final manual of daos
TRANSCRIPT
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 consumer-
friendly.
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.
TABLE OF CONTENTS
No Contents Page No
1 A brief introduction 3-4
2 Functions of the D.A.O. 5
3 Organizational chart 6-7
4 Plan to make D.A.O. Sheikhupura a model in the Punjab. 8
a) Objectives of the plan 8
b) Tools to achieve the objectives. 9
i) Precise knowledge of functions and responsibilities. 9
ii) Eliminating discretion through provision of check-lists. 10
iii) Observance of punctuality. 10
iv) To seek co-operation of D.D.O’s. 11
v) Fixation of time limits for the disposal of cases. 11
vi) Leading by example. 11
vii) Inter section and intra-section rotation of staff. 12
viii) Provision of work-friendly atmosphere. 12
ix) Discouraging use of outside influence. 12
x) Discharging of receipt challans and paid vouchers. 12
xi) Regular issuance of schedules of payments and receipts.
13
c) Establishment of monitoring system. 13
i) Section-wise inflow and outflow reports on weekly basis.
13
ii) Inspections by the D.A.O’s. 14
iii) Easy accessibility. 15
iv) Regular returns to the higher authorities. 15
v) Inspections by higher authorities. 15
5 Long-term plan. 16
6 Special issues. 16
i) Sub-Treasuries. 16
ii) Updating G.P. Fund accounts of the subscribers. 16-17
7 D.A.O at a glance 18
8 D.A.O at work. 19-20
Annexes 21-237
2
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.
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.
3
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 pre-
auditorial functions regarding payments out of Federal and Provincial Consolidated
Funds and Public Accounts pertaining to District Sheikhupura. Since 1974, District
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.
4
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. To maintain Personal Ledger Accounts of government departments,
local/autonomous bodies etc., and authorizing payments therefrom;
e. To maintain General Provident Fund accounts of the federal and
provincial civil servants and to authorize payments therefrom;
f. To conduct post-audit of pensions directly paid by the banks;
g. To issue schedules of payments and receipts to the drawing and
disbursing officers;
h. To inspect subordinate offices at regular intervals to ensure the
implementation of all rules and instructions of the Government;
i. To advise on financial and service matters, if so warranted.
j. Disposal of pension cases by issuance of pension payment orders, and
regular payment of pension.
5
ORGANIZATIONAL CHART
Accountant General Finance DepartmentPunjab 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 Admn,Pension Lock
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,
6
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.
7
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
all assigned duties and functions.
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.
8
Tools to achieve the objectives
i. Precise knowledge of functions and responsibilities.
ii. Eliminating discretion through provision of check lists.
iii. Observance of punctuality and ensuring that no employee of the District
Account Office remains unauthorisedly away from the office during working
hours.
iv To seek co-operation of drawing and disbursing officers by imparting them
information and training;
v Fixation of time-limit for 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 in matters such as postings, transfers.
x Ensuring regular issuance of schedules of payment.
xi Discharging of paid vouchers.
Establishment of monitoring system
1) Section wise inflow and outflow reports on weekly basis;
2) Surprise inspections by the D.A.O.
3) Easy accessibility.
4) Regular returns to the higher authorities.
5) 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
9
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
10
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
11
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.
12
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.
13
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) Limited capacity of the civil servants,
ii) Want of proper guidance;
iii) Intention to receive illegal gratification from those who are
affected by the delay.
b) Maintaining discipline by strengthening the hands of the A.A.O's who
may hesitate to assert them.
c) Establishing a more direct and personal contact with subordinates.
d) Detecting wastage or misuse of stationery.
e) Enforcing punctuality and securing undivided attention to work during
office hours.
f) Discovering cases of negligence, lack of enthusiasm or devotion to
duty.
g) Revealing other defects affecting efficiency, such as:-
i) Unsatisfactory working conditions.
ii) Non-availability of reference books, circulars, instructions and
regulations.
iii) Unsystematic maintenance of records.
iv) Lack of co-ordination between various sections.
v) 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.
14
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.
15
Long term plan
The following measures are required to be taken to further enhance efficiency
of the office:-
i) Construction of boundary wall.
ii) Provision of 2 electric water coolers.
iii) Computerization of pay roll and accounting.
iv) Construction of official residences.
v) Installation of one more telephone connection.
vi) Installation of private automatic branch exchange - come intercom.
vii) Purchase of fax machine.
viii) Purchase of furniture.
Special issuesSub - 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:-
16
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.
17
D.A.O at a glance
Year of establishment 1974
No of District Accounts Officers 2
No of Assistant Accounts Officers 3
No of Assistant Treasury Officers 1
No of Assistant Accountants 3
No of Sub Accountants 21
No of Senior Auditors 21
No of Junior Auditors 3
Class IV Staff 10
No of Junior Clerk 1
18
D.A.O at work
Payment made out of Provincial
Consolidated Fund during 1997-98
Rs.2088187205/-
Payments made out of Provincial
Consolidated Fund during 1998-99
Rs. 2163481464/-
Payments made out of Public Account
of the Province during 1997-98
Rs. 81096212/-
Payments made out of Public Account
of the Province during 1998-99
Rs.849128994/-
Total payments made on behalf of the
Provincial Government during 1997-98
Rs.2899152417/-
Total payments made on behalf of the
Provincial Government during 1998-99
Rs.3012610463/-
No. of non gazetted civil servants
(Provincial) who are paid monthly
salary form the D .A.O
30362
No. of non gazetted civil servants
(Federal) who are paid monthly salary
from the D.A.O
338
No. of pensioners (Provincial and
Federal) getting pension from the
D.A.O
8275
Personal Ledger Accounts maintained
in the D.A.O
60
No. Of gazetted civil servants who are
paid monthly salary from the D.A.O
2921
Receipt of the Provincial govt. during
1998-99 of which accounts were
maintained by D.A.O
Rs.2061092971/-
Receipts of the Federal government
during 1998-99 of which accounts were
maintained by the D.A.O
Rs. 1758560605/-
19
Payments made on behalf of the
Federal Government during 1998-99
Rs.341243490/-
No. of General Provident Fund Accounts maintained in the D.A.O
46754
No. of bills, cheques passed monthly 8521Avg
Total value of stamps in the double
lock.
Rs.405406075/-
Total sale of stamps from the District Treasury during 1997-98
Rs.67367677/-
Total sale of stamps from the District
Treasury during 1998-99
Rs.70183513/-
No. of Sub treasuries 3
Total sale of stamps by the Sub. Treasury Ahmedpur during 1998-99
Rs.946945/-
Total sale of stamps by the Sub-Treasury Ferozewala during 1998-99
Rs.32506823/-
Total number of valuables in the District Treasury
296
Number of D.D.O's 330
Number of Departments 29
No. of Primary Schools 2414
No. of Middle Schools 320
No. of Secondary Schools 184
No. Intermediate Colleges 7
No. of Degree Colleges 6
No. of Hospitals, clinics 149
No. of contingent bills received daily 62Avg
20
Annex- A
Precise knowledge of functions and responsibilities
1. Duties of Junior Auditor.
2. Duties of Senior Auditors/Sub-Accountants, Assistant Accountants in D.A,
GAD, Treasury and Compilation Section.
3. Duties of Sadder Treasurer, Assistant Treasurer.
4. Duties of A.T.O.
5. Duties of A.A.O’s in D.A, G.A.D and Compilation Section.
6. Duties of the D.A.O.
7. Responsibilities of the Collector.
8. Duties of the Inspector of Treasuries
21
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:-
Ordinary Diary
Urgent Diary
Special Diary(Governor’s Directives etc.)
Any other diary ordered to be maintained by the A.TO/ AAO/DAO.
2. 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
with their dated initials each Saturday. The report would be submitted
22
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. Checking and processing claims in the light of check lists.
2 100% checking of complete functional as well as object classification
on various bills/refund vouchers.
3. 100% checking of totals of the bills etc.
4. Verifications of signatures of the presenters /signee of the bill.
5. Audit of sanctions.
6. 100% sorting of budget allocation/appropriation on the bills, their
comparison with figures recorded in his registers.
7. Recording certificates on appropriate places on the bill of
"Classification checked" "Total checked" and "Signatures verified".
8. Proper maintenance of Establishment 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. Maintenance of T.A Register for gazetted civil servants.
10. Disposal of claims within the stipulated period.
11. Issuance of pay slip when occasion arises.
12. Issuance of Last Pay and Service Certificate.
13. Countersigning L.P.C's of non-gazetted civil servants on the occasion
of their out of district transfer.
14. Issuance of Service statements, G.P.F deductions certificate,
verification of Income Tax Returns.
15. To note all the sanctions and appropriations in the various registers
daily for the review of the A.A.O.
16. 100% post audit of pensions directly paid by the banks.
17. To watch all changes in sanctioned strength of the establishment or
addition to the post.
18. To dispose of all letters received through diary.
23
19. Maintaining broad sheets of various advances.
20. 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. Preparation of transfer/journal entries.
22. Detection and correction of misclassifications made by the bank.
23. Communication of receipt /expenditure figures to the concerned
collecting/drawing and controlling officers.
24. Collecting acceptance of receipt figures from the concerned authorities,
within, stipulated period, in case there is no difference.
25. Issuance of Schedule to payment of the concerned D.D.O's /controlling
officers.
26. Conducting monthly reconciliation of receipt/expenditure.
27. Maintenance of all record pertaining to his assignment in the Sections
and their safe custody under lock and key.
28. Maintenance of personal files of Gazetted officers with proper indexing.
29. 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. To get each and every entry of Revenue Deposit receipt attested by
the A.T.O and the D.A.O.
32. To prepare lapsed Deposit statement Register.
33. To link credit challan and bank scroll with vouchers seeking
repayments of more than Rs.10000/-
34. To minus amounts withdrawn through reappropriations refunds from
the schemes.
35. Identification of pensioners.
24
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. To requisition stamps through annual forecast from the Chief Controller
of Stamps, Karachi.
3. 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. To arrange supply of Refund voucher Books, receipt books, from the
Government Printing Press, Lahore.
5. To prepare monthly plus and minus statement of stamps.
6. To issue stamps in the prescribed manner.
7. To receive and deliver valuables on the orders of the District Collector.
8. To maintain registers of Double Lock /Single Lock.
9. To report regarding issuance of stamps in case in the prescribed
manner.
10. 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.
11. 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.
25
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. Periodical returns are sent regularly on due dates, to the quarters
concerned
2. Inter section and intra section rotation of staff is carried out after proper
intervals.
