8595 9375 10300 11235 12655 15510 19835 24700 28010 31285 34940 Stages 30 30 30 30 30 30 30 30 30 30 30 30 30 30 30 30 20 20 20 14 14 14 96 ANNEXURE-II TO FINANCE DEPARTMENTS LETTER NO FD. PC. 2-1/2001 DATED 22ND, OCTOBER 2001. COMMUTATION TABLE Next Birthday 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 No. Of ears Purchased 40.5043 39.734 38.6553 38.1974 37.4307 36.6651 35.9006 35.1372 34.3750 33.6143 32.8071 32.0974 31.3412 30.5869 29.8343 29.0841 28.3362 27.5908 26.8482 26.1009 25.3728 24.6406 23.9186 23.1840 22.4713 21.7592 21.0538 20.3555 19.6653 18.9841 18.3129 Age Next Birthday 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 No. Of years Purchased 17.6526 17.0050 16.3710 15.7517 15.1438 14.5602 13.9888 13.4340 12.8953 12.3719 11.8632 11.3685 10.8872 10.4191 9.9639 9.5214 9.0914 8.6742 8.2697 7.8778 7.4943 7.1314 6.7766 6.4342 6.1039 5.7858 6.4797 5.1854 4.9030 4.6321 4.6321 97 General Provident Fund Section 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12 Organizational Chart. Functions of the Section. Allotment of G.P. Fund Account Number. G.P.Fund Balance Slips. Rates of Profit on G.P. Fund balances. G.P.Fund Subscription rates. Bills of advances out of G.P. Fund Accumulations. Final withdrawals of G.P.Fund accumulations. Adjustment of missing credits. Transfer of G.P.Fund from Sheikhupura to other districts. Transfer of G.P. Fund from other districts to Sheikhupura. Conversion of profit bearing accounts into non-profit bearing accounts and vice versa. 98 ORGANIZATIONAL CHART D.A.O A.A.O Asstt. Superintendent S. Auditor S. Auditor S. Auditor Sub Acctt. Sub. Acctt. Functions 1. To maintain G.P Fund Accounts of civil servants, working under audit jurisdiction of D.A.O Sheikhupura. 2. To authorize payments of advances out of G.P fund accumulations and to make final payments of G.P Fund. 3. Consolidate G.P Fund Accounts of subscribers who have worked under the audit jurisdiction of other D.A.Os, A.G Punjab, A.G. PR and other provinces. 4. To transfer G.P Fund balances of the subscribers to other Districts, A.G. Punjab, AG PR, and other provinces on the request of subscribers. 99 Allotment of G.P Fund account number On receipt of application for allotment of G.P Fund Account Number, the account number should normally be allotted if the following information is given:1) 2) 3) 4) 5) 6) 7) 8) 9) 10) 11) 12) Name of the civil servant. Father’s Name. Designation and BPS. Date of Birth. Date of joining service. Nationality. Nature of appointment i.e. (Permanent, Temporary, Adhoc or contract) appointment. Rate of emoluments. Rate of subscription Compulsory or optional subscription. Marital status. Nomination of the family members to whom payment of G.P Fund accumulations is to be disbursed in case of death of the subscriber with details of their share. of CSR (Pb) Vol.II. 13) Whether the subscriber wants profit on his account or not? If no intimation is given in this regard, profit shall be credited to the account of the subscriber. 14) 15) 16) 17) National Identity card No. This number should be noted on the ledger card. If the subscriber has already served under jurisdiction of another Accounts Office, his G.P.F account No. at the office. Date of joining at Sheikhupura. The department will be informed of the number allotted. It must be witnessed by two of the subscribers who are subscribing towards G.P Fund under Rule 137 (3) G.P fund balance slips G.P Fund balance slips on form No. A.T.M-80 are issued on the close of every financial year. These slips indicate opening balance, subscriptions during the 100 year, withdrawals during the year, profit on accumulations, bonus on profits. Rates of profit and bonus and formulas of their calculations are as under:Rates of profits on G.P fund balances S/No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 Year 1953-56 1956-63 1963-64 1964-65 1965-66 1966-68 1968-71 1971-72 1972-73 1973-74 1974-75 1975-76 1976-77 1977-78 1978-79 1979-80 1980-82 1982-83 1983-84 1984-85 1985-86 1986-87 1987-88 1988-89 1989-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 Profit rate (%) 3.00 3.50 4.00 5.00 5.25 6.00 6.25 6.50 7.25 8.25 10.25 10.50 10.75 11.75 12.00 12.50 13.00 13.20 14.00 14.60 14.72 14.66 14.00 14.84 15.93 15.54 15.44 15.49 16.76 17.51 17.35 16-11 15 Bonus on profit in % 30 30 30 30 30 30 30 30 30 30 30 00 Total 3.00 3.50 4.00 5.00 5.25 6.00 6.25 6.50 7.25 8.25 10.25 10.50 10.75 11.75 12.00 2.50 13.00 13.20 14.00 14.60 14.72 19.05 18.20 19.29 20.70 20.20 20.07 20.14 21.78 22.763 22.555 20-943 15 101 42 2009-10 102 How to work out closing balance on GP fund Months 7/91 8/91 9/91 10/91 11/91 12/91 1/92 2/92 3/92 4/92 5/92 6/92 Total Subscription 250 250 250 250 250 250 250 250 250 250 250 250 3000 Recovery of advance Withdrawals 15000 500 500 500 500 500 500 500 500 4000 Progressive Balance 250 500 750 -14000 -13250 -12500 -11750 -11000 -10250 -9500 -8750 -8000 -97500 Average Progressive Total of the Year / 12 = -97500/12 -8125/- Suppose Interest Opening Balance = Rupees 35000/(Opening Balance+Avg) * 20.709 % 35000-8125*20.709% Rs.5566/- Closing Balance for fiscal Year 1991-92 Opening Balance Deposit (3000+4000) Interest Withdrawals Closing Balance 35000/7000/5566/-15000/32566/- GP fund subscriptions (rates) S.No 1 2 B.P.S 1 2 Rates (Rs) Prior to 1-6-1994 25 40 Rates (Rs.) After 1-6-1994 50 85 103 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 45 45 50 50 55 60 60 65 70 75 130 140 150 175 250 300 400 500 550 600 85 90 95 100 100 110 120 125 130 145 250 265 285 325 450 560 780 920 1040 1120 104 NO.FDSR.1-2-1/95 GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT. Dated Lahore, the 19th November 2001. To 1) 2) 3) 4) 5) 6) 7) 8) 9) 10) Subject: Sir, I am directed to this Department circular letter No.F.D. SRI-21/95,dated 5th July, 1995 regarding uniform rates of subscription and to state that consequent upon the revision of basic pay scales for the civil employees of the Provincial Government vide Finance Department's circular letter No.FD-PC-21/2001, dated 22nd October, 2001, it has been decided to review the rates of subscription towards General Provident Fund as shown in column 6 of the Annex to this circular letter. The deductions from the pay of employees on the basis of new rates shall be made in December to be paid on 1st January, 2002 until further orders. 2. There shall be no option to postpone subscription to the above fund either during leave (except extraordinary leave without pay) or during the training period. Your obedient servant (RIAZ AHMED) SECTION OFFICER (SR-I) No. & Date Even. A copy is forwarded to the Accountant General, Punjab Lahore and all District Accounts Officers in the Punjab and Budget & Accounts Officer, Forestry, Wildlife, Fisheries & Tourism Department, Lahore. (RIAZ AHMAD) SECTION OFFICER (SR-I) All Administrative Secretaries to Government of the Punjab. The Secretary to Governor, Punjab, Lahore. The Military Secretary to Governor, Punjab, Lahore. All Heads of Attached Departments, Govt. of the Punjab. All District Coordination Officers in the Punjab. All the District & Sessions Judges in the Punjab. The Registrar, Lahore High Court, Lahore. The Director General, Audit & Accounts (Works), Lahore The Director General, Audit, Punjab, Lahore. The Secretary, Punjab Public Service Commission, Lahore UNIFORM RATES OF SUBSCRIPTION TOWARDS GENERAL PROVIDENT FUND. 105 No. & Date Even. Copy forwarded for information to: 1. The Secretaries, Government of Sind, NWFP & Baluchistan, Finance Department, Karachi, Peshawar and Quetta. 2. The Secretary, government of Azad Jammu & Kashmir, Finance Department, Muzaffarabad. 3. All Officers working in the Finance Department. (RIAZ AHMAD) SECTION OFFICER (SR-I) STATEMENT SHOWING UNIFORM RATES OF SUBSCRIPTION TOWARDS GENERAL PROVIDENT FUND EFFECTIVE FROM 1ST DECEMBER 2001 VIDE CIRCULAR LETTER NO.FD.SR.I. 2-1/95, DATED 19th NOVEMBER 2001. Scale Minimum Maximum Mean Minimum Subscription (On Mean) At The Rates Shown In Column 7 Rate Of Monthly Subscription Remarks 1 BS 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 2 RS. 1870 1915 1980 2040 2100 2160 2220 2310 2410 2490 2590 2745 2925 3100 3285 3805 6210 8135 12400 14710 16305 17440 3 RS. 3520 3865 4230 4590 5100 5460 5820 6210 6760 7290 7840 8595 9375 10300 11235 12655 15510 19835 24700 28010 31285 34940 4 RS. 2695 2890 3105 3315 3600 3810 4020 4260 4585 4890 5215 5670 6150 6700 7260 8230 10860 13985 18550 21360 23795 26190 5 RS. 80.85 144.50 155.25 165.75 180.00 190.50 201.00 213.00 229.25 244.50 260.75 453.60 492.00 536.00 580.80 658.40 868.80 1118.80 1484.00 1708.80 1903.60 2095.20 6 RS. 85 145 160 170 180 195 205 215 230 245 265 455 495 540 585 660 870 1120 1485 1710 1905 2100 7 Minimum rates of subscription (on mean) will be as under: - Pay Range 1) Upto Rs. 2700 @ 03% 2) Upto Rs. 2701 to 5600 05% 3) Above Rs. 5600 08% 106 G.P Fund rule 1-13 (6) Explanation (2) No profit or bonus admissible on over deposits, if {G.P Fund rule 1-12 (3)}a civil servant has not subscribed to the fund during the period when subscription was compulsory for him, he can be ordered to deposit the subscriptions for the entire period along with upto date profit on the subscriptions. Bills of advances out of G.P fund accumulations On receipt of sanctions for drawl of temporary or non-refundable advances out of G.P Fund accumulations of the subscribers, the auditors should follow the following course of action. 1) Sanctions should be audited. If the sanction has been accorded by a competent authority under the G.P Fund rules, and the balance indicated in the sanction is found correct, and in case of nonrefundable advance, the age of the subscriber is above 55 years and a year has elapsed since the drawl of last non-refundable advance, the last refundable advance, if any, has been refunded along with profit, the sanction should be placed before the D.A.O. The D.A.O shall note the sanction in a register maintained by him and shall write a letter to the sanctioning authority to seek confirmation of the sanction. If the sanction is not in order, the specific observation shall be raised by the auditor and reviewed by the A.A.O and approved by the D.A.O. The sanction shall not be accepted unless the objection is removed. For the information and guidance of the auditors, the authorities competent to accord sanctions and the extent of their powers are noted hereunder:S/N o Name of Authority For and in Extent of Respect of whom Powers. the powers are to be exercised. For the staff in and Full powers in upto of working Departments/ NPS 18 accordance under with Rules. the provident Fund 1 District/Divisional Heads/Regional Heads of Departments /Heads them. 107 Head 2 of attached For Officers & in Ditto. 20 the Deptts. Administrative Deptt. NPS-19 working under directly Administrative 3 Registrar, High Court. Deptt. Lahore For the Staff in and Ditto. upto NPS-18 working in the High 4 Court. Chief Justice or the For judicial officers Ditto Sr. Judge/Judges of upto and including the High Court District and empowered by the Sessions Judges. Chief Justice in this 5 behalf. Executive Head/Managing Director of Statutory Bodies. 6 Dy. Secretary For all the civil Ditto servants the working respective the on deputation with Statutory Bodies. In For staff in NPS-1 Ditto of to 4 working in the Secretariat. For Staff in NPS 5 Ditto to 18 working in the Secretariat. For staff in NPS-19 Ditto working in the Secretariat. For staff in NPS-20 Ditto and above working in the Secretariat. charge 7 Administration. Additional Secretary. 8 Administrative Secretary. 9 Chief Secretary. 108 2) Extent of amount permissible. (1) A temporary advance may be granted to the subscriber from the amount standing to his credit in the Fund at the discretion of the competent authority subject to the following conditions:(a) No advance shall be granted unless sanctioning authority is satisfied that the applicant’s pecuniary circumstances justify it, and that it will be expended on the following object or objects and not otherwise:i) to pay expenses incurred in connection with the prolonged illness of the applicant or applicant’s spouse or any person actually dependent upon the applicant; ii) to pay for the overseas passage for reasons of health or education of the applicant or any person actually dependent on him; iii) to pay obligatory expenses on a scale appropriate to the applicant’s status in connection with the marriages, funerals or ceremonies which by his religion it is incumbent on him to perform. iv) to purchase a plot of land for the construction of a house or to purchase a house or to construct one for the occupation of the subscriber himself or his family on a piece of land owned by the subscriber or to make additions to or alterations in an existing house owned by the subscriber, whether or not constructed or purchased with a house building advance; v) to purchase a conveyance (car, scooter, motor cycle or bicycle); vi) the to meet other expenditure which is considered by sanctioning authority to be essential and unavoidable. (Explanation—A temporary advance may be granted to the subscriber for the performance of Haj.) Note:-In case falling under item (I) above, advances may be granted by the sanctioning authority to pay within a reasonable 109 time after the event to which it relates. What is a reasonable time will be determined on the merits of each case. Advances to pay debts incurred in cases falling under item (ii) and (iii) require the sanction of Government. (b) The sanctioning authority shall record in writing its reasons for granting the advances: Provided that if the reason is of a confidential nature, it may be communicated to the Accounts Officer personally and/or confidentially. (c) An advance other than that covered by clause (a) (iv) and (v) shall not except for special reasons to be recorded in writing by the sanctioning authority:(i) exceed three months pay or half the amount at the credit of the subscriber in the Fund whichever is less, or (ii) unless the amount already advanced does not exceed two thirds of the amount admissible under clause (I), be granted until at least twelve months after the final repayment of all previous advances together with interest thereon: Provided that the above conditions shall not be relaxed in the case of an advance falling under clause (a) (vi) above; *(Provided further that in no case the second advance shall be granted before the final repayment of the previous advances together with interest thereon; (*Added vide notification No.FD/SRI-2-3/83 (Prov) dated 02-04-1989.) Provided further that a second non-refundable advance shall not be granted until a period of one year has elapsed since the drawl of the previous advance.) (d) an advance under clause. (a) (vi) shall be subject to the following special conditions:i) Advance shall in no case exceed twenty four months pay of the subscriber or eighty per cent of the amount at the credit of the subscriber in the Fund, whichever is less; 110 ii) Advance granted for construction of a house shall be paid in two equated installments; iii) If the first installment is not utilized for the purpose of construction of the house within eight months of its drawl, it should be refunded unless the sanctioning authority extends this period; iv) For the purpose of drawl of the second installment the subscriber shall be required to give under his hand a certificate to the effect that he has actually utilized the first installment on the construction of the house; v) The subscriber shall not dispose of the house purchased or constructed with an advance from the Fund until the advance has been repaid or the subscriber retires from Government service; vi) Recovery shall be made at the rate of seven per cent of the subscriber’s pay commencing from the fourth issue of pay after the first installment of the advance is drawn; vii) In case of subscriber also draws or has drawn a building advance from Government, after the house recovery on account of the advance from the Fund shall commence immediately interest thereon. (e) i) An advance for the purchase of car, scooter/motorcycle or a bicycle shall not exceed:-In the case of car-12 months pay of the subscriber or half the balance at his credit in the Fund whichever is less; In case of scooter/motor cycle—six months pay of the subscriber or half the balance at credit in the Fund, whichever is less; the advance obtained from Government has been fully repaid with 111 In the case of a bicycle—four months pay of the subscriber or half the balance at his credit in the Fund, whichever is less. ii) The subscriber shall give under his hand a certificate to the effect that he has actually utilized the advance for the purchase of the conveyance for which the advance was applied. iii) The subscriber shall not dispose of the conveyance so purchased unless the advance has been repaid or the subscriber retires form Government service. iv) In all cases in which the conveyance is sold before the advance has been fully repaid with interest, the sale proceeds must be applied, so far as may be necessary, towards the repayment of any outstanding balance.’ v) The recovery shall be made at the rate of seven per cent of the subscriber’s pay commencing from the fourth issue of pay after the drawl of the advance. vi) * Advance drawn for conveyance (i.e. balance thereof) shall become non refundable on the subscriber attaining the age of 50 years. (*Added vide F.D. notification No.FD-SRIV-2-15/79 dated 4th August, 1980.) 2. In fixing the amount of an advance the sanctioning authority shall pay due regard to the amount at the credit of the subscriber in the Fund. 1.15.After a subscriber has attained the age of fifty years, the competent authority may, in its discretion, grant him an advance for any of the purposes specified below subject to the conditions mentioned against each purpose:a) For construction of a house on a (1) The advance shall mutatis mutandis be piece of land owned by the governed by the same terms and conditions subscriber or to make additions to as applicable to an advance under clause or alternation in an existing house (a) (vi) of sub-rule (!) of rule 1.14. 112 owned by him. Provided that, subject to condition (3) no recovery of the advance shall be made from the subscriber and the amount advanced shall be treated as part of the final payment of the amount standing at the credit of the subscriber when the final payment becomes due. (2) The first installment of the advance shall be drawn only after an agreement is executed between the subscriber and the Governor Form P.F.9. (3) In case the house is sold or otherwise alienated by the subscriber without repayment of the advances and before his retirement from service, the subscriber shall forthwith repay into the Fund the entire amount of the advance together with the interest accrued thereon, in a lump sum. (b) For purchase of a house for his (1) The amount of the advance shall not residence. exceed eighty per cent of the amount standing to his credit in the fund. (2) Subject to conditions (1), (3) and (4) the advance shall, mutatis mutandis, be governed by the same terms and conditions as applicable to an advance under sub rule (a). (3) In case the house is not purchased within three months of the drawl of the advance the subscriber shall forthwith repay into the Fund the entire amount of the advance together with the interest accrued thereon, in a lump sum. (4) The Advance may be drawn in full at once but satisfactory evidence shall be 113 produced before the Audit officer to show that the Advance for the purchase of the house has been spent within three months of its drawl. This can be done by showing to the Audit Officer a duly executed receipt for the amount paid. (5) The advance shall be drawn only after an agreement is executed between the subscriber and the Governor in Form P.F.10. © For purchase of agricultural land (1) The amount of the advance shall not from Government. exceed eighty percent of the amount standing at hid credit in the fund. (2) Subject to condition (1) the advance shall mutatis mutandis, be governed by the same terms and conditions as applicable to an advance under sub-rule(a). Provided that the advance may be drawn in lump sum if so desired by the subscriber. (3) The advance shall be drawn oily after an agreement is executed by the subscriber (d) For any of the and the Governor in form P.F.11. following *( (1) The amount of the advance shall not exceed 12 months pay of the subscriber or 80 per cent of the amount (standing to his purposes, namely:(i) to defray expense in connection with the prolonged illness of the credit (in the Fund whichever is more. subscriber or a member of his (2) No recovery of an advance under this family actually dependent upon clause shall be him. (ii) To pay for the overseas made from the subscriber and the amount as part, of the final passages of the subscriber for shall be treated reason of payment health or for the performance of of the amount standing at the credit of the Haj. subscriber when the final payment 114 becomes due. (iii) To pay for the overseas passage for reasons of education of any member of the subscriber’s family actually dependent on him and such other as lump admission sum or expenditure members. (iv) To pay obligatory expenses on a scale appropriate to the subscriber’s status in connection with funerals or ceremonies which by his religion it is incumbent upon him to perform or in connection with the marriage of any member of his family actually dependent on him. 3) If the sanction is confirmed by the sanctioning authority, an authority for advance tuition fees of any such the drawl of advance shall be issued to the D.D.O, in the following words. Irrelevant portions should be crossed. OFFICE OF THE DISTRICTS ACCOUNT OFFICER, SHEIKUPURA NO.D.AO/SKP/G.P.F/H.M-----------------------Dated-------------------------- 115 To: --------------------------------------------------------Subject:Authority for drawl of G.P fund advance Sir, I have the honour to inform you that the sanction for drawl of refundable/nonrefundable amounting rules. You are hereby authorized to submit a bill for drawl and subsequent disbursement of the said amount to the subscriber. Since the subscriber is a nongazetted civil servant, therefore, his personal appearance along with you or your authorized representative, as required under Government of the Punjab, Finance Departments letter No.S.O(B&E-1)4-3/90 dated 27-08-1999, before the undersigned is necessary . The subscriber and you or your authorized representative, along with their original National Identity Cards and authority letter, are requested to attend the office of the undersigned on------------ at-----------------A.M/PM. You are hereby authorized to submit bill for the said amount for authorization of payment of the advance. Since you are a gazetted civil servant, therefore, your personal appearance before the undersigned is not necessary. Deduction of Zakat at the rate of 2.5 percent is compulsory for non-refundable advances. The bill may be prepared accordingly. Your Obedient Servant District Accounts Officer Sheikhupura. 4. After identification of the subscriber, the bill shall be examined to see whether advance to out of General to Provident Fund by Fund Account accumulations of vide Mr./Ms/Mrs------------------subscriber Rs.-------------------G.P No.------------------- accorded ----------------------------- No.--------------------------dated ------------------has been found in accordance with the it is on the prescribed form, signed, stamped, properly filled in, correctly classified, with accurate calculations and the amount being recorded in words as well as in figures. The auditor, after satisfying himself that all necessary conditions have been fulfilled, office pay order to State Bank of Pakistan or N.B.P where State Bank is not 116 situated, in favour of the Government servant or DDO on the bill. The sanction and the documents, after passage of bill, shall be retained by the A.A.O (G.P.G Section) 5. Second refundable advance on completion of recovery, within one year is permissible with the sanction of the next higher authority. 6. Bills of advances are to be signed by two DAOs . An authority for final withdrawal of G.P fund accumulations should normally be issued on production of the following documents:Final withdrawal of G.P fund accumulations. a. b. c. d. G.P Fund 10 Form complete in all respects and signed by the competent authority. Attested copy of the National Identity Card of the subscriber. A hand written application of the subscriber illiterate, an application having his thumb impression. Retirement orders/ orders regarding acceptance of resignation/intimation from the department that the subscriber has quitted service/ orders of compulsory retirement, orders regarding termination, dismissal from service /intimation of the subscriber, duly forwarded that he is going to superannuate within six months /death certificate of the subscriber, with application and copy of National Identity Card of the nominee duly forwarded by the D.D.O If there is no nomination, a single widow certificate. e. It is a common practice that in case of death of the subscriber, authority is issued in favour of the D.D.O for disbursement to the valid payees. However if the subscriber has nominated someone to receive payment in case of his death, the authority should be issued to the DDO for payment to the nominee. f. If the subscriber has agitated his compulsory retirement, termination, dismissal from service in a competent court of law, has not drawn his G.P Fund accumulations, and the court sets aside his compulsory retirement etc., interest shall be allowed to the subscriber on his accumulations till the month proceeding the month of such decision. If his case, submitted within six months of superannuating, is delayed 117 interest shall be paid upto the date of issuance of authority, and those in the D.A.O whose negligence has caused delay in finalization of the case, shall be brought to book. g. Zakat should not be deducted on the balance at the time of final payment. It should be deducted @ 2.5% of the balance standing at the credit of the subscriber as on valuation date which is the first of the Ramzan preceding the date when final payment is authorized. h. Residual payment, which is normally caused due to non-receipt of profit - rates on time, should be authorized on receipt of rates. The subscriber has not to submit an application for the purpose. Adjustment of missing credits If subscriptions to General Provident fund have not properly been accounted for and recorded in the record of G.P Fund Section, adjustments should be effected on production of a certificate of deductions issued by the GAD Section in case of gazetted civil servant, and on production of a certificate, along with acquaintance rolls, issued by the D.D.O. of the subscribers. On the close of each financial year, the D.D.O’s should be requested to reconcile the G.P fund subscriptions with the record maintained in this office. Transfer of G.P fund from Sheikhupura to other districts Upon receipt of request of the subscriber, duly forwarded by his present accounts office, giving his name, parentage, designation, department, last fund deduction, (date & rate) G.P Fund account No at Sheikhupura and confirmation of G.P Fund account No. at his present accounts office, the balance at the credit of the subscriber should be transferred to his present accounts office. This transfer is final. No reconfirmation is needed for the amount so transferred. Transfer of G.P fund from other districts to Sheikhupura. On receipt of application containing details as aforesaid, of the subscriber for transfer of his G.P Fund balance from his previous accounts office to Sheikhupura, the same after verification of its contents from the available office record, should be forwarded to his previous accounts office for doing the needful. When a civil servant comes under the accounts jurisdiction of this office, the following letter should be sent to him for consolidation/review of his G.P Fund account:- 118 OFFICE OF THE DISTRICT ACCOUNTS OFFICER, SHEIKUPURA. NO.DAO/SKP/GPF/HM---------------------Dated To, ------------------------------------------------------------Subject:Sir, As a result of your posting as ---------------------in B.PS----------------------through transfer from the post of -------------------------------------------------------------the following documents/information may, kindly, be furnished to enable this office to get your G.P Fund account reviewed/consolidated in the District Accounts Office, Sheikhupura. a) Application in form G.P F.3 for allotment of G.P Fund Account No. along with nomination papers, forms of contingent notice of cancellation and N.I.C No. b) c) d) e) G.P Fund Account (s) No allotted by previous accounts office (s) in whose books balance is available. Month of Ist deduction of G.P Fund with rate of deduction and name of the department and name of accounts office. Month and rare of last deduction under accounts jurisdiction of previous accounts office. Month and rate of first deduction under the accounts control of DAO, Sheikhupura. District Accounts Officer Sheikhupura. Conversion of profit bearing accounts into non-profit bearing accounts and vice versa If a subscriber desires to convert his non-profit bearing account into a profit bearing account, the request shall be granted subject to the condition that if he had availed interest free advances from the Government, he shall be charged the amount of interest on loans equal to the difference between the amount of interest acquired on loans and the amount of profit foregone on G.P Fund account. If he applies for conversion of his profit-bearing account into a non -profit bearing account, his account shall be reversed and profit shall be deducted from his account. Consolidation/review of G.P fund account 119 Cheque Section 1. 2. 3. Organizational Chart. Functions of the Section. Receipt and delivery of bills. 120 ORGANIZATIONAL CHART D.A.O A.A.O S. Acctt. S. Acctt S. Auditor J. Auditor Naib Qasid Functions 1. Reception of claims. 