«Organisaiton of the Finance and Accounts Wing General Instructions. The Finance and Accounts Organisation of the Board is under the charge of the ...»
20. The receipts due to the Board in so far as they are by means of cheque’s will normally be accompanied by a covering letter indicating the details of the payments. As soon as a cheque is received it will be entered in the register of valuables thereafter a pay-in-slip will be filled in and sent to the bank alongwith the cheque for deposit into the accounts of the Board. Postings in cash book will also be made on the receipt of the classification advice and the relevant voucher number will be noted in the register of valuables against the particular entry.
Procedure for Payment
21. Payments of the Board may be made.
(1) by Cheques (2) by cash (3) by letters of authorization to the bank.
22. Payments by cheques or by letter of authorization to the bank are made on the basis of pay orders passed by the appropriate accounting officer and the bills are sent to the Banking section for preparation and issue of cheques. Similarly, letter of authorization to the bank for remittance to the field units etc., will be prepared by the Banking section on the basis of pay orders given by the appropriate accounting officer. Pay orders and other supporting vouchers in respect of payments authorized will be attached by the section concerned with the classification vouchers before handing over the same to the Banking section.
23. After the cheque has been drawn and signed by the authorized officer, it will be entered in the cheque deliver register and forwarded to the authority concerned with a covering memo; whenever necessary. Receipt acknowledgement for the cheque alongwith stamped receipt for the payment will be watched through cheque delivery register. In case of payments to outside parties, steps will be taken to obtain the stamped receipt as soon as the cheque is delivered.
24. Care will be taken to ensure that none of the cheques is mislaid or lost during its preparation and delivery to the parties concerned. Blank cheque books will be in the custody of the Deputy Chief Accounts Officer and the current cheque book will remain in the custody of the Superintendent who will be responsible for their upkeep. It should be ensured that cheques are sent to the officers concerned for their signatures alongwith connected vouchers in a careful manner. While signing the cheques the officer concerned will also sign the counterfoil of the cheque and also the enfacement of the bill giving particulars of the payment. While signing the cheques the officer concerned will see that pay order is given in the appropriate form. Unless specifically requested by the payee and that too, in the case of local parties, only crossed cheques will be issued. Issue of bearer cheques will require the orders of Deputy Chief Accounts Officer/Chief Accounts Officer. Bearer cheques when prepared will be kept in the personal custody of the Accounts Officer, Banking section until it is delivered to the concerned parties. In the case of bearer cheques the responsibility for payment to the appropriate authority will be that of the party requesting for the issue of bearer cheques. Cheques for Rs. 1000/- (Rupees one thousand0 and above should be marked, “Account Payee only” as well. Payments below Rs. 25/- should normally be made by Cash Section out of its imprest unless a payment by cheque for such an amount is specifically authorized by the Accounts Officer, Banking Section.
25. Cash Payment Cash Payment are made either
In regard to (a) cheques are drawn for payment to staff for their pay and allowances and for making other cash payments. Day to day expenses in regard to office expenses and contingency is met out of the imprest which is replenished periodically by submission of contingent bill. Normally the procedure for drawal of bills on receipt of pay orders etc., will be followed by drawal of a self cheque. The accounting of such transactions out of imprest amount will be done through the petty cash book and subsequently incorporated in the main cash book.
Adjustment of expenditure out of Imprest/Temporary Advance in the Wings of the Head Office:i) Whenever the necessity of sanctioning advance to any official arises, necessary sanction will be issued by the authority competent to do so in accordance with the delegation of powers. A copy of each such sanction will be supplied to the payments and contingencies section of the Accounts Wing. The amount will thereafter be paid by the Accounts Wing against the bill duly passed by the Officer on Special Duty.
26. Ways and Means Position The Banking Section would be responsible for watching the ways and means position of the Board. It is for them to ensure that funds of the Board are utilized and invested properly and promptly so that no avoidable loss of interest in incurred on over drafts in the banks and that surplus balances are properly invested. For this purpose, the controls detailed in the Manual for Banking Operations should be carefully followed and a daily balance report on cash position should be prepared and submitted to the Dy. C.A.O./C.A.O. by 11 A.M. on the following day. Only minimum funds should be kept in current account with the banks as may be necessary according to the anticipated requirement and surplus funds invested in call-deposit or fixed deposit depending on how long the money can be kept out of circulation. All decisions in regard to investment whether short term or long term will be based upon:
27. Cash Flow Statement Detailed procedure for cash flow statement is contained in Chief Accounts Officer’s order No. 1 and 2. It will be the responsibility of the Banking section to maintain requisite registers and submit reports on the cash flow position according to those instructions without fail.
28. Statement of Bank Balances A statement of bank balances with the various banks of the Board will be submitted to the C.A.O. every day and to the Chairman through the Member, Finance and Accounts every week and monthly to the Board.
29. Security Deposits Particulars of all security deposits will be entered in the register of security deposits and securities will be kept in the custody of the Accounts Officers, Banking.
No security shall be repaid or transferred to the depositor or otherwise disposed of except under written instructions of concerned Accounting Section. When a security is returned either to the depositor or otherwise disposed of, a proper acknowledgement stating full particulars of the security shall be taken and kept in the custody of the Banking section. Physical check of all securities on hand shall be conducted half yearly by an officer of the rank of Accounts Officer to be nominated by the Chief Accounts Officer. Such a check shall also be conducted whenever there is a transfer of charge and an appropriate certificate shall be recorded by the relieving and relieved officers in the register and put up to the Chief Accounts Officer for information.