3. Court cases and inquiries are attended to properly.
4. The following courses of action is adopted in case of occurrence of
fraud /serious irregularity/loss to public exchequer:-
i. Identification of irregularities/embezzlement/fraud.
ii. View point of the relevant officer/official.
iii. Constitution of fact finding departmental enquiry.
iv. Registration of case with the relevant authorities where the
losses are established.
v. Intimation to the District Collector /EDO (Revenue), A.G Punjab
and Finance Department.
vi. Intimation to the Administrative Department concerned with
details of (a) Action required to be taken (b) Action already
taken by the supervisory officer.
5. To accompany the D.A.O on regular periodical and surprise
inspections of the Sub. Treasures.
6. To conduct inspections of his section after proper intervals.
7. 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
26
Manual and the Punjab Renewal of Repetitive Licenses Rules, read
with the Finance Departments, Letter No. I.T (FD) 3-8/99 dated 31-5-
99.
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 Arrears bills.
3 Service statement, LPC and leave Account.
4 Scale audit registers (gazetted and non gazetted)
5 Last pay bill of the officers/officials who are retiring from Government Service.
6 Pay slips in which fixation of initial pay is involved.
7 33 1/3 % review of pre-audit bills.
8 Review of post audit.
9 Certificate at the time of opening new audit register to the effect that the
entries made in the new audit register are correct.
10 To attest the charge reports in the Gazetted Audit Register.
11 To get verification of the supplementary grants from the Finance Department
as prescribed.
12 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 To check and initial the classification noted on each page of the audit
Registers and other cash registers and bills.
14 To get all sanctions verified from the concerned authorities.
15 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.
27
16 To ensure that reports of bills are prepared regularly and bills are disposed of
within the prescribe time - limits.
17 To review all the sectional work before submission to the D.A.O.
18 To ensure that all necessary prescribed pre-audit checks have been applied
before a bill submitted to the D.A.O.
19 To see and mark daily Dak received from the general diary.
20 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) Calendar of returns.
iv) Misclassification report.
v) Overhauling of seats of assistants (Monthly).
vi) Register of special points.
vii) Reconciliation of receipt/expenditure register.
viii) Attendance register (C.L register).
ix) Register of outgoing LPC’s/Service statements and LPC’s of non-
gazetted 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.
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.
28
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.
29
3. Miscellaneous functions.
a. Surprise visit with higher officers of the treasuries.
b. Departmental enquiries on accounts matter.
c. Administrative inspection reports.
30
Annex-B
Eliminating discretion through provision of check lists
i) Gazetted Audit Department.
ii) Departmental Audit section.
iii) General Provident Fund Section.
iv) Cheque Section.
v) Compilation Section.
vi) Pension Certificate and Report Section.
vii) Treasury Section
viii) Double Lock Section.
31
Gazetted Audit Department
1. Organizational chart and functions of the G.A.D.I.
2. Organizational chart and functions of the G.A.D.II.
3. Pay-meaning
4. Pay Slip
5. Issuance of pay slip on initial appointment.
6. Issuance of pay slip on promotion from non-gazetted to gazetted post.
7. Issuance of pay slip on award of promotion, selection grade, move-over,
advance increments.
8. Issuance of pay slip on transfer.
9. Issuance of last pay and service certificate.
10. Regular pay bills of the gazetted civil servants.
11. Adjustment for the purpose of withdrawal of pay and allowances.
12. Bills of arrears of increases in pay.
13. Bills of leave salary, L.P.R, encashment of leave in lieu of L.P.R.
14. Maintenance of leave account and furnishing certificate regarding admissibility
of leave.
15. Bills of subsistence allowance.
16. History of service/service statement.
17. Certificate of G.P Fund deductions.
18. Income Tax returns.
19. Certificate regarding reaching the maximum of a pay scale.
20. Bills of re-imbursement of medical charges.
21. T.A. claims of Gazetted civil servants/T.A advance.
22. Attachment of pay of officers.
32
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.
33
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.
34
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) Sanction to the creation of post if one does not exist already along with
provision of budgetary allocation
2) Offer of appointment.
3) Copy of notification of appointment and order of posting.
4) A charge report showing the date fore or afternoon on which the
charge is taken.
5) Medical fitness certificate. Copies of Secondary School certificate to
ascertain the age at the time of induction into Govt. service.
6) Request for issuance of pay slip.
7) A set of specimen signatures duly attested by an officer whose
specimen signatures are available in the office.
8) 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.
35
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) A copy of secondary school certificate.
Issuance of pay slip on promotion from non-gazetted to gazetted post.
Pay slip should normally be issued on receipt of the following
documents/points:-
1) Service book complete in all respects.
2) 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 non-
gazetted 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) A charge report of taking over charge as gazetted officer
4) Notification of promotion.
5) Order of posting.
6) Sanction to the creation of post if one does not exist already.
7) A set of specimen signature duly attested by an officer whose
specimen signatures are available in the office.
8) Application for issuance of pay slip.
9) 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.
36
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) Charge reports, where required, of relinquishing the charge of the
previous post and taking over the charge of the new one.
3) 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) Pay has to be fixed in accordance with the instructions of the Finance
Department or the Finance Division, as the case may be.
5) 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) Transfer orders against an existing vacancy or vacancy created
through transfer orders or against a specially created post.
2) Sanction of creation of post if one does not exist already.
3) A report of taking over the charge.
4) Application for issuance of pay slip.
5) A set of specimen signatures duly attested by an officer whose
specimen signatures are available in the office.
6) A sealed copy of the last pay certificate issued by his previous audit
office.
37
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 over-
payments 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) Transfer order.
2) Charge relinquishing report.
3) Application for issuance of last pay and service certificate.
4) 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) The bill has been received through normal channels i.e. through token
or diary.
2) Function cum-object classification is correct.
38
3) Signatures of the officer tally with the specimen signatures.
4) bill has been prepared in accordance with the pay slip issued by this
office, on the prescribed form and properly filed in.
5) 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) Continuation of sanction of Schedule of New Expenditure has been
received if the officer is working in a temporary establishment.
9) No court of law has attached the pay of the officer.
10) His controlling officer has not sent his absence report.
11) 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 B.P.S W.e.f 1-7-87 W.e.f 1-6-94
1 1 Rs.25 Rs.50
2 2 Rs.40 Rs.85
3 3 Rs.45 Rs.85
4 4 Rs.45 Rs.90
39
5 5 Rs.50 Rs.95
6 6 Rs.50 Rs.100
7 7 Rs.55 Rs.100
8 8 Rs.60 Rs.110
9 9 Rs.60 Rs.120
10 10 Rs.65 Rs.125
11 11 Rs.70 Rs.130
12 12 Rs.75 Rs.145
13 13 Rs.130 Rs.250
14 14 Rs.140 Rs.265
15 15 Rs.150 Rs.285
16 16 Rs.175 Rs.325
17 17 Rs.250 Rs.450
18 18 Rs.300 Rs.560
19 19 Rs.400 Rs.780
20 20 Rs.500 Rs.920
21 21 Rs.550 Rs.1040
22 22 Rs.600 Rs.1120
13) 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 Monthly(Rs.) Premium(Rs.) Sum
Insured(Rs)
1-4 9.13 - 30,000/-
5-10 10.65 - 35,000/-
11-15 18.25 - 60,000/-
16 27.38 - 90,000/-
17 36.50 - 120,000/-
18 53.22 - 175,000/-
19 63.87 - 210,000
40
20 76.04 - 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
Rate of Interest: 12.50%
Amount of Advance Rs.40560
No of Instalments, 120.monthly
INTREST= N(No of Installments + Rate of Interest) + 3 AR2400 1200
N= Principal Amount/Amount of Advance.
A= Amount.
R= Rate of Interest of respective year,
Ca l c u l a t i o n
40560 X 12 X 12.50 + 40560 X 3 X 12.50
2400 1200
Rs.25661.25 + Rs.1267.50
Rs.26828.75
Rs.26829/- in round figure.
(In case of recovery started from very next month)
INTREST= N(No of installments + rate of interest)2400
41
N= Principal amount/amount of advance.
A= Amount.
R= 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
(Rs.)
Sum assured (Rs.)
1 Upto 1500 24.50 70,000
2 1550 to 2000 29.75 85,000
3 2001 to 2500 35.00 100,000
4 25001 to 3000 40.25 115,000
5 3001 to 3500 45.50 130,000
6 3501 to 4000 50.75 145,000
7 4001 to 4500 56.00 160,000
8 4501 to 5000 61.25 175,000
9 5001 to 5500 66.50 190,000
10 5501 to 6000 71.75 205,000
11 6001 to 6500 77.00 220,000
12 6501 to 7000 82.25 235,000
13 7001 to 7500 87.50 250,000
14 7501 to 8000 92.75 265,000
15 8001 to 8500 98.50 280,000
16 8501 to 9000 103,25 295,000
17 9001 to 9500 108.50 310,000
18 9501 to 10000 113.75 325,000
19 10001 to 10500 119.00 340,000
20 10501 to 11000 124.25 355,000
42
21 11001 to 11500 129.50 370,000
22 11501 to 12000 134.75 385,000
23 12001 to 12500 140.00 400,000
24 12501 to 13000 145.25 415,000
25 13001 to 13500 150.50 430,000
26 13501 to 14000 155.75 445,000
27 14001 to 14500 161.00 460,000
28 14501 to 15000 166.25 475,000
29 15001 to 15500 171.50 490,000
30 15501 to 16000 176.75 505,000
31 16001 and above 182.00 520,000
14) 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 Pay Group B.Fund S/No Pay Group B.Fund
1 501-600 11 32 3601-3700 73
2 601-700 13 33 3701-3800 75
3 701-800 15 34 3801-3900 77
4 801-900 17 35 3901-4000 79
5 901-1000 19 36 4001-4100 81
6 1001-1100 21 37 4101-4200 83
7 1101-1200 23 38 4201-4300 85
8 1201-1300 25 39 4301-4400 87
9 1301-1400 27 40 4401-4500 89
10 1401-1500 29 41 4501-4600 91
11 1501-1600 31 42 4601-4700 93
12 1601-1700 33 43 4701-4800 95
13 1701-1800 35 44 4801-4900 97
14 1801-1900 37 45 4901-5000 99
15 1901-2000 39 46 5001-5100 100
16 2001-2100 41 47 5101 and above 100
43
17 2101-2200 43
18 2201-2300 45
19 2301-2400 47
20 2401-2500 49
21 2501-2600 51
22 2601-2700 53
23 2701-2800 55
24 2801-2900 57
25 2901-3000 59
26 3001-3100 61
27 3101-3200 63
28 3201-3300 65
29 3301-3400 67
30 3401-3500 69
31 3501-3600 71
At the rate of 2% at present scales.