2. Advice of passed claims for payment at bank. 3. Delivery of passed claims to concerned department. 4. Receipt of Dak. 5. Dispatch of Dak. 6. Discharging of paid vouchers. 7. Issuance of Schedules of payment to departments. 121 Receipts and delivery of bills No bill, pension case, service book. G.P fund final payment case or any claim seeking authorization of payment should be accepted unless a Transit Register, bearing entry of the claim under signature of the D.D.O is not presented with the claim. No disposed of claim should be returned unless token issued by this office is returned. In cases of claims relating to Tehsil Ferozewala and Nankana Sahib, Transit Register should be produced when delivery of disposed of claims is demanded, at the Sub-Treasury. If a claim is accepted or delivered without ensuring its entry in the Transit Register, the Sub Accountant or the auditor concerned shall be held personally responsible if it is subsequently discovered that a fraud has occurred, and the claim was not entered in the Transit Register of the D.D.O. 122 MAINTENANCE OF ACCOUNTS. i. ii. iii. iv. v. vi. vii. Introduction. Scope of Accounting. Role of Auditor General. Procedure of Accounting. Reconciliation of Accounts. Chart of Classification. Changes in the system of maintenance of accounts after the implementation of the Devolution Plan 123 Introduction. Government of the Punjab undertakes activities in the light of the principles of policy as set forth in Article 29 to 40 of the constitution of the Islamic Republic of Pakistan. These activities have financial implications. Elaborate and systematic arrangements have been made to keep written records of its activities, which are wholly or in part of financial nature. These written records or statements are called accounts. Accounting means the art of recording, classifying and summarizing financial and quasi-financial transactions in terms of money and interpreting results thereof. The Government has established District Accounts Offices in all the 34 Districts of the Punjab, save Lahore, for the purpose of maintenance of accounts of each District on daily basis and compilation of daily accounts on monthly basis. These accounts exhibit receipts into and withdrawal from the Provincial Consolidated Fund and Public Account of the Province. Provincial Consolidated Fund is a fund into which all revenues and loans raised by the Government and all moneys received in repayment of loans are credited, whereas, Public Account of the Province contains all other moneys, which are received by or on behalf of the Government and moneys deposited with courts, which are to be repaid and are not part of revenues of the province. Under an agreement, the Governor of the Punjab has entrusted the business of handling of cash on behalf of the Provincial Government to the State Bank of Pakistan. At places where State Bank of Pakistan has no branch of its own, it has appointed National Bank of Pakistan to act as its agent to handle cash on behalf of the Government. The bank receives and disburses money as per directions of the Government and renders accounts to the District Accounts Office on the next working day following the transaction. District Accounts Office prepares accounts in such form and in accordance with such principles and methods as the Auditor General of Pakistan, with the approval of the President, has prescribed. 124 Scope of accounting. As said earlier, accounting is the art of recording, classifying and summarizing transactions, wholly or in part of a financial nature in terms of money and interpreting the results thereof. It is an activity which is carried out by the Government with a view to regulate receipts and expenditures in a way as to enable it to exercise meaningful and determinant watch over each step of financial transactions undertaken by its organizations and functionaries. To ensure that accounts prepared by the District Accounts Offices depict a true and reliable picture of its financial transactions, it has made obligatory for the District Accounts Office to implement such measures and employ such methods as are essential for the preparation of accounts in accordance with the directions of the Auditor General of Pakistan. Besides it, a little measure of responsibility regarding implementation of rules framed by the Governor of the Punjab, in exercise of authority conferred upon him under Article 119 of the constitution, regarding receipts into and authorization of payments from the public purse, is vested in the District Accounts Offices. The aim is to ensure that the Auditor General of Pakistan raises the minimum possible objections when accounts of the province and its organizations are subjected to audit. These precautionary measures are collectively know as pre-audit i.e. means, measures methods adopted in respect of financial transactions by the government prior to conduct of audit by the Auditor General of Pakistan. Since no man can be a judge in his own cause therefore, quite logically, the Auditor General of Pakistan has been relieved of the responsibility of keeping initial and subsidiary accounts of the province and its organizations, in terms of Rule 3 of the Initial and Subsidiary Accounts Rules which have been issued under sub-clause 3 of article 9 of the Pakistan (Audit and Account) Order, 1973. By initial accounts, we mean primary record of all money transactions of the province and by subsidiary accounts we mean statements of accounts prepared on the basis of initial accounts. Thus the District Accounts Offices render a valuable pre-audit service at district level. Pre-audit being an integral part of accounting, remains, almost everywhere in the world in the hands of the government or separate agency subordinate and answerable to it. Assigning the job to an independent and an unaccountable agency as the Auditor General is, is equal to subjecting the unqualified competence of the Governor regarding Provincial Consolidated Fund and Public Account of the 125 province to an uncalled for veto, which may, as the experience has shown us, result into many complications which are otherwise avoidable. Accounting assists the Government in planning, evaluating, and monitoring its activities and programmes and helps in kindly amendments in plans. It also enables the legislature to exercise material control over budgetary allocations and the consequent appropriations. 126 Role of the Auditor General Article 170 of our constitution authorizes the Auditor General of Pakistan to issue direction with the approval of the President regarding maintenance of accounts. The accounts of the province are kept in the form and in accordance with the principles and methods prescribed by the Auditor General. This article speaks of the Auditor General’s power to give directions on accounting, implying there by that directions are to be given to those agencies, which maintain accounts. No one is supposed to give directions to himself; directions are given to others. It can be inferred that the letter and sprit of this article requires that the act of accounting be done by an agency other than the Auditor General of Pakistan. Whereas, the competence of Auditor General in respect of audit of the accounts is absolute and indivisible, he has no concern with the maintenance of initial and subsidiary accounts except to issue direction to the Provincial Government in this regard. The Government of the Punjab has made its own arrangements for maintenance of initial and subsidiary accounts at district level. However, services of a reasonable number of civil servants form the Pakistan Audit Department are available to the District Accounts Offices. The District Accounts Offices are under the administrative control of the provincial Government. The directions of the Auditor General regarding maintenance of accounts are contained in Account Codes Volume I to IV. Certain material amendments in these codes have been made through the District Accounts Offices Scheme, introduced by the Government of the Punjab in consultation with the Auditor General, in 1967. Accounts are maintained by the District Accounts Offices in accordance with the Account Codes as amended by the District Accounts Offices Scheme. It is said that Auditor General is responsible, under the Pakistan (Audit & Accounts) Order, 1973, to render the following accounts: Monthly Account Compilation and submission of monthly accounts of receipts and expenditure of the Provincial Government. Annual Accounts Compilation and submission of annual accounts of receipts and disbursements of the Provincial Government. 127 Appropriation Accounts Preparation of appropriation accounts indicating the expenditure incurred by the various Departments against the budgetary allocations and their submission to the Governor of the Punjab. Finance Accounts Compilation of finance accounts showing annual receipts and disbursement under respective functions and objects of the chart of classification, and its submission to the Governor. Combined Finance and Revenue Accounts Preparation and submission to the President of combined finance and revenue accounts incorporating a summary of the federal and provincial accounts including their balances and outstanding liabilities. 128 Procedure of accounting Drawing and Disbursing Officers (DDOs) prepare detailed estimates of expected receipts and payments for the coming financial year (In Pakistan a financial year starts on 1st of July and ends on 30th June) and submit these estimates to their designated budget controlling officers. Budget controlling officers consolidate estimates of receipts and expenditure submitted by the DDOs subordinate to them and submit the same to the Principal Accounting Officer of their respective department. Principal Accounting Officer of each department (all Secretaries to the Government in the administrative departments are ex-officio Principal Accounting Officers in respect of their departments) submits budget estimates to the Finance Department (Services General Administration and Information Department acts as Finance Department for the Finance Department of the Government of the Punjab). Finance Department prepares the annual budget statement, which is placed before Provincial Legislature for approval. After approval from the Legislature, the Finance Department releases budgetary allocations to the Principal Accounting Officers of various departments. The Principal Accounting officers distribute budgetary allocation to the Drawing and Disbursing Officers, and endorse a copy of the distribution letter to the District Accounts Officer concerned. The Drawing and Disbursing Officers incur expenditure and submit their claims in the concerned District Accounts Office. The District Accounts Office authorizes payments in accordance with the rules. The Drawing and Disbursing Officers get cash from the bank. The paid claim, along with a payment scroll, is submitted to the District Accounts Officer by the bank. The following chart illustrate the system: 129 SYSTEM OF FINANCIAL TRANSACTION IN GOVERNMENT. BUDGET FORMULATION BY FINANCE DEPARTMENT AND APPROVAL BY LEGILATURE. DISTRIBUTION OF BUDGET TO DEPARTMENTS. GRANT WISE / OBJECT WISE. DISTRIBUTION OF BUDGET BY DEPARTMENTS TO VARIOUS TIRES (GW/OW) BUDGET REACHES A DRAWING AND DISBURSING OFFICER (DDO). THE SMALLEST UNIT FOR PURPOSE OF EXPENDITURE (OBJECT WISE) AG (Pb), DAOs ALSO NOTIFIED ABOUT BUDGET CLAIM RECEIVED AT DDO PREPARES CLAIMS WHILE ENSURING THAT: Claim a valid charge. Budget availability. Sanctioned by competent authority. All prescribed requirement (quotations / tenders etc.) completed. Any other requirement as to form and manner of claim. Duly signed certified. CLAIM SUBMITTED IN DAO OF RESPECTIVE DISTRICT AFTER SIGNING, SPECIMEN SIGNATURES ALREADY WITH DAO / BANK. Each claim to be sent through an authorized representative. Duly entered in a TRANSIT REGISTER. PRE-AUDIT COUNTER ENTERED I A REGISTER VIS-À-VIS ITS PARTICULARS. A token issued in lieu of claim. Bill / claim transmitted to concerned Sector in the DAO. Pre-audit checks exercised by the concerned auditors. CLAIM SCRUTINIZED WITH REGARD TO BY AUDITOR. Regularity. Budget availability. Sanction / powers of DDO. Classification. Totals. Specimen signatures. Enters in the audit register. Affixes pay order stamps if found in order. Initials. Submission to Assistant Accounts Officer for cross check / scrutiny. CLAIM RE-VERIFIED AND SCRUTINIZED BY AAO. Affixes his initial to pay order. Initials in the audit register against relevant entry. Sends it to the DAO for approving payments and signing pay order. Pay order embossed. DAO RE-VERIFIES ALL PRE-AUDIT CHECKS. Sign pay order & audit register. CLAIM RETURNED TO TOKEN COUNTER. Approved drawing schedule sent to NBP / SBP in a sealed cover. The bill returned / reclaimed by the DDO after surrendering the token and due acknowledgment. The authorized claim is presented by the DDO at the Bank. The bank makes payment after checking the drawing schedule & bonafide of payees. CLAIM RETURNED TO CONCERNED SECTION. All authorized claims entered in a drawing schedule. Drawing schedule along with claim again submitted to DAO for authentication of each entry. Drawing schedule signed by DAO. Bank after making payments on all authorization enter them in a scroll & sends them along with paid vouchers back to the respective DAO on the following day. Similarly all receipts are sent accordingly. 130 THE POST PAYMENT / RECEIPT ACTIONS ARE ILLUSTRATED THROUGH THIS CHART BANK REPORT DAILY RECEIPTS / PAYMENTS TO SBP KARACHI. PAID VOUCHERS / CREDIT CHALLANS SENT TO DAO BY SBP / NBP ALONG WITH DEBIT / CREDIT SCROLLS. RECEIVED AND ACKNOWLEDGED BY DAO IN THE PRESCRIBED MANNER. ALL PAID VOUCHERS DISCHARGED AGAINST DRAWING SCHEDULE ALL CREDIT CHALLANS MARKED OFF AGAINST CHALLAN PASSING REGISTER. ALL VOUCHERS SORTED / CLASSIFIED AND POSTED IN SUBSIDIARY REGISTERS. VOUCHERS / CHALALNS FILED AND CONSIGNED TO RECORD. ENTER DAILY TOTALS IN AG CONSOLIDATES FOR WHOLE OF PROVINCE AND SUBMIS TO GOVT. DISPATCHES MONTHLY A/C TO AG(Pb) FOR PRODUCING MONTHLY CIVIL ACCOUNTS 5TH OF FOLLOWING MONTH PREPARES MONTHLY CASH ACCOUNT AND LIST OF PAYMENTS. CASH BOOK. GRANT PREPARE ABSTRACTS OBJECT WISE AND WORKS OUT STATE BANK DEPOSIT. MISCLASSIFICATIO NS BY BANK RECTIFIED / ADJUSTMENT BY BOOK TRANSFERS EFFECTED. SENDS SCHEDULES OF RRRRRRECEIPTS / AD CONSOLIDATE DEPARTMENTAL ACCOUNTS AND RECONCILE WITH CARRIES OUT RECONCILIATION OF CASH BALANCE WITH SBP. WISE, DAILY DDO TO BASIS. COMPARE WITH HIS RECORD CASH BOOK AND AGREE / CERTIFY. DDO PREPARES EXPENDITURES / RECEIPTS STATEMENTS. RECONCILES WITH DAO. UNDERTAKERS DAILY / MONTHLY RECONCILIATION WITH BANKS (LOCALY) PAYMENTS TO DDOs / CO. DDO SUBMITS ACCOUNTS TO CO, WHO RECONCILE AND SENDS TO AD. AG. 131 Reconciliation of provincial data Introduction: Fiscal reporting and data management is the prime requirement of the Government as a tool for prioritising its economic and budgetary policies. This information essentially flows from the accounting returns prepared by the entities viz: the A.G/(pb)/DAO/T.Os. Besides, the collecting and expending governmental agencies are also required to keep initial and subsidiary accounts, as prescribed and file such accounting returns periodically to their designated authorities in a given time-frame. Timely reconciliation of such information between the two agencies i.e the A.G/DAOs and the departmental authorities is imperative for ensuring accuracy and reliability of the financial reporting mechanism. The third element in this arrangement is the State Bank of Pakistan and the National Bank of Pakistan, which has been authorized the cash handling business by the government. Although, an elaborate arrangement for ensuring accuracy, timelines and reliability of accounting information already stands prescribed, however, the fiscal data, for various reasons, is deficient and does not come up to the requisite standards to be considered as authentic. Thus there is not only a need for substantial improvement in the existing reporting structure, but also that the system requires to be revamped and updated to meet the present day requirements. Past efforts: The Finance department being mindful of the aforesaid shortcomings has been making concerted efforts for improving its accounting and fiscal reporting system. In this regard it has been persistently reiterating the respective responsibilities as enjoined upon the A.G/DAOs and the Drawing and Disbursing Officer/Controlling officers in the matter of reconciliation of accounts with the Accountant General/DAOs and the banks in the term of the procedure prescribed in Chapter 13 of the Punjab Budget Manual. In this regard, in pursuance of the directions given by the former Chief Minister, a comprehensive arrangement for reconciliation of accounts was worked out in consultation with the A.G Punjab. A set of instructions was issued to all government departments prescribing a detailed schedule for undertaking 132 reconciliation with the A.G/DAOs/ Banks in an organized and meaningful manner. The measures achieved limited success. Many areas still leave much to be desired. Problem areas; Various problem areas have been identified in the matter of improper maintenance of accounts, their effective reconciliation and timely reporting of financial data. Accordingly, appropriate measures have been taken to rectify the situation, these are discussed as hereunder:a) Duality of administrative control in District Accounts Offices. This aspect has been the sore point in the management of Treasuries (now District Accounts Offices). The Finance department has already been stressing for its resolution. Consequently, the F.D has taken up the matte with the highest authority in the Federal Government. The problem is, meanwhile badly affecting the efficiency out put and discipline in the District Accounts Offices. This is one of the main causes of poor fiscal reporting management. b) Compilation of accounts: Before the reorganization of treasuries into DAOs, the compilation of receipt and payment accounts was essentially done by the Treasury officials. After the reorganization of these offices into DAOs a dual system of compilation of accounts is in vogue. In certain DAOs the payment accounts is compiled by the A.G staff, which also pre-audit payments. This staff is not well poised to undertake compilation of accounts, as it is not competent in the matter, nor it is disciplined enough. Even otherwise, they take more interest in pre-audit functions rather to compile, accounts and to carry out reconciliation of work. In order to address this problem the Finance department directed establishment of compilation cells in the DAOs with the concurrence of A.G Punjab. These were to be jointly manned by the Treasury and Audit Staff. However, this effort has not succeeded because the A.G Punjab has refused to let the arrangement be implemented in the desired manner. c) Lack of effort on the part of DDOs /COs/ Government Department. There is a visible lack of effort on the part of the respective government functionaries, who perform various functions as DDOs/COs etc. The elaborate arrangement already prescribed under the Rules in not followed in the rightful manner with the result that reconciliation of accounts is being ignored. This element is compounded by the fact that such functionaries are not aware as to their 133 responsibilities, besides, having lack of comprehensive knowledge of Rules / instructions required to be followed by them. The Finance department is taking measures for holding training courses for such functionaries at the Punjab institute of Human Resources Development. d) Responsibility of banks: The banks constitute a vital element in the fiscal reporting mechanism of the Provincial government. It has however been observed that they are not discharging their responsibility in the prescribed manner, in- that the provincial receipts and payment are not reported in time, besides the reconciliation responsibility as required of them (banks) are not being performed in the rightful manner, causing huge discrepancies in the accounts as maintained by the D.A.Os/A.G Punjab , and those reported by the State Bank of Pakistan. This results in huge unreconciliated figures regarding State Banks Deposit. The Provincial government has taken up the matter with the SBP and NBP Authorities to address the concerns. e) Mis-classifications by departments Lack of accounting knowledge on the parts of D.D.Os /C.Os leads them to mis-classify their financial transactions, causing considerable discrepancies in their accounting reports. This problem is further aggravated due to improper reconciliation of accounts. The Finance Department has taken certain measures to over-come this situation. The receipt and expenditure classification of important departments have been re-notified with clarity so as to make such authorities conversant with their accounting classification for obviating large scale mis-classified accounts. Visible improvement has been observed in this area. f) Other problems Another factor contributing to financial mis-reporting and delayed reconciliation efforts is that administrative hierarchy of large departments like the departments of Health, Education, Agriculture, Police and Administration does not correspond with the reporting fiscal hierarchy as prescribed in the Budget Manual. This has caused mis-understanding and confusion, whereby fiscal reporting is delayed and is not accurately reported. Some of these functionaries merely work as post offices, instead of undertaking reconciliation work in the prescribed manner. The immediate solution to this difficulty lies in the fact that the DAOs may be required to send copies of expenditure statement direct to their Controlling officers, 134 besides handing them to their administrative superiors. This would cut down delays etc. g) Role of heads of department and Finance department. The heads of administrative departments are required to consolidate financial information as received from the DDOs and C.Os and prepare a consolidated return of the department for reconciliation with the A.G Punjab. This requirement is not being undertaken in rightful manner. For this purpose a Monitoring Wing headed by an Additional Secretary already exists in the Finance department. Presently, it is only concentrating its efforts to settle audit paras etc. This Wing needs to be activated further for undertaking reconciliation of accounts as prescribed, as it is already in receipt of appropriation of accounts form the Auditor General of Pakistan. 135 Chart of Classification The Chart of Classification of Federal and Provincial government receipts and disbursements constitutes Appendix 2 of the Account Code, Volume I. It has been issued by the Auditor General of Pakistan, with the approval of the President, under Article 170 of the Constitution of Islamic Republic of Pakistan, 1973. Up to 1978-79, the form of the accounts of the Federation and of the Province had been determined largely by the scheme prescribed in the ‘List of Major and Minor Heads of Account’, which was department-oriented i.e., an item of receipt and expenditure was identified with the Ministry or Department which collected the receipt or incurred the expenditure. In recent years, Governments have been undertaking ever-increasing responsibilities in matters affecting the economic growth of the country. With these added responsibilities, the need has been increased to improve the quality of information about the economic and social effects of their action for the purpose of providing an adequately analyzed database for well-conceived and rational policy decisions with regard to such matters as the choice of resource inputs, allocation of resources and their most economical use. A new classification was, therefore, evolved which was essentially ‘function-cum-object’ in character so that the receipts showed the sources of their generation and expenditure was classified so as to indicate both the Government function where occurred as well as the object it was meant serve. The chart can be divided into three distinct parts for the purpose of classification i.e. ( i ) Receipts, ( ii ) Expenditure and ( iii ) Public Account. The expenditure portion is further divided into 2 parts viz Functions and Objects. The Federal Government has introduced the Function-Cum-Object Classification with effect from the 1st July 1979 and by the Provincial Governments from the 1st July, 1980. Thus the Federal Accounts for 1979-80 and Provincial Accounts for 1980-81 have been prepared on new Chart of Classification. 136 OFFICE OF THE CONTROLLER-GENERAL ACCOUNTS, 3rd FLOOR, TAIMUR CHAMBERS, 10-D WEST, FAZAL-E-HAQ ROAD, BLUE AREA, ISLAMABAD No. -CGA/DISTT-GOVT/2001 08-2001 Dated: 11- SUBJECT - GUIDELINES FOR DISTRICT GOVERNMENTS ACCOUNTS UNDER DEVOLUTION PLAN Reference: Meeting held on the subject matter in the Finance Division on 10.8-2001. A copy of Guidelines for opening and keeping of Bank Accounts, transfer of funds to District Governments, Tehsil and Town Municipal Administration and keeping and maintaining accounts of these Governments by the DAOs/TOs is sent herewith for further action. (MUHAMMAD USMAN) Controller General of Accounts 1. The Secretary Finance, Government of the Punjab/Sindh/NWFP/Baluchistan. 2. The Accountant General Punjab/Sindh/NWFP/Baluchistan. 3. The Governor of State Bank of Pakistan, Karachi (Attention: Mr. Bar Bruce Ishaq, Additional Director, Accounts Department). 4. The President, National Bank of Pakistan, I.I. Chundrigar Road, Karachi. Copy also forwarded for information to: 1. The Secretary Finance, Government of Pakistan, Islamabad. 2. The Consultants NRB (Mr. Daniyal Aziz). 3. The Accountant General Pakistan Revenues, Islamabad. 137 GUIDELINES FOR OPENING OF BANK ACCOUNTS AND TRANSFER OF FUNDS FOR DISTRICT GOVERNMENTS, TEHSIL & TOWN MUNICIPAL ADMINISTRATION, UNION ADMINISTRATION 1. Local Funds and Provincial Accounts (1). Every District Government, Tehsil Municipal Administration and Town Municipal Administration shall establish under Section 107 (1) of the Local Government Ordinance, 2001, the following: i). ii). A Local Fund for every District Government, Tehsil Municipal A District Provincial Account for every District Government, a Tehsil Administration, Town Municipal Administration, and Union Administration. Provincial Account for every Tehsil Municipal Administration, and a Town Provincial Account for every Town Municipal Administration. (2). Local Fund will receive credits from the sources laid down in Local Government Ordinance, 2001. The District Provincial Account will be credited with budgetary releases transferred by Provincial Government to the District Government. The Tehsil Provincial Account will be credited with sums transferred by District Government to the Tehsil Municipal Administration. The Town Provincial Account will be credited with sums transferred by City District Government to the Town Municipal Administration. (3). The accounts of the Local Fund and the Provincial Account shall be maintained and kept separate from each other. The accounts of Local Fund will be kept and maintained by the Local Governments themselves under the existing system and arrangements. The accounts of the Provincial Accounts will be kept and maintained by the DAOs/TOs in the manner laid down in the succeeding paragraphs. 2. District Provincial Account: (1). In terms of Section 107 (3) Local Government Ordinance 2001 the "District Provincial Account" shall consist of all monies budgeted in the Provincial Government budget for Offices and Functions decentralized to the District 138 Governments, other than the sums for establishment charges of Government employees of such decentralized offices. It will also include Octroi and Zila grants from Government. For this purpose detailed District wise budget estimates will be prepared by the Provincial Government and printed copies provided to the concerned Zila Nazim, DAO/TO and AG.These provincial budget estimates will also include share of Tehsils or Town Municipal Administration as the case may be, which is to be transferred by District Government. (2). The establishment/pension budget of the Government employees shall continue to form part of Provincial Consolidated Fund and disbursed by the DAOs/TO as per existing procedure. (3). The Tehsil and Town Provincial Accounts shall consist of all monies transferred to them by the District Government out of District Provincial Account. 3. Custody of District Provincial Account: (1) Each Provincial Government will make arrangements with the State Bank of Pakistan to keep and maintain a "District Provincial Account" separately for each District in the Province. The Account at Province level will be titled:  Punjab District Governments Account No. IV  Sindh District Governments Account No. IV  NWFP District Governments Account No. IV  Baluchistan District Governments Account No. IV (2). Each of the above Account No.IV will be further divided into "District Provincial Account" with a separate Sub No. (allotted by State Bank of Pakistan) for each District to accommodate receipts and payments of that District separately and independently. These District Provincial Accounts will be kept in the State Bank of Pakistan. (3) The State Bank will provide District wise daily closing balances of cash to the DAO/TO, AG, DCO/EDO Finance of the concerned District and Finance Department of the Provincial Government for monitoring the cash flow. Monthly statement of District wise closing balances of cash will also be provided to the DAO/TO, AG, DCO/EDO Finance and Finance Department. 