«Organisaiton of the Finance and Accounts Wing General Instructions. The Finance and Accounts Organisation of the Board is under the charge of the ...»
Under the provisions of the Re-organisation Act, the assets and liabilities of the erstwhile composite Punjab State electricity Board were required to be apportioned among its successor Boards. All correspondence pertaining to the division of such assets and liabilities will be dealt with by the Budget Section. On the basis of agreement reached in regard to such assets and liabilities, Budget section will advise the AA&R section of the adjustment in accounts that should be carried out. The section will also deal with the claims and counter claims relating to the period prior to the formation of the Board on 1st September 1971 and which are to be settled with the Himachal Government.
The Annual Accounts & Report section is responsible for the maintenance of all ledgers and journals of the Board and the consolidation and compilation of accounts of the Board as a whole.
2. The initial accounts of the Board depending upon the location at which transactions take place will mainly arise:i) At Headquarters of the Board.
(ii) Through the Store Purchase Organisation; and (iii) At field offices.
In so far as transactions arising at headquarters, accounting of these transactions by the concerned Accounts sections will be done as they arise day by day and A.A.&R. section will duly incorporate these transactions in the Central Accounts. Similarly, transactions arising out of Store Purchase Organisations to whom a Store Accounts Officer is to be attached will also be advised to the AA&R section through a complied monthly account. In so far as transactions arising in the field units, however, all the transactions will be compiled in the form of monthly account. The unit level in the field is the division/circle and therefore, every Division/Circle accounting unit will send a monthly account in such a manner as will be separately prescribed to the comp. section concerned by the 15th & 21st of the following month of account to which it pertains. These monthly accounts will be received in the compilation section concerned. Further action will be taken as described, in detail, thereon.
The functions of the AA&R section are given below:i) To carry out daily accounting of transactions arising in headquarters, including Central Store Purchase Organisations.
(ii) To carry out postings in the journals and ledgers maintained in the section;
(iii) To carry out all periodical adjustments that are prescribed and in corporate the same in the accounts before the accounts for the period/year are closed;
(vii) Preparation of annual and final accounts of the Board in the form prescribed under the Electricity (Supply), Act, 1985.
(viii) Deal with matters pertaining to audit by the Comptroller and Auditor General of the annual accounts and obtaining audit certificate thereon.
(ix) Submission of annual final accounts to the Board/State Government.
(x) Maintenance of journal and personal ledgers accounts corresponding to the accounts heads classification prescribed.
(xi) Preparation of opening and closing entries and final accounts including adjustments of pre-paid expenses, un-paid liabilities, apportionment of management expenses, depreciation charges creation of reserves etc., and (xii) Obtaining of certificate of stock after annual verification for incorporation of stock figures in the balance sheet.
4. Trial Balance Register The classified Abstract of receipts and expenditure as well as accounting Heads incorporating the total receipts and expenditure and other accounting adjustments as received in the Divisional accounts will be received in the AA&R section by the 21st of each month from Com. Section. The other accounting section concerned will also intimate to the AA&R Accounts section accounting adjustments, if any, during the month by 21st of the month. The AA&R section will then consolidate the figures of receipts and expenditure received and will then post the consolidated statement in journals and personal legers by the 25th of each month.
5. Maintenance of Legers and Journals
The AA&R section will maintain appropriate ledgers and journals to facilitate accounting of all transactions on the basis of debit and credit vouchers received from accounting sections and through the journals for incorporation in the ledgers. The postings in the ledgers will be from the following sources.
(i) Cash book maintained by the Banking section.
(ii) Debit/Credit vouchers sent by the Account sections at headquarters.
(iii) Journals maintained by the Compilation sections; and (iv) Expenses journal/transfer memo, journals maintained in the compilation sections.
6. Alternate day cash book have been prescribed to facilitate daily postings of cash book entries in the comp. section Ledgers. Under this agreement, the cash book for a day will be closed and balance carried on to the second cash book and the former will pass on to Compilation section for posting not later than 11:00 A.M. of the next working day. The cash book will be returned to the Banking section not later than 4:00 P.M. every day after making the postings. To obviate mistakes in the postings, the postings clerk should conduct a proving of the postings, i.e., he should total all individual accounts in a day and tally it with the total of the respective central account for the day in the cash book. This will be test checked by the Superintendent daily.
The compilation of debit and credit vouchers relating to the Head Office transactions will be done on the compilation sheets to be used date wise.
The daily analysis sheets will also be prepared daily so as to arrive at the total expenditure Block-wise. The dates 1st to 31st may be opened vertically on a sheet and all the block heads horizontally for daily analysis.
Journal vouchers will be forwarded by the Accounting section at headquarter to the Compilation section by 1:30 P.M. on the basis of which the journal will be written up.
Postings will then be made into the ledgers from the journal.
8. Settlement of Inter-unit transactions Transactions originating in one office, but adjustable in another office of the Board are called inter-unit transactions. Such transactions are transferred by the originating office for adjustment to the office concerned through the mechanism of transfer memo by debit/credit to Div/Circle/Head Office remittance account (Accounts Classification will be 30 to 39 “Inter-units Adjustment Account”. Such Transactions fall under three categories:
(ii) Transactions originating at any one branch office, but adjustable duly countersigned to indicate response; and (iii) Transactions originating at head office and adjustable by any branch office.