15) Revenue stamps are leviable on the pay bills as per details below:-
a) Where salary does not exceed.
Rs.2000/- One Rupee
b) Where salary excess
Rs.2000/- but does not exceed Rs.10,000/- Two Rupees.
c) Where salary exceeds Rs.10,000/- Five Rupees.
16) 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 Does not exceed Tax rate
- Rs.100,000/- 5%
Rs.100,000/- Rs.200,000/- Rs.5000/- + 10% of the
amount exceeding
Rs.100,000/-
Rs.200,000/- Rs.300,000/- Rs.15000/- + 15% of the
amount exceeding
Rs.200,000/-
Rs.300,000/- - Rs.30000/- + 20% of the
amount exceeding
Rs.300,000/-
Note:-
i) The deductions to be made for tax credit is as under:-
a) Salaries cases (excluding Director) Rs.2500/-
b) Women salaries cases (excluding Director)
Rs.3000/-.
c) Other cases Rs.2000/-
ii) Surcharge at the rate of 10% of income tax is also payable in all the
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) Sealed last pay and Service Certificate issued by an audit office from
where he drew his last pay.
5) Reports of assuming and relinquishing charge of the post.
6) Application of the officer.
7) A set of specimen signatures of the officer duly attested by an officer
whose specimen signatures are available in this office.
8) 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) The bill is on the prescribed form, properly filled in, signed and
stamped and correctly classified.
2) Calculations are correct and are in accordance with the revised pay slip
issued to the officer.
3) Claim is not time - barred and if so the requisite sanction has been
obtained from the competent authority.
4) 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.
If the leave at his credit is less than 365 days, half of the leave
can be encashed.
47
Encashment of leave move of death:- IN case of death 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 pay
that may be granted at one time shall be as follows:-
Without Medical Certificate 120 days.
With Medical Certificate 180 days.
On Medical Certificate from leave i.e. in entire Service
365 days
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 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.
48
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 of leave account and furnishing certificate regarding
admissibility of leave:
1) 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
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
49
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 non-
availability 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) Cash memo of purchase of medicines, duly attested by the authorized
medical attendant has been attached with the bill.
5) 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) Budget is available in the relevant code of classification.
8) 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) Rates of pay, daily, mileage allowance are correct.
3) The controlling authority of the officer has countersigned the bill.
4) Journeys have been undertaken for the purposes for which T.A. is
admissible.
5) Distances covered noted in the bill are correct.
6) There is no halt for more than ten days at a particular station.
7) No T.A is admissible for journeys of 16 kilometers within the radius of
the headquarters.
8) Rates of daily allowance are given hereunder for the guidance of the
auditors:-
Daily allowance
Pay Special Ordinary
1245-2000 80 65
2001-3000 100 85
3001-4000 120 100
4001-5000 145 120
5001-6000 175 150
6001-7000 215 180
7001-8000 260 255
8001-9000 300 280
9001-10000 350 300
10000 and above 400 350
52
Transportation charges on tours or on transfer
Rates/km.
S/No source with effect from 1-7-87 with effect from 1-6-94
1 Motor car 00.60 1.20
2 Motor cycle 00.20 00.40
Mileage allowance
Rates/km.
S/No source with effect from 1-7-87 with effect from 1-6-94
1 Motor car/Taxi 2.00 3.00
2 Motor cycle 00.65 .1.00
3 Bicycle, Animal
or foot
00.50 00.75
4 Public
Transport B7
and Above
00.32 00.50
5 Public
Transport B6
and Below
00.20 00.30
Categories
S/No with effect from 1-7-87 with effect from 1-6-94
1 By Air
(E),Highest in
Railway
B-17 and Above or Pay
Rupee 2840 and Above
B-17 and Above or Pay
Rupees 5330 and Above
2 First Class
Sleeper
910-2840 1725-5330
3 First Class
Sitter
All Excluding B-1 and 2
4 Lowest Class B-1 and 2
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) 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.
2) 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. Organizational Chart.
2. Functions of the Section.
3. Regular pay bills of permanent establishments.
4. Creation of temporary establishments and regular monthly pay bills there of.
5. Abstract pay bills.
6. Adjustment for the purpose of drawl of pay and allowances.
7. Countersigning last pay certificate of officials.
8. Attachment of pay of officials.
9. Early payments in special cases.
10. Effecting recoveries.
11. Arrears bills.
12. Bills of leave salary, L.P.R. and encashment of leave in lieu of LPR.
13. Re-imbursement of medical charges.
14. T.A. bills of officials.
15. Re-appropriation of budgetary allocations.
16. Abstract T.A. bills.
17. Contingent bills.
18. Personal ledger accounts, pension contributions, Grants-in-aid to
Municipalities.
19. Advances to officials.
20. 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) To pre-audit pay bills of non-gazetted civil servants (Provincial & Federal).
2) To pre-audit contingent claims of government departments (Provincial &
Federal).
3) To prepare civil accounts of payments of the government of the Punjab.
4) To prepare provincial cash book of payments of the district.
5) 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 pre-
auditing regular monthly pay bolls of permanent establishments:-
1) The bill has been submitted by a competent drawing and disbursing officer.
2) The bill is on the prescribed form, properly filled in, signed, stamped.
3) Signatures of the drawing and disbursing officer tally with the specimen
signature.
4) The bill has been correctly classified.
5) Arithmetical calculations of the bill are correct.
6) 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) Posting orders.
iv) 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) Joining report.
iv) 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) Posts claimed are not in excess of the sanctioned posts.
8) Names, designations, rates of pay, allowances, deductions, gross and
net totals have been entered in the relevant columns of the pay bill.
9) Net amount of the bill has been recorded in figures as well as in words.
10) The drawing and disbursing officer has signed the requisite certificates.
11) The absentee statement is filed in or “no leave” certificate is furnished.
12) 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 B.P.S Wef 1-7-87 Wef 1-6-95
1 1 Rs.25 Rs.50
2 2 Rs.40 Rs.85
3 3 Rs.45 Rs.85
4 4 Rs.45 Rs.90
5 5 Rs.50 Rs.95
6 6 Rs.50 Rs.100
7 7 Rs.55 Rs.100
8 8 Rs.60 Rs.110
9 9 Rs.60 Rs.120
10 10 Rs.65 Rs.125
11 11 Rs.70 Rs.130
12 12 Rs.75 Rs.145
13 13 Rs.130 Rs.250
14 14 Rs.140 Rs.265
15 15 Rs.150 Rs.285
16 16 Rs.175 Rs.325
17 17 Rs.250 Rs.450
18 18 Rs.300 Rs.560
19 19 Rs.400 Rs.780
20 20 Rs.500 Rs.920
21 21 Rs.550 Rs.1040
22 22 Rs.600 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) Benevolent Fund has been deducted and a schedule of deduction has
been attached with the bill.
17) Premiums of Group Insurance have been deducted from the pay of
officials and a schedule to this effect has been attached with the bill.
59
18) 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
shall be sanctioned by the following:-
Administrative
Department and
Officers in Category
II, III, IV.
Full powers in respect of T.A. claims
not more than three years old and
other claims not more than 6 years
old.
Full powers in respect of claims not
more than 3 years old of government
servants whom they are competent to
appoint.
20) No bill of diary has been presented through token and vice versa.
21) Payment to the institutions of elementary education has been
authorized through a pay order bearing stamps “payee’s account only”
22) In bills of December, annual increment certificate has been attached.
23) 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
60
provision of budgetary allocation is available. It is advisable to get the
audit copy of sanction confirmed from the Finance Department.
2) If a entirely new establishment drawing and disbursing officer has been
notified for the said establishment by the Finance Department.
3) 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
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”
61
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) A competent authority has issued valid orders of adjustment for the purpose
of withdrawal of pay and allowance.
2) Last pay certificate issued by the drawing and disbursing officer, and where
required countersigned by the DAO, is attached with the bill.
3) Charge relinquishing and assuming reports duly countersigned are attached.
4) The bill is for the period for which official has been adjusted for the purpose of
drawl of pay and allowances.
5) 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) The post against which adjustment has been ordered remained vacant during
the period for which adjustment has been made.
7) 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) Transfer/adjustment orders issued by a competent authority.
ii) Service book of the official, complete in all respect.
iii) Charge reports.
iv) Office copy of the establishment bill through which the official drew his
last pay.
v) 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) Pay fixed by the department and verified by the audit should be
rechecked to ascertain its correctness.
ix) 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 DATED 03-11-1998.
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 non-
gazetted 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.
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.
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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. _____________ Dated _________________.
Subject:- 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)
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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 __________ DATED _____________
To:
__________________________________
Subject:- Notice For retrenchment
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.
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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) The authority permitting investigation of time- barred claims shall
intimate reasons of delay in submission of the claims to the D.A.O.
8) 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) A competent authority under the applicable leave rules has issued
order sanctioning leave.
3) Charge relinquishing reports have been attached with the bill.
4) 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 re-
imbursement of medical charges. The monthly medical allowance admissible is
Rs.90 per month for officials in B.P.S 1 to 15.
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:-
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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. If such a
certificate has been issued, this fact may be noted in the budget control
register. 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..... remains available to the D.D.O
for expenditure.
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 re-
appropriation 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 Technical Services Fee paid to non-residents.
15% Final
Govt, Local Authority, Registered Firms, Companies, Foreign Contractors, consultants
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).
3.50%1.5%
1%1%2%
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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) Amount of claim has been recorded in words and figures.
10) The bill has been signed by the D.D.O and signatures tally.
11) Quotation/tender has been called in all cases of purchases involving
more than Rs.2500/-
12) A certificate to the effect that the items has been purchases at least
possible rates has been recorded by the D.D.O.
13) Stock taken entries have been recorded on the bill.
14) Quality and quantity has been recorded on the bill.
15) Budget along with up to date expenditure and balance has been
recorded on the bill under signature of D.D.O.
16) Vouchers duly signed and passed for payment by the D.D.O support
claim.
17) Page number of stock register has been recorded on the bill.
74
18) A certified to the effect that prescribed limits of telephone/POL have
been observed, has been recorded.
19) In case of repair of vehicles, no objection certificate has been obtained
from the Govt. workshop.
20) 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) Pay of contingent paid staff is on the prescribed rates and is not being
drawn earlier than when it is due.
23) 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) Austerity measures for the year be kept in view and implemented in
letter and spirit.
26) Powers delegated vide Sr. No.3 of the Delegation of Financial Powers
Rules 1990 are exercisable in items under Sr.No.3 (a).
