«Organisaiton of the Finance and Accounts Wing General Instructions. The Finance and Accounts Organisation of the Board is under the charge of the ...»
(v) During the course of checking of vouchers and various schedules, only intelligent objections will be raised by the auditors and those are to be communicated to the each Divisional Officer through the monthly audit note in respect of each Division. Objections involving financial implications, such as vouchers not received with the monthly accounts, expenditure incurred without the sanction of the competent authority etc, will be registered in the Objection Book maintained separately for each Division in the Circle Accounting Unit. These objections will also be included in the audit note. In order to watch the disposal of these audit notes, a Register be maintained in each accounting unit in which the record of Monthly Audit Notes will be kept Division-wise. This register will reviewed every month and a report of all the outstanding audit notes put up to the Branch Officer/Accounts Officer on the 10th of second succeeding month. A period of one month may be allowed for the disposal of a Audit Note by the Divisional Offices and in case the objections are not replied to within this period reminders will be issued to the defaulting divisions by the Circle Accounting Units.
7. If during the course of the checking of classification or otherwise, an auditor comes across a case of mis-classification of receipts or payment transactions he will at once, bring the same to the notice of his SAS Superintendent/Account Officers. In case the mis-classification can be established easily with reference to the accounts-classification approved by the Board, a transfer entry or a journal entry setting right the mis-classification should be prepared and after the same has been duly approved by the SAS Superintendent/A.O. the same is to be passed on to Accounts Section for making suitable note in the books. All doubtful cases in the matter of classification should be put up to the SAS Superintendent/Accounts Officer for his decision. In all such cases the opportunity of taking up the matter with the Divisional Officers who initiate the transactions may be availed of as far as possible and necessary.
8. A.A.&R. Section will bring to the notice of the compilation sections the discrepancies that may be noticed in the abstract sent by the compilation section to the A.A.&R. section. These discrepancies should be settled promptly so that the A.A.&R.
section may be able to prepare the Annual Accounts of the Board within due date and in the correct form.
CHAPTER – IV
Banking and Cash Section
The Banking and Cash Section is responsible for the operation of the Bank accounts of the Board with its bankers, maintenance of the cash book, collection of bills etc., and arranging for the receipts and payments of the Board funds and for keeping watch over the ways and means position of the Board as a whole.
2. The functions of the Section are as follows:-
(i) Arranging for the opening of the bank accounts of the Board and their operations through the officials of the Board authorised for the purpose.
(ii) Maintenance of the Cash Book of the Board and arranging for their closing and reconciliation with the banks, periodical statement of accounts.
(iii) Arranging for preparation and delivery of cheques in payment of the dues of the Board on the basis of vouchers passed by the various accounts sections.
(iv) Keeping watch and control on the way and means position and arranging for additional funds as and when necessary by way of increase in the working capital of the Board or enhancement in the cash credit facilities with the banks, loans from the central/State Government etc. from time to time.
(v) Arranging for the investment of the surplus funds of the Board.
(vi) Checking of interest on over drafts.
(vii) Issue of stamped receipts for payments received.
(viii) Watching of receipts for payments made to the parties.
(ix) Custody and proper arrangements for cash vouchers.
(x) Fixing of drawing limits of the drawing officers of the Board.
(xi) Arranging for supply of cheque forms from the Banks for operating the Board’s drawing accounts.
(xii) Arranging specimen – signature of drawing officers of the Board and supplying the same to the Banks.
(xiii) Arranging supply of pay-in-slips from the banks for distribution to all the collection centers of the Board.
(xiv) Custody and issued of blank receipts books to the different units of the Board.
(xv) Dealing with and custody of valuable e.g. G.P. notes, fixed deposit receipts, post office certificates etc.
(xvi) Maintenance of the banks accounts of the Board and preparation of final memorandum account of all transactions with the banks during each month for submission to the Chief Account Officer.
(xvii) Maintenance of cash flow statement and submission of the monthly cash flow statement to the Board.
3. Detailed instructions for banking operations of the Board are contained in a separate manual called “Manual for Banking Operations” which has already been circulated. The Banking section will open all necessary registers for implementation of the instructions contained in the manual.
4. The detailed procedure regarding preparation and submission of cash flow statement has been circulated in Chief Accounts Officer’s Order No. 2 and 21/2/72.
Banking section will maintain necessary registers to implement the instructions contained in the above quoted office order.
5. The Account Officer incharge of the section shall ensure:
Operation of the Bank Accounts of the Board.
6. The Banks who have been appointed bankers to the Board and the branches of these banks where drawing and collections have been authorized are listed in the “manual for Banking Operations”. The Banking section will be responsible for keeping a watch on agreement entered into with the bankers and their proper implementation, any changes in the agreements or arrangements with the bankers will be conducted by this section.
Maintenance of the Cash Book
7. The cash book is the most important record of the Board and its proper writing up and closing is of fundamental importance. The entries in the cash book will be either in respect of receipts of payments. The receipt entries will be made either on the basis of counter foils of the pay in slips duly acknowledged by the Bank or bank advice intimating credits into the accounts. The payment entries will be made on the basis of cheque or cash vouchers supported by the payment orders. When a cheque is received in payment of the Board dues, the amount to that effect will be entered both in the total column and in the column pertaining to the bank account in the cash book giving a detailed narration of the transactions in the appropriate column of the cash book giving a detailed narration of the transactions in the appropriate column of the cash book. Similarly when a payment is made, the gross amount of the bill is shown in the total column and the net amount for which the cheque is prepared will be entered in the column pertaining to the bank account. The difference represents recoveries from the bill which will be entered in the adjustment column on payment side by percontra entry in the recoveries column on the receipt side. Necessary details about the payment and recoveries will be entered in the particulars column on the payment and receipt side respectively, the recoveries being shown in the total column on the credit side under various heads of accounts.