139 (4). Where the State Bank has no branches at District level, the business shall be conducted by the branches of National Bank of Pakistan, as an agent of the State Bank of Pakistan. It will be conducted in the same manner as the business of the Provincial Governments is currently being conducted in respect of their Accounts No. I & II. The concerned National Bank branch will keep two separate accounts i.e.one for the Provincial Consolidated Fund of the Provincial Government and the other for the District Provincial Account of the District Government.The reimbursement by the NBP will be claimed separately for the two accounts from the State Bank. This will make it possible for the State Bank to debit the respective accounts. (5) The District Provincial Account with the State Bank of Pakistan will be operated by the concerned DAO/TO. (4) Custody of Tehsil/Town Provincial Accounts (1). The NBP will maintain separate account for each Tehsil/Town Municipal Administration within the District in the NBP branch at the Tehsil/Town level. (2) The Tehsil/Town Provincial Account with the National Bank of Pakistan will be operated by the concerned DAO/TO till such time that an Accounts Officer is notified for the Tehsil/Town. (5) Re-appropriations (1). The Funds credited to the District and Tehsil/Town Provincial Account will be expended by the Local Governments in accordance with budget approved by the concerned Council and as amended form time to time. (2). The DCO will examine budget estimates immediately on receipt from the Finance Department and prepare, in consultation with the Zila Nazim, statement of Re-appropriation for approval of the Council. After approval DCO will communicate revised budget allocations of the District Budget to the Provincial Finance Department, heads of the District Offices, DDO’s, DAO/TO and AG. Till this is done expenditure will be incurred as per budget allocations provided by the Finance Department. 140 (3). Re-appropriation will, however, not be allowed from salary budget to District Provincial Account and vice versa. 6. Classification: (1) For new offices and for any transaction arising in the District, which is/are not covered by the existing classification heads, new heads will be issued by the CGA upon intimation by Provincial Finance Departments. 7. Accounts and Payments: (1). Under new system, the DAO/TO will be responsible to keep and maintain following Government accounts separately from each other: (i). Provincial Government Account. (ii). District Provincial Account (iii) Tehsil/Town Provincial Account (iv). Federal Government Account (2). The Provincial Government account comprising the transactions relating to the salary of the Government employees of offices decentralized to the District Government, as laid down in para-2 (2) and of those functions and departments/offices not decentralized to the District Government, will continue to be kept, maintained and submitted by the DAO/TO to the AG under the existing system and procedure. (3). Similarly, Federal Government account comprising the transactions of the Federal Government arising out in the district will continue to be kept, maintain and submitted to the AGPR or its concerned sub-office under the existing system and procedure. 8. (1). Releases from Provincial Government: - The funds budgeted for transfer to District Provincial Account will be released by the Provincial Government in monthly installments by 1st day of each month (Note: Federal transfers are on the last day of the month). The Finance Department will issue advice under intimation to AG, DAO/TO to the State Bank of Pakistan, Karachi on the 1st day of the month, to transfer the sanctioned amount to the concerned District Provincial Account by debit to the Provincial Government Account No. I. 141 (2). The following accounting entries will be made in respect of above adjustment in the books of the A.G. and the DAO/TO on receipt of intimation of adjustment from SBP: AG's Books DR 8308000-Funds remitted to the District Governments Note: (Subsidiary register will be maintained by AG to keep a record of the transfer of funds to each district separately). CR 9201000-State Bank Deposits. (Account I) DAO's/T.O's Books DR CR (3). District Provincial Account. Head: Head: 9201000-State Bank Deposits. (Account IV) 8308000-Funds Remitted to the District Governments. to Tehsil Provincial Accounts by District Provincial Government Account: Releases Government.The funds budgeted for transfer to Tehsil/Town Provincial Account will be released by the District Government in monthly installments by 3rd day of each month. The DCO will issue advice to the State Bank of Pakistan, Karachi on the 3rd day of the month to transfer (i.e. actual cash transfer) the sanctioned amount to the concerned Branch of the NBP maintaining the Tehsil/Town Provincial Account by debit to the District Provincial Account No. IV of the District concerned. The following accounting entries will be made in respect of above adjustment in the books of the DAO/TO: DAOs Books (District Government) DR 8309000-Funds Remitted to the Tehsil/Town Municipal Administration Note: (Subsidiary register will be maintained by DAO/TO to keep a record of the transfer of funds to each Tehsil/Town separately). CR 9201000-State Bank Deposits. (District Provincial IV) 142 DAO's Books (Tehsil Books) DR CR Head : 9201000-State Bank Deposits. 8309000-Funds Remitted to the Tehsil/Town Municipal Head : Administration (4). Any Budget cut, necessitated by financial constraint, and imposed by the Provincial Government will be communicated immediately by Finance Department to the DCO/EDO Finance under intimation to DAO/TO. The DCO will, with the approval of the Nazim/Zila Council, impose the same on District and Tehsil/Town budgetary allocations proportionately. The revised budgetary allocations will be intimated to the concerned DAOAG/TO by the DCO/EDO Finance. 9. (1). Payments: The payments out of District Provincial Account will be made by the DAO/TO on presentation of bills by the DDO’s through cheques drawn on SBP. Till the system of disbursement by cheques is introduced in all the districts the existing system of payments through sealed authority shall continue. The payments out of Tehsil/Town Provincial Account will be made by the DAO/TO on presentation of bills by the DDO’s through cheques drawn on NBP. (2). The DAO/TO, as well as the National Bank branch, will deal with the accounts of more than one Govt., VIZ. Provincial Government, District Government, Tehsil/Town Municipal Administration and Federal Government. Therefore each DAO/TO must ensure that the Account number with sub-number to which the expenditure is debitable is clearly marked on the top of the cheque/bill. This is necessary for accurate accounting and to debit the correct Account. (3). The DAO/TO will be responsible to keep and maintain Tehsil/Town Provincial Account and make payments out of it through cheques drawn on NBP on presentation of bills by the DDO’s. This arrangement will continue till Tehsil/Town Accounts Officer is notified by AG. Expenditure will be incurred as per budget allocation communicated by the DCO. It will be the joint responsibility of the DCO and DAO to keep the expenditure within the limits of the sanctioned budget and cash releases by Provincial Government. 143 10. Reconciliation: (1). The DDO’s will carry out reconciliation of expenditure/receipts with the DAO/TO on monthly basis on the format prescribed by Auditor-General of Pakistan already supplied to all Federal/Provincial Governments, AGs and DAOs/TOs. The process of reconciliation will be completed by 12th of the following month. The DDO’s will submit reconciled statement to the DCO, the Principal Accounting Officer, of the District by 13th of the following month. The DCO will consolidate the DDO’s figures under each object-cum-functional heads in respect of each budget grant and carry out reconciliation with DAO/TO for overall expenditure of the District by the 19th of the following month. The DCO will provide a copy of reconciled statement of District expenditure/receipt to the Finance Department by 20th of the following month' The DAO/TO will also submit a copy of the reconciled statement to the AG by the 20th of the following month. To enforce timely reconciliation, the DAO/TO may stop payments of the defaulter DDO’s under intimation to DCO. (2). The reconciliation of expenditure/receipt in respect of Tehsil/Town Provincial Accounts will similarly be carried out by the DDO’s with DAO/TO, till Tehsil/Town Accounts Officer is notified. The reconciled statements will be furnished to DCO and DAO/TO by the 7th of the month. The DCO will include the same in his statement for consolidated reconciliation with the DAO/TO of the District expenditure/receipt. (3). The cash balance will be reconciled by DAO/TO with concerned National Bank of Pakistan branch (or State Bank Branch where situated in the district) on daily/monthly basis in accordance with procedure prescribed by the Auditor-General in December 2000 and circulated by the Ministry of Finance to all Provincial Governments and State Bank/National Bank in February 2001. The monthly account, for District Government, Tehsil/Town Municipal Administration and Provincial Government, should exhibit closing cash balance duly supported with reconciled statement signed by the branch Manager and the DAO/TO. 144 11. Expenditure on common projects: (1) The projects/schemes which are to be funded from the sources of two Funds, viz. Local Fund and Provincial Accounts, shall reflect the specific share out of the two Funds in its PC-1 and budget estimates of the respective Funds. The accounts of the project/scheme will exhibit separately and distinctly the expenditure incurred out of the respective Funds. 12. Maintenance of Accounts records: (1). Cash Book & Registers: Cash book and all subsidiary register will be maintained in accordance with rules and procedure contained in Treasury Rules and Account Code Vol.II in the same manner as being maintained in respect of Provincial Government accounts (2). Compilation Sheet, Classified & Consolidated Abstracts: The voucher wise compilation in the Compilation Sheet and preparation of classified and Consolidated Abstracts will be done under rules and on forms as contained in Account Code Vol.IV. It will be in the same manner as being compiled in respect of Provincial Government. These will contain the Tehsil figures distinctly. (3). Monthly Accounts: From the Classified and Consolidated Abstract, monthly accounts will be compiled by the DAO/TO showing expenditure of the Tehsil/Town separately for submission to the Zila Nazim by 5th of the following month, with a copy to the DAO/TO, AG and Finance Department. This will be prepared on the same form in which AG prepares the monthly civil account for submission to the Finance Department. Another monthly account in respect of salaries expenditure of the Government employees of the offices decentralized to District Governments and charged to the Provincial consolidated Fund, will also be prepared and submitted to the AG alongwith the Provincial Government Account by 8th of the following month. (4).Till Tehsil/Town Accounts Officer is notified the DAO/TO will compile all the above records similarly in respect of Tehsil Provincial Account and submit 145 monthly account to the concerned Nazim, with a copy to the DCO, Finance Department and AG. 13. Annual Accounts: (1). Appropriation Account: The Annual Appropriation Accounts of the District Government inclusive of Tehsil expenditure will be prepared by the DAO/TO on the same format as used by AG. The Appropriation Account will contain 100% reconciled expenditure with DCO/DDO’s and be prepared within one month of close of the accounts. (2). The manuscript will be sent to the District Audit Officer, the representative of the Auditor-General, for certification. The District Audit Officer/DG Audit will return it after necessary checking to the DAO/TO within 15 days. (3). Correction in the account as a result of audit scrutiny and verification, if found necessary, will be carried out within a week and accounts of the year treated as finally closed. Thereafter appropriation accounts will be finalized and printed by the DAO/TO and sent to the AG duly signed by him and District Audit Officer/DG Audit. The AG will countersign Appropriation Accounts and also get the audit certificate of District Audit Officer countersigned by the DG Audit of the Province. AG will then submit the same to Zila Nazim with copy to the Finance Department. 4). The following time schedule will be observed for preparation and 15 Sep. submission of the District Appropriation Account:  Closing of June (Final Accounts... 15 Oct.  Returned by Audit...Correction/Adjustment, if any, 1st Nov.  As a result of Audit check...  Finalization/printing/submission to the AG...  Submission to Nazim by AG. 5th Nov. 25th Nov. 1st Dec.  Preparation of manuscript and submission to District Audit Officer. 146 (5). Annual Finance Accounts: (i) There will be one Consolidated Finance Account containing entire receipts and expenditure of the Provincial Government relating to the Consolidated Fund and Public Account. This will be compiled by the AG on the existing format for submission to the Provincial Government from the accounts prepared by the AG and DAOs/TOs. Necessary material for this purpose in respect of the District Provincial Accounts and Tehsil/Town Provincial Accounts will be submitted by the DAOs/TOs. Printed copy of the Finance Accounts will also be supplied by AG to District Governments. 147 No. IT (FD) 3-4/2001 GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore the 10th January, 2002 To 1) 2) Subject: All Zila Nazims in the Punjab. All District Coordination Officers in the Punjab. FINANCIAL GUIDELINES FOR THE DISTRICT GOVERNMENTS. The establishment of District / Tehsil / Town Provincial Accounts, passing of budgets by the respective District Governments and implementation of monthly cash transfer mechanism has effectively led to operationalization of the financial system prescribed under the Punjab Local Government Ordinance 2001 and rules / instructions on the subject. Various interim measures allowed by the Finance Department from time to time would accordingly be withdrawn gradually. 2. In order to facilitate the implementation of the system in the prescribed manner, and after taking into consideration the practical aspects regarding various steps required of the respective functionaries of the district governments, Finance Department has formulated financial guidelines for the District Governments, in consultation with the Accountant General Punjab, (copy enclosed). The specimen of draft orders/sanctions required to be issued by the DCO and other functionaries are also annexed for guidance and uniformity. 3. While efforts have been made to cover the entire spectrum of functions and financial activity of the district governments, the guidelines may not be exhaustive, as certain aspects may still require clarification/elaboration, as fresh problems are identified by the district governments. 148 4. Nevertheless, it is expected that the District Governments would be better poised in managing their financial affairs. Meanwhile, the FD would endeavor to address all issues relating to finance, budget and accounting, as and when referred to it by the District Governments. (SHAHID MAHMOOD) Additional Finance Secretary (Budget) No. & Date Even: A copy with a copy of the guidelines is forwarded for information to: 1. The Chairman, National Reconstruction Bureau, Chief Executive Secretariat, Islamabad. 2. 3. The Finance Minister, Punjab Lahore. The Minister, Local Government & Rural Development Department, Punjab, Lahore. 4. The Secretary to Government of Pakistan, Finance Division, Islamabad. 5. The Consultant NRB (Attention: Mr. Daniyal Aziz) Chief Executive Secretariat, Islamabad. 6. 7. 8. 9. The Chairman, Planning and Development Board, Punjab, Lahore. The Secretary, LG&RD, Punjab, Lahore. The Secretary to Governor, Punjab, Lahore. All Administrative Secretaries to Government of the Punjab, Lahore. 10 All Tehsil /Town Nazims in the Punjab. (SHAHID MAHMOOD) Additional Finance Secretary (Budget) 149 No. & Date Even: A copy with a copy of the guidelines is forwarded to: 1. The Controller General of Accounts, Taimur Plaza, West, Blue Area, Islamabad. 2. 3. 4. 5. 6. The Accountant General, Punjab, Lahore. The Director General (Accounts) Works, Punjab, Lahore. The Director General (Audit) Works, Punjab, Lahore. The Director General (Civil Audit), Punjab, Lahore. All District Accounts Officers in the Punjab. (SHAHID MAHMOOD) Additional Finance Secretary (Budget) 150 GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, the 10th January, 2002 FINANCIAL GUIDELINES FOR THE DISTRICT GOVERNMENTS With the promulgation of the Punjab Local Government Ordinance, 2001, the provisions contained in Chapter XII “Local Government Finance” have become operational with effect from 14th August, 2001 requiring certain changes in the budgetary and accounting mechanism from that prevalent in the pre-devolution period. 2. The financial year 2001-2002, therefore, ought to be compartmentalized into three distinct periods: i) From 1st July, 2001 to 13th August, 2001: This was the normal pre-devolution period. The provincial budget in this period was operated in the usual manner as before, with the only condition that the provincial departments and their lower formations, which were to be devolved to the districts were to incur expenditure for this period on proportionate/pro-rata basis, computed on the basis of the entire financial year. The accounting for this expenditure was to be done in the existing form and manner, and reporting done as per previous procedure. Such expenditures were debitable to the Provincial Account No. I. ii) From 14th August, 2001 to 31st October, 2001: The second period, denotes the beginning of the devolution period. With the establishment of district governments, the provisions relating to Finance, Budget and Accounting as envisaged in Chapter XII of the Punjab Local Government Ordinance, 2001 (PLGO) were put into operation. However, as the district governments had yet to formulate their budgets, as envisaged in Section 111 of the Ordinance, the district governments were required to: 151 a) operate budgetary and accounting mechanism on the basis of budgetary authorizations as reflected in the District Budgets formulated by the Finance Department. b) incur expenditures out of their budgets on pro-rata basis, for each grant, worked out on the basis of the entire financial year 2001-2002. Since separate accounts (Account-IV) for the district governments were established by the end of October 2001, expenditures of the district governments were temporarily debitable to Provincial A/c No. I. However, the Accountant General, Punjab (A.G.)/ District Accounts Officers (DAOs) were required to keep a segregated account of expenditure relating to Provincial Government departments and those of the District Government (devolved departments) by sending separate drawing schedules to the banks. Likewise, the banks were to send separate debit scrolls for the payments authorized for provincial and district government departments. With this exercise in place, the A G (Punjab) is in a position to give segregated accounting details for the expenditure incurred out of provincial account No. I during the period 14th August, 2001 to 31st October, 2001 for the provincial and the district governments. Another position which emerged is with regard to the financial operations of departments which (i) already existed in the districts, and were devolved and (ii) those offices, which existed at district levels but were restructured or wound up in the devolved set ups. The first category of offices did not face any dis-continuity in their financial activity in the new set up. However, the restructured/devolved departments had to realign their financial systems in the new set up. The financial liabilities of such departments falling in category (ii) for the pre-devolution period shall be borne by the provincial government, after such claims are scrutinized and authenticated by the respective administrative departments. Finance 152 Department would accordingly provide requisite budgetary cover, where necessary. As regards departments, which have continued in the new district set up, they would have to own their liabilities, and meet them from their existing budgets. iii) From 1st November, 2001 to 30th June, 2002: After decision by the Ministry of Finance (MOF) / National Reconstruction Bureau (NRB) as to the mode of financial transfers to the district governments, the Finance Department established the District Provincial Accounts for every District Government, a Tehsil Provincial Account for every Tehsil Municipal Administration and a Town Provincial Account for every Town Municipal Administration, in terms of Section 107(1)(b), (c) and (d) of the PLG Ordinance, 2001. In effect separate Account No. for each District Government, Tehsil Municipal Administration and Town Municipal Administration was opened with a distinct Sub-No. allotted by the State Bank of Pakistan (SBP)/National Bank of Pakistan (NBP), for the District Governments, and Tehsil/Town Municipal Administrations, respectively. It was also decided by the MOF and the NRB in consultation with the provincial governments and the State Bank of Pakistan that CASH BALANCES in account No.IV of the District / Tehsil / Town Provincial Accounts shall remain part of the Provincial Consolidated Fund (Account No.1), and that the composite cash balance of the said two accounts shall be considered as the aggregate cash balance of the province. 3. With the above arrangements in place the Finance Department authorized the ; a) establishment of District Provincial Accounts vide No.IT(FD)3-4/2001 dated 23rd October, 2001. 153 b) establishment of Tehsil / Town Provincial Accounts vide No.IT(FD)3-4/2001 dated 31st October, 2001. 4. Meanwhile, the Controller General of Accounts (CGA) circulated guidelines for opening, maintaining and transfer of funds to the bank accounts of District Governments, Tehsil and Town Municipal Administrations. Besides, the guidelines also prescribed the maintenance and reconciliation of accounts of these governments by the District Accounts Officers/ Treasury Officers (T.O.). In order to cater for subsequent accounting requirements, the CGA has circulated amendments in the guidelines vide No.122/116-CGA/DISTT-GOVT/2001 dated 19.11.2001. The Finance Department has circulated these amendments vide No. IT (FD) 3-4/2001 dated 1st December, 2001. TRANSFER MECHANISM 5. In accordance with the provisions contained in Section 107(3)(1), of PLG 0rdinance 2001, the Provincial Government is required to transfer from the Provincial Consolidated Fund by monthly installments, moneys budgeted for the offices and functions decentralized to district government, for credit to the District Provincial Accounts (Account No.IV). This does not include establishment costs of employees of the Government Offices decentralized to District Governments. 6. The cash transfers shall be authorized by the Finance Department for a month, on the first of the month for each district separately, consisting of the following components, for credit to the respective Sub No: in Account No.IV. a) b) c) d) e) f) Non-salary budget Annual Development Programme (ADP) Khushhal Pakistan Programme (KPP) Octroi Grant Zila Grant/Goods Exit Tax (G.E.T.) Urban Immoveable Property Tax Share (UIP) 154 7. The cash transfers pertaining to components listed at ‘a’, ‘b’ and ‘c’ above shall be available for utilization by the District Governments in accordance with the budgetary allocations, depicted in the district budgets. The unspent cash balance available in the respective District Provincial Account on the last day of the month shall constitute the opening balance, and would be added to the cash transfers of the next month, as afore stated, for the purpose of utilization in the said manner during the month. 8. The expenditure out of the cash transfers may only be incurred by the District Governments in accordance with their approved budgets and be strictly restricted to the respective budgetary appropriations, of each department proportionately allocated for the month under various grants/objects. 9. ACTIONS TO BE TAKEN BY THE DISTRICT GOVERNMENTS i. Immediately on receipt of the monthly installment of cash transfer from the Finance Department, the D.C.O. shall compute his cash balance pertaining to non-salary component available for the month. It shall comprise the cash transfer for the month received from the Finance Department for the non-salary component. He shall accordingly notify each Executive District Officer, (E.D.O.) the proportionate share of cash balance vis-à-vis the pro-rata budgetary allocation for that month (Annex-I). This position would also be intimated to the DAO concerned. The EDOs shall in turn ensure to confine their expenditures within the budgetary allocation of the respective grant. All funds sanctioned by Finance Department through supplementary grants shall also be made available to District Governments in cash for credit and utilization through Account No.IV. ii. As regards ADP funds, the DCO shall intimate the concerned EDOs in the same manner as for Sr. No. (i) above the cash balance available during the month, for incurrence of expenditure vis-à-vis 155 the pro-rata budgetary resource releases under this head. This position would also be intimated to the respective DAO/AG/TO. iii. Regarding KPP, the DCO would make budgetary releases, after approval of the schemes, and also intimate monthly availability of cash to the respective executing agencies (Annex-II). iv. The DCO will also ensure the transfer of proportionate cash balance pertaining to the Public Health Engineering, Housing and Physical Planning and Local Government departments devolved to the Tehsil Municipal Administration for credit to Tehsil Provincial Accounts as required under Section 107(3)(b) of the Punjab Local Government Ordinance, 2001. The requirements of Section 109 ibid shall also be kept in view. The DCO shall issue an advice to the local State Bank of Pakistan/National Bank of Pakistan branch of the concerned district on the third day of each month to transfer the proportionate amount for credit to Tehsil Provincial Account by debit to District Provincial Account (Annex-III). v. The transfer of Octroi Grant/UIP Tax Share to Local Fund Accounts of the Tehsil /Town Municipal Administration (T.M.A.) shall be done by the DCO, through sanctions (Annex-IV&V), requiring the TMA to draw the respective shares / allocation through their bank maintaining the Local Fund of the TMA, from the concerned DAO on Simple Receipt Form (Annex-VI). The position as clarified by Finance Department vide letter No. IT (FD) 3-4/2001, dated 29-12-2001 shall be kept in view (Annex-VII). vi. The aforementioned procedure in para-9 (v) above shall mutatis-mutandis apply to the transfer of Zila Tax to the Local Fund Account of the Union Administrations. 156 10. ACTIONS TO BE TAKEN BY THE TEHSIL/TOWN MUNICIPAL OFFICERS i) Tehsil / Town Provincial Account: On receipt of an advice from the DCO {as envisaged in para 9(iv) above} regarding the transfer of funds (non-salary, ADP/KPP etc) from the District Provincial Account to Tehsil/Town Provincial Accounts, the Tehsil/Town Municipal Officer (TMO) shall make arrangements for the distribution of budgetary allocation to the respective Tehsil/Town Officers according to the proportionate share of cash balance, vis-à-vis the pro-rata budgetary allocation for the month, under intimation to the District Accounts Officer concerned (Annex-VIII). The Tehsil/Town Officers shall ensure to confine their respective expenditures within the budget/resource availability. ii) Octroi/UIP Tax Share The Tehsil/Town Municipal Officers shall proceed in the manner prescribed in para 9(v) above and ensure credit to the bank account as stated. ACTION BY THE UNION NAZIM 11. The procedure as prescribed in para 9(v) above shall mutatis mutandis apply to receipt of grant by the Union Administration in respect of Goods Exit Tax. 157 FUNCTIONING OF FOREST AND WORKS DEPARTMENT IN THE DISTRICT SETUP 12. The Forest and the Public Works Departments are peculiar in that they have the status of self-accounting entities. They have departmentalized accounts, in accordance with a separate system prescribed by the Auditor General of Pakistan. All payments of such departments are authorized through cheques specifically prescribed for these departments. 13. These two departments have not been devolved to the District Governments in their entirety as some functions have been retained at the provincial level, while others have been devolved to the District Governments. This position has affected the self-accounting status of these departments in respect of the offices, the functions whereof have been devolved to the district. 14. Consequently, the existing set up for undertaking pre-audit and accounting functions of these offices have ceased to be operational, while no alternate accounting mechanism has meanwhile been prescribed. Given the fact that the Works and Forest accounts are specialized functions, the DAOs who are envisaged to operate such functions are not in a position to take up this work unless an accounting unit is established in the DAOs from the persons drawn from the accounting set ups of the erstwhile Forest and Works departments. 15. Therefore, till such time that the Controller General of Accounts prescribes an alternate system, it is necessary that the existing accounting status of the Forest and the Works Departments is kept intact i.e. the pre-audit and accounting work is done by their respective accounting entities as hitherto-fore, and payments are made by their accounting units through cheques. The Accountant General, Punjab has accordingly issued instructions to this effect. 158 Annex-I From The District Coordination Officer _______________________ To The Executive District Officer _____________________ Memo. No.__________ SUBJECT: Dated:____________ BUDGETARY ALLOCATION (CASH TRANSFERS) FOR THE MONTH OF . Finance Department has transferred a sum of Rs._________(Rupees ____________________________) as cash transfer for the non-salary component for District _____________ for the month of _____________. 2. In accordance with the pro-rata budgetary appropriation available to the district during the month i.e. Rs. _____________________, the available cash transfers show an aggregate shortfall of (percentage)____________ vis-àvis the approved budget. 