27) Purchase of coal is permissible from 15th October to 30 January and
that of ice from 15th May to 31st August.
28) 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.
29) The requisite certificates, printed on the proforma have been signed by
the D.D.O.
30) 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) Budgetary releases after 31 Ist of May without approval of the Finance
Department are not acceptable.
34) 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 bills on simple
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
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) House Building Advance
b) Motorcar Advance
c) Motorcycle Advance
d) Cycle Advance
House building advance
1) Can be paid with the sanction of Head of Department.
2) Complete recovery should be possible before retirement of
employee.
3) Admissible for construction of house for bona fide residence of
the employee or his family.
4) 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) Recoveries toward repayment start six months after first
installment or immediately after second, whichever is earlier.
7) Repayment is to be made in 120 installments. In case of class
IV employees, in 240 installments.
8) Recovery of principle + interest must be completed before
retirement of the employee.
9) Amount of advance is equivalent to 36 months' pay.
10) 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.
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11) Interest is recoverable at the same rate after the principle has
been recovered.
12) House to be mortgaged in favour of the Governor of the Punjab
and deed registered.
Advance for purchase of motor car
1) Almost on the same conditions of employees incumbency under
Government.
2) If the employee is on leave, the advances is not paid a week
before the expiry of leave.
3) Maximum amount of advances is Rs. 100,000.
4) Purchase has to be made with a month of payment.
5) Bond has to be executed hypothecating car in favour of the
Governor.
6) The car has to be insured.
7) Recoveries of principle in 60 installments plus interest thereafter
Advance for purchase of motorcycle
1) Advanced for Motorcycle payable in like conditions of mortgage
hypothecation as Motorcar Advance.
2) 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) Cycle would be the property of Government till advance is
recovered.
2) Maximum amount is Rs. 2,000 and recoverable in installments.
3) Temporary employees have to furnish security for two
permanent employees.
Accounting and drawal of interest-bearing advances -
1) The Accountant-General first earmarks funds before it can be
sanctioned.
2) Sanction is subject to execution of prescribed bonds and
hypothecation of property.
3) The Civil Servant himself draws the amount if he is a gazetted
officer after it is sanctioned by the competent authority from the
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) These are paid to a Civil Servant under orders of transfer from
one station to the other.
2) Advance is equal to one month's pay and amount of the TA to
which he may be entitled on account of transfer.
3) Pay advance is recoverable in three equal (nearly equal)
installments and TA in one installment from the TA bill.
4) These advances are recorded on the LPC issued by the DDO or
by the District Accounts Officer..
5) 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) Adjustment of advance is made before 30th June or return to
headquarters.
3) 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) First page of the Service book is re-attested after every five years.
2) Each and every entry in the Service Book is attested by the D.D.O.
3) The department has provisionally fixed pay.
4) 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) One pre mature increment is admissible upon regular promotion and
selection grade.
6) No premature increment is allowed on move-over.
7) Move-over, selection grade, promotion is admissible during leave and
L.P.R.
8) Increments cannot be stopped permanently or with future effect.
9) Six month’s regular service at a stage is necessary for earning annual
increment.
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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:
-
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85
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No.FD.PC-2-1/2001GOVERNMENT OF THE PUNJAB
FINANCE DEPARTMENT
Dated Lahore, the 22nd October 2001.From:
Mr. Salman Siddique,
Finance Secretary.
To
1) All Administrative Secretaries to Government of the Punjab.
2) The Secretary to Governor, Punjab, Lahore.
3) All Heads of attached Departments, Govt. of the Punjab.
4) All District Coordination Officers in the Punjab.
5) The Registrar, Lahore High Court, Lahore.
6) All District and Sessions Judges in the Punjab.
7) The Military Secretary to Governor, Punjab, Lahore.
8) The Secretary, Punjab Public Service commission, Lahore.
9) The Secretary o Provincial Assembly, Punjab, Lahore.
10) The Chief Pilot, VIP Flight, Lahore.
11) The Provincial Director, Local Fund Audit, Punjab, Lahore.
Subject:- REVISION OF BASIC PAY SCALES AND FRINGE BENEFITS OF
CIVIL EMPLOYEES (BS-1-22) OF PUNJAB GOVERNMENT.
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:-
89
i) Cost of Living allowance to BS 1 to BS 22 @ 7% of basic Pay.
ii) 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)
iii) Secretariat/ personal allowance.
4. 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 Stage 16 Stage 17 Stage 18 Stage 19
4845 5022 5199 5376 5553
2001 Scale 7260 7625 7790 8055 8320
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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 Stg Stg Stg Stg Stg Stg Stg Stg Stg Stg 1994 15 16 17 18 19 20 21 22 23 24Pay Scale 3465 3581 3697 3813 3929 4045 4181 4277 4393 4509
BS-11 5215 5390 5565 5470 5915 6090 6265 6440 6615 67902001 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
Stage –30 3380
Stage-31 3446
Stage-32 3512
BS-5 2001
5100 5200 5300
In such cases future increments up to a maximum of 3 years will be allowed as
personal to such employees.
8. DATA OF INCREMENT: - Annual increment shall continue to the
admissible subject to the existing conditions, on the 1st December each year.
9. SPECIAL PAY/S ALLOWANCES FOR OFFICER: - The special Pay/
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. Existing Revisedi Civil Servants in BS –16 and above maintaining
a motor car not registered for commercial purpose Rs.355/- P. M.
BS –16 (Gazetted) & Above Rs. 620/- P. M
ii Civil servants drawing pay of Bs –3240/- per month and above other than those at (i) above. Rs. 193/ -P.M.
BS 11 and AboveRs. 340/- P. M.
iii 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.
BS 1–10 maintaining Motor Cycle/ ScooterRs. 230/- P. M.
iv Others.Rs. 96/ - P. M.
BS 1-10Rs. 170/- P. M.
12. DAILY ALLOWANCE: - Daily Allowance rates presently fixed with reference to
pay drawn shall be increased and related to Basic Pay Scales as under:
BPS Special Rates per day (Rs) Ordinary Rates per day (Rs)
1-4 110 805-11 120 10012-16 200 18017-18 350 32019-20 450 40021-22 550 450
13. 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 Revised RateRs. 300/ - P. M Rs. 450/- P. MRs. 1000/ - 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 RevisedSanctioned @ 20% and above
of pay. On existing rates
subject to a maximum of Rs.
2000/- P. M.
b) 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) Commutation Table shall be replaced by replaced by the new Commutation
Table at Annexure – II to this letter.
b) Commutation upto 40% of gross pension shall be admissible at the option of
the pensioner.
c) The additional benefit of 2% -10% for extra years of service after completion
on 30 years of qualifying service in respect of civil pensioners shall be discontinued.
d) The increase in pension @ 20% to Civil pensioners allowed vide this
Department letter No. FD. SR. 111-4-72/99, dated 27-7-1999. shall be discontinued.
e) The benefit of restoration of surrendered portion of pension in lieu of
commutation/ gratuity shall be withdrawn.
f) In future, the increase in pension to the pensioners shall be allowed on the
pension instead of gross.
93
g) All the pensioners shall be allowed an increase in net pension (inclusive of
dearness increases allowed in the past) as follows:-
INCREASE IN NET PENSION
(ii) Pensioners who retired prior to the introduction of 1991 Basic Pay Scale.
15%
(ii) 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. 5%
17. OPTION: -
(a) All the existing Civil employees (BPS 1 to 22) of the Provincial Govt. shall
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.
94
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.
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 Iner Max Stages Scale Min Iner Max Stages
1 1245 35 1770 15 1 1870 55 3520 30
2 1275 44 1935 15 2 1915 65 3865 30
3 1320 50 2070 15 3 1980 75 4230 30
4 1360 58 2230 15 4 2040 85 4590 30
5 1400 66 2390 15 5 2100 100 5100 30
6 1440 73 2535 15 6 2160 110 5460 30
7 1480 81 2695 15 7 2220 120 5820 30
8 1540 88 2860 15 8 2310 130 6210 30
9 1605 97 3060 15 9 2410 145 6760 30
10 1660 107 3265 15 10 2490 160 7290 30
11 1725 116 3465 15 11 2590 175 7840 30
12 1830 130 3780 15 12 2745 195 8595 30
13 1950 144 4110 15 13 2925 215 9375 30
14 2065 161 4448 15 14 3100 240 10300 30
15 2190 177 4845 15 15 3285 265 11235 30
16 2535 197 5490 15 16 3805 295 12655 30
17 3880 290 7360 10 17 6210 465 15510 20
18 5085 366 8745 10 18 8135 585 19835 20
19 7750 385 11600 10 19 12400 615 24700 20
20 9195 440 13595 10 20 14710 950 28010 14
21 10190 545 15640 10 21 16305 1070 31285 14
22 10900 610 17000 10 22 17440 1250 34940 14
96
ANNEXURE-II TO FINANCE DEPARTMENTS LETTER NO FD. PC. 2-1/2001
DATED 22ND, OCTOBER 2001.
COMMUTATION TABLE
Next
Birthday
No. Of ears
Purchased
Age Next Birthday No. Of years
Purchased
20 40.5043 51 17.6526
21 39.734 52 17.0050
22 38.6553 53 16.3710
23 38.1974 54 15.7517
24 37.4307 55 15.1438
25 36.6651 56 14.5602
26 35.9006 57 13.9888
27 35.1372 58 13.4340
28 34.3750 59 12.8953
29 33.6143 60 12.3719
30 32.8071 61 11.8632
31 32.0974 62 11.3685
32 31.3412 63 10.8872
33 30.5869 64 10.4191
34 29.8343 65 9.9639
35 29.0841 66 9.5214
36 28.3362 67 9.0914
37 27.5908 68 8.6742
38 26.8482 69 8.2697
39 26.1009 70 7.8778
40 25.3728 71 7.4943
41 24.6406 72 7.1314
42 23.9186 73 6.7766
43 23.1840 74 6.4342
44 22.4713 75 6.1039
45 21.7592 76 5.7858
46 21.0538 77 6.4797
97
47 20.3555 78 5.1854
48 19.6653 79 4.9030
49 18.9841 80 4.6321
50 18.3129 81 4.6321
98
General Provident Fund Section
1. Organizational Chart.
2. Functions of the Section.
3. Allotment of G.P. Fund Account Number.
4. G.P.Fund Balance Slips.
5. Rates of Profit on G.P. Fund balances.
6. G.P.Fund Subscription rates.
7. Bills of advances out of G.P. Fund Accumulations.
8. Final withdrawals of G.P.Fund accumulations.
9. Adjustment of missing credits.
10. Transfer of G.P.Fund from Sheikhupura to other districts.
11. Transfer of G.P. Fund from other districts to Sheikhupura.
12 Conversion of profit bearing accounts into non-profit bearing accounts and vice versa.
99
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.