The accounting and classification in respect of security deposits will be done by the SL & Deposit section who will take care of the classification and advice to the AA & R sections for incorporation in the accounts.
Deposits by the Board.
30. The Board may also be required to deposit accounts with outside parties like the D.G.S. and D.
31. The Banking section will maintain the following registers which are self explanatory:i) Register of Cheques issued.
(ii) Register of cheque-books.
(iii) Register of pay-in-slips.
(iv) Register of receipt books.
(v) Register of valuables.
(vi) Register of bank drafts requested.
(vii) Register of revenue stamps.
1. Preparation of the budget of the Board in accordance with the provisions of the Electricity (Supply) Act, 1948, preparation of revised estimates, authorization of excess and surrenders and control of expenditure against the budget.
2. The processing of cases pertaining to the resources of the Board from all sources namely Loans and Subventions from the State Government etc.
3. The division of all assets and liabilities on reorganization of the Punjab State Electricity Board and correspondence related thereto.
1. Under Section 61 of the Electricity (Supply) Act, 1948, the Board is required to submit to the State Government a statement in the prescribed from of the estimated capital and revenue receipts and expenditure for the ensuring year by February of each year. The manner in which the annual financial statement of the budget is to be prepared and the action to be taken thereon in terms of section 61 of the Act are described, in detail in the Budget Manual of the Board, which is being issued separately. This chapter sets out briefly the procedure to be followed in the Budget section in the formation of the budget and action to be taken thereafter.
2. Preparation of the Budget Data Budget section will send the forms on which the budget data is to be furnished by the units of the Board to the Budget section, by 1st of August each year. These forms duly filled in carefully and precisely should be returned to the Budget section by the dates prescribed in the Budget Manual.
On receipt of the Budget data on the prescribed forms, the Budget section will prepare the budget in accordance with the forms prescribed in the Act by the dates required by the State Government or under the Act.
In accordance with the provisions of the Act, the annual financial statement is required to be approved by the Board and then placed before State Electricity Consultative Council vide section 16 of the Act and to take into consideration any comments made on such statements by the said Council before submitting the same to the State Government under Section 61 of the Act.
Budget section will ensure the timely submission of the Budget to the Board Council/State Government.
The Board can also at any time during the year in respect of which budget has been prepared and submitted to the State Government, submit a supplementary statement to which all provisions of the section 61 apply. Budget section will take necessary action in regard to the supplementary budget in the same manner as the main budget for the year, after submission of the budget to the State Government; Budget section will take action to allocate the budget to all the units of the Board by the 15th March of each year. Any variations in the budget that the Board may authorize after taking into consideration the comments made on the budget in the State Legislature, will be communicated in due course to the units, which are affected by such modifications.
3. Supplementary Budget
Proposals for supplementary budget will be submitted by the field units and by headquarters units on the same forms as have been prescribed for the preparation of the main budget alongwith details of proposals on which the supplementary demands are based.
Budget section will consolidate all such supplementary demands and prepare a supplementary budget if decided by the Board.
4. State of Excesses and Surrenders
A statement of excesses and surrenders will be prepared by all units of the Board on a Performa prescribed for the purpose in the Budget Manual showing the major works in progress under the prescribed account classification heads for which provision has been made during the current year, the past actuals and modified grants, if any, the excesses and surrenders that are anticipated and for which necessary modifications in the budget are to be considered. Such statement of excesses and surrenders should be sent to the Budget section by 1st November each year. Budget section will take necessary action to incorporate these statements in the budget estimates.
5. Final Demands and Re-appropriations Final demands and requests for re-appropriations should be submitted to the Budget section by February each year so as to assess the actual expenditure and authorize final demands and re-appropriation orders where necessary.
6. Budget Control over the Expenditure Budget section will be provided information about the actual flow of expenditure monthly by the Central Accounts section on the basis of the complied accounts for the month.
Supplementary information in such a manner as is necessary for appropriate budgetary control will be called for in the manner prescribed in the Budget Manual. On the basis of information so obtained, Budget section will maintain registers showing the allocation of budget according to the classification heads of accounts during each month of the progressive expenditure upto and including the month of review for the information of the Board by the 20th of each month. These consolidated statements will be accompanied by a descriptive note commenting on the flow of expenditure against the budgetary provision and point out major variations in the expenditure against the budget. The comments of the Board on the basis of the statements will be conveyed by the Budget section to the units concerned for regulation of expenditure in an appropriate manner.
7. Expenditure not Provided in the Budget It may happen occasionally that additional expenditure which is not covered by sanctioned appropriation has to be incurred. In such cases, the authority concerned will apprise the Budget section of the additional requirement of funds alongwith reasons as to why it could not be foreseen at the time of submission of Budget data. On the basis of such demands, the Budget section will obtain the approval of the Board to such addition funds being provided. Such additional funds are to be arranged either by reappropriation or by provision in the supplementary budget or in such a manner as the Board may direct. At the end to the financial year. Budget section will propose a resolution for the Board while considering the annual accounts, for authorization of excess, which may have taken place over the authorized budget.
Budget section will process all policy papers relating to raising of resources for meeting capital or revenue expenditure of the Board. The decisions of the Board on such cases will be obtained by the Budget section and thereafter conveyed to the appropriate Account sections for detailed action.
III. Assets and Liabilities