3. Therefore, a uniform cut of _______% may be applied to all grants/functions for the purpose of incurrence of expenditure on non-salary component (commodities & services) during the month of ___________. DISTRICT COORDINATION OFFICER ________________ No. & Date Even: A copy is forwarded for information and necessary action to: 1. 2. Lahore. 3. 4. The Accountant General, Punjab, Lahore. The Secretary, Government of the Punjab, LG&RD Department, The Deputy Secretary (Budget), Finance Department, Lahore. The District Accounts Officer_____________. DISTRICT COORDINATION OFFICER ________________ 159 Annex-II From The District Coordination Officer _______________________ To The Executive District Officer _____________________ Memo. No.__________ Dated:____________ RELEASE OF FUNDS REGARDING KHUSHHAL PAKISTAN PROGRAMME . It is to intimate that the District Development Committee has approved the following scheme(s) at the cost indicated against each for execution during the current financial year 2001-2002 in district___________: 1. _____________________________________ SUBJECT: 2. 3. _____________________________________ _____________________________________ 2. A sum of Rs.___________ (Rupees____________________) is hereby placed at your disposal for the execution of schemes, as mentioned above. The expenditure involved will be debitable to Grant No. 36-Development, 50000-Economic Services, 56000-Rural Development, 56200-Rural Works Programme/IRUDP during the year 2001-2002. DISTRICT COORDINATION OFFICER ________________________ No. & Date Even: 1. 2. 3. 4. 5. A copy is forwarded for information and necessary action to: The Accountant General, Punjab, Lahore. The Director General, Accounts Works, Lahore The Director General, Audit Works, Lahore. The Deputy Secretary (Budget), Finance Department, Lahore. The District Accounts Officer_____________. DISTRICT COORDINATION OFFICER _______________________ No. & Date Even: A copy is forwarded for information to: 1. Lahore. 2. Lahore. The Chairman, Planning & Development Department, Punjab, The Secretary, Government of the Punjab, LG&RD Department, DISTRICT COORDINATION OFFICER ______________________ 160 Annex-III DISTRICT GOVERNMENT __________________ To The Chief Manager, State Bank of Pakistan, or Manager, National Bank of Pakistan, (Name of city) Subject: Dear Sir, In pursuance of Finance Department’s release order vide letter No. ________________ dated ___________ allowing cash transfers for the month of ______, you are advised to credit Tehsil Provincial Accounts with a sum of Rs._______ million (Rupees _______________ million) in respect of Public Health Engineering, Housing & Physical Planning and Local Government Departments to Tehsil/Town Municipal Administration, per contra debit to the District Provincial Account No. _____ of District ________ as per following detail. The amount is adjustable in the accounts for 2001-02:Sr. # Name of TMA A/C No. NonSalary KPP ADP Others Total RELEASE OF FUNDS TO THE TEHSIL ADMINISTRATION(S) FOR THE MONTH OF MUNICIPAL 2002 Total: 2. I am to request that necessary action may be taken under intimation to all concerned Offices. Yours sincerely, District Coordination _________________ Officer 161 No. & Date Even: A copy is forwarded for information and necessary action to: i) ii) The Accountant General, Punjab, Lahore. The District Accounts Officer, ______. The amount of Rs._____ may be booked under the following heads of account during the financial year 2001-2002. ACCOUNTING BY BOOK ADJUSTMENT DR. 8309000-Funds remitted to Tehsil/Town Municipal Administration Rs._____ million CR. 9201000-State Bank Deposits (District Provincial Account IV). Rs._______ million District Coordination Officer _____________________ No. & Date Even: A copy is forwarded for information and necessary action to:i) ii) iii) iv) v) The Chairman, National Reconstruction Bureau, Chief Executive’s Secretariat, Islamabad. State Bank of Pakistan / National Bank of Pakistan, Head Office, Karachi. The Secretary, Government of the Punjab, Finance Department Lahore. The Secretary, Government of the Punjab, LG&RD Department, Lahore. Tehsil Municipal Officer, _________. The department-wise breakup is being intimated separately. District Coordination Officer ____________________ 162 Annex-IV DISTRICT GOVERNMENT _____________ No.______________ In pursuance of Finance Department’s letter No.____________ dated _____________ sanction is hereby accorded to the release of Octroi grant to the Tehsil / Town Municipal Administration(s) as per following detail. Sr. No. Name of T M A Amount of Octroi grant Total 2. The expenditure involved shall be debitable to the grant No.31Misc., 6-70000- Debt servicing, investible funds and grants, 6-74000-Grant, and subventions, 6-74200- grants to local bodies _______ 60000 Transfer Payments, 64000- Grants, 64200- Octroi / Zila Tax grants to local bodies during the year 2001-02. District Coordination Officer ____________________ No. & Date Even: A copy is forwarded for information and necessary action to: i) ii) iii) iv) v) The Secretary, Government of the Punjab, LG&RD Department, Lahore. The Secretary, Govt. of the Punjab, Finance Department, Lahore. Accountant General Punjab, Lahore. The District Accounts Officer __________. The Tehsil / Town Municipal Officer ___________. District Coordination Officer ________________ 163 Annex-V DISTRICT GOVERNMENT ____________________ No. ____________ In pursuance of Finance Department’s letter No. ________ dated_________, sanction is hereby accorded to the release of Urban Immoveable Property Tax share to the Tehsil Municipal Administration(s) as per following detail:Sr. No. Name of TMA UIP Tax Share Total 2. TOTAL The expenditure involved shall be debited by minus credit to the Head “0000000-Tax-Revenue-0122000-Immovable property Tax (Urban share of net proceeds assigned to Corporations/Municipalities, 0122900-Deduct share of net proceeds assigned to Corporations/Municipalities etc. for the year 20012002. District Coordination Officer _____________________ No. & Date Even A copy is forwarded for information and necessary action to:i) ii) iii) iv) v) The Secretary, Government of the Punjab, LG&RD Department, Lahore. The Secretary, Government of the Punjab, Finance Department, Lahore. Accountant General Punjab, Lahore. The District Accounts Officer ____________. The Tehsil Municipal Officer, ____________. District Coordination Officer __________________ 164 Annex-VI A.T. No. 319 VOUCHER NO. ______________ ___________ Treasury. Month of _________ 200 . Head of service chargeable Received this ________ day of __________ the sum of Rupees ___________________ being the amount due to me for Examined and approved for payment for Rs.(Words) _________ Rs. _____________ Accountant Treasury Officer/ DAO/ AO Claimant’s Signature Admitted: Objected to: Auditor Asstt. Supdt. Supdt. Annex-VII 165 IMMEDIATE / OUT TODAY No. IT(FD)3-4/2001 GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore the 29th December, 2001 To All the District Accounts Officers in the Punjab. Subject:TRANSFER OF FUNDS PERTAINING TO OCTROI, GOODS EXIT TAX (ZILA TAX) AND SHARE OF URBAN IMMOVEABLE PROPERTY TAX Kindly refer to the subject cited above. 2. Feedback received by the Finance Department from the District Governments, reveals a lack of clarity at the latter level regarding the mechanism to be adopted for the transfer of funds by District Governments on account of GST in lieu of Octroi & Goods Exit Tax and on account of UIP Tax share. 3. According to the provision of Section 109(2) of the Punjab Local Government Ordinance, 2001, the funds released by the Finance Department to the District Governments on account of Octroi grant are to be transferred by the DCOs to the Local Fund of respective Tehsil Municipal Administration, or the Town Municipal Administration as the case be. 4. Likewise, according to Section 109(4) ibid, the funds released by Finance Department on account of Goods Exit Tax (Zila Tax) are to be transferred by the DCOs to each Union Administration for credit to the Union Local Fund. Also, the respective shares of UIP Tax, shall be transferred by DCOs for credited to the Local Fund of the Tehsil/Town/Union Administration. 5. It is clarified that all the three transfers as aforestated, are ultimately creditable to the respective Local Fund and NOT, repeat NOT to Tehsil/Town Provincial Accounts etc. You are, accordingly directed to ensure that while authorizing such transfers, through “simple receipt forms”, the pay orders should clearly denote that the payments are creditable to the “payees account” operated for maintaining Local Funds of the respective Tehsil/Town Municipal/Union Administration, as the case be. Sd/(MUHAMMAD ZUBAIR) CHIEF INSPECTOR OF TREASURIES 166 No. & Date Even. A copy is forwarded for information and necessary action to:1. 2. 3. 4. 5. Mr. Daniyal Aziz, Consultant National Reconstruction Bureau, Chief Executive Secretariat, Islamabad. The Secretary to Government of the Punjab, Local Govt. and Rural Development Department, Lahore. All the District Nazims in the Punjab. All the District Coordination Officers in the Punjab. All the Executive District Officers (Finance) in the Punjab. Sd/(MUHAMMAD ZUBAIR) CHIEF INSPECTOR OF TREASURIES No. & Date Even. A copy is forwarded for information and necessary action the Accountant General, Punjab, Lahore. Sd/(MUHAMMAD ZUBAIR) CHIEF INSPECTOR OF TREASURIES 167 ANNEX-VIII From *Tehsil/Town Municipal Officer, _______________________ To *The Tehsil /Town Officer, _____________________ Memo. No.__________ SUBJECT: Dated:____________ BUDGETARY ALLOCATION (CASH TRANSFERS) FOR THE MONTH OF__________ 2002. The District Coordination Officer___________ has transferred in cash Rs.______(Rupees__________) and Rs_______ (Rupees__________).. as current Non-Salary, Development/KPP/Devolution cost respectively for the month of ____________ as Non Salary component in the Tehsil/Town Municipal Account. 2. Physical In accordance with the pro-rata current non-salary budgetary Planning and Local Government Departments i.e. appropriation available in respect of Public Health Engineering, Housing and Rs._______(Rupees______), the cash transfer show an aggregate short fall of _________% vis-à-vis the current non salary approved budget. The said amount(s) is/are placed at your disposal with uniform cut of ______% on approved current non-salary budget against each grant/function, for incurrence of expenditure during the month. 3. disposal for Insofar Development/Khushhal Pakistan Programme/Devolution the execution of the schemes mentioned below under Cost funds are concerned, Rs.______ (Rupees _________) are placed at your ADP/KPP/Devolution Cost. Sr.# Name of Scheme Total: TEHSIL/TOWN MUNICIPAL OFFICER ________________________ No. & Date Even: Amount 168 1. 2. 3. 4. 5. A copy is forwarded for information and necessary action to: The District Coordination Officer_____________________. The Secretary, Government of the Punjab, LG & RD Department, The Deputy Secretary (Budget), Finance Department, Lahore. The District Accounts Officer_____________. Tehsil/Town Accounts Officer _____________ TEHSIL/TOWN MUNICIPAL OFFICER _______________________ Lahore. *Score out where not applicable 169 Pension Certificate and Report Section. i). ii) iii) iv) v) vi) Organizational Chart Verification of service qualifying for pension. Issuance of pension payment order. Commutation chart. Issuance of Revised P.P.O’S Grant of Anticipatory Pension. 170 ORGANIZATIONAL CHART D.A.O. A.A.O Sr. Auditor Functions 1.Verification of service qualifying for pension. 2.Issuance of pension payment orders. 3. Revision of pension payment orders. 171 Verification of service qualifying for pension After 10 and 25 years of continuous service countable towards pension, verification of service of non-gazetted civil servants from the D.A.O is required. The requisite proforma for the purpose, in triplicate, complete in all respects, should be verified keeping in view the following important points:1. There are three conditions for service to be qualifying towards pension:a. Service must be under government. If under autonomous, local body etc. pension contribution for the period must have been deposited in the Treasury. b. Service must be pensionable (more than 5 years and continuous, breaks or deficiencies, if any, having been condoned). c. Pay must have been paid from the consolidated fund. 2. The following periods are counted as qualifying service towards pension:i) Service rendered during the period which fulfils the above three conditions. ii) Service begins on the day one takes over the charge of the post to which one is appointed and ends on the day one makes over charge of his post. In case of death, salary for the day of death is paid and pension, if any, begins from the following day. iii) iv) Period of training during service. Army service if the gap between army and civil service is not more than one year. In case of gap for more than one year, sanction of the government is necessary. v) Suspension period followed by re-instatement. vi) vii) 3. Probationary period followed by confirmation. Half of period of apprenticeship. The following periods are not counted as qualifying service for pension:- 172 i) Leave without pay/absence without leave. ii) Overstay of joining time, not regularized. iii) iv) Period after resignation from government service. Period after removal/dismissal from service, if one is allowed to rejoin but the intervening periods are not counted as duty. v) Service rendered after attaining the age of 60 years. vi) vii) viii) 4. Period spent on training before joining the service. Half of the apprenticeship period. Period of deputation under local, autonomous body if pension contribution has not been deposited. A deficiency in service upto one month is automatically condoned for instance, service for 26 years and six months shall be treated as 27 years for the purpose of pension. A deficiency in service for more than six months upto one year can be counted by pension sanctioning authority. sanctioning authority. 5. At least 25 years service is necessary for retiring pension. However in the following cases, pension can be granted after ten years:i) Compulsory retirement by government as measure of penalty. ii) Abolition of the post on which he was appointed. iii) 6. Is declared medically invalid and unfit for future service. No pension is granted if the length of service is less than 10 years. Only gratuity is admissible if the length of service is 5 years or more but less than 10 years. It is paid at the rate of one month’s pay based on the last pay drawn for each completed year of service. However, if a civil servant is retired on medical grounds or dies and the total service is less than 10 years the rate would be 1 1/2 month’s pay for each completed year of service. 7. If a person joins service after the age of 35 years under special circumstances, he will proceed on superannuating pension after Appointing authority is the pension 173 attaining the age of 60 years irrespective of the fact whether his service is 25 years or less. 7. Formula: Pension contribution = (Minimum of the time scale + maximum of the time scale) x1 2 3 Example: The rate of pension contribution for a B.P.S 17 Officer is as under:(Minimum of B.P.S 17 + Maximum of B.P.S 17) x 1 2 3 =(3880 + 7360) x 1 2 3 =1873.33 per month. The formula of calculation of pension contribution is as follows:- Issuance of pension payment orders After calculation of service qualifying for pension, most important thing is ascertaining the pay of the civil servant. emoluments reckoning for pension:i) Pay ii) Special iii) iv) Personal pay Technical pay The following are treated as v) Senior Post allowance vi) vii) Increments incurred during leave preparatory to retirement. Any other emoluments, which may be specially classed as pay. If the length of qualifying service and reckonable emoluments are ascertained, the pension is calculated as per the following formula:- 174 Pension= Last pay drawn x length of service x 7 300 If the pension application is supported by following documents, a P.P.O should normally be issued to the pensioner:i) ii) iii) iv) v) vi) vii) viii) Service Book where required, duly completed in all respects. Three copies of specimen signatures duly attested. Three copies of passport size photographs duly attested. Two set of thumb and finger impressions duly attested. No demand certificate in respect of any dues of the government. No demand certificate from the Buildings Department. Last pay certificate. Invalidation certificate in original, in case the civil servant retires on medical ground. ix) x) xi) xii) Certificate regarding receipt or otherwise of anticipatory pension. Consent of the civil servant regarding recovery of dues. Duly filled in commutation form. List of family members. Family pension cases: i) ii) iii) Death certificate in original. List of family member. Descriptive rolls of the family members along with marital status and age of each member. 175 iv) Certificate to the effect that there is no other family member of the deceased other than those mentioned in the list. v) vi) Guardianship certificate in the case of minor children. An undertaking for recovery of dues, if any, from pension/commuted value of pension. vii) viii) i) ii) iii) iv) v) vi) vii) viii) Single widow certificate. No remarriage certificate. Widow Widower Children Father Mother Unmarried and widowed sister Divorced daughters. Brothers below the age of 21 years. In case of presence of member at serial No.1 above, no other member is entitled to family pension. Same is the case with other members. 2. To those who have served for more than 30 years, an additional benefit of 2% of pension for each year of service will be allowed upto 35 years of service. Extra benefit beyond 10% of pension is not admissible. 3. Government has provided a facility to the retiring civil servants that they can draw in advance upto 50% of the grass pension as amount of commutation. Commuted value of pension is worked out in accordance with the following table:- Family members are as follows:- 176 Age next birthday 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 4. Number of years purchased 50.6304 49.6676 48.7066 47.7467 46.78884 45.8314 44.8758 43.9215 42.9688 42.0179 41.0089 40.1218 39.1767 38.2336 37.2929 36.3551 35.4203 34.4885 33.6503 32.6361 31.7160 30.8007 29.8907 28.9800 28.0891 27.1990 26.3172 25.4444 24.8516 23.7301 Age next birthday Number of years purchased 50 22.8911 51 22.0658 52 21.2563 53 20.4638 54 19.6896 55 18.9348 56 18.2002 57 17.4860 58 16.7925 59 16.1191 60 15.4649 61 14.8290 62 14.2105 63 13.6090 64 13.0239 65 12.4549 66 11.9017 67 11.3643 68 10.8428 69 10.3371 70 9.8472 71 9.3729 72 8.9142 73 8.4708 74 8.0427 75 7.6299 76 7.2322 77 6.8496 78 6.4818 79 6.1287 80 5.7901 The amount of commutation decreases with the increase in age. An option for commutation must be exercised within one year of retirement. If it is exercised after one year, medical certificate is necessary. In case of invalid pension, medical certificate is necessary even if the option is exercised within one year of retirement. If it is exercised after one year, medical certificate is necessary. In case of invalid pension, medical certificate is necessary even if the option is 177 exercised within one year of retirement. If a civil servant dies after retirement before signing commutation papers, his family would be entitled to commutation. 5. In case the civil servant dies during service, family would be allowed 50% of gross pension. In case the civil servant dies while he was receiving pension or his family has obtained ¼ of the gratuity in lieu of pension, his family would be allowed 50% of the reduced pension. A widow can draw family pension along with her own pension, if she was in government service, till death. In case of remarriage she would draw only her own pension. Issuance of revised P.P.O’s If a change in emoluments with retrospective effect through grant of more over, selection grade, promotion, advance increments occurs, the P.P.O shall be revised in accordance with the revised emoluments. The difference of due and drawn shall be paid to the pensioner. The Government have decided with effect from 1-7-1986 that the amount of commuted portion of pension to the extent of ¼ the shall be restored in case of those pensioners who have completed the number of years for which commuted value of pension was paid. Those who had commuted half of the pension, only 1/4th of pension shall be restored, the remaining 1/4th being treated as gratuity for the purpose of this rule and will not be restored. However, those who had drawn only gratuity in lieu of 1/4th of pension, they would be entitled to get the same restored after completion of the period for which gratuity was paid. Grant of anticipatory pension If there is an apprehension that the finalization of pension case of a civil servant will be delayed and to avoid hardship to him, pension up to 80% of anticipated amount of pension and/or commuted value of pension can be sanctioned by the Administrative Department concerned without reference to Audit Office. 178 179 Treasury Section. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. Organisational Chart. Functions of the Section. Pension payments. Transfer of P.P.O’S to Banks, other D.A O and Sub-treasuries. Increases in pension. Payment of pension to insane pensioners. Issuance of duplicate P.P.O’s Re-imbursement of medical charges to pensioners. Opening of personal ledger accounts and authorizing withdrawals there from. Assignment accounts. Cheques issued lay the public works departments. Re-validation or re-authorization of budgetary provisions Issuance of credit certificates. Passing receipt challans of stamps. Receipts through transfer credit. 1. 2. 3. 4. 5. 6. Deposit works. Special cheques not payable in cash. Refunds of revenue. Refund of unused stamps Revenue deposit repayments. Repayment of lapsed deposits. 13. 14. 15. 180 ORGANIZATIONAL CHART D.A.O .A.T.O. A. Acctt A. Acctt. Sub. Acctt. Sub. Acctt. S. Auditor S. Acctt. S. Acctt. S. Acctt. Junior Clerk Functions Junior Auditor 1. To authorize payments out of all personal ledger accounts. 2. To authorize payments to public works departments or contractors. 3. To authorize payments of pension of all departments. 4. To authorize refund of revenue deposits. 5. Maintenance of accounts of federal receipts and payments. 6. Maintenance of cash book of receipts of the provincial government. 7. Maintenance of accounts of S.B.D of provincial and federal governments 8. To authorize payment of reimbursement of medical charges to pensioners. 9. Maintaining accounts of payments of public works department 181 Pension payments First payment of pension and/or commuted value of pension should be authorized after exercise of all precautionary measures prescribed in the Punjab Subsidiary Treasury Rules and the instructions issued by the Finance Department. The following points merit special mention:1. A valid pension payment order has been issued in favour of the pensioner by the A.G. Punjab/D.A.O. If the P.P.O has been issued by another D.A.O, it has been transferred to this office after making payment of commuted value of pension and upto date arrears of regular pension. Payment on P.P.O’s issued by other D.A.O’s/A.G Punjab is subject to confirmation of the genuineness of the P.P.O by the issuing authority. 2. The pensioner produces information letter through which he has been informed about the fact that his P.P.O has been transferred to the Treasury. 3. Except the pensioners who fulfill conditions making them eligible for exemption from personally appearing before the Treasury Officer, all pensioners are required to appear before the Treasury Officer, along with their departmental representatives, for their identification. Genuineness of the pensioner is certified with the help of his photographs. N.I.C signatures, thumb impression, suitable quires etc. 4. All entries of both halves of the P.P.O are critically examined, upto date pension is calculated and the pensioner is directed to submit the pension vouchers after getting following endorsements from his banker on the vouchers:i) Received payment. ii) Payee’s signatures verified. iii) iv) Payee’s account will be credited on realization. Disbursement Guaranteed. v) Our Branch endorsement confirmed. 182 Initially in all cases of first payment of pension and commuted value of pension, payment is authorized through payees account only. 5. If the P.P.O makes payment subject to certain conditions, the payment is not authorized unless these conditions have been fulfilled. 6. If a pensioner is unable to appear in consequence of bodily illness or infirmity, pension payment can be authorized on production of life certificate issued by a responsible officer of the Government or other well-known, trust-worthy person. 7. 8. After making the payment, pension-sanctioning authority of the pensioner should be informed that the payment has been made. Vouchers of first payment of pension and commuted value of pension are to be signed with impression of embossing seals by two D.A.O’s. If there is only one D.A.O the senior-most A.A.O/A.T.O is required to co-sign. 9. 10. The both halves should be stamped as paid. In the months of June and December each year, a certificate of non-marriage or re-marriage in case of female pensioners whose pension is terminable on the occurrence of such events as marriage is required. 11. 12. Pension vouchers of regular monthly pension are entertained when pension payment becomes due. Life time arrears of pension on behalf of a deceased pensioner is paid as follows:amount of claim 1.Claims upto Rs.1000/authorities who can order payment Deputy Commissioner or other Government servants responsible for making such payments. Payments should be made after such inquiries into the right and title of the claims as 2.Claims may be deemed sufficient. upto Commissioners on the execution of 183 Rs.10000/- indemnity bond with such sureties as he may require. If he is satisfied of the right and title of the claimant and considers on the that undue of delay letters and of hardship would be caused by insisting production administration. exceeding Board of Revenue subject to the conditions laid down in the foregoing item. 3. Claims Rs.10000/- Transfer of P.P.O’s to banks, other D.A.O’s and Sub -treasuries When a pensioner applies for transfer of his P.P.O to a Sub-treasury within the district or to a branch of National Bank of Pakistan within the district or to an other D.A.O, his request should be granted subject to the condition that his can be done after making first payment of pension and commuted value of pensions. A certificate should be recorded on both halves in the following words “paid upto and for -----------------at the rate of ---------------------------P.M”. Both halves are transferred through a forwarding memo, a copy of which should be endorsed to the pensioner. Same procedure is adopted in case of change of branch of N.B.P or Sub-Treasury. In the latter case, the branch of N.B.P or the Sub - Treasury is directed to return both halves after recording certificate of payment as aforesaid. In case of revision of pension the P.P.O is called back from the Bank, Sub Treasury, other D.A.O and the revised P.P.O is sent at the direction of the pensioner, to the Bank, other D.A.O or Sub Treasury. Increases in pensions If the pensioner is getting his pension from a branch of the Nation Bank of Pakistan, the Manager of the branch shall calculate increase in the pension in accordance with instructions of the government. Such pensioners need not to contact the D.A.O if Government announces an increase in pension. 184 If they are receiving their pension from the D.A.O, the dealing auditor/Sub Accountant shall add increase in pension on his half of the P.P.O soon after receipt of instructions from the Government regarding increase in pension. The increase shall be noted on the pension voucher passed. For the guidance of auditors/sub-accountants, the increases in pension announced by the Government from time to time are noted here under. Increase for the pensioners who are paid under 60% formula, commonly known as five increases:Date 1-6-73 Pension Rs. 1/- to Rs.5/Rate/conditions. 20% of pension Minimum Rs.5 Maximum Rs.10. Rs.51/- to Rs.500/- 20% of pension. Minimum Rs.10/Maximum Rs.30 with marginal adjustment upto Rs.530/- P.M. Dearness increase It is paid upto pension for Rs.735/- PM. At the rate of 15% of pension. Maximum increase allowed is Rs.35 w.e.f. 1-08-1973. Special Dearness Increase It is paid at the rate of 15% of pension maximum Rs.100 w.e.f 08-06-1974 without limit of pension. Additional Dearness Increase 10% subject to a maximum of Rs.25 P.M w.e.f 07-04-1975. 185 Service benefit It is paid at the rate of Rs.1.50 PM. For each complete year of service where the qualifying service is less than 10 years subject to a maximum of Rs.45/-. The above noted increases are applicable only for those pensioners whose pensions have not been calculated at the rate of 70%. Special Adhoc Increase w.e.f 01-07-1980 B.P.S INCREASE 1 to 10 Rs.40/- PM. 11 to 16 Rs. 70/- PM. 17 to 18 Rs. 100/- PM. 19 to 20 Rs. 150/- PM. 21 to 22 Rs.200/- PM. Additional Adhoc Increase w.e.f 01-07-1981 It is calculated at the rate of 10% of gross pension plus dearness/Adhoc increase subject to a maximum of Rs.200/- per month. It is admissible to those who retired from service before 31-12-1982. It is not admissible to those who rejoin service after retirement. It cannot be commuted. Decrease Increase w.e.f 01-07-1982 It is admissible at the rate of 10% of pension subject to a maximum of Rs.200/- per month. Further Dearness Increase w.e.f 01-07-1983 This increase is admissible @ 10% of pension subject to a maximum of Rs.200/- per month. It is admissible to only those who retired upto 30-6-1983 at the rate of 10% of gross pension including all the dearness increase subject to a maximum of Rs.200/- p.m. It cannot be commuted. Re-employed pensioner is not entitled to get this increase during the period of re-employment. 