100
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) Name of the civil servant.
2) Father’s Name.
3) Designation and BPS.
4) Date of Birth.
5) Date of joining service.
6) Nationality.
7) Nature of appointment i.e. (Permanent, Temporary, Adhoc or contract)
appointment.
8) Rate of emoluments.
9) Rate of subscription
10) Compulsory or optional subscription.
11) Marital status.
12) 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. It must be witnessed by two of the
subscribers who are subscribing towards G.P Fund under Rule 137 (3)
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) National Identity card No. This number should be noted on the ledger
card.
15) If the subscriber has already served under jurisdiction of another
Accounts Office, his G.P.F account No. at the office.
16) Date of joining at Sheikhupura.
17) The department will be informed of the number allotted.
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
101
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 Year Profit rate (%) Bonus on profit
in %
Total
1 1953-56 3.00 - 3.00
2 1956-63 3.50 - 3.50
3 1963-64 4.00 - 4.00
4 1964-65 5.00 - 5.00
5 1965-66 5.25 - 5.25
6 1966-68 6.00 - 6.00
7 1968-71 6.25 - 6.25
8 1971-72 6.50 - 6.50
9 1972-73 7.25 - 7.25
10 1973-74 8.25 - 8.25
11 1974-75 10.25 - 10.25
12 1975-76 10.50 - 10.50
13 1976-77 10.75 - 10.75
14 1977-78 11.75 - 11.75
15 1978-79 12.00 - 12.00
16 1979-80 12.50 - 2.50
17 1980-82 13.00 - 13.00
18 1982-83 13.20 - 13.20
19 1983-84 14.00 - 14.00
20 1984-85 14.60 - 14.60
21 1985-86 14.72 - 14.72
22 1986-87 14.66 30 19.05
23 1987-88 14.00 30 18.20
24 1988-89 14.84 30 19.29
25 1989-93 15.93 30 20.70
26 1993-94 15.54 30 20.20
27 1994-95 15.44 30 20.07
102
28 1995-96 15.49 30 20.14
29 1996-97 16.76 30 21.78
30 1997-98 17.51 30 22.763
31 1998-99 17.35 30 22.555
32 1999-00 16-11 30 20-943
33 2000-01 15 00 15
34 2001-02
35 2002-03
36 2003-04
37 2004-05
38 2005-06
39 2006-07
40 2007-08
41 2008-09
42 2009-10
103
How to work out closing balance on GP fund
Months Subscription Recovery of advance
Withdrawals Progressive Balance
7/91 250 - - 250
8/91 250 500
9/91 250 750
10/91 250 15000 -14000
11/91 250 500 -13250
12/91 250 500 -12500
1/92 250 500 -11750
2/92 250 500 -11000
3/92 250 500 -10250
4/92 250 500 -9500
5/92 250 500 -8750
6/92 250 500 -8000
Total 3000 4000 -97500
Average Progressive Total of the Year / 12
= -97500/12
-8125/-
Suppose Opening Balance = Rupees 35000/-
Interest (Opening Balance+Avg) * 20.709 %
35000-8125*20.709%
Rs.5566/-
Closing Balance for fiscal Year 1991-92
Opening Balance 35000/-
Deposit (3000+4000) 7000/-
Interest 5566/-
Withdrawals -15000/-
Closing Balance 32566/-
104
GP fund subscriptions (rates)
S.No B.P.S Rates (Rs)Prior to 1-6-1994
Rates (Rs.)After 1-6-1994
1 1 25 50
2 2 40 85
3 3 45 85
4 4 45 90
5 5 50 95
6 6 50 100
7 7 55 100
8 8 60 110
9 9 60 120
10 10 65 125
11 11 70 130
12 12 75 145
13 13 130 250
14 14 140 265
15 15 150 285
16 16 175 325
17 17 250 450
18 18 300 560
19 19 400 780
20 20 500 920
21 21 550 1040
22 22 600 1120
105
NO.FDSR.1-2-1/95GOVERNMENT OF THE PUNJAB
FINANCE DEPARTMENT.
Dated Lahore, the 19th November 2001.To
1) All Administrative Secretaries to Government of the Punjab.2) The Secretary to Governor, Punjab, Lahore.3) The Military Secretary to Governor, Punjab, Lahore.4) All Heads of Attached Departments, Govt. of the Punjab.5) All District Coordination Officers in the Punjab.6) All the District & Sessions Judges in the Punjab.7) The Registrar, Lahore High Court, Lahore.8) The Director General, Audit & Accounts (Works), Lahore9) The Director General, Audit, Punjab, Lahore.10) The Secretary, Punjab Public Service Commission, Lahore
Subject: UNIFORM RATES OF SUBSCRIPTION TOWARDS GENERAL PROVIDENT FUND.
Sir,I am directed to this Department circular letter No.F.D. SRI-2-
1/95,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-2-
1/2001, 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)
106
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 2 3 4 5 6 7BS123456789
10111213141516171819202122
RS.187019151980204021002160222023102410249025902745292531003285380562108135
12400147101630517440
RS.3520386542304590510054605820621067607290784085959375
103001123512655155101983524700280103128534940
RS.2695289031053315360038104020426045854890521556706150670072608230
108601398518550213602379526190
RS.80.85
144.50155.25165.75180.00190.50201.00213.00229.25244.50260.75453.60492.00536.00580.80658.40868.80
1118.801484.001708.801903.602095.20
RS.85
145160170180195205215230245265455495540585660870
11201485171019052100
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%
107
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 non-
refundable 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/
No
Name of Authority For and in
Respect of whom
the powers are to
be exercised.
Extent of
Powers.
1 District/Divisional
Heads/Regional
Heads of
Departments /Heads
of Departments/
For the staff in and
upto NPS 18
working under
them.
Full powers in
accordance
with the
provident Fund
Rules.
108
Head of attached
Deptts.
2 Administrative
Deptt.
For Officers in
NPS-19 & 20
working directly
under the
Administrative
Deptt.
Ditto.
3 Registrar, Lahore
High Court.
For the Staff in and
upto NPS-18
working in the High
Court.
Ditto.
4 Chief Justice or the
Sr. Judge/Judges of
the High Court
empowered by the
Chief Justice in this
behalf.
For judicial officers
upto and including
District and
Sessions Judges.
Ditto
5 Executive
Head/Managing
Director of the
Statutory Bodies.
For all the civil
servants working
on deputation with
the respective
Statutory Bodies.
Ditto
6 Dy. Secretary In
charge of
Administration.
For staff in NPS-1
to 4 working in the
Secretariat.
Ditto
7 Additional
Secretary.
For Staff in NPS 5
to 18 working in the
Secretariat.
Ditto
8 Administrative
Secretary.
For staff in NPS-19
working in the
Secretariat.
Ditto
9 Chief Secretary. For staff in NPS-20 Ditto
109
and above working
in the Secretariat.
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) to meet other expenditure which is considered by
the sanctioning authority to be essential and
unavoidable.
110
(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
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:-
111
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;
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
house building advance from Government, the
recovery on account of the advance from the Fund
shall commence immediately after the advance
obtained from Government has been fully repaid with
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;
112
In case of scooter/motor cycle—six months pay of
the subscriber or half the balance at credit in the
Fund, whichever is less;
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
113
piece of land owned by the
subscriber or to make additions to
or alternation in an existing house
owned by him.
governed by the same terms and conditions
as applicable to an advance under clause
(a) (vi) of sub-rule (!) of rule 1.14.
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
residence.
(1) The amount of the advance shall not
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
114
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
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
from Government.
(1) The amount of the advance shall not
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
and the Governor in form P.F.11.
(d) For any of the following
purposes, namely:-
*( (1) The amount of the advance
shall not exceed 12 months
pay of the subscriber or
115
(i) to defray expense in connection
with the prolonged illness of the
subscriber or a member of his
family actually dependent upon
him.
80 per cent of the amount (standing to his
credit (in the Fund whichever is more.
(2) No recovery of an advance under this
clause shall be
(ii) To pay for the overseas
passages of the subscriber for
reason of
made from the subscriber and the amount
shall be treated as part, of the final
payment
health or for the performance of
Haj.
(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 lump sum
expenditure as admission or
advance tuition fees of any such
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.
of the amount standing at the credit of the
subscriber when the final payment
becomes due.
3) If the sanction is confirmed by the sanctioning authority, an authority for
the drawl of advance shall be issued to the D.D.O, in the following words.
Irrelevant portions should be crossed.
116
OFFICE OF THE DISTRICTS ACCOUNT OFFICER, SHEIKUPURANO.D.AO/SKP/G.P.F/H.M-----------------------Dated--------------------------To:
----------------------------------------------------------
Subject:- Authority for drawl of G.P fund advanceSir,
I have the honour to inform you that the sanction for drawl of refundable/non-
refundable advance out of General Provident Fund accumulations of
Mr./Ms/Mrs------------------subscriber to G.P Fund Account No.-------------------
amounting to Rs.-------------------- accorded by ----------------------------- vide
No.--------------------------dated ------------------has been found in accordance with the
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 non-
gazetted 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.
117
Your Obedient Servant
District Accounts Officer Sheikhupura.
4. After identification of the subscriber, the bill shall be examined to see whether
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
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. G.P Fund 10 Form complete in all respects and signed by the
competent authority.
b. Attested copy of the National Identity Card of the subscriber.
c. A hand written application of the subscriber illiterate, an application
having his thumb impression.
d. 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.
118
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
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
119
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:-
OFFICE OF THE DISTRICT ACCOUNTS OFFICER, SHEIKUPURA.
NO.DAO/SKP/GPF/HM---------------------Dated
To,
---------------------
---------------------
---------------------
Subject:- Consolidation/review of G.P fund account
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) G.P Fund Account (s) No allotted by previous accounts office (s) in
whose books balance is available.
c) Month of Ist deduction of G.P Fund with rate of deduction and name of
the department and name of accounts office.
d) Month and rare of last deduction under accounts jurisdiction of
previous accounts office.
e) Month and rate of first deduction under the accounts control of DAO,
Sheikhupura.
120
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.
121
Cheque Section
1. Organizational Chart.
2. Functions of the Section.
3. Receipt and delivery of bills.
122
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.
123
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.