The Banking section will afford debit/credit as the case may be to the branch office concerned in the cash book and advise the Comp. section who will issue necessary transfer memo in the prescribed form. On receipt of the duplicate and triplicate copies of the transfer memo in the prescribed form. On receipt of the duplicate and triplicate copies of the transfer memos the adjusting branch office shall adjust by credit/debit to the head office concerned and return the duplicate copy duly countersigned to the complication section (Head Office to indicate response). In order to ensure correct adjustment of the intertransactions the monthly balance under the accounts head “Inter Unit Account” will be reconciled by the accounting unit head office at the end of each month. For this purpose each branch office or field office will send a statement after the close of the month alongwith the monthly accounts with a copy of the transactions under these accounts head in their ledgers.
Accounting Unit/Head Office will tally the entries made under this head in their ledgers with those in the accounts sent by the branch office and prepare a reconciliation statement for each branch office. A copy of the reconciliation statement will be sent to the branch office concerned for their information and necessary action.
The transfer memos required to be sent by one office or the other should be dispatched daily alongwith a copy of covering sheet indicating the particulars thereof transfer memos for head office should be sent to the F&A Wing none with the Accounts for necessary action.
8-A Inter Units Adjustment Account Account Head No. 30 to 39 As and when any material is supplied by one Division to the other or any service is rendered, the supplying Division will credit his stock or cash account by contra debit to the expenditure under Account Head No. 30 to 39. The debit on this account duly supported with indents and Voucher will be passed on to the responding division accounting unit through an advice of transfer of Debt or Debit Transfer Memo in form HP-CAO-85 for the acceptance of debit. The debit so raised alongwith the No. and date of debit transfer memo, will be noted by the originating Divisions accounting units in the schedule of inter-units Adjustment Accounts accompanying the monthly account. A copy of this debit transfer memo will also be sent with the Monthly Account, which will be in support of evidence that an advice of debit has been sent to the Division/Circle concerned for acceptance. A ledger in form HB-CAO-86 will be maintained in each Division/Circle for keeping the records of all the Debit Transfer memos issued to various Divisions/Units. This ledger will be reviewed by each Divisional Officer/SAS Superintendent/Accounts Officer every month to asses the progress made in the clearance of transfer transactions. On receipt of the acceptance of debit from the responding Division/Circle which will be in form of HB-CAO-87, the net in the ledger will be kept in the originating Division.
In the responding Division as soon as the material is received of a certificate of work dine sent by the Account Wing in the prescribed form the charge will be debited to the final head of Account by contra debit to the Account Head 30 to 39 inter Units Adjustment Account. The responding Division will also depict all such responding items in the schedules of Inter-units Adjustment Account and will also prepare an acceptance of Debit in the form of HB-CAO-87 and will send the same to originating Division/Circle. In addition the responding Division/Circle will maintain a register in form HB(CAO)-88to watch the disposal of all the Debits transfer memos. received form other Divisions/Circles.
Similar procedure will be followed in respect of originating credits in the Divisions/Accounting Circles. With a view to keep a watch over all such transactions in the Central Office two registers one for originating debits and other of originally credits, in the following form will be opened in the compilation section:
After the checking of the classification of the monthly Account in compilation sections, the schedule pertaining to the Head “Inter Units Adjustment Account” will be posted on above form/Register.
Even item pertaining to a Division/Circle whether originating responding will be noted in the register distinctly and separate so as to facilitate identification of each item. So far as the responding items are concerned the Auditor in the compilation section will compare them with reference to, the originating items as indicated in the said ledger and note the month in which the originating items have been adjusted. The outstanding items thus left will be pursued with the Division/Circles concerned by the compilation section. These ledger will be submitted to the Branch Officer on the 25th of every month indicating the number of items awaiting adjustment by the responding divisions for more then two months. Necessary entry will be kept in the Sectional Calendar of Returns of compilation section.
10. The register of outward transfer memo is intended to watch the response by the field offices in respect of transfer memos sent from headquarters. On receipt of duplicate copy of the transfer memos. duly signed by the field office, it will be ensured that the branch office has taken the transactions into account in the same month, in which the Head Office has taken it into account. This will be reviewed by the Superintendent every Saturday to see that no transfer memo remains un-responded. The transfer memos sent by Head Office and not responded by the branch office should be brought to the notice of the Accounts Officer/Chief Accounts Officer for taking up the matter with the branch office concerned.
11. Inter-Branch Transfer Journal
This will be maintained at head office. On receipt of the transfer memo from a branch office a journal voucher will be prepared and the entries will be made in the inter branch transfer journal either debiting/crediting the branch office concerned in the columns provided therein thus all the transfer memos as and when received from the branch office in a particular month will be entered in this register and the monthly total struck. These totals will then be posted to the ledgers.
12. Expenses Transfer Journal
The register is intended to record the entry when the payment is made by the branch office on behalf of Head Office or other branch office and vice-versa. This register will be maintained both at head office and branch office and all transfer memos received either from head office or from other branch offices will be entered therein. Postings from the journals will be done monthly by posting monthly totals of debits/credits of Head Office/Branch Office account and other expenses accounts to the ledger. If any credit is raised against any expenses account, it will be shown in red ink and net total will be posted in the ledger. Some columns say 15 to 20 may be provided for expenses. Last column may be introduced for terms of miscellaneous nature. A summary of the Sunday items appearing in the last column will be drawn in the last of the month and individual accounts will be posted therefrom. A copy of the particulars entered in the Expenses Transfer Journal will be sent by the Branch Offices with the monthly accounts. A separate journal may be kept in respect of each and for the head office.
13. Expeditious Disposal of Transfer Memos