186 Indexation of Pension 1-7-1985 The indexation at the following rates is admissible to the pensioners who retired up to 31-12-85. a) Pensioners drawing Pension up to rs.1500/@13.50% PM. b) Pensioners drawing pension more than Rs.1500/- @ 10% PM. Pensioners falling category (b) above will not be allowed less Pension than Rs.1703/- after indexation. Indexation of Pension 1-7-86 The indexation at the following rates is admissible to the Pensioners who retired up to 31-12-85. a) Pensioners drawing Pension up to rs.1500/- @18% PM. (inclusive the rate of last year.) b) Pensioners drawing pension more than Rs.1500/- @ 13.5% PM. (inclusive the rate of last year.) Pensioners falling in category (b) above will not be allowed less pension than Rs.1770/- PM. The pensioners who retired between the period 1-1-86 to 30-6-86 will be allowed the benefit of indexation at the following rates. a) Pensioners drawing Pension up to rs.1500/- 4% b) Pensioners drawing pension more than Rs.1500/- 3% Indexation of Pension 1-7-87 The indexation at the following rates is admissible who retired up to 30-687. @ 4%. Indexation of Pension 1-7-88 The indexation at the following rates is admissible who retired up to 30-688 @ 7%. Note:- The adhoc increases allowed to the pensioners in the year 1980, 1981, 1982 and 1983 may be taken into account for making acct the indexation. 187 Adhoc Relief w.e.f 1-7-90 This increase is admissible at the rate of 10% While calculating this increase, all increases sanctioned from time to time may be included. Adhoc Increase w.e.f 1-6-91 The increase is admissible at the following rates:a. b. Pensioners retired prior to 30-4-77 at the rate of 32 %. Pensioners retired upto 31-5-91 at the rate of 12%. Increase in Pension w.e.f 1-7-95 This increase is admissible at the following rates:a. b. c. d. Pensioners retired prior to 30-4-77 at the rate of 15%. Pensioners retired upto 31-5-91 at the rate of 10%. Pensioners retired between 1-6-91 to 31-5-94 at the rate of 5%. Pensioners retired after 1-6-94 nil. Increase in Pension w.e.f 1-3-97 This increase is admissible to the pensioners upto B.P.S- 16 and 17 (By Move over) who retired upto 28-2-97 at the rate of 10%. Special Adhoc Increase w.e.f 1-7-99 This increase is admissible at the following rates to all the pensioners who retired and will retire up to the introduction of new scales:Pensioners upto BS - 16 25%. Pensioners upto BS - 17 and above 20%. Payment of pension to insane pensioners If the fact of insanity of a pensioner is established and a Magistrate furnishes a certificate to this effect, part of his pension would be given to Mental Hospital for his treatment and part to his family. Such distribution would be made by the pension sanctioning authority. Issuance of duplicate P.P.O If a pensioner applies that his half of P.P.O has been lost or is untraceable, the Manager of the branch of National Bank of Pakistan from where 188 the pensioner gets pension shall issue him a duplicate P.P.O. The Manager can get blank P.P.O's from the D.A.O for this purpose. If the pensioner is getting pension from the D.A.O, the dealing auditor/sub accountant, on receipt of application of the pensioner, shall initiate action for issuance of duplicate P.P.O. Insistence on production of a copy of F.I.R for issuance of a duplicate P.P.O is not justified as the pensioner can not get double payment by using duplicate P.P.O. Reimbursement of medical charges to pensioners Reimbursement of medical charges is admissible for the retired civil servants, their families and families of deceased civil servants. Their claims on the account of reimbursement of medical charges should be checked keeping in view the points noted above in annexure B. The additional considerations for checking of their claims are as follows:1) For the purpose of reimbursement of medical charges, pensioners are attached with the district head of the department from where they retired or from where they are getting pension. 2) The pension sanctioning authority will provide a list of family members and other particulars of the retiring government servant/deceased government servant. 3) The identity of the pensioner retired from a gazetted post shall be verified from his photograph and specimen signatures. No. of P.P.O, should invariably be written on the sanction. 4) 5) 6) The gazetted retired civil servants shall submit their claim on forms used for drawl of regular salary. Claims of the non-gazetted pensioners are submitted by the district head concerned on forms used for establishment pay bills. There is no need of recording budgetary allocations on these bills. Budget to meet with expenditure is placed at the disposal of the District Accounts Officer by the Finance Department for the whole district. Claims should only be entertained if the budget is available. 189 7) The facility of re-imbursement of medical charges is available to the pensioners and their families up to and for the period they are entitled to pension. 8) A pensioner can draw only one bill after the curement of the disease. If he is suffering from chronic disease, one bill during a calendar month can be drawn. Opening of personal ledger accounts and authorizing withdrawals therefrom. An appreciably comprehensive, admirably exhaustive and ably drafted letter issued by Mr. Mohammed Zubair, Chief Inspector of Treasuries, Govt. of the Punjab, Finance Department, on behalf of the Secretary, Government of the Punjab, Finance Department, circulated vide No. IT (FD) 3-6-92 dated 16-12-92, is reproduced hereunder for ready reference and guidance of the sub accountants/auditors dealing with opening of Personal Ledger Accounts and authorizations of payment therefrom:Subject:Sir, I am directed to refer to the subject cited above, and to state that the operation of various Personal Ledger Accounts, opened in the Provincial Section of Accounts, and maintained in the District Accounts Offices/Treasury Offices in the Punjab has been under review for sometime. Notwithstanding clear provisions of rules and instructions on the subject, and a number of supplementary guidelines issued by the Finance Department from time to time, clearly specifying areas where under Personal Ledger Account could be lawfully operated, without misuse and deviation from the established principles, numerous incidences continue to come to the notice of the Finance Department showing unauthorized channeling of funds from the Personal Ledger Accounts. This situation not only grossly contravenes the provision of rules regarding Personal Ledger Accounts, but also adversely affects the resource position of the Province. OPERATION OF PERSONAL LEDGER ACCOUNTS 190 I am further directed to say that while serious attention of all concerned is once again invited to the existing provisions of rules and instructions issued to date for strict compliance, it has been decided after consultation with the Accountant General, Punjab, to circulate the requisite rules/ instructions in a consolidated form, with explanatory notes, for information and ready guidance of the operators of the Personal Ledger Accounts, and to obviate all chances of contravention of rules through any excuse or miss-interpretation thereof. The contents of this circular are by no way exhaustive, and do not relieve the operator of the Personal Ledger Account of any of his/her responsibility in the matter regarding Personal Ledger Accounts, not covered in this circular. 1. PURPOSE OF PERSONAL LEDGER ACCOUNTS: (a) Withdrawals from Personal Ledger Accounts are made through cheques drawn by authorized officers. While passing the cheques the concerned Treasury Officer/District Accounts Officers are only required to see that balance is available in the Personal Ledger Account. Payments are thus made without any pre-audit check, This procedure for withdrawals from Personal Ledger Accounts by cheques does not in any way authorize departure from the rules relating to sanction for incurrence of expenditure. As such all expenditure out of Personal Ledger Accounts should be incurred strictly in accordance with the relevant rules and regulations, besides, all pre-requisites as necessary in respect of bills drawn fulfilled before any cheque is drawn from Personal Ledger Account and disbursement made therefrom. All connecting record of each transaction like quotations, bills/vouchers should be made available to the concerned authorities for scrutiny as and when required besides submitting it to the audit. (FD's letter No.FD(FR)VI-1/87, dated 11-4-1989). 191 II. OPERATION OF PERSONAL LEDGER ACCOUNTS: (a) OPENING OF ACCOUNTS: Personal Ledger Accounts are exclusively sanctioned by the Finance Department on the recommendations of concerned administrative departments under rule 12.16 and 12.17 of Punjab Financial Rules, Volume-I. Every Personal Ledger Account is for a specific purpose An Account is only operatable at a designated Treasury/District Accounts Office. Funds for any other purpose may not be credited to the Personal Ledger Account except with the prior permission of the Finance Department. (b) MAINTENANCE OF ACCOUNTS The maintenance of accounts regarding Personal Ledger Accounts is regulated by Rules 12.18 ibid. Further more, the operators of Personal Ledger Accounts are required to maintain pass books in Form PFR25 under Rule 12.19 ibid, which has to be reconciled every month with the Treasury Officer/District Accounts Officer who is required to authenticate the pass book after re-conciliation under rule 12.2O ibid. The pass book shall remain in the personal custody of the Administrator/Operator of the Personal Ledger Account Note:- The Finance Department circulates a list of Personal Ledger Accounts maintained in the Punjab in the Month of July every year. III. CHEQUE BOOKS: (a) ISSUANCE OF CHEQUE BOOKS: Personal Ledger Accounts are operated through specially prescribed cheque book, which is issued to designated operator of the accounts from the respective District Accounts Office/Treasury on requisition under rule 2.43 of P.F.R Vol-I. Not more than one 192 cheque book is supplied on a single requisition. Rules 2.12 to 2.19 ibid and Rules 4.13 and 4.14 of the Punjab Subsidiary Treasury Rules regulate the use of cheques, which must be strictly observed by operators of Personal Ledger Accounts. (b) VALIDITY OF CHEQUES: As per Rule 2.16 of the PFR Volume-I, cheque remains current for three months only after the month of issue. Further more, the payment order recorded on the cheque by the Treasury Officer/District Accounts Officers bear a currency of one month under Rule 4.185 of the Punjab Subsidiary Treasury Rules, provided the proceeds of the cheques are collected before the expiry of the validity of the cheque itself. Note:- Cheques issued for those Personal Ledger Accounts which lapse with the close of a financial year shall remain valid for three month only after the month of issue or upto and for 30th June which ever is earlier, and the payment order recorded thereon by the DAO/TO shall be also valid for one month or upto 30th June of that year whichever is earlier. Accordingly the proceeds of the cheques shall have to be collected by the payee on or before 30th June of the particular year. IV. WITHDRAWALS FROM THE PERSONAL LEDGER ACCOUNTS: (a) The general policy governing the withdrawals from personal ledger accounts is contained in Rule 4.132 of the Punjab Subsidiary Treasury Rules. Moreover the principles and instructions relating to expenditure, as contained in Rule 2.10 of the PFR- Vol. I are also fully applicable to the withdrawals from the Personal Ledger Accounts. Special attention is invited to Rule 2.10(b) (5) of the 193 Rules ibid, where under any money should not be drawn from the treasury unless it is required for immediate disbursement. It is clear that all PLA’s maintained by Government departments are only operatable from the respective DAO/Treasury; and that no amount, however small, should be placed in any personal account of the operator etc., in any commercial bank or a development financial institution, as required by Rule 9 of the Punjab Treasury Rules. As an exception to this policy, local bodies are allowed to maintain certain percentage of their Personal Ledger Account balance in Commercial Banks, or a DFI for which detailed instructions stand issued by the Finance Department vide No.DP(FD)/1-1-70, dated 14-11-1972, subsequently clarified vide No.FD(W&M) (DP)-1-1/85 dated 15-9-1985 where under it is explicitly stated that autonomous and large local bodies are only allowed to keep working balances equal to one month's requirements with the commercial banks, while the surplus funds, over and above the limits of approved working balance have to be kept in the Personal Ledger Account in the Government Treasuries/DAOs, as required under Rule 12 7 (b) of P T R Vol-I. (b) As an exception to the above certain autonomous/Local bodies, whose resources accrue almost entirely from their own resources, may keep surplus funds in Post Offices, either in a saving account, or fixed deposit, or under the profit-cum-bonus scheme, in addition to existing option of keeping funds in the Personal Ledger Accounts. (c) The surplus funds, which emanate from Government grant-in-aid shall invariably be kept in the Personal Ledger Accounts at the Government Treasury without exception. No funds shall ever be kept in a commercial Bank or in DFI, except with the explicit permission of Finance Department. It also ought to be invariably 194 ensured that the said funds shall only be spent on the purpose for which they stand originally granted/sanctioned. (d) Fixation of working balances by local council and Autonomous Bodies in order to facilitate the financial operations of the Local Councils and Autonomous Bodies, the Government vide its letter No.W&M-DP(FD)1-1/70, dated 31-12-1988 has allowed working balance of such organizations to be fixed @ 8% of the total budgetary expenditures for a given financial year. A reference to the Finance Department in this regard will no longer be required. (e) The list of approved banks and financial institutions which have been authorized to receive/accept the approved working balances of the Local Bodies/Autonomous Bodies stand circulated vide F.D's letter No.DP(FD)1(2)/89 dated 25-10-89, and letter of same number dated 11-5-1992. (f) Payments of definite/accrued liability should directly be made to the concerned persons/parties/ companies by issuing a Personal Ledger Account cheque in their name. Self cheques should only be issued for drawing amount for recoupment of approved working balance, wherefrom petty expenditure pertaining to day to day running of the organization may only be incurred. Such cheques should contain a certificate to the effect that the amount is being drawn for the recoupment of working balance only. The available balance should be clearly indicated along with the certificate. V. LAPSEABILITY OF PERSONAL LEDGER ACCOUNT: Generally, all personal ledger accounts of government departments are lapsable at the close of financial year, unless otherwise stated in the sanction for the particular personal ledger account. As a general policy the following factors determine the criteria as to the lapseability of the Personal Ledger Account or otherwise: (a) Source of funding the Personal Ledger Account. 195 (b) (c) Nature and purpose for which personal ledger Account was Name of person or department operating Personal Ledger Account. opened. Non-governmental funds of international agencies, autonomous bodies etc., kept in the Personal Ledger Account are non-lapsable. The following principle will be applicable for deciding whether or not a Personal Ledger Account should lapse at the end of a financial year:(i) If the source of funding is not the Government budget i.e. Personal Ledger Account contains non-Governmental funds, then the balance would not lapse on 30th June, notwithstanding whether the fund is operated by a Government servant or a private person. The balance would, however, lapse in this case if it is so stated in the purpose of opening the fund. (ii) If the source of funding is Government budget, the balance on 30th June will lapse, except if the purpose of fund is to finance operation of a non-Governmental organization notwithstanding whether the operator of Personal Ledger Account is a Government servant or a private person e.g. official of a local body, corporation etc. Note:- Detailed instructions Ledger regarding Accounts lapseability stand of grants/Personal already circulated by the Finance Department vide No.SO(TT) 6(2)/89 dated 30-9-1989. VI WEEDING OUT OF PERSONAL LEDGER ACCOUNTS: It has been observed that a number of Personal Ledger Accounts opened from time to time remain inoperative, and that no transactions are undertaken for considerable periods. Consequently, the number of Personal Ledger Accounts have enormously increased over the years due to accumulation of such Personal Ledger Accounts. It has, therefore, been decided to weed out such Personal Ledger Accounts for keeping their numbers within reasonable limits for proper monitoring and management. As such all Personal Ledger Accounts wherein no 196 transactions are undertaken for a period of one year or more shall be considered as closed. However, in case these are to be revived, specific request from the operator/administrative department would be required. VII. AUDIT OF PERSONAL LEDGER ACCOUNTS: The Personal Ledger Accounts shall be subject to Statuary Post Audit by the Pakistan Audit Department in accordance with the rules. Yours obedient servant, (MUHAMMAD ZUBAIR) INSPECTOR OF TREASURIES-I Cheque of P.L.A should be authorized for payment after seeing, in addition to the above, the following points:1. A person who has been authorized to operate the P.L.A has signed the cheque. His signatures tally with his specimen signatures. 2. 3. 4. Balance is available in the P.L.A. The cheque is from the cheque book provided to the operator of the P.L.A. The cheque has been issued in favour of a contractor or supplier. Cheque issued in favour of “self” must specify the reasons of withdrawal; no such cheque except for payment of salaries or pensions or recoupment of working balance should be authorized for payment. 5. 6. There is red entry on the cheque. With the exception of cheques in favour of “self”, the cheque must have the following endorsements. Meanings of these endorsements have been explained for information of the staff of the D.A.O. i) Received payment: This endorsement is affixed on cheques made in the name of bank or bank account of Mr/Mrs/-----------. In both cases, the bank gives receipt of amount on behalf of the beneficiary who must be an account holder and who can be produced if so requested. ii) Payee’s signatures verified: This endorsement means that the payee is a customer of the bank and that his 197 signatures are verified from the record available with the bank, and that he can be produced if so required. iii) Payee’s account will be credited on realization: This endorsement means that payee’s account will only be credited when the issuing authority clears the instrument. It also insists that only the payee’s account will be credited and no body else’s account can be credited. Again the payee being an account holder can be produced, if so required. iv) Disbursement guaranteed: This endorsement is affixed only on instruments belonging to very well known customers of the bank. It indemnifies against all wrong payments. Any wrong payment against such instruments can be claimed back from the bank. v) Our branch endorsement confirmed: endorsements of the branch. Through this endorsement, the main branch of the bank confirms 7. 8. 9. A sealed advice of the cheque has been recorded. The operator of the P.L.A issues the advice. Payment of salary through self-cheque should not be allowed in advance. The cheque is less than three months old. Assignment accounts The government, some times, authorizes withdrawals of cash from a specified branch of National Bank of Pakistan without interruption of the Treasury Officer/DAO. For this purpose an account is opened in the Bank, which is called assignment account. When funds are released through an assignment account, the A.G. Punjab, issues a letter of assignment to the Treasury Officer endorsing a copy thereof to the Manager, State Bank of Pakistan in whose area the account is opened. The letter of assignment issued by the A.G. specifies the amount upto which the authorized officer can draw cash, the head of account to which the amounts drawn are debitable and the section of accounts within which the 198 assignment account is operated. The Treasury Officer, on receipt of letter of assignment and in consultation with the bank, opens the assignment account in favour of the authorized officer of the government department or a local body or an autonomous body at the Branch of the N.P.P specified therein, to cash, without the intervention of the Treasury such cheques presented by the authorized officer within limits specified in the letter of assignment. Withdrawals from this account are debited to the provincial government. The N.B.P gets reimbursement of the payments from the S.B.P who debits the amount to the cash balance of the province. Paid cheques and their advice are sent to the Treasury by the N.B.P branch; the Treasury maintains an assignment ledger. These payments are included in the monthly civil accounts of the district (Provincial) and a plus and minus statement are sent to the A.G. regarding each assignment account. With the close of a financial year, un-drawn balances lapses to the Government. At present, there is no assignment account in district Sheikhupura. Cheques issued by Public Works Departments The present procedure of authorization of PWD cheques by DAOs/TOs was enforced w.e.f 1-1-1991 after the Finance Department detected that the Public Works Departments had incurred an expenditure of Rs. 3.32 billion in excess against the revised estimates for financial year 1989-90. Ever-since the instructions were first issued by the Finance Department on the subject, further procedural refinements have been made in this regard. The implementation of the policy has been effective and has brought about improvement in the enforcement of financial discipline in the Public Works Departments viz.: i) ii) iii) iv) Stoppage of excess over budget. Minimization of misuse of “deposit work”. Stoppage of irregular transfer of funds through “special cheques” & their subsequent retrievals. Stoppage of irregular expenditure against securities of contractors. 199 v) vi) vii) Stoppage of irregular expenditure against funds of other schemes. Stoppage of misuse of “suspense accounts”. Stoppage of irregular re-appropriations. The auditors/sub - accountants should concentrate on the following points before affixing pay order on cheques issued by Public Works Departments. 1) office. 2) 3) 4) 5) Budget is available in the scheme. Cheque has been issued, with cross entry upon it, by a Sub. Divisional Officer; his signatures tally with his specimen signatures. The cheque is from the chequebook supplied to the S.D.O. From II is attached with the cheque; this form, complete in all respects, has been signed by the Divisional Engineer (XEN). His signatures tally with his specimen signatures. 6) If the cheque has been issued to the contractor for refund of securities deducted from his running and final bills, the details of cheques and Form II through which securities were deducted have been noted as Form II. These details are correct according to record available in this office. 7) Budget was communicated to the XEN not later than 31 of May in a financial year. Subsequent releases without approval of the Finance Department are not acceptable. 8) No payments of contractual liabilities, entered into between 15th and 30th of June each year, can be made without approval of the Finance Department. 9) 10) Cheque has been presented in the DAO before 21st of June. In case of re-appropriation of funds, the funds are available in the schemes from where amounts have been withdrawn. If the funds have been expended before receipt of orders of re-appropriation, or Copies of the distribution of budget grant have been received in the 200 these have partly been expended, the re-appropriation should not be acted upon and it should be objected to. 11) 12) Cheque has been issued within the last three months. It is the same financial year. If a cheque is presented for revalidation because of the reason that it was not encashed within the currency of the pay order of the D.A.O. i.e. within 30 days, the same should be revalidated. No revalidation is permissible after 30th June except with the approval of the Finance Department. Can Finance Department, without authorization from the Legislature, authorize utilization of budgetary allocations of a given financial year in a subsequent financial year is a question, which merits attention of the quarters concerned. 13) If the cheque is for the work-charged establishment’s pay, a certificate to this effect must be recorded. Only on this account, a cheque in favour of self can be drawn. No advance payment of pay should be allowed. 14) 15) P.W.D cheques must be disposed of within 24 hours. The payment should be authorized through payee's account only. RE-VALIDATION OR RE-AUTHORIZATION OF BUDGETARY PROVISIONS The question of carrying over of certain provisions in the budget for a fiscal year to the next financial year through `re-validation' or re-authorization merits consideration in view of the fact that the Finance Department sometimes allows utilization of budgetary allocations of a fiscal year during the subsequent fiscal year through re-validation' or re-authorization. The words `re-authorization' and `re-validation' are alien to the Constitution and the financial rules of Government of the Punjab. Only the word `authorization' exists in the Constitution and it signifies incurrence of expenditure by the provincial government in accordance with the grants approved by the legislature under Article 122 of the Constitution and authenticated in the schedule of authorized expenditure by the Chief Minister under Article 123. 201 The public finances of the province are managed on the basis of a financial year i.e. period from July 1 to June 30, both days inclusive. This explicitly appears in Article 120 of the Constitution and the term `Annual Budget Statement' is its direct connotation. Similarly, the term `financial year' appears in Article 124 of the Constitution regarding the Supplementary Budget Statement. All budgetary grants and appropriations are authorized for a financial year and no expenditure authorized for a particular financial year can be carried beyond that year. This standpoint is further supported by the submission of the first and second statements of excesses and surrenders, which are based on the welldefined finiteness of the financial year. These budgetary steps have been prescribed to ensure that the funds allocated during a financial year are validly utilized to the maximum, and that these may not lapse, a fact which denotes poor budgeting and bad financial management. The maintenance and closing of accounts is also linked with the financial year. In the absence of such a requirement, the Auditor General of Pakistan would perhaps never be in a position to submit various accounting reports as required to be submitted by him in accordance with his constitutional responsibilities. Issuance of credit certificates When a citizen requires issuance of credit certificate for the reason that he deposited a certain amount of money under a certain head of account on a specified date but his copy of receipt challan has been lost, or he needs a credit certificate for any other reasons, he should be advised to deposit a fee of Rs.5 under the following head of account 1390000 others. When he deposits the requisite fee and produces a receipted challan, a credit certificate should be issued to him. Passing receipt challans of stamps National Bank of Pakistan is not allowed to accept receipts on account of stamps unless the receipt challans are first verified by the D.A.O. When a citizen presents receipt challan for such verification, the entries in the challan with 202 particular emphasis on the purpose for which money is intended to be deposited and the head of account should be checked. If necessary, corrections should be made. If found in order, the challans should be verified. All passed challans should be noted in the challan passing register. Receipts through transfer credit Payments on certain passed pre-audit bills are not allowed in cash. These are effected through transfer of credit. The dealing assistant should see the following points while entertaining such claims:i) ii) iii) The bill has been passed by the D.A. Section with condition "Not payable in cash, payable through transfer credit". Heads of account have correctly been recorded on the bill and in the receipt challans. When found in order, the triplicate challans should be signed. A stamp on the passed pre-audit bill "incorporated in the account for------------" be affixed, and triplicate challans should be signed. iv) Passed pre-audit bill should be returned to the Accounts cell for preparation of accounts. Deposit works Public Works Departments can also execute works on behalf of private parties, local bodies, autonomous bodies etc. Such works are called deposit works. Funds of these works are non-lapsable, if the source of funding is not government budget. The dealing assistant should carefully watch the following aspects, in addition to normal cheques, before authorizing payments, on checks relating to deposit works: i) ii) The entire cost of the work has been deposited into the Treasury. Technical sanction and administrative approval has been accorded by the competent authorities. Special cheques not payable in cash The following instructions of the Finance Department regulate operation of special cheques (not payable in cash):- 203 i) The use of special cheque for inter-divisional financial transactions shall only be permissible in case of bonafide transfer of funds, after due observance of respective provisions of rules as contained in Annexure-6 of the Punjab Departmental Financial Rules and as also outlined in F.D.s circular No.F.D.SO.F.R.