124
MAINTENANCE OF ACCOUNTS.
i. Introduction.
ii. Scope of Accounting.
iii. Role of Auditor General.
iv. Procedure of Accounting.
v. Reconciliation of Accounts.
vi. Chart of Classification.
vii. Changes in the system of maintenance of accounts after the
implementation of the Devolution Plan
125
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.
126
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 pre-
cautionary 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
127
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.
128
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.
129
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.
130
Procedure of accountingDrawing 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:
131
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
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.
CLAIM RECEIVED AT
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
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.
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.
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.
132
THE POST PAYMENT / RECEIPT ACTIONS ARE ILLUSTRATED THROUGH THIS CHART
BANK REPORT DAILY RECEIPTS /
PAYMENTS TO SBP KARACHI.
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.
PAID VOUCHERS / CREDIT CHALLANS
SENT TO DAO BY SBP / NBP ALONG WITH
DEBIT / CREDIT SCROLLS.
VOUCHERS / CHALALNS FILED AND
CONSIGNED TO RECORD.
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.
ENTER
DAILY
TOTALS IN
CASH
BOOK.
GRANT
WISE, DAILY
BASIS.
PREPARE ABSTRACTS
OBJECT WISE AND WORKS OUT STATE
BANK DEPOSIT.
MISCLASSIFICATIONS BY BANK RECTIFIED /
ADJUSTMENT BY BOOK TRANSFERS
EFFECTED.
SENDS
SCHEDULES OF
RRRRRRECEIPTS /
PAYMENTS TO
DDOs / CO.
DDO TO
COMPARE WITH
HIS RECORD
CASH BOOK
AND AGREE /
CERTIFY.
UNDERTAKERS DAILY / MONTHLY RECONCILIATION
WITH BANKS (LOCALY)
AD CONSOLIDATE
DEPARTMENTAL
ACCOUNTS AND
RECONCILE WITH
AG.
DDO SUBMITS ACCOUNTS TO CO, WHO RECONCILE AND SENDS
TO AD.
DDO PREPARES EXPENDITURES / RECEIPTS STATEMENTS. RECONCILES WITH DAO.
CARRIES OUT RECONCILIATION OF CASH BALANCE WITH SBP.
133
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
134
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
135
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,
136
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.
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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.
138
OFFICE OF THECONTROLLER-GENERAL ACCOUNTS,
3rd FLOOR, TAIMUR CHAMBERS, 10-D WEST,FAZAL-E-HAQ ROAD, BLUE AREA,
ISLAMABAD
No. -CGA/DISTT-GOVT/2001 Dated: 11-08-2001
SUBJECT - GUIDELINES FOR DISTRICT GOVERNMENTS ACCOUNTSUNDER 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.
139
GUIDELINES FOR OPENING OF BANK ACCOUNTS AND
TRANSFER OF FUNDS
FORDISTRICT GOVERNMENTS, TEHSIL & TOWN MUNICIPAL
ADMINISTRATION, UNION ADMINISTRATION1. 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). A Local Fund for every District Government, Tehsil Municipal
Administration, Town Municipal Administration, and Union Administration.
ii). A District Provincial Account for every District Government, a Tehsil
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
140
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.
141
(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.
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(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.
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(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 District Provincial Account.
Head: 9201000-State Bank Deposits. (Account IV)
CR Provincial Government Account:
Head: 8308000-Funds Remitted to the District Governments.
(3). Releases to Tehsil Provincial Accounts by District
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)
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DAO's Books (Tehsil Books)
DR Head : 9201000-State Bank Deposits.
CR Head : 8309000-Funds Remitted to the Tehsil/Town Municipal
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.
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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.
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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
147
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
submission of the District Appropriation Account:
Closing of June (Final Accounts... 15 Sep.
Preparation of manuscript and submission to District Audit Officer.
15 Oct.
Returned by Audit...Correction/Adjustment, if any, 1st Nov.
As a result of Audit check... 5th Nov.
Finalization/printing/submission to the AG... 25th Nov.
Submission to Nazim by AG. 1st Dec.
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(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.
149
No. IT (FD) 3-4/2001
GOVERNMENT OF THE PUNJAB
FINANCE DEPARTMENT
Dated Lahore the 10th January, 2002
To
1) All Zila Nazims in the Punjab.
2) All District Coordination Officers in the Punjab.
Subject: - 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.
150
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. The Finance Minister, Punjab Lahore.
3. 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. The Chairman, Planning and Development Board, Punjab, Lahore.
7. The Secretary, LG&RD, Punjab, Lahore.
8. The Secretary to Governor, Punjab, Lahore.
9. All Administrative Secretaries to Government of the Punjab,
Lahore.
10 All Tehsil /Town Nazims in the Punjab.
(SHAHID MAHMOOD)
Additional Finance Secretary (Budget)
151
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. The Accountant General, Punjab, Lahore.
3. The Director General (Accounts) Works, Punjab, Lahore.
4. The Director General (Audit) Works, Punjab, Lahore.
5. The Director General (Civil Audit), Punjab, Lahore.
6. All District Accounts Officers in the Punjab.
(SHAHID MAHMOOD)
Additional Finance Secretary (Budget)
152
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:
153
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
154
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.
155
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) Non-salary budget
b) Annual Development Programme (ADP)
c) Khushhal Pakistan Programme (KPP)
d) Octroi Grant
e) Zila Grant/Goods Exit Tax (G.E.T.)
f) Urban Immoveable Property Tax Share (UIP)
156
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
157
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.
158
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.
159
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.
160
Annex-I
From
The District Coordination Officer_______________________
ToThe Executive District Officer_____________________
Memo. No.__________ Dated:____________
SUBJECT: 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-à-
vis 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. The Accountant General, Punjab, Lahore.2. The Secretary, Government of the Punjab, LG&RD Department,
Lahore.3. The Deputy Secretary (Budget), Finance Department, Lahore.4. The District Accounts Officer_____________.
DISTRICT COORDINATION OFFICER________________
161
Annex-IIFrom
The District Coordination Officer_______________________
ToThe Executive District Officer_____________________
Memo. No.__________ Dated:____________SUBJECT: 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. _____________________________________
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:
A copy is forwarded for information and necessary action to:1. The Accountant General, Punjab, Lahore.2. The Director General, Accounts Works, Lahore3. The Director General, Audit Works, Lahore.4. The Deputy Secretary (Budget), Finance Department, Lahore.5. The District Accounts Officer_____________.
DISTRICT COORDINATION OFFICER_______________________
No. & Date Even:A copy is forwarded for information to:
1. The Chairman, Planning & Development Department, Punjab, Lahore.
2. The Secretary, Government of the Punjab, LG&RD Department, Lahore.
DISTRICT COORDINATION OFFICER______________________
162
Annex-IIIDISTRICT GOVERNMENT
__________________To
The Chief Manager,State Bank of Pakistan, orManager, National Bank of Pakistan,(Name of city)
Subject: RELEASE OF FUNDS TO THE TEHSIL MUNICIPAL ADMINISTRATION(S) FOR THE MONTH OF 2002
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.
Non-Salary
KPP ADP Others Total
Total:
2. I am to request that necessary action may be taken under
intimation to all concerned Offices.
Yours sincerely,
District Coordination Officer_________________
No. & Date Even:
A copy is forwarded for information and necessary action to:
i) The Accountant General, Punjab, Lahore.
163
ii) 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. CR.
8309000-Funds remitted to Tehsil/Town Municipal Administration
Rs._____million
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) The Chairman, National Reconstruction Bureau, Chief Executive’s Secretariat, Islamabad.
ii) State Bank of Pakistan / National Bank of Pakistan, Head Office, Karachi.
iii) The Secretary, Government of the Punjab, Finance Department Lahore.
iv) The Secretary, Government of the Punjab, LG&RD Department, Lahore.
v) Tehsil Municipal Officer, _________. The department-wise breakup is being intimated separately.
District Coordination Officer
____________________Annex-IV
DISTRICT GOVERNMENT
_____________
164
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.31-
Misc., 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) The Secretary, Government of the Punjab, LG&RD Department,
Lahore.
ii) The Secretary, Govt. of the Punjab, Finance Department, Lahore.
iii) Accountant General Punjab, Lahore.
iv) The District Accounts Officer __________.
v) The Tehsil / Town Municipal Officer ___________.
District Coordination Officer
________________
165
Annex-VDISTRICT 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
TOTAL2. 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 2001-
2002.
District Coordination Officer_____________________
No. & Date Even
A copy is forwarded for information and necessary action to:-
i) The Secretary, Government of the Punjab, LG&RD Department, Lahore.
ii) The Secretary, Government of the Punjab, Finance Department, Lahore.
iii) Accountant General Punjab, Lahore.iv) The District Accounts Officer ____________.v) The Tehsil Municipal Officer, ____________.
District Coordination Officer__________________
166
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 Claimant’s Signature
Treasury Officer/ DAO/ AO
Admitted:
Objected to:
Auditor Asstt. Supdt.
Supdt.
167
Annex-VII
IMMEDIATE / OUT TODAY No. IT(FD)3-4/2001GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT
Dated Lahore the 29th December, 2001To
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)
168
CHIEF INSPECTOR OF TREASURIES
No. & Date Even.
A copy is forwarded for information and necessary action to:-
1. Mr. Daniyal Aziz, Consultant National Reconstruction Bureau, Chief Executive Secretariat, Islamabad.
2. The Secretary to Government of the Punjab, Local Govt. and Rural Development Department, Lahore.
3. All the District Nazims in the Punjab.4. All the District Coordination Officers in the Punjab.5. 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
169
ANNEX-VIIIFrom
*Tehsil/Town Municipal Officer,_______________________
To*The Tehsil /Town Officer,_____________________Memo. No.__________ Dated:____________
SUBJECT: 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. In accordance with the pro-rata current non-salary budgetary
appropriation available in respect of Public Health Engineering, Housing and
Physical Planning and Local Government Departments i.e.
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. Insofar Development/Khushhal Pakistan
Programme/Devolution Cost funds are concerned, Rs.______
(Rupees _________) are placed at your disposal for the
execution of the schemes mentioned below under
ADP/KPP/Devolution Cost.
Sr.# Name of Scheme Amount
170
Total:
TEHSIL/TOWN MUNICIPAL OFFICER________________________
No. & Date Even:A copy is forwarded for information and necessary action to:
1. The District Coordination Officer_____________________.2. The Secretary, Government of the Punjab, LG & RD Department,
Lahore.