8. All receipt transactions of the day shall be entered immediately in the receipt side of the cash book as soon as the transaction takes place. In respect of each receipt a duly authenticated receipt on the Board’s from HP (CAO) 37 will be made out and sent to the party concerned.
9. Similarly all payments during a day shall be entered on the payment side of the cash book with full particulars. Payments and receipts into the bank accounts of the Board advices given by the Bank will also be similarly entered in the cash book with necessary particulars.
10. All vouchers in respect of which payments are to be authorized should reach the Banking section by 2 P.M. daily duly passed for payment by the authorized Accounts Officer. Vouchers made over to that section for immediate payment after the time, shall bear the authorization of the Chief Accounts Officer and shall reach the Banking section latest by 3 P.M.
After the cash is disbursed cheques drawn and entered in the cash book, the cash book will be closed daily by 4 P.M. except on 1st, 2nd and 20th to 23rd of each month. On these said six days, cash book will be closed even after 5 P.M. depending upon the quantum of work and shall be signed by the Superintendent and the Accounts Officer incharge of the Banking section in token of their having checked the entries.
The Superintendent incharge of the section shall initial each of the debit and credit entries in the cash book.
11. Vouchers etc., presented after the stipulated time will be accepted by the Banking section for payment on the following working day. In such cases, the Banking section may as well draw the cheques under the following day’s account without hampering the progress of posting and closing of the cash book.
12. Cheques for monthly salaries, authorization to bankers for payment of salary bills into the accounts of the officers of the Board shall contain instructions that they are not payable before the first of the following month.
13. The banking section may maintain alternative day cash book so as to facilitate the posting of the transactions in the ledgers. For this purpose the cash book for the day duly closed will be passed on to the Compilation section, the following morning for posting in the ledgers and return not later than 4 P.M. of the same day.
14. The Banking section will maintain a bank advice diary in form HB (CAO) 38 (specimen attached with this chapter).
All advices shall on receipt from the Bank be rubber stamped as per specimen of the stamp shown below and will be machine numbered on the appropriate place or the rubber stamp. The number shall be the same as for the corresponding number given of the advice diary in respect of the particular advice proposed to be machine numbered. The rubber stamp shall be shown under:Accounting Entry Please Classify Banking Section Advice Diary No.
On receipt of bank pass book, the entries therein shall be compared with the advice diary to ensure that no advice which was to be received from the bank has been omitted to be received. In order that information extracted from the advice diary about the mission advices in dependable, it is essential that all advices received from the bank are entered in the advice diary immediately on receipt. The Diarist of the Banking section will be personally responsible to ensure this. The items for which it is discovered that the advices have not been received will be immediately taken down in a separate register and letters will be issued to the banks to call for the wanting advices without delay. These references should be pursed by reminders unit the missing advice are received and when received they should be recorded in the main advice diary and entries in this diary will be cross referenced with the register of mission advices.
15. All classified vouchers will be received by the Diarist in the section and he will rubber stamp the date of receipt on the bank vouchers. After this has been done he will mark all the different receipts in column 9 of the advice diary against the relative entry and hand over the vouchers to the cash book writer under his dated initials to enable him to post them in the cash book.
16. After the day’s cash book has been written, column 12 of the main advice diary will be filled up under the initials of the dealing assistant so as to ensure that all vouchers handed over to the cash book writer have been entered in the cash book. In certain cases advices sent by the Banking section for classification to the Accounting section may be received back with the remarks that the transactions do not relate to them. In order to keep a strict control over such cases and to avoid nay confusion the Banking section will affix rubber stamp on the return advice stating “Transfer from Section ________ to Section __________________ in case of doubt, the Banking section will refer return advice to the Deputy Chief Accounts Officer for order.
Petty Cash Book
17. As it is not desirable to burden the main cash book with small payments like coolie charges, refreshment, conveyance etc., the Cashier is entrusted with the task of making these small payments through the imprest of a sum to be authorized.
All payments made out of petty cash book/imprest will be maintained in the petty cash book and analyzed therein. Periodically by means of journal entry the various accounts are debited. The petty cash account head will be opened for this purpose and at the time of payment of petty cash to the petty cashier the petty cash account is debited. The sum payable of all payments made out of petty cash is credited to this account, the balance in the account representing the actual cash in the hands of the petty cashier.
18. Banking section will keep sufficient stock of printed letter head reminders for issuing to the Bankers to obtain the necessary advices. It will also keep a sufficient stock of reminder forms to be issued to the concerned Accounting section for getting the classification vouchers in time. Cases of undue delay either in getting the banking advices, or the classification vouchers as the case may be, should be referred weekly to the Chief Accounts Officer.
Instructions for the Accounting Sections
19. All accounting sections must strictly follow the following instructions in dealing with the advices received from the Banking section:
Realisation of the Board’s dues