(1) 1-1-1/63 -12/63 dated 4th January 1963; ii) Special cheque issued by a P.W.D. officer and presented to the respective DAO/TO for authorization shall in addition to the existing requirements, also accompany a copy of the request made to the counter part division for undertaking work/supply of stores, as the case may be, besides the consent of the recipient division to undertake such work/or supply of stores as required, and a copy of the approval to the estimate, equivalent to the amount of the special cheque. iii) All financial transactions made through special cheques shall be strictly non-retransferable, neither during the financial year in which these transactions originally occur, or in the subsequent financial year on any pretext, except for bonafide refunds of unspent balances. iv) The funds transferred through special cheques shall not essentially constitute "Deposit Work" as a matter of routine, unless these strictly qualify the conditions as prescribed under Rules 7.128 and 7.130 of the Punjab Departmental Financial Rules, besides the fact that the competent authority of the executing department has issued orders for undertaking the work in the prescribed manner in terms of par 5.31 of Punjab PWD Code, and Para 5.28 and 5.29 of B & R Department Code, as the case may be. v) The special cheques for hire charges of machinery should only be issued if the amounts have been deposited by the contractors in advance and kept under part. V of Public Works Deposits. 204 Refunds of revenue The dealing auditor/sub accountant should proceed as under on receipt of vouchers of refunds of revenue i.e. he should see that:1:2:Form No.STR 34 has been properly filled in and no column of it has been left blank. It has been issued by a competent authority within the permissible time limits e.g. a collector can not order refund on account of stamps after the expiry of two years in special cases and six months in usual cases. 3:4:5:Signatures of the issuing authority tally with its specimen signatures available in the Treasury. The refund vouchers book from which the form S.T.R.34 has been obtained was issued to the refunding authority from this Treasury. Revenue was actually deposited in the Treasury and it remains unrefunded. If a partial refund has already been ordered, sufficient balance is available to enable this office to clear the refund voucher. In cases of reasonably heavy amounts of refund, the fact of actual deposit of revenue should be confirmed by checking totals of the date and verifying from the bank credit scrolls. 6:7:8:9:Five endorsements of the bank, described in detail in this Annexure, are present on the voucher. The refunding authority has sent, in a sealed cover, advice regarding issuance of refund voucher. Name of payee and his signatures or thumb impression appears on the voucher. In case of refund on account of unused stamps, the Sadder Treasurer has reported that these stamp papers were issued by him and the same have been cancelled to prevent their reuse. 10:10% deduction has been effected in case of refund on account of unused stamps. 205 11:- Refund voucher has been issued in favour of the person who actually deposited the amount. Refund of unused stamps Procedure in the office of Collector a) The concerned person or his duly authorized agent claims refund of unused stamps by submitting such stamps and an affidavit along with his application (Rules 14, 15 & 20 of the Punjab Stamp (Non-Judicial) Refund, Renewal and Disposal Rules, 1954) b) After receipt of the application for refund, the action to be taken by the Refund Cleric is detailed in rules 22 & 23 of the Punjab Stamp (Non-Judicial) Refund, Renewal and Disposal Rules, 1954. c) Then the actual purchase of the stamp is ought to be verified from the register of the stamp vendor concerned or the ex officio stamp vendor (Treasurer), as the case may be (rule 24 of the rules). d) After verification of the actual purchase of stamps, the Refund Clerk then submits the case with the register in form S.R-1 along with a refund statement (voucher) in form SR-2 or SR-3 to the Office Superintendent (rule 24 of the rules). e) Office Superintendent carefully checks the application and the relevant papers submitted to him and satisfy him that the various checks prescribed for examining the application and instructions for filling up the register and the refund have been fully observed. He has also to see that the rules and orders in this behalf contained in other Manuals, Codes or Acts and other orders issued from time to time have been strictly complied with. If he finds the claim to be in order, he signs the refund and then submits the case to the Collector (rule 25 of the rules). f) As per rule 26 of the Punjab Stamp (Non-Judicial) Refund, Renewal and Disposal Rules, 1954, the Collector shall satisfy himself that the claim is admissible, check the register and the refund with the relevant stamps and see that the amount of the refund is correctly entered both in the register and the 206 refund. He shall then tear off the right hand top corner of each stamp, punch the head of the figure and record on it the following with a large rubber stamp:"Cancelled. Refund sanctioned on ____ Signature of the Collector, ________ District". Thereafter, the Collector shall sign the statement of refund and fill up columns 16 and 17 of the register g] Office Superintendent then arranges to hand over the refund to the applicant (rule 27 the Punjab Stamp (Non-Judicial) Refund, Renewal and Disposal Rules, 1954). , Note 3 below rule 9.4 of Punjab Financial Rules (PFR- Vol-1 ) and rule 4.58 (3) of Subsidiary Treasury Rules (STR). The sanctioning authority (Collector) issues an advice of the refund order direct to the Treasury Officer/DAO (rule 4.58 (3) of STR). Procedure in the Treasury Office /DAO a) Refunds of stamps can be drawn on appearance at the treasury and on the receipt of the person entitled to them (rule 4.55) and 4.58(3) of STR) or through his bank (Finance Department's instructions contained in letters No.OSD (LA&T)7(8)/72 dated 26.1.1973.No.SO (TT) 7(6)/80 dated 25.3.1981 and No. SO (TT) 7(6)/80 dated 29.8.1981). b) On receipt of refund voucher from the payee's bank, the concerned SubAccountant of TO office/DAO takes action and exercises following checks: i. Whether the signatures of the Collector as put on refund voucher and on advice tally with his specimen signatures as available in the treasury office (rule 4.147(a) of STR). ii. Whether the payee has signed on the refund voucher (rule 4.55 of STR) and his banker has attested his signatures. Whether the relevant stamps have been affixed/ signed by the concerned bank officer and the authorized officer of the 207 Main Branch of that bank has confirmed the endorsements of his bank branch. Whether the signatures of the officer of the main branch tally with his specimen signatures available in the treasury office. iii. Whether the particulars given in the advice tally with the particulars given in the refund voucher. iv. Traces the original amount deposited for purchase of stamps, in the receipts register of stamps (rule 9.4 of PFR Vol-1). It is traced from the date, given under D.O.P. (date of purchase) in the refund voucher. The refund voucher on form SR2 or SR-3 should also contain the particulars of date of purchase of stamps (D.O.P.) and date of deed (D.O.D.), although these particulars have not been provided in these forms. v) After exercising the above checks, the payment of refund is noted against the original item of credit in the Treasury Receipts Register in order to make the double payment impossible (rule 9.1 & 9.4 of PFR Vol-I). He then affixes the pay order to the State Bank of Pakistan or National Bank Of Pakistan, on the voucher and puts his initials on pay order, advice and receipts register. He then places the register along with voucher and advice before the Accountant. vi) The Accountant exercises all the above checks and after satisfying himself that the claim is in order puts his initials on the voucher, advice and the receipts register. He then places the register along with voucher and advice before the Treasury Officer. vi) The Treasury Officer exercises all the above checks and after satisfying himself that the claim is in order puts his signatures on the pay order and initials on the advice and the receipts register. He then sends these back to the concerned Sub-Accountant who prepares advice of all vouchers passed in a day. The advice is accordingly initialed by the Accountant and signed by the Treasury Officer. It is then sent to the State Bank under a sealed cover. The passed vouchers are returned to the payee's bank for receiving payment from the State Bank. The monthly statements of receipts of stamps (including the figures of refunds) are submitted to the Controlling Officer and the Head of Department i.e. 208 the EDO (Revenue) and the Board of Revenue, Punjab respectively as provided in paragraph 12.5 of the Punjab Budget Manual. The purpose of the rule makers for not sending such statement to the collecting officer is that the collecting office should prepare his statement independently and not from treasury figures (paragraph 12.3 of the Punjab Budget Manual]. Hence, sending of monthly statement to the Collector’s office is not required. Revenue deposits repayments The dealing sub-accountant/auditor should examine vouchers of revenue deposit repayments from the following angles:1) 2) 3) 4) 5) 6) Repayment voucher has been issued on form No.S.T.R 41. It has been issued by the court or other authority, which accepted deposits. The refund voucher book from which the present voucher has been detached was issued to the court by the Treasury. The voucher has properly been filled in; name of payee has been written clearly and there are no cuttings or over-writings. The amount actually deposited and the amount ordered to be refunded is written in figures as well as in words. If repayment has to be made to the attorneys of the payees, particulars and signatures of the attorneys have been verified on the voucher, by the court or other competent authority. This aspect assumes particular importance after occurrence of frauds in repayments of revenue deposits on instructions issued by some Land Acquisition Collectors. Besides insisting upon attestation of particulars of the attorneys, production, and verification form the Sub-Registrar concerned, of the judicial papers through which the actual payee has appointed his attorney should be ensured. The Land Acquisition Collector is bound to endorse a copy of his award to the D.A.O. Where necessary, the L.A.C is also required to send completely filed in Form A and Form A.A; as prescribed in Appendix 17 of the P.F.R Vol-II to the D.A.O. 209 7) 8) 9) 10) The authority which orders repayment shall be informed of the payment soon after it is authorized. There is no variation in particulars noted in the voucher and the advice received in sealed cover from the court, LAC etc. The repayments is being ordered within three years of the deposit. The validity of the voucher is for a period of one month. If payment is not authorized by the D.A.O within a period of one month after its issuance, no payment can be authorized on it unless it is revalidated by the issuing authority. 11) The most important thing to be watched with gazeful eyes is to ensure that money was actually deposited in the Treasury. Each entry of receipt register of R.D. is doubly verified by the A.T.O and the D.A.O with their initials. No space should be left to allow subsequent entries. Initials of A.T.O and the D.A.O are not conclusively reliable evidence that the money was actually deposited. Before allowing repayments in excess of Rs.10000/daily totals, original credit challans and bank credit scrolls should be consulted. In addition to 5 endorsements by the bank personal appearance of the claimant should also be ensured. Quarterly certificate of the Collector on the R.D receipt register should be obtained. Repayment of lapsed deposits Revenue deposits not repaid within a period of three years stand lapsed to the government and are treated as revenue of the government. Deposits, which have lapsed and so have been credited to government, cannot be repaid without the sanction of the District Accounts Officer. The application for sanction will be made in Form S.T.R.42. There must be a separate application for deposits repayable to each person, and it will be used as the voucher on which the payment is to be made. All points, mutatus mutandus, discussed in case of revenue deposits, are applicable to such claims. 210 Double Lock Section. 1. 2. 3. 4. 5. 6. Organizational Chart. Functions of the Section. Issuance of stamps Issuance of receipt books, chequebooks, and refund voucher books. Verification of issuance of stamps. Receipt and delivery of valuables. 211 ORGANIZATIONAL CHART D.A.O Sadar Treasurer Assistant Treasurer Peon Head Constable - 1 Functions 1. 2. Custody of valuables and stamps. Constables - 4 Sale of Stamps (Judicial, Non Judicial, entertainment stamps, Special adhesive stamps, Driving License stamps, Arms Stamps, Service Stamps, Notorial Stamps, etc.). 3. 4. 5. Provision of cheque books and refund vouchers to various departments. Preparation of monthly plus and minus statements of stamps. Custody of material and ballet papers pertaining to previous general elections. 212 Issuance of stamps The Double lock issues the following stamps:1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Court Fee Stamps. Non Judicial Stamps Revenue Stamps Notorial Stamps Special Adhesive Stamps Driving License Stamps Motor Vehicle Stamps Arms License Stamps Postal Stationery Postal Stamps Refugee Stamps Central Excise Stamps Air Mail Stationery. Entertainment Stamps Welfare Stamps Tobacco License Forms. Service Stamps Defence Saving Stamps Plain papers Registration Revenue Stamps Stamps are issued on production of receipted credit challans and their confirmation from the Bank credit scroll, to the depositors or their authorized representatives. Stamps noted against serial No.6, 7,8,9,10,13,18 are issued only to the Post Office on receipt of credit. Service Stamps are not allowed to be issued in consideration of cash; these are issued on production of transfer credit receipt challans. Special adhesive stamps are not issued; these are affixed on the documents and are signed by the A.T.O. affixed. Normally stamps are issued one day after the credit of amount in the bank. However in case of urgency, the D.A.O, after verifying credit from the bank, can order issuance of stamps on the same day of deposit. If someone has deposited amount to obtain non-judicial stamps, and subsequently desires to obtain special adhesive stamps, he will be advised to A register of documents is maintained to note all documents upon which special adhesive stamps are 213 deposit the requisite amount under proper head and seek refund of the amount already deposited from the collector. Issuance of receipt books, cheque books, refund voucher books On receipt of requisition for issuance of receipt books, cheque books, refund voucher books etc. the Sadder treasurer should see that:1:2:Signatures of the requisitioning officer tally with his specimen signatures available with him. The requisition slip has been detained from the book already provided to him, if no new requisitioning authority has been established. In case of first requisition, the entitlement and competence of the requisitioning officer should be ascertained before issuance. 3:The requisitioning officer should receive the requisitioned book from the Double Lock himself. He may authorize someone to receive on his behalf. The specimen signatures of the representative so nominated should be attested. 4:5:Whether requisite fee, if any, has been deposited in the Bank under proper head of account. Only one book can be issue at a time. When a financial year nears close, the D.D.O’s especially in the Public Works Departments, try to claim as many cheque books as they can, without first using the cheque books already issued to them. To check this malpractice, after 10th of June each year, new chequebooks should only be issued on production of contour-foils of used chequebooks. 6:The A.T.O should be informed about the issuance of cheque books, its number and the D.D.O to whom it has been issued. Issuance of voucher books should also be intimated to the A.T.O in the same manner. Verification of issuance of stamps 214 Collectors normally seek report of the Sadder Treasurer before issuing sanctions for refund of stamps. The report should be furnished promptly after consulting the relevant record. Receipt and delivery of valuables Nothing can be kept in the Double Lock without prior written permission of the District Collector. Valuables and election material are kept and delivered on the orders of the Collector. Valuables should be in a sealed cover and a specimen of the seal should also be in the sealed cover. All valuables are noted in the register of valuables. It is also noted that what the sealed covers reportedly contain. Annex-C Observance of punctuality and enforcement of office hours. 215 i) ii) iii) iv) v) vi) Hours of attendance. Leaving office during office hours. Attendance register. Penalty for late attendance. Absence without leave. Casual leave account. 216 Hours of attendance The ordinary office hours of attendance on all working days are from 8-00 am to 3.00 PM. except on Friday when the office hours are from 8.00 am to 12.00 noon. It is the duty of the A.A.O to prevent the accumulation of arrears and he has the power to require earlier or later attendance when the work is in arrears or interests of public service require it. In case of compulsory attendance on holidays, the A.A.O should obtain the approval of the D.A.O. Leaving office during office hours All civil servants should remain available on their seats during office hours. No one should leave the office without prior permission of his immediate boss. The A.A.O. should report each incidence of unauthorized absence from their seats of his subordinates to the D.A.O for suitable action. Attendance register All employees of this office are expected to be on their seats punctually at 8.00 am. An attendance Register is maintained for each branch of this office and is kept on the table of the ATO/AAO. As each person arrives, he should initial in the Attendance Register. At 8.30 am, the A.A.O will make a red cross mark against the name of civil servant absent and initial and submit the register to the D.A.O. A civil servant who has obtained previous permission for coming late, his name should be marked with "will come late", in the Attendance Register. Penalty for late attendance No casual leave will be forfeited on account of late attendance of a civil servant, but habitual late comers will be death with suitably under the E&D Rules, This fact will also be noted in their A.C.Rs. The question as to what constitutes a habitual late comer and when departmental action should be resorted to shall be decided in accordance with the following:- 217 i) If a person is late, he should report, immediately on arrival, to A.A.O, reason of being late. If the A.A.O is satisfied with his explanation, no action is to be taken. ii) If the explanation is not acceptable, the person concerned should be warned orally on the first two occasions. On the third and fourth occasion, warning should be issued in writing. iii) If the person is still found coming late, departmental action should be initiated against him for disobedience, which is treated as misconduct. iv) Departmental action shall be resorted to if a person, is any calendar month, comes late on more than five occasions. Absence without leave Staying away from office without leave renders a person liable to dismissal except when the cause is sudden illness or unforeseen circumstances of a pressing nature. In every case of absence without previous sanction, the reason of absence should be communicated at once and if it is due to illness, a medical certificate should be produced if so directed by the A.T.O/A.A.O/D.A.O. Casual leave account The A.A.O (Adman) shall maintain a casual leave account of all civil servants of this office. 218 Annex-D EDUCATION AND CO-OPERATION OF THE DRAWING AND DISBURSING OFFICERS. i) ii) Responsibilities of the D.D.O’s. The points the D.D.O’s should see before submission of claims in the D.A.O. iii) Other important points 219 As the D.D.O’s may be aware, entire responsibility for moneys drawn from government exchequer through cheques or pre-audit bills is on their shoulders. They are answerable for each and every penny drawn from the Treasury. According to Rule 2.31 (a) of the Punjab Financial Rules, Vol.-I, "A drawer of bill for pay, allowances, contingent and other expenses will be held responsible for any overcharges, frauds and misappropriations”. He should therefore, make himself thoroughly acquainted with the meaning of the various financial checks which he is expected to exercise so that he can be in a position to detect immediately any attempt at defalcation, and should pay special care to those points in financial process at which leakage is likely to occur. Before submitting a claim in the D.A.O, D.D.O. should satisfy himself that his claim is perfect in all respects and is admissible under the rules. Annexure B is for his guidance. Attention paid to this annexure will eliminate the chances of avoidable audit objections. The D.D.O's should see the following points with particular keenness:i) ii) iii) All totals in the bills should be personally checked by the D.D.O's. The grant number and codal classification of accounts should be properly entered in the relevant columns of the bills. The claims should be valid charges, supported by necessary vouchers, reuse. iv) The D.D.O should check the rate of pay of each official working under him in the light of pay verified by the D.A.O in his service book. v) vi) vii) Specimen signatures of the D.D.O along with telephone number should invariably be sent to the D.A.O's for their record. All changes in the sanctioned strength of the establishment should be promptly communicated to the D.A.O. Sanction of the competent authority, where required, should be attached with the claims. bills. The D.D.O's should ensure that all the bills/vouchers are properly cancelled after their use to obviate their 220 viii) Schedules regarding deduction on account of G.P Fund, Income Tax and Benevolent Fund etc. should be personally checked by the D.D.O. ix) Budget appropriations should be filled in the respective columns on the bills under the supervision of the D.D.O after checking the same from the budget registers. x) xi) All amounts received on behalf of government or withdrawn for disbursement should invariably be entered in the cash book. As prescribed vide note below rule 4.5 of the S.T.R. and instructions issued by the Finance Department vide letter No.IT(FD)6 13/83-III dated 21-6-89, all bills should be entered in the transit register before submission to the D.A.O. xii) Under Rule 2.25 of the S.T.R and 13.4 of the Punjab Budget Manual, reconciliation of all payment and receipt figures should be carried out each month with the D.A.O. xiii) In accordance with the instructions of the Finance Department circulated vide letter No.S.O (TT) 7 (5)/77-A dated 26-5-77, all sanctions to incur the expenditure should be accorded by the competent authority under intimation to the D.A.O. All sanctions endorsed to the D.A.O should be signed in ink, giving clearly the name, designation, telephone number of the signing authority, so that before admitting the claim/sanction, confirmation is sought on telephone, Any change in specimen signatures/telephone numbers should be promptly reported to the D.A.O. xiv) It has been observed that some D.D.O's unnecessarily put their signatures on many spaces on the bill. These unwanted signatures should be avoided to obviate the chance of their misuse by the cashiers, accounts clerks, etc. xv) In case of any difficulty, complaint they should personally contact the D.A.O on telephone No.04931-55880. Many problems can be avoided if personal contact is made with the D.A.O. 221 Acquisition of stores and stock The stores purchased by government departments vary from petty items of office requirement to huge stocks of goods needed for the working of departments. The basic principles underlying the rules for purchase of stores and stock are:     Economy and Efficiency; Quality of goods to be obtained; Correct quantities of goods acquired; and Transparency of procedures. The rules for store purchase have been made by the government for the guidance of its staff and are contained in the Punjab Financial Rules.. The main points are as follows:  The conditions of sanction of competent authority and existence of budget provision equally apply in store purchase for incurrence of expenditure. (The powers for sanctioning purchase of stores are contained in the Delegation of Financial Powers Rules.  Purchases are required to be made in the most economical manner in accordance with the definite requirements, but not much in advance of actual requirements.  Purchase orders should not be split up to avoid the sanction of higher authority.  Tenders have to be invited in Pakistan and also abroad unless the value of order is small and sufficient reasons exist for not inviting tenders.  Tenders have to be opened after intimation to tenderers in presence of tenderers who desire to attend.  All articles whether manufactured in Pakistan or abroad are subject to inspection. The articles have to conform to the specification and tests as prescribed. 222  Important plant, machinery, etc. has to be obtained from approved firms. Purchases are to be made by indenting upon the central purchase agencies established in some departments for acquisitions of specialized items of stores. Purchases have to be made in accordance with the rates or running contract, where established for supply of certain specialized articles of stores.   Open bidding: Before inviting bids, the bidding documents should be completed in all respects. Specifications and/or drawings based on profiles and contours must be available to support the bidding documents. Sufficient time should be allowed to tenderers for submission of bids. Notice inviting tenders must be published in leading newspapers, depending on the type of competition required so that wide publicity generates healthy competition. Addendum to tender, if any, must be advertised in the same manner as had been done for original tender. Appendices to tenders must be attached to bidding documents, which shall specify the conditions particular to the case in question. Bids for 'works' should not be invited as percentage above or below the schedule of rates. It should be invited on item rate. Bill of quantities must be drawn and attached to bidding documents. Criteria of evaluation of bids must be announced. Evaluating bids: Drawing out a simple comparison of bids is not advisable. The bids should be critically examined to see that: i) ii) iii) iv) Those are free from computing errors; Those conform to specifications given in the bidding documents; Those do not contain any conditions, especially effecting the cost; and Those do not alter conditions of bidding documents. A committee should-be constituted to evaluate and adjudicate the bids. Encumbrances in bid(s), if any, must be brought and weight/cost worked out. The 223 evaluated bids should then be compared and recommendations recorded by the committee. Acceptance/approval of bids: The bids after full evaluation have to be compared and the lowest evaluated, qualified and responsive one should be identified. The deliberations of the committee evaluating the bids must be minuted and put up to competent authority for consideration and approval. Purchase orders/contracts: After obtaining approval of bids from the competent authority, the purchase orders should be issued, and contract signed. The purchase orders and contracts must contain clear and concise conditions of supply. Memo of understanding must be drawn out for ambiguities, if any. No variation should be made after issue of purchase orders/signing of contracts, except as provided in those documents. In case of variation, approval must be got approved from the authority, which approved the original bid. Receipt and inspection of stores: On receipt of stores from suppliers, it is incumbent on the DDO to inspect the stores. It must be ensured that the stores are correct in quantity and good in quality. Inspection certificate should be drawn and signed before acknowledging the stores. Any substandard item must be rejected and got replaced within the stipulated period. A warranty certificate, where applicable, must be obtained from the supplier while receiving the stores; Items nearing expiry date must not be accepted and should be replaced. Store accounts The articles of stores with the government organizations are as valuable a property as cash and other assets are. Special care is required to be taken for their safe custody, keeping them in good order, and their protection from loss, damage, deterioration and pilferage. Suitable accounts, inventories and reports are prepared, making it possible to be controlled and compared with the actual balance. The responsibilities of various officials for safe custody, maintenance, upkeep and accounting together with the supervisory controls should be laid down in writing, 224 Kinds of stores Basically, there are two broad categories of stores and stocks, a DDO has to supervise: 'dead stock' or non-consumable goods and the consumable stores. The 'dead stock' articles include plant, machinery, furniture and fixtures. The 'consumable' stores consist of items, like office requisites i.e. stationary, soaps, detergents and others for the functional use of an organization such as medicines. Store accounting Accounts are kept for both the categories of stores and stocks. The accounts of consumable stores are kept in store ledgers/registers to show the receipt of goods, issues and the balances on hand, while those for dead stocks items, are recorded in little more details, like detailed specifications, exact location (room, office, halls etc.) where article is kept and in whose custody it lies. A list of dead stock is also kept at the site of those articles. That list authenticated by the custodian of all the articles there. With the transfer of charge, the articles are transferred to the custody of the official who takes over charge. Note: In larger organizations, the stores on receipt are recorded in 'Goods Received Registers' before being posted in store legers. Receipt and issues of stores: All receipts of stores must be entered in aforesaid accounts giving reference on invoices or delivery notes of the entries in ledgers / registers. Up to date balance is struck after every entry of receipt and issue. The goods are issued to users against approval indents. A better way of control would be to use printed and pre-numbered forms of indents and their references should be given in stock registers. Issues must also be traceable to consumption record. The closing balance must follow each entry of issue. Physical verification of stores: Physical verifications of store means comparing the book balance and the actual balances in stock. This is done at least once a year for both the consumable and non-consumable stores. The physical verification of stores is necessary so as to: • Verify that book balances agree with ground balance. 