3. The Deputy Secretary (Budget), Finance Department, Lahore.4. The District Accounts Officer_____________.5. Tehsil/Town Accounts Officer _____________
TEHSIL/TOWN MUNICIPAL OFFICER_______________________
*Score out where not applicable
171
Pension Certificate and Report Section.
i). Organizational Chart
ii) Verification of service qualifying for pension.
iii) Issuance of pension payment order.
iv) Commutation chart.
v) Issuance of Revised P.P.O’S
vi) Grant of Anticipatory Pension.
172
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.
173
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) Period of training during service.
iv) 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) Probationary period followed by confirmation.
vii) Half of period of apprenticeship.
3. The following periods are not counted as qualifying service for
pension:-
174
i) Leave without pay/absence without leave.
ii) Overstay of joining time, not regularized.
iii) Period after resignation from government service.
iv) 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) Period spent on training before joining the service.
vii) Half of the apprenticeship period.
viii) Period of deputation under local, autonomous body if
pension contribution has not been deposited.
4. 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. Appointing authority is the pension
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) Is declared medically invalid and unfit for future service.
6. 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
175
attaining the age of 60 years irrespective of the fact whether his
service is 25 years or less.
7. The formula of calculation of pension contribution is as follows:-
Formula:
Pension contribution = (Minimum of the time scale + maximum of the time scale) x1 2 3Example: 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.
Issuance of pension payment orders
After calculation of service qualifying for pension, most important thing is
ascertaining the pay of the civil servant. The following are treated as
emoluments reckoning for pension:-
i) Pay
ii) Special
iii) Personal pay
iv) Technical pay
v) Senior Post allowance
vi) Increments incurred during leave preparatory to retirement.
vii) 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:-
176
Pension= Last pay drawn x length of service x 7300
If the pension application is supported by following documents, a P.P.O
should normally be issued to the pensioner:-
i) Service Book where required, duly completed in all respects.
ii) Three copies of specimen signatures duly attested.
iii) Three copies of passport size photographs duly attested.
iv) Two set of thumb and finger impressions duly attested.
v) No demand certificate in respect of any dues of the government.
vi) No demand certificate from the Buildings Department.
vii) Last pay certificate.
viii) Invalidation certificate in original, in case the civil servant retires on
medical ground.
ix) Certificate regarding receipt or otherwise of anticipatory pension.
x) Consent of the civil servant regarding recovery of dues.
xi) Duly filled in commutation form.
xii) List of family members.
Family pension cases:
i) Death certificate in original.
ii) List of family member.
iii) Descriptive rolls of the family members along with marital status
and age of each member.
177
iv) Certificate to the effect that there is no other family member of the
deceased other than those mentioned in the list.
v) Guardianship certificate in the case of minor children.
vi) An undertaking for recovery of dues, if any, from
pension/commuted value of pension.
vii) Single widow certificate.
viii) No remarriage certificate.
Family members are as follows:-
i) Widow
ii) Widower
iii) Children
iv) Father
v) Mother
vi) Unmarried and widowed sister
vii) Divorced daughters.
viii) 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:-
178
Age next birthday
Number of years purchased
Age next birthday Number of years purchased
20 50.6304 50 22.8911
21 49.6676 51 22.0658
22 48.7066 52 21.2563
23 47.7467 53 20.4638
24 46.78884 54 19.6896
25 45.8314 55 18.9348
26 44.8758 56 18.2002
27 43.9215 57 17.4860
28 42.9688 58 16.7925
29 42.0179 59 16.1191
30 41.0089 60 15.4649
31 40.1218 61 14.8290
32 39.1767 62 14.2105
33 38.2336 63 13.6090
34 37.2929 64 13.0239
35 36.3551 65 12.4549
36 35.4203 66 11.9017
37 34.4885 67 11.3643
38 33.6503 68 10.8428
39 32.6361 69 10.3371
40 31.7160 70 9.8472
41 30.8007 71 9.3729
42 29.8907 72 8.9142
43 28.9800 73 8.4708
44 28.0891 74 8.0427
45 27.1990 75 7.6299
46 26.3172 76 7.2322
47 25.4444 77 6.8496
179
48 24.8516 78 6.4818
49 23.7301 79 6.1287
80 5.7901
4. 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
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 re-
marriage 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
180
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.
181
Treasury Section.1. Organisational Chart.
2. Functions of the Section.
3. Pension payments.
4. Transfer of P.P.O’S to Banks, other D.A O and Sub-treasuries.
5. Increases in pension.
6. Payment of pension to insane pensioners.
7. Issuance of duplicate P.P.O’s
8. Re-imbursement of medical charges to pensioners.
9. Opening of personal ledger accounts and authorizing withdrawals there from.
10. Assignment accounts.
11. Cheques issued lay the public works departments.
12. Re-validation or re-authorization of budgetary provisions
13. Issuance of credit certificates.
14. Passing receipt challans of stamps.
15. Receipts through transfer credit.
1. Deposit works.
2. Special cheques not payable in cash.
3. Refunds of revenue.
4. Refund of unused stamps
5. Revenue deposit repayments.
6. Repayment of lapsed deposits.
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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 Junior Auditor
Functions
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
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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) Payee’s account will be credited on realization.
iv) Disbursement Guaranteed.
v) Our Branch endorsement confirmed.
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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. After making the payment, pension-sanctioning authority of the
pensioner should be informed that the payment has been made.
8. 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. The both halves should be stamped as paid.
10. 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. Pension vouchers of regular monthly pension are entertained when
pension payment becomes due.
12. Life time arrears of pension on behalf of a deceased pensioner is
paid as follows:-
amount of claim authorities who can order payment
1.Claims upto Rs.1000/- 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
may be deemed sufficient.
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2.Claims upto
Rs.10000/-
Commissioners on the execution of
indemnity bond with such sureties as
he may require. If he is satisfied of the
right and title of the claimant and
considers that undue delay and
hardship would be caused by insisting
on the production of letters of
administration.
3. Claims exceeding
Rs.10000/-
Board of Revenue subject to the
conditions laid down in the foregoing
item.
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
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accordance with instructions of the government. Such pensioners need not to
contact the D.A.O if Government announces an increase in pension.
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 Pension Rate/conditions.
1-6-73 Rs. 1/- to Rs.5/- 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.
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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.
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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 30-6-
87. @ 4%.
Indexation of Pension 1-7-88
The indexation at the following rates is admissible who retired up to 30-6-
88 @ 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.
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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. Pensioners retired prior to 30-4-77 at the rate of 32 %.
b. 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. Pensioners retired prior to 30-4-77 at the rate of 15%.
b. Pensioners retired upto 31-5-91 at the rate of 10%.
c. Pensioners retired between 1-6-91 to 31-5-94 at the rate of 5%.
d. 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
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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) The gazetted retired civil servants shall submit their claim on forms
used for drawl of regular salary.
5) Claims of the non-gazetted pensioners are submitted by the district
head concerned on forms used for establishment pay bills.
6) 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.
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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:- OPERATION OF PERSONAL LEDGER ACCOUNTS
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.
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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).
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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
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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
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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
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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.
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(b) Nature and purpose for which personal ledger Account was
opened.
(c) Name of person or department operating Personal Ledger Account.
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 regarding lapseability of
grants/Personal Ledger Accounts stand 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
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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. Balance is available in the P.L.A.
3. The cheque is from the cheque book provided to the operator of the P.L.A.
4. 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. There is red entry on the cheque.
6. 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
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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: Through this
endorsement, the main branch of the bank confirms
endorsements of the branch.
7. A sealed advice of the cheque has been recorded. The operator of
the P.L.A issues the advice.
8. Payment of salary through self-cheque should not be allowed in
advance.
9. 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
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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 re-
imbursement 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) Stoppage of excess over budget.
ii) Minimization of misuse of “deposit work”.
iii) Stoppage of irregular transfer of funds through “special
cheques” & their subsequent retrievals.
iv) Stoppage of irregular expenditure against securities of
contractors.
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v) Stoppage of irregular expenditure against funds of other
schemes.
vi) Stoppage of misuse of “suspense accounts”.
vii) 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) Copies of the distribution of budget grant have been received in the
office.
2) Budget is available in the scheme.
3) Cheque has been issued, with cross entry upon it, by a Sub.
Divisional Officer; his signatures tally with his specimen signatures.
4) The cheque is from the chequebook supplied to the S.D.O.
5) 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) Cheque has been presented in the DAO before 21st of June.
10) 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
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these have partly been expended, the re-appropriation should not
be acted upon and it should be objected to.
11) Cheque has been issued within the last three months.
12) It is the same financial year. If a cheque is presented for re-
validation 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) P.W.D cheques must be disposed of within 24 hours.
15) 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.
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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 well-
defined 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
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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) The bill has been passed by the D.A. Section with condition "Not
payable in cash, payable through transfer credit".
ii) Heads of account have correctly been recorded on the bill and in
the receipt challans.
iii) 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) The entire cost of the work has been deposited into the Treasury.
ii) 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):-
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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.
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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:- Form No.STR 34 has been properly filled in and no column of it has
been left blank.
2:- 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:- Signatures of the issuing authority tally with its specimen signatures
available in the Treasury.
4:- The refund vouchers book from which the form S.T.R.34 has been
obtained was issued to the refunding authority from this Treasury.
5:- 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:- Five endorsements of the bank, described in detail in this
Annexure, are present on the voucher.
7:- The refunding authority has sent, in a sealed cover, advice
regarding issuance of refund voucher.
8:- Name of payee and his signatures or thumb impression appears on
the voucher.
9:- 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.
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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
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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 Sub-
Accountant 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
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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 SR-
2 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.
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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) Repayment voucher has been issued on form No.S.T.R 41.
2) It has been issued by the court or other authority, which accepted
deposits.
3) The refund voucher book from which the present voucher has been
detached was issued to the court by the Treasury.
4) The voucher has properly been filled in; name of payee has been
written clearly and there are no cuttings or over-writings.
5) The amount actually deposited and the amount ordered to be
refunded is written in figures as well as in words.
6) 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.
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7) The authority which orders repayment shall be informed of the
payment soon after it is authorized.
8) There is no variation in particulars noted in the voucher and the
advice received in sealed cover from the court, LAC etc.
9) The repayments is being ordered within three years of the deposit.
10) 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.
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Double Lock Section.
1. Organizational Chart.
2. Functions of the Section.
3. Issuance of stamps
4. Issuance of receipt books, chequebooks, and refund voucher books.
5. Verification of issuance of stamps.
6. Receipt and delivery of valuables.
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ORGANIZATIONAL CHART
D.A.O
Sadar Treasurer Assistant Treasurer
Peon
Head Constable - 1 Constables - 4
Functions
1. Custody of valuables and stamps.
2. Sale of Stamps (Judicial, Non Judicial, entertainment stamps, Special
adhesive stamps, Driving License stamps, Arms Stamps, Service Stamps,
Notorial Stamps, etc.).