225 • • • Help pinpoint calculation errors in books and pilferage. Verify that no item has become obsolete, broken or is nearing the expiry date. Verify that no items are held up for long time or are in excess of requirements. Physical verification must be carried out by person(s) other then storekeepers but in the presence of the latter. Excesses and shortages must be recorded in a report, accounted for and investigated properly. Packages and containers must be checked carefully to ensure that those are not lying empty or with less quantities. Periodical verifications of ground balances should be so arranged that all items are verified at least once every year. Unserviceable items must be taken out and surveyed off after obtaining sanction of the competent authority. The items in excess of requirement should be shifted to needy units. Stock registers of non-consumable items should also be reviewed in the same way and physical existence of balances certified. The physical verification helps repairing the damaged items of dead stock articles. Consumption accounts: Authentic daily consumption accounts of goods must be maintained accurately. For example in Health Units, Daily Expense Book should be maintained in prescribed form and issues must agree with entries in OPD Register. Similarly in other Departments the prescribed consumption of goods accounts be maintained. Responsible officer(s) must attest all consumptions. Unless authentic consumption accounts are maintained the whole system becomes doubtful. Some offices keep control over consumption through frequency of placing requisitions. This type of control can be used for regulating issues of office supplies and other stores, which cannot be tied with consumption accounts. Unserviceable and disposals Dead stock items deteriorate through long time use so are the consumable stores, which become unserviceable if held for a long time. The supervisors and storekeepers should identify, and determine, if it was not due to 226 any negligence on the part of the custodians, and institute arrangements for their disposal after obtaining sanction of the competent authority. 227 WITHDRAWAL OF FUNDS, DISBURSEMENT AND ACCOUNTING Withdrawal from Treasury The claims on account of salaries, allowance and purchases on invoices are drawn through bills and then disbursed to claimants. For petty expenditure, the DDO's are provided with funds in shape of Permanent Advance (Rule 132 of GFR Vol. I). The Permanent Advance is operated like imprest and is recouped by drawing bills from the treasury. The above arrangement enables the Government offices to carry with them small amount of cash, and saves the government from the risk of 'major' loss through pilferage. Basic conditions The DDO's are guided by the following conditions for drawal of money from the treasury: • No money should be drawn from the treasury unless it is required for immediate disbursement or has already been paid out of permanent advance. • No authority may incur expenditure unless there is a sanction of competent authority for incurrence of that expenditure and that the expenditure has been provided for in the authorized budget grants. Finance is notoriously vulnerable to abuse through fraud, negligence and inefficiency. It is therefore essential that due care is taken and effective controls are exercised in matters of withdrawal and the rules framed by the government should be followed in letter and spirit. Canons of financial propriety The rules require that the officer incurring or authorizing expenditure from public funds should be guided by high standard of financial propriety. Among the principles on which the emphasis is generally laid are as under: i) Every public servant is expected to exercise the same vigilance in respect of expenditure from public money, as a 228 person of ordinary prudence would exercise in respect of expenditure of his own money. ii) iii) iv) The expenditure should not be prima facie more than the occasion demands. No authority should pass any order which will be directly or indirectly to his own benefit; Public moneys should not be utilized for the benefit of a particular person or section of the community unless: a) b) c) v) the expenditure involved is insignificant; or a claim for the amount can be enforced in a court of law, or the expenditure is in pursuance of a recognized policy or custom. The amount of allowances granted to meet expenditure of a particular type should be so regulated that the allowance are not, on the whole, a source of profit to the recipients. Time limits of presentation of claims No claims against the Government not preferred within six months of its becoming due can be presented without an authority from the AccountantGeneral/District Accounts Officer. Form, preparation, and presentation of bills The general instructions for the preparation of bills have been given earlier. Points of general applicability are as under: • Printed forms of bills in English should be used, but when a bill in any other language is unavoidable, bilingual form should be used. • All bills must be filled in and signed in ink. The amount of each bill should be written in words as well as in figures. No space should be left for interpolation. 229 • Corrections and alterations in the bill should be attested by the dated initials of the person signing the bill. Erasures and over-writings in any bill are absolutely forbidden. • The full account classification must be recorded on each bill by the drawing & disbursing officer, the classification in the budget being taken as a guide. • When bills are presented on account of charges occurred under any special orders, the orders sanctioning the charges should be quoted. • When the Drawing Officer requires payment to be made through some other person or agency, he must specifically endorse an order or furnish such authorization, as may be necessary, to pay to that specified person or agency. Specimen signatures of drawing and disbursing officer All bills drawn from the treasury have to be signed by the head of office or by the gazetted officer who has been authorized by the former to draw and disburse claims on his behalf. A set of specimen signatures of authorized officer is supplied to Treasury Officer/District Accounts Officer. Bills of non-gazetted staff Bills for pay, regular allowances and leave salaries are to be prepared separately in the prescribed forms for permanent and temporary establishments and for those classes of establishments for which no service books are maintained. The instructions printed on the form need be carefully observed. The name of every employee has to be shown against each post. The orders sanctioning temporary post are to be noted in the bill. The rate of pay with dates for which it is claimed, requires to be noted when pay is claimed for a portion of month. The entries in all the money columns of the bill are to be totaled separately under each section and the totals written in red ink. The totals must be checked by the drawing officer himself or by some responsible person other than the clerk preparing the bill. 230 Absentee statement and absenteeism The monthly bill is supported with an Absentee Statement on the prescribed form if any person is: • • • Absent on leave or otherwise; Under suspension; or When the post is left vacant. Note: 1) The submission of Absentee Statement with individual bills is not necessary when in case of amalgamated cadres, the controlling officer supplies the Consolidated Absentee Statement. 2) The DDOs, it is suggested, may consult the attendance records of the staff or the cut statements or Reports of Absentees of the Sectional heads before signing the bills. Periodical increment certificate To the first bill in which a periodical increment is drawn for a Government Servant, a certificate on the prescribed form is required to be appended. First and last in series of payment When a Government Servant presents his pay bill for the first time, or when the name of a Government Servant appears for the first time in an establishment bill, the bill shall be supported by a Last Pay Certificate or if he did not previously hold any post under the Government or is re-employed after resignation or forfeiture of past service, a health certificate must accompany the bill in conformity with, and if so required by, any rule or order governing the conditions of the service to which he belongs. If a pensioner is re-employed the fact shall be stated in the bill. The last payment of pay or allowances shall not be made to, or in respect of a Government servant whose pay is drawn on Gazetted Government Servants' Bill form, finally quitting the service of the Government by retirement, resignation, dismissal, death or otherwise, or placed under suspension until the disbursing officer has satisfied himself, by reference both to the AG/DAO and his own records, that there are no demands outstanding against him. Deductions and recoveries from bills 231 The duty of noting the proper deduction to be made from pay bills on account of Provident Fund, etc., devolves on the drawer of the bill. All deductions should be supported by separate schedules setting down full details of deductions. Bills of contingent charges The term, "Contingent Charges" or "Contingencies" means and includes all incidental and other expenses which are incurred for the management of an office or for the technical working of a department, other than those which under prescribed rules of classification of expenditure fall under some other head of expenditure, e.g. "Works" and "Pay". All charges actually incurred are required to be paid and drawn at once, and under no circumstances they are allowed to stand over to be paid from the grant of another year. The certificates printed on the form need be carefully read before signing the bills, in particular the certificates about the quality and quantities of articles, the cost whereof is included in the bill. Permanent advance Drawing and Disbursing Officers are placed in funds to enable them making payments for claims of small amounts. The amount of this fund is determined on the basis of monthly average for the year. The heads of departments, in consultation with the Accountant General/District Accounts Office, sanctions this amount, which is called Permanent Advance. The claims paid out of this advance are replenished by drawal of bills from the treasury. The DDO is required to supply an acknowledgement of the amount of permanent advance to the AG/DAO every year on 15 July or on transfer of charge. Utilities In case of bills for utilities, the DDO has to check that proper registers for private telephone calls, use of electricity, gas and staff care etc. are maintained and proper entries are made and amounts recovered. 232 DDO's role in preparation of bills The DDO's has multifarious responsibilities. His specific responsibilities in the functioning of system of withdrawal of money and disbursement have been set down at different places in the Treasury Rules and Punjab Financial Rules. The main responsibilities are as under: • • Amounts drawn from treasury should be recorded in cashbook immediately on receipt of cheque / cash. Amounts drawn are disbursed within reasonable time and all un-disbursed amounts are refunded either through short drawal in next bill or deposited into treasury. • • No salary is drawn for an employee, who has been absent from duty. In respect of store articles the amounts for purchase of which are drawn in a bill, it has to be seen that they have been received in good quality and correct quantities and that notes are kept in stock registers. This he can ensure by cross-checking notes on sub-vouchers received. • All payroll deductions, like GP Fund and rent of buildings have to be supported by deductions schedules, setting down full particulars of deduction. • The new names in the bills have to be supported with LPCs or if the employee has been newly appointed with a certificate of fitness issued by an authorized medical officer. In both the cases, availability of sanctioned post has to be ascertained with reference to sanctioned strength of staff. • The entries in the bill have to be checked and test checked. The functioning of system of review by senior subordinates needs be reviewed every time a bill is signed. The cash handling staff should not be entrusted with the check of bills. • All amounts drawn on bill need be recorded on the receipt side of the Cash Book and checked regularly. 233 • Absenteeism Recoveries should make from the officials for private use of telephones, staff cars and government vehicles, etc. An important function of the DDO is to see that the bills prepared in his office do not contain the names of the officials who had been absent without leave. This can be checked with reference to monthly 'cut statement' sent by the immediate supervisors of the Sections/Branches to the Bill Branch or by reference to the attendance registers. Certificate number 2 recorded on the establishment bill demands that this kind of check be carried out before signing an establishment bill. Disbursement and accounting The principle underlying the rules demands effective system of controls over moneys withdrawn from public funds, keeping record of all receipts and payments, proof of their accuracy, correct authority supporting the transaction and all other records with proper trails to enable making audit. Broadly, the rules require keeping Cash Book, vouchers and other supporting records to enable audit verify the validity of the transactions taking place in Government Offices. MAINTENANCE OF CASH BOOK Cashbook is a very important document in any office, in which government money being received or disbursed is recorded. All cash transactions should be entered in the cash book as soon as they occur and attested in token of check. The cash book should be closed regularly by initialing the last entry with date. At the end of each month the head of the office should personally verify the cash balance and record below the closing entries in the cash book. If the head is absent from headquarters, at the end of a month, he made the delegate the duty of verifying the cash balance to an other officer or if there is no officer, his office superintendent, head clerk or other similar ministerial official of corresponding rank. However, the head of the office should personally verify the cash balance on his return to headquarters. 234 The following important points should be kept in mind during the maintenance of the cash book:a) A certificate duly singed by the Drawing and Disbursing Officer (D.D.O.) regarding the total number of pages, containing the cash book, should be recorded on the very first page of the book and each page should also be numbered. b) If there is difference between the cash chest and cash balance of the book, it should be immediately rectified by recording the factual position / remarks against the wrong entry. In case of any difference an administrative action to be taken against the defaulter by reporting to the departmental superior depending on the nature of each case. c) The counting should be made on the last working day of each month immediately after closing the cash account of the month, but where this is not possible, the cash balance may be counted on first working day of the following month before any disbursement is made on that day. d) A certificate duly singed by the head of the office regarding closing cash balance specifying it both in words and figures (exclusive of imprest and temporary advances) should be recorded at the end of each month. e) All receipts, disbursements and charges of whatever sort connected with public service must be, and no other may be, shown in the cash book. f) Sufficient details should be given in the column “particulars” to admit of the main points of each transaction with out reference to the detailed vouchers. g) The entries in the cash book of the cheques or amount withdrawn from Audit Office should be compared and checked with the Treasury Schedules issued by the Audit Office / 235 Treasury Office. A certificate to this effect be recorded in the cash book. Exceptions: Cash book for the Forest, Public Works, Commercial Departments and Other Offices should be maintained in accordance with the concerned rules or orders. Source : i) Cash book is maintained under the Rule 2.2 of PUNJAB FINANCIAL RULES (VOULME 1.) also known as P.F.R. (VOL.1)& FINANCIAL HANDBOOK #2. ii) Cash book is maintained as per Form 1 mentioned in PUNJAB FINANCIAL RULES (VOULME 2.) also known as P.F.R.(VOL.1)& FINANCIAL HANDBOOK #2. General instructions for handling of cash  Government dues should not pass through the hands of departmental officers unnecessarily; moneys should be deposited directly by the person, who tenders such money.  Cash Book must be maintained properly in the prescribed form.  Before opening, number of pages should be counted and a certificate recorded on 1st page.  All monetary transactions should be entered in Cash Book immediately.  All transactions should be attested by head of office or by any authorized officer.   Cash Book should be closed regularly/daily. Totals should be checked by head of office or authorized officer other than writer of the cashbook.  Totals should be initialed by the head of the office or authorized officer.  Cash balance should be verified at frequent intervals. 236  At monthly closing the physical cash balance should be counted by head of the office or authorized officer and matched with the book balance and a certificate recorded in the cash book, which should be signed, and dated. Cash in hand should be recorded in figures as well as in words. Over-writing should be avoided. Error should be corrected by drawing the pen through the incorrect entry and inserting a new entry in red ink in between the lines. Correction should be initialed. Entries of deposit of money in bank/treasury should be compared by head of the office or authorized officer with the treasury receipt / challan of bank. Reconciliation with the bank/treasury be conducted monthly. If an official has to handle non-Government money in his official capacity, it should be kept in separate chest and books. B-l to B-3 should not be deputed to carry the cash, but if it is unavoidable, senior man of reliable character should be put on the job. In case of large amount, police guards should be procured. The cashier's messengers should be provided official transport if possible. Securities be taken for cash handling.            Maintenance of Acquittance Roll This is a document being maintained in an office in which details of every pay drawn are incorporated. The head of an office is personally responsible for every pay drawn on a bill signed by him or on his behalf until he has paid it to the person entitled to receive it and obtain his receipt, duly stamped 237 where necessary, on the office copy of the pay bill. If in any case, owing to the large size of an establishment or because certain of its men being working in outstations, it is not found feasible or convenient to obtain the receipts of payees on the office copy of the pay bill, the head of the office concerned may, at his discretion, maintain separate acquittance roll for each set of payments made at one place or at one time. It is an important record and should be preserved for the period specified under the rules. A CHECKLIST for maintenance of acquittance roll is as follows;  When a drawing officer checks an acquittance roll, he should either himself total up the items of it, check the total against the total of the corresponding establishment bill and the money received and see any difference between the total is properly is accounted for or cause all this to be done an officer or where no officer is available by the superintendent or the head clerk of the office.  Where practicable it should be arranged that disbursement on account of establishment bills are not made by the clerk who prepared them, and the maintenance of separate acquittance rolls is dispensed with, as far as possible.  Heads of offices are responsible for seeing that signatures of office copies of the pay bills of acquittance rolls are taken by the official making the payment at the time of payment and not by the Bill Clerk previous to payments.  In case of office in which Government Servants are present on the spot, payments are ordinarily made to them in person and not to a third person on the authority of the payees. 238  The head of an office is not at liberty to readjust the pay of a Government Servant by giving one Government Servant and another less than the sanctioned pay of his post.  No payment should be made against an absentee except provided in the Civil Services Rules (Punjab), Volume-I or the Fundamental Rules, as the case may be.  An official on leave in Pakistan must make his own arrangements for getting his leave allowances remitted to him. Source  Maintenance of the acquittance roll has been provided under Rule 7.12 of Punjab Financial Rules Volume-I also known as P.F.R Vol-I and Financial Handbook No.2.  The prescribed proforma for acquittance roll has been mentioned in Punjab Financial Rules Volume-II also known as P.F.R Vol-II and Financial Handbook No.2, as P.F.R Form-11. 239 BUDGET The basic source of all financial activities of the Government is the annual budget. The estimates of receipts and expenditures for the ensuing financial year are prepared by the Government every year, and are laid before the Legislature. After approval, and passing of Finance Act, the distributions are made to the departments and offices and that is the legal cover for their future activities of collection of taxes and making expenditures. Budget cycle The budget process is usually divided into four cycles namely, Formulation, Authorization or Approval, Implementation and Review. Each of the four phases is explained as under:  Formulation means developing proposals. The estimates of revenues and expenditures are made in advance for the next year. Formulation of budget is the responsibility of the executive. All heads of offices, controlling officers, heads of departments develop proposals relating to receipts and expenditures of their own fields and send to the Finance Department. The Finance Department consolidates those estimates for being laid before the Provincial Assembly. Approval or authorization implies approval by the Provincial Assembly. The proposals - total for the province - are given shape of Annual Budget Statement by group heads supported by " Demands for Grant", The Demands are discussed in the House, voted and finally the Authenticated Schedule containing several Grants and Appropriations signifies approval. The approved grants are communicated to the departments and down to controlling officers and the DDO’s. Implementation means action on approved programs and services by executive agencies. The departments and agencies draw money from the treasury and spend on the projects and programs for which the funds have been provided in the budget. On the   240 revenues side they issue demand notes and collect revenues and the accounts of revenues and expenditures are compiled concurrently.  Review is the last stage of the process. It is done both concurrently as well as post facto. The administrative authorities themselves do the concurrent review, while the post review is done by the legislature, which authorized the budget grants. The administrative departments, heads of departments and controlling officers are supplied with expenditure statements and receipts collection statements by the Drawing and Disbursing Officers, they consolidate figures of entire grant and compare with the revenue targets and authorized grant. They also reconcile the figures developed by them with those of Accountant General. The controlling officers also inspect the subordinate offices and during that inspection they scrutinize the flow of expenditure. For legislative review, the independent agency of the Auditor-General is used. The audit teams move around to make audit of accounts, and on the basis of their individual reports, the year-end Audit Report is compiled by the Auditor-General, which is laid before the House. A House committee-Public Accounts Committee examines the reports in presence of Administrative Secretary and the representatives of the Auditor-General and its recommendations are considered by the full House. Role of administrative departments The administrative departments collect data from its offices, add the proposals relating to its own headquarters establishment, consolidates the entire data and submit proposals to the Finance Department, The Budget Wing of the Finance Department merges proposals with those of other departments and consolidates expenditure. After taking the approval of the Chief Minister or that of Cabinet, the entire budget is laid before the Provincial Assembly in shape of Annual Budget Statement. The Administrative Departments have little role in the 241 'Authorization' phase of the Budget, except perhaps clarifying some points arisen during pre-budget exercises in Finance Department. Communication of grants: The several Grants in the approved budget are communicated by the Finance Department to the Departments,, who in turn communicate the sanctioned grant to the heads of offices through the heads of attached departments and controlling officers. Budget making by DDOs The DDOs in the departments play an important role in the budgetary process. Their role is much greater in the first and third phases - Formulation and Implementation. Formulation is concerned with forecasting receipts and expenditures, as close to the would-be-actual as possible, and Implementation requires keeping close to authorization. Both the activities of budget making, and budget implementation are, by and large, account-based and relate to comparatively small areas. It becomes easier to look into the reality with the experience and foresight of the DDOs. Budget is a statistical prediction. It needs imagination, foresight and circumspection in arriving at correct estimates. Guidance is though taken from past years' actuals but only to determine the trend of figures. All expenditures of the year and the liabilities of past are put together to work out a correct demand for expenditure. In the same way revenue estimation is done. The current demand of revenue for the next year plus un-recovered arrears make the estimates of receipts. Rules of budget making To regulate budget making and to avoid any shortfalls, or exceptionally big savings, the budget experts have spelt out some basic rules for the guidance of budget makers in the departments and offices. Those rules are briefly described as under: • The estimates be proposed on what is expected to be received (as revenue) or paid (as expenditure) on the basis of operative sanctions; 242 • • • • • • • The figures of gross receipts and gross expenditure be shown in the proposals; No provision be proposed for expenditure not covered by sanction; Nominal rolls should be prepared to support the proposals for 'Establishment Charges'; Increments accruing during the year be included in estimates; Provision be made for leave-salary; No lump sump provision be made without the approval of Finance Department; and No provision be made for posts held in abeyance. Format of budget proposals The offices and departments under the Government are required to prepare budget proposals in two parts - Part I and Part II. The budget experts for facility of scrutiny have created this distinction of 'parts'. After that scrutiny, the figures in two parts are merged in one consolidated proposal for the year. The most certain items are permanent establishment, fixed allowances, and ordinary contingent expenditure- Other items relate to fresh charges, which include new items of expenditure, such as temporary additions to existing establishment or to services and facilities, which are either continued on year to year basis or have been sanctioned anew with the clearance of Finance Department and have not been provided for in current year's budget. The proposals for this kind of expenditure are submitted in form of self-contained notes, or memoranda supported by details. The prescribed forms provide columns for: • • • • Subheads and detailed heads (Function-cum-objects). Actuals for last three years. Actuals for last eight months of previous year. Actuals for first four months of current year. 243 • • • Sanctioned budget for the current year. Revised estimates for the current year. Budget estimates of the ensuing year. The budget estimates for the ensuing year are accompanied by nominal rolls, calculations sheets of allowances, honoraria and other charges and comparative statement, showing the actuals of past 3 years, the sanctioned grant, revised estimates of current year and proposed estimates for the next. Nominal Rolls The Nominal Rolls are prepared on a prescribed form containing seven columns: • • • • • • • Name and Designation Reference column Sanctioned pay divided into sub-columns for minimum, maximum and actual pay on 1st July. Amount of provision for the ensuing year. Increment column, Total provision. The seventh column is for 'Remarks'. Estimating allowances The next step is that of estimating 'allowances'. It is done by preparing a statement with vertical columns for 'Designation' and one each for allowances. It has the columns for following allowances: • • • • • • • • House Rent Allowance Conveyance Allowance Washing Allowance Dress Allowance Cash Handling Allowance Computer allowance Medical Allowance Non-Practicing Allowance 244 • • Compensatory Allowance Ad-hoc Relief It may not be necessary that all the allowances noted in preceding para are applicable in all cases. But a combination of some of them is sure to happen. An attempt should be made to conjecture the title to allowances with reference to names of the officer and staff and those likely to be posted out or transferred. The total of allowances are worked out for the year and filled in the statement. The columns are totaled across and vertically and totals posted after the 'Establishment Charges". Estimating other charges The other charges include Purchase of Durable Goods, Repair and Maintenance of Durable Goods, Commodities and Services and may be sometime somewhere Transfer Payments. There is hardly an item of expenditure classifiable under 'Purchase of Durable Goods’, which could be permanent except expenditures on rents of buildings, telephones, etc. The estimation of expenditure other than pay and allowance is basically an account-based exercise, but it is here that the budget makers have to use their experience, foresight and judgment. The budget estimates are proposed eight to nine months before the commencement of the financial year. Some of the factors were not correctly foreseeable at the time the budget exercise was undertaken. The rules require that at the time of making estimates for the next year, opportunity should be taken to review the approved/sanctioned estimates for the current year, and action initiated to include or omit commitments that are likely to materialize, or not, during the current year. The making of revised estimates in actual effect precedes the making of budget estimates of the next year. They are framed in light of: • • • Actual of first four months of current year; Actual of last eight months of last year; Twelve months' actual of last three year; and 245 • Orders issued or proposed to be issued regarding appropriation or re-appropriation within the grant, new items of expenditure sanctioned through supplementary grant and surrenders within the grant. In determining the figures for revised estimates, it is not necessary nor is it required that the nominal rolls and statement of allowances should be prepared again. It is reviewed in general and what actually is needed, in light of the guidelines reproduced in preceding para should be proposed in the revised estimates. The idea is that the actual need for expenditure is clearer during the year and unnecessary funds should be surrendered, or re-appropriation could be made within the grant. Supplementary grants Cases, which involve a supplementary grant, are accepted by Finance Department only if they relate to matters of real imperative necessity, or to the earning or safeguarding of revenues. In such cases the demand for a supplementary grant or for a token demand if the request is for a new service to be met by re-appropriation, is presented to the Legislature as soon as practicable after the need arises. Article 124 of the Constitution of Pakistan, 1973, specifies the financial procedure in case of supplementary grants, justification thereof rests only on following considerations:  Sudden, unexpected and urgent demands, not included in the Annual Budget Statement.  Need for an additional grant where the amount authorized is insufficient. The administrative departments are required to explain the following at the time of submitting proposals for supplementary grants:  Why need for increased provision could not be foreseen at the time of finalizing the original estimates?  Why the expenditure cannot be postponed to the next financial year?  Why the additional expenditure cannot be funded by way of reappropriation? 246 While processing the demands for supplementary sanctions, Finance Department examines the following:  Whether in the absence of such additional expenditure, serious inconvenience, substantial loss or damage would result or not. If no such inconvenience, loss or damage is apprehended, the proposal is dropped altogether.  In case the urgency of a demand is justified, the additional expenditure is first proposed to be met by re-appropriation of savings from within the grant.  If re-appropriations are not possible, supplementary grants are sanctioned when absolutely necessary. In case of new expenditure on account of statutes or by orders of a court of law or other competent authority, Finance Department invariably agrees with the proposal. Also where the postponement of expenditure involves extra expenditure ultimately or where receipts are to be safeguarded, the need for such additional expenditures is generally agreed to. If the supplementary sanctions are absorbed within the original authorization for a particular grant by way of savings elsewhere, only a token sum (Rs.10) is demanded/submitted for approval of the Assembly. Supplementary sanctions are consolidated by the Finance Department in the form of a Supplementary Budget Statement. It requires approval of the Cabinet and recommendations of the Chief Minister before it is laid before the Provincial Assembly. The manner in which the Supplementary Budget Statement is presented, discussed and voted in the Assembly is the same as that prescribed in respect of the Annual Budget Statement. The rules specify that: • The authority administering a grant is ultimately responsible for watching progress-of expenditure on public service under its control and for keeping expenditure within the grant. 247 • The controlling officer has to see that the funds placed at his disposal are expended in public interest and on objects for which the money was provided. • The controlling officers should see that the irregularities and errors in the use of funds are prevented and safeguards exist against waste and loss of public money and stores. • • There should be no delay in payment of money indisputably payable by the Government. Moneys should not be spent in hurry nor in ill-considered manner, merely because it is available. Nor should any money be spent to avoid the lapse of a grant. The rush of expenditure in the closing months of the financial amounts to breach of standards of financial propriety. 248 Annex-E TIME LIMITS FOR THE DISPOSAL OF CASES. All claims received in this office should be disposed of as early as possible. However the maximum time limits within which claims should normally be disposed of are prescribed hereunder. The concerned Assistant Accounts Officers are advised to implement these time limits. Cases in which disposal is not made within the prescribed limits should be reported to the D.A.O. The limits prescribed hereunder are suggested and not binding unless orders to this effect are issued by the competent authority. Sr.No 1 2 3 4 5 6 7 8 9 10 11 12 13 14. 15 16 17 18 19 20 Nature of claim Time limit Issuance of pay slip to gazetted officers. One week. Issuance of last pay and service certificate. One week Regular pay bill if received till 27th of the Latest by Ist of the month. month. Regular pay bill if received after 27th of the within 4 days. month Bills of adjustment for the purpose of drawl of 10 days. pay. Bills of arrears of increases in pay. Bills of leave salary, LPR, Leave encashment. Certificate of Admissibility of leave Bills of subsistence allowance Provision of service statement. Provision of certificate of G.P Fund 15 days. One week. 4 days 3 days. 10 days. 2 days. deductions. Verification of income tax returns 2 days Certificate regarding reaching the maximum 2 days of a pay scale. Bills of reimbursement of medical charges. 7 days T.A. bills 7 days Execution of orders of courts regarding On receipt of bill. attachment of pay of officers. Countersigning L.P.C of officials. Utility bills Other contingent bills Bills of advances 2 days 3 days 7 days 7 days 249 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 Pay fixation. 15 days Allotment of G.P fund account number. 2 days Issuance of G.P. fund balance slips on 2 days demand Final payment of G.P Fund. 15 days Adjustment of missing credits. 7 days Transfer of G.P Fund balance to other 20 days districts. Payment of first pension, .(commuted value of 7 days pension. Regular pension. Transfer of PPO's to banks, other districts. Noting increases in pensions. Issuance of Duplicate P.P.O's. Re-imbursement of medical charges to 2 days 7 days 15 days 7 days 7 days pensioners. Opening of Personal Ledger Accounts. 7 days Clearance of cheques of PLA P.W.D 24 hours. cheques. P.W.D cheques Issuance of credit certificate. Passing credit challans of stamps Incorporating triplicate challans of transfer credit bills Refunds of revenue Repayment of revenue deposits. Repayment of lapsed deposits. Issuance of stamps from the Double Lock. Issuance of receipt books, cheque books, refund voucher books etc. Verification of issuance of stamps Delivery of valuables. Keeping valuables in the Double Lock. Verification of service qualifying for pension. Issuance of CBR and P.P.O. Issuance of revised P.P.O. Granting Token for bills received. Bills of advances out of G.P Fund. 24 Hours. 7 days Same day. 3 days 7 days 12 days 15 days 2 days 4 days 2 days Same day. Same day. 10 days 15 days 15 days As soon as bills are received. 7 days. 250 251 Annex-F INSPECTIONS i) ii) General questions. Special aspects. 252 GENERAL QUESTIONS 1) Is the distribution of work equitable and according to ability and temperament? Does each functionary know the precise nature of his duties and functions? 2) 3) 4) 5) 6) 7) 8) 9) 10) 11) 12) 13) 14) 15) Is the out put of work of various functionaries reasonably satisfactory? Does it conform to accepted standards? Is the rate of disposal of work satisfactory? Do actual pending bills tally with arrears statement? Is there any indication of unnecessary accumulation of work at any point? Are " please speak" cases attended to promptly? Is the number of such cases excessive? Are periodical reports and returns sent out to the authorities concerned regularly? Is a list of such reports and returns maintained? Are bills, claims received on token, or diary? Are tokens available in sufficient quantity? Is there any wastage or misuse of stationary, furniture, electricity, telephone etc.? Is the procedure for the receipt, custody and issue of stationery efficient? Are stock register, dead stock register depict true position of stocks? Are the working conditions satisfactory? Is the office lay out convenient? Are tables and chairs properly arranged? Are the office premises kept clean and tidy? Are the necessary reference books, codes, manuals, prescribed forms of reports and returns readily available? Are the service records, leave accounts, seniority lists etc. properly maintained. What is the degree of punctuality of staff? Is there any indication of habitual late attendance? 17) Does the staff pay undivided attention to work during office hours? 253 18) Is the procedure for the receipt and distribution of claims efficient? Is there any avoidable delay between the receipt of claims on the pre-audit counter and its delivery to the concerned section? 19) 20) Are the arrangements for the identification of pensioners convenient to the pensioners? Are the schedules of G.P Fund deductions being regularly detached from the bills and provided to the G.P Section? 254 PART B/ SPECIAL ASPECTS TREASURER’S SECTION SR.NO 1 Salient items to be examined during inspection of DAOs/STOs DOUBLE LOCK Cipher Code a) b) c) 2 Kept in safe custody. (Rule 3.47 PER Vol-I). Submission of Annual possession certificate. (Rule 3.47 (6) PFR Vol-I) Incorporation of upto date amendments. (Note 1 under Rule 3.47 PFR Vol-I). Pad Locks Register a) b) c) d) e) 3 4 Maintenance of pad locks register. (Rule 3.11 PFR Vol-I, Page marking and certificate). Use of padlock on the occasions as in indicated in the pad locks register. Annual oiling and cleaning & certificate. (Note bellow rule 3.11 (4) PFR Vol-I). Physician verification of spare pad locks. (Rule 3.11 (5) PFR Vol-I). Disposal/replacement of unserviceable pad locks. (Page marking & certificate). (Rule 3.11 (3-A) PFR Vol-I). Duplicate Keys. As above. (Rule 3.11 (5) PFR Vol-I). Duplicate Keys with the D.C a) b) c) 5. To check the safe custody of duplicate keys of strong room with the D.C (Rule 3.11 (5) PFR Vol-I). Annual physical checking/verification of key deposited.(Note below para 4 of Rule 3.11 of the PFR Vol-I). Recording of certificate in the register regarding annual verification. (Rule 3.11 (7) PFR Vol-I). Disposal of duplicate keys o various departments kept under Note 3 below 3.8 PFR Vol-I and final disposal as per instructions contained in Finance 255 Department's circular letter No. IT (FD)-III-5 (18) 81, dated 23-4-86, SO (TT) 8 (1)/77, dated 22-9-86. 6. Registers of Valuables a) Maintenance of registers of valuables. (Rule 3.8 PFR Vol-I) (page marking and certificate). i) ii) b) c) 7 a) To be taken out frequently. Not to be taken out frequently (Rule 3.8 (iv) PFR Vol-I). File containing the orders of the Collector for their deposit and disposal. (Rule 3.8 (ii) PFR Vol-I). Monthly physical verification of valuables. (Rule 3.8 PFR Vol-I). Issue of cheque books/receipt books to XEN's/SDO's and PL Accounts Operators. Issue of refund vouchers books. (Rule 2.13 (a) PFR Vol-I). Cheque Books/Refund Voucher Books and PWD Receipt Books. b) c) d) Physical verification of balance of cheque book, receipt books and refund books. (rule 3.46 PFR Vol-I). Authentication of counting certificate in the cheque books. (Rule 3.46, PFR Vol-I). Preparation of quarterly statement regarding issuance of PWD cheque/receipts books and its dispatch to XEN's/SDO's. (Note 2 below Rule 3.46 PFR Vol-I). 8. Double Lock Registers a. Recording of entries in the double lock registers i.e. originals & duplicates by sub-Accountant/Sub-Treasurer respectively. (Para 8 chapter 5 of Punjab Stamp manual) (page marking and certificate). b) c) d) Physical checking of stamps kept in the double lock. (Rule 3.12 (b) PFR Vol-I). Authentication of entries/cuttings & over-writings in the double lock registers. (Rule 3.25 PFR Vol-I). Recording No. and date of dispatch of advises after verification in the double lock registers. (Para 23 (ii) appendix 9 of PFR Vol-I). 256 e) f) g) Comparison of entries of double lock registers with the advises received from C.Os Karachi. Para 23 (iii) appendix 9 PFR Vol-I). Preparation of certificate regarding half yearly verification in Form A&T -48. (Para 35 of appendix 9 of PFR Vol-I). Comparison of entries of double lock registers with indent register prepared for taking out the stocks of stamps from the strong room and credit challans. (Paging & its certificate) (Para 28 of appendix 9 PFR Vol-I) 9. Indent Register. a) b) c) d) Attestation of daily indent by the DAO/TO/CTO. (Para 28 of appendix 9 PFR Vol-I). Comparison of entries in double lock/single lock registers and fortnightly verification under para 28 of Appendix 9 of PFR Vol-II. Preparation of abstract. of the items indented from double lock. Recording of total value of stamps taken out from the double lock, in words as well as figures. (Page marking). 10. STRONG ROOM SAFETY CERTIFICATE Issuance of fitness certificate by the Building Department. (Rule 3.13 (a) of STR.) 11. 12. 13. 14. MONTHLY PLS AND MINUS STATEMENTS OF STAMPS. (Para 36 of appendix 9 PER Vol.11. MONTHLY STAMPS TRANSACTION STATEMENT OF STAMPS IN FORM A&T,347. HALF YEARLY VERIFICATION OF STOCKS OF STAMPS. PARA 28OF APPENDIX 9 OF PER VOL-11. STOCK EXPENSE REGISTER. a) b) Maintenance of stokes expense register. Para 29 of appendix 9 of PER VOL-11. Keeping of balance in the single lock as per limit fixed by the Finance Department.(Rule 3.5(1) PER VOL-1and limits fixed by 257 Finance 15. Department vide letter No. SO(TT)26(6)/69,dated 19.8.1986. SECURITIES. (3.5STR). a) Cash as well as tangible securities rendered by Head Treasurer/Assistant Treasurer and Sub-treasurers. Instructions issued vide No. SO(TT)26/69,dated 19.8.1986. b) 16. a) Payment of cash handling allowance without deposit of securities. Register maintained in the prescribed form if not columns opened according to the para 9(iii)of the BOR's instructions circulated vide NO.1091-78/619-ST-I, dated 18.3.1978 b) 17. 18. Duties assigned to the Treasurer/ Assistant/DAO vide para 10,11&12 of interaction ibid followed. MAINTAINING OF REGISTER OF R.R. ISSUANCE OF STAMPS ON THE SAME DAY AFTER/PROPER VERIFICATION 19. 20. 21 22 23. 24. OF CREDIT AND PERMISSION OF DAO/STO NO.IT(FD)6-19--83, DATED 28.12. 1986. REGISTER OF INVOICES. (Under para 23(iii) of Appendix 9 per Vol-11 REGISTER OF ACCOUNTS OF EMPLOY WOODEN BOXES (SALE PROCEED QUARTERLY STATEMENT). PERIODIC INDENTS/ANNUAL FORECAST. Para a of auditing 9 of PFR Vol-II INDEX REGISTER OF FILES. REGISTER OF INSPECTION. MONTHLY PHYSICAL VERIFICATION OF STOCKS OF STAMPS LYING IN THE SINGLE LOCK BY THE DAO. Rule 3 of chapter 4 Part III of Punjab Stamp Manual and explanation below note under para 28 of Appendix 9 PER Vol-II. REGISTER OF DOCUMENTS. 258 ACCOUNTANTS DEPARTMENT. 1. CASH BOOKS. Under rule 3.16 of PER Vol.-I and para 32 of account code Vol.-II a) b) 2. Maintenance of each books/page marking whether maintained financial year-wise. Cross checking of entries with compilation registers and its attestation by the DAO (Rule 3.19 PER Vol.-I) COMPILATION REGISTERS SUB-SIDERY REGISTERS. Account Code Vol-I. a) b) 3. Compilation of accounts. Classification etc. (Paras 32-41 of account code Vol-II. Para 35 of DEPARTMENTAL/TREASURY SCHEDULES. Preparation of monthly departmental/ treasury schedules & dispatch there of to the DDO's.(Rule 2.2 PER Vol-I and 13.4 of Budget Manual. Note below Rule 2.13 PFR Vol-I and 4.156 (e) of Subsidiary rule.) 4. DRAWING SCHEDULES. Preparation of drawing schedule and its submission to the National Bank of Pakistan branch under sealed cover. 5. 6. 7. 8. 9. B.T. Register. (Para 39 of Account Code Vol-II). REGISTER OF STATE BANK DEPOSIT. Para 44 Account Code Vol-II. REGISTER OF MISS-CLASSIFICATIONS BY BANK. Account Code Vol-II. REGISTER OF ADJUSTMENT BY TRANSFER under Para 39 of Account Code Vol-II. Maintenance of Appropriation Register Form ATM-10. AG's instructions issued vide No. Record/1-8/A.G.F.D. meeting/CD/ 18206, dated 09-09-86 & F.D's instructions bearing No. IT(FD)6(8)/83, dated 18-09-86. (Para 45(c) of 10. RECEIPT SCHEDULES. 12.5 Budget Manual. 259 11. 12. SUBSIDIARY REGISTERS (RECEIPTS). Para 35 of Account Code Vol-II. Refunds i) Specimen to DDO's by Treasurer. Rule 4.58 of Subsidiary Treasury Rules. signatures of issuing authorities/collecting banks/advice of issuing authority/challans intimation of refund book issued 13. 14. Verification of C.T.Rs (REVENUE DEPOSIT SECTION) (Rule 3.38 PER Vol-I. MAINTENANCE OF REGISTER OF REVENUE DEPOSITS/ATTESTATION BY DAO/details of credits OF STO's.(Article 64 of Account code Vol-II). 15. 16. 17. 18. 19. Repayment of Revenue Deposits. (Para 66 of Account Code Vol-II). Repayment accounts register. Observance of formalities on admitting refunds. (4.58 of STR). a) b) Lapsed deposits statement. Countersignatures of Collector. (Para 127 of Account code Vol-II). Subsidiary register of repayments of lapsed deposits. Sanctioned register. Indication against entries in the lapsed deposits statement & receipt register of Revenue Deposits. (12.7 PFR Vol -I). 20. 21. 22. 23. 24. Certificate of genuineness of receipt entries by Collector in the R.D. register as required under para 124 of Account Code Vol-II. Clearance Register. (Para 125 of Account Code Vol-II). Maintenance of file of specimen signatures of DDO/refund issuing authority for verification of genuineness of payments. Incorporation of payments made at Sub-Treasuries/Daily Saiahas (Para 77 of Account Code Vol-II and Rule 3.18 of PFR Vol-I). PERSONAL LEDGER ACCOUNTS i) ii) iii) Maintenance of P.L Accounts Register. (12.16) PFR Vol-I. Maintenance of P.L. Accounts pass books/verification. (12.19) PFR Vol-I Receipt challans/authorities. 260 iv) v) vi) vii) viii) File for intimation slips of cheque books in use. Cheque passing Register. (Provincial). Specimen signatures file. Plus and Minus of P.L Accounts. (Article 110 Account Code Vol-II). To watch the PLA fed with Govt. grants being lapsed on 30th June of each year vide Instructions bearing No.B-I127 (259)/90, dated 912-90. 25. PENSION i) ii) iii) Guard files (along with index). Index Register of PPO (from same office, others districts & A.G. Punjab, Lahore, etc. (Rule 4.94 of STR). Payment of pension and increases, and transfer of PPO to National Bank of Pakistan branches & other D.A.O's SO(TT) FD-9(1)/77, dated 27-8-77. iv) v) vi) vii) Annual physical appearance/attendance of pensioners. (Rule 4,107 STR). Post Audit of pension paid by Banks. As per instructions issued vide No.SO(TT)2-3/87, dated 19-8-87. Recovery of overpayments (if paid in excess by Banks.) vide instructions No.SO(TT) 9(1)/77, dated 27-8-77. Payment of pension on disburses, halves, as required in Rule 4.93 STR. F.D's instructions issued vide No.SO(TT)2 (3)/87 dated 19-81987. viii) ix) Correction of loss payment to pensioners. Authorization of first payment of commutation/pension by two DAO's as per instructions issued vide No.SO(TT)2-3/87, dated 198-87. 26 CHEQUE SECTION i) Delivery of daily advice under sealed cover to Banks, Letter sealed cover to Banks. Letter No. Try/62 (Part-II), dated 16-1-69 & 22-373. 261 ii) iii) iv) Discharging of paid vouchers Rule 3.63 PFR Vol-I. Receipt of account from the bank and entry thereof in the register PAO-52. Transit Register/Token system. Note 4 below Rule 4.5 STR. F.D's instructions issued vide No. OSD (LA&T) 7-1/75, dated 13-5-76, A.G's instructions issued vide No. Record/AS/Transit Register/CD/1302, dated 18.3.1992. 27. ADMINISTRATION. 1) 2) 3) 4) 5) 6) 7) 8) 9) 10) 11) 12) 13) 14. 15) 16) Maintenance of departmental cash book as per rule 2.2 of the PFR Vol-I. Budget/contingent register. Payment/receipt schedules (as DDO). Maintenance of service books. Rule 12.10 & 12.11 of CSR Vol-I. List of officials retiring within next year. Option of G.P Fund. Index register of files. Service stamps accounts register. Receipt/dispatch registers. Register of library books. Stock registers (consumable & non-consumable articles). Stationery expense register. Telephone accounts register. History sheets of typewriters, calculators and other machinery equipments. Acquaintance roll of pay/TA (affixing of revenue stamps). Actual payees receipts. Maintenance of budget register of P.W.D.payments through cheques ii) Checking of excess/over-payments against the provision of budget. 28 P.W.D. CHEQUES. i) 262 PART C / INSPECTION BY THE AG OFFICE Office of the Accountant General, Punjab, Lahore, has devised the following questionnaire for inspection of the District Accounts Offices. SECTION-I DEPARTMENTAL AUDIT SECTION (DA). 1) Sectional Bill Register properly / not properly maintained and report prepared upto………………… 2) Sectional Diary Report prepared upto……………….. 3) Any other Diary maintained and reported upto……………... or not maintained. 4) Budgetary allocations have / have not been found noted on the Special Charges Registers under proper attestation (Please mention the Department and period indicated in the Register). 5) Has the number and date of the memo for allotment of budgetary allotment noted in the register under proper attestation? 6) Particulars of sample checking of register with memos of budget. 7) Has the Post Audit Register maintained and kept updated (Please indicate the post audited vouchers checked). 8) Position of reconciliation of expenditure figures with the concerned Departments (Please indicate the period upto which Reconciliation has been completed). 9) Position of court cases / Wafaqi Mohtasib’s cases. 10) Position of Scale Audit Register (s). 11) Comparison of at least one week’s Scroll of D.A. Section with the vouchers (indicate the dates, the Scroll of which was examined). 12) Sample checking of Departmental Classified Abstract with contingent bills and pay bills (Please indicate the Token number and date and amounts of the bills checked). 13) Detailed examination of at least ten arrear claims of pay & allowances. 14) Has the Register of Record of L.P.C. countersigned by the DAO, maintained? (Sample checking of L.P.C. countersigned by the D.A.O.). 263 15) Position of transmission of G.P.Fund Schedules to G.P.Fund Section. (Generally and specially from arrear claims). SECTION-2 GAZETTED AUDIT DEPARTMENT (G.A.D). 1) Position of sectional Bill Register. Delivery of Bills to the Assistants against acknowledgements and reports prepared. 2) Position of maintenance of various diaries. 3) Position of post audit. 4) Has the Post Audit Register been maintained and updated? 5) Maintenance of personal files of the officers (Test check with certain files with due comparison with the Gazetted Audit Register). 6) Completion of Form S.98 in Gazetted Audit Register (Please mention the particulars of officers). 7) Position of the maintenance of Special Charges Registers/ T.A. Registers etc. (Budget and expenditure properly worked out to indicate updated balance). Please mention the particulars of the Departments checked. 8) Comparison of vouchers with Compilation Sheets (Sample checking). Please indicate the particulars of vouchers checked and state shortcomings, if any. 9) Results of sample comparison of G.A.D. vouchers with Scroll of the Cheque Section, especially arrear of pay and allowances claims and encashment of leave in lieu of leave preparatory to retirement cases. 10) Results of sample comparison of arrear claims vouchers with Gazetted Audit Register (Please indicate the Token number, date and amounts of claims checked). 11) Maintenance of various broad sheets. 12) Position of recoveries of loans and advances (Sample checking by indicating the cases checked with general remarks, if any). 13) Position of transmission of General Provident Fund Schedules to G.P.Fund Section. 264 SECTION-3 COMPILATION SECTION. 1) Position of discharging of DAO’s Scroll with the vouchers and Bank Scroll (Sample checking of at least one week’s Scrolls with their full particulars). 2) Results of sample comparison of Compilation Sheets with vouchers (Please mention the period and the Departments). 3) Comparison of accounts figures (Receipt / payment) communicated to A.G. Punjab with the Classified Abstracts…Please mention full particulars of area checked). 4) Reconciliation of Classified Abstract figures with the Cash Book. 5) Is Schedule of Payments issued to DDOs? 6) Is Monthly account compiled correctly and submitted to A.G. in time. 7) Is Gross / or Net amounts taken in accounts. SECTION-4 GENERAL PROVIDENT FUND (GPF) SECTION. 1) General Provident Fund Accounts maintained upto……… 2) Post audit conducted upto……….. 3) Comparison of Post Audit Register with vouchers and G.P.Fund Ledger Cards as well as Sectional Bill Registers (Please indicate the particulars of cases checked). 4) Does the opening balance / closing balance in Ledger Cards stand properly attested (Sample checking with particulars of Ledger Card checked). 5) Position of proving of G.P.Fund Broad Sheets. 6) Comparison of G.P.Fund Scroll with Ledger Cards and Post Audit Register. (Sample checking with particulars). 7) Have Disbursement Certificates been received in final payment cases? (Sample checking with full particulars). 8) Detailed scrutiny of G.P.Fund advances, final payment cases, with full particulars of cases checked. 9) Examination of Different Sheets and Missing G.P.Fund credits. 265 SECTION-5 PENSION. 1) Detailed scrutiny of pension cases. (Sample checking with full particulars of cases checked). 2) Position of post audit of pension payment. (Especially the payment of commutation / gratuity). Please indicate the cases checked. (Sample checking). 3) Detailed scrutiny or sample checking of pay fixation cases on Service Books. (Please indicate full particulars). 4) Position of pension account. SECTION-6 COMPUTERIZATION (Applicable only to those DAOs where computerization has been started). 1) Position of post audit of computerized pay rolls (Gazetted & Non Gazetted) . 2) Audit Register (Gazetted) and Establishment Register. 3) Position of computerized pay and allowances with various Scale Audit Register to know that no excess payment allowed. (Particulars of cases checked to be mentioned). 4) Detailed scrutiny of computer changes with reference to record maintained in D.A. Section and G.A.D. Section. (Particulars of cases checked to be mentioned). SECTION-7 MISCELLANEOUS 1) General remarks. 2) General remarks with reference to last Inspection Report. 3) Excess and shortage of staff. 4) Detailed post audit of Sub-Treasury payments with scroll etc; of at least one week’s payment, intimating their full particulars. 5) Scrutiny of accounting with other DAOs / AG Punjab with reference to relevant papers and their genuineness. 6) Results of reconciliation of cash balance with State Bank of Pakistan / National Bank of Pakistan.