3. Provision of cheque books and refund vouchers to various departments.
4. Preparation of monthly plus and minus statements of stamps.
5. Custody of material and ballet papers pertaining to previous general
elections.
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Issuance of stamps
The Double lock issues the following stamps:-
1 Court Fee Stamps.
2 Non Judicial Stamps
3 Revenue Stamps
4 Notorial Stamps
5 Special Adhesive Stamps
6 Driving License Stamps
7 Motor Vehicle Stamps
8 Arms License Stamps
9 Postal Stationery
10 Postal Stamps
11 Refugee Stamps
12 Central Excise Stamps
13 Air Mail Stationery.
14 Entertainment Stamps
15 Welfare Stamps
16 Tobacco License Forms.
17 Service Stamps
18 Defence Saving Stamps
19 Plain papers
20 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. A register of documents is
maintained to note all documents upon which special adhesive stamps are
affixed.
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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
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:- Signatures of the requisitioning officer tally with his specimen
signatures available with him.
2:- 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:- Whether requisite fee, if any, has been deposited in the Bank under
proper head of account.
5:- 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.
216
Issuance of voucher books should also be intimated to the A.T.O in
the same manner.
Verification of issuance of stamps
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.
217
Annex-C
Observance of punctuality and enforcement of office hours.
i) Hours of attendance.
ii) Leaving office during office hours.
iii) Attendance register.
iv) Penalty for late attendance.
v) Absence without leave.
vi) Casual leave account.
218
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:-
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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.
220
Annex-D
EDUCATION AND CO-OPERATION OF THE DRAWING AND DISBURSING
OFFICERS.
i) Responsibilities of the D.D.O’s.
ii) The points the D.D.O’s should see before submission of claims in the
D.A.O.
iii) Other important points
221
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) All totals in the bills should be personally checked by the D.D.O's.
ii) The grant number and codal classification of accounts should be
properly entered in the relevant columns of the bills.
iii) The claims should be valid charges, supported by necessary
vouchers, bills. The D.D.O's should ensure that all the
bills/vouchers are properly cancelled after their use to obviate their
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) Specimen signatures of the D.D.O along with telephone number
should invariably be sent to the D.A.O's for their record.
vi) All changes in the sanctioned strength of the establishment should
be promptly communicated to the D.A.O.
vii) Sanction of the competent authority, where required, should be
attached with the claims.
222
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) All amounts received on behalf of government or withdrawn for
disbursement should invariably be entered in the cash book.
xi) 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.
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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.
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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) Those are free from computing errors;
ii) Those conform to specifications given in the bidding
documents;
iii) Those do not contain any conditions, especially effecting the
cost; and
iv) 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
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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,
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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.
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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
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any negligence on the part of the custodians, and institute arrangements for their
disposal after obtaining sanction of the competent authority.
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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
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person of ordinary prudence would exercise in respect of
expenditure of his own money.
ii) The expenditure should not be prima facie more than the
occasion demands.
iii) No authority should pass any order which will be directly or
indirectly to his own benefit;
iv) Public moneys should not be utilized for the benefit of a
particular person or section of the community unless:
a) the expenditure involved is insignificant; or
b) a claim for the amount can be enforced in a court of
law, or
c) the expenditure is in pursuance of a recognized policy
or custom.
v) 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 Accountant-
General/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.
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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.
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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
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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.
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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.
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Recoveries should make from the officials for private use of
telephones, staff cars and government vehicles, etc.
Absenteeism
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.
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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 /
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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.
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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
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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.
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.
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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.
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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 revenues side they issue demand notes and
collect revenues and the accounts of revenues and expenditures are compiled
concurrently.
242
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
'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.
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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;
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';
244
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.
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.
245
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
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
246
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
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
247
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 re-
appropriation?
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.
248
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.
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.
249
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.
250
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 Nature of claim Time limit
1 Issuance of pay slip to gazetted officers. One week.
2 Issuance of last pay and service certificate. One week
3 Regular pay bill if received till 27th of the
month.
Latest by Ist of the
month.
4 Regular pay bill if received after 27th of the
month
within 4 days.
5 Bills of adjustment for the purpose of drawl of
pay.
10 days.
6 Bills of arrears of increases in pay. 15 days.
7 Bills of leave salary, LPR, Leave encashment. One week.
8 Certificate of Admissibility of leave 4 days
9 Bills of subsistence allowance 3 days.
10 Provision of service statement. 10 days.
11 Provision of certificate of G.P Fund
deductions.
2 days.
12 Verification of income tax returns 2 days
13 Certificate regarding reaching the maximum
of a pay scale.
2 days
14. Bills of reimbursement of medical charges. 7 days
251
15 T.A. bills 7 days
16 Execution of orders of courts regarding
attachment of pay of officers.
On receipt of bill.
17 Countersigning L.P.C of officials. 2 days
18 Utility bills 3 days
19 Other contingent bills 7 days
20 Bills of advances 7 days
21 Pay fixation. 15 days
22 Allotment of G.P fund account number. 2 days
23 Issuance of G.P. fund balance slips on
demand
2 days
24 Final payment of G.P Fund. 15 days
25 Adjustment of missing credits. 7 days
26 Transfer of G.P Fund balance to other
districts.
20 days
27 Payment of first pension, .(commuted value of
pension.
7 days
28 Regular pension. 2 days
29 Transfer of PPO's to banks, other districts. 7 days
30 Noting increases in pensions. 15 days
31 Issuance of Duplicate P.P.O's. 7 days
32 Re-imbursement of medical charges to
pensioners.
7 days
33 Opening of Personal Ledger Accounts. 7 days
34 Clearance of cheques of PLA P.W.D
cheques.
24 hours.
35 P.W.D cheques 24 Hours.
36 Issuance of credit certificate. 7 days
37 Passing credit challans of stamps Same day.
38 Incorporating triplicate challans of transfer
credit bills
3 days
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39 Refunds of revenue 7 days
40 Repayment of revenue deposits. 12 days
41 Repayment of lapsed deposits. 15 days
42 Issuance of stamps from the Double Lock. 2 days
43 Issuance of receipt books, cheque books,
refund voucher books etc.
4 days
44 Verification of issuance of stamps 2 days
45 Delivery of valuables. Same day.
46 Keeping valuables in the Double Lock. Same day.
47 Verification of service qualifying for pension. 10 days
48 Issuance of CBR and P.P.O. 15 days
49 Issuance of revised P.P.O. 15 days
50 Granting Token for bills received. As soon as bills are
received.
51 Bills of advances out of G.P Fund. 7 days.
253
Annex-F
INSPECTIONS
i) General questions.
ii) Special aspects.
254
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) Is the out put of work of various functionaries reasonably satisfactory?
Does it conform to accepted standards?
3) Is the rate of disposal of work satisfactory? Do actual pending bills tally
with arrears statement?
4) Is there any indication of unnecessary accumulation of work at any point?
5) Are " please speak" cases attended to promptly? Is the number of such
cases excessive?
6) Are periodical reports and returns sent out to the authorities concerned
regularly? Is a list of such reports and returns maintained?
7) Are bills, claims received on token, or diary? Are tokens available in
sufficient quantity?
8) Is there any wastage or misuse of stationary, furniture, electricity,
telephone etc.?
9) Is the procedure for the receipt, custody and issue of stationery efficient?
10) Are stock register, dead stock register depict true position of stocks?
11) Are the working conditions satisfactory?
12) Is the office lay out convenient? Are tables and chairs properly arranged?
13) Are the office premises kept clean and tidy?
14) Are the necessary reference books, codes, manuals, prescribed forms of
reports and returns readily available?
15) 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?
255
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) Are the arrangements for the identification of pensioners convenient to the
pensioners?
20) Are the schedules of G.P Fund deductions being regularly detached from
the bills and provided to the G.P Section?
256
PART B/ SPECIAL ASPECTS
TREASURER’S SECTION
SR.NO Salient items to be examined during inspection of DAOs/STOs
DOUBLE LOCK
1 Cipher Code
a) Kept in safe custody. (Rule 3.47 PER Vol-I).
b) Submission of Annual possession certificate. (Rule 3.47 (6) PFR
Vol-I)
c) Incorporation of upto date amendments. (Note 1 under Rule 3.47
PFR Vol-I).
2 Pad Locks Register
a) Maintenance of pad locks register. (Rule 3.11 PFR Vol-I, Page
marking and certificate).
b) Use of padlock on the occasions as in indicated in the pad locks
register.
c) Annual oiling and cleaning & certificate. (Note bellow rule 3.11 (4)
PFR Vol-I).
d) Physician verification of spare pad locks. (Rule 3.11 (5) PFR Vol-I).
e) Disposal/replacement of unserviceable pad locks. (Page marking &
certificate). (Rule 3.11 (3-A) PFR Vol-I).
3 Duplicate Keys.
As above. (Rule 3.11 (5) PFR Vol-I).
4 Duplicate Keys with the D.C
a) To check the safe custody of duplicate keys of strong room with the
D.C (Rule 3.11 (5) PFR Vol-I).
b) Annual physical checking/verification of key deposited.(Note below
para 4 of Rule 3.11 of the PFR Vol-I).
c) Recording of certificate in the register regarding annual verification.
(Rule 3.11 (7) PFR Vol-I).
5. 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
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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) To be taken out frequently.
ii) Not to be taken out frequently (Rule 3.8 (iv) PFR Vol-I).
b) File containing the orders of the Collector for their deposit and
disposal. (Rule 3.8 (ii) PFR Vol-I).
c) Monthly physical verification of valuables. (Rule 3.8 PFR Vol-I).
7 Cheque Books/Refund Voucher Books and PWD Receipt Books.
a) 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).
b) Physical verification of balance of cheque book, receipt books and
refund books. (rule 3.46 PFR Vol-I).
c) Authentication of counting certificate in the cheque books. (Rule
3.46, PFR Vol-I).
d) 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) Physical checking of stamps kept in the double lock. (Rule 3.12 (b)
PFR Vol-I).
c) Authentication of entries/cuttings & over-writings in the double lock
registers. (Rule 3.25 PFR Vol-I).
d) Recording No. and date of dispatch of advises after verification in
the double lock registers. (Para 23 (ii) appendix 9 of PFR Vol-I).
258
e) Comparison of entries of double lock registers with the advises
received from C.Os Karachi. Para 23 (iii) appendix 9 PFR Vol-I).
f) Preparation of certificate regarding half yearly verification in Form
A&T -48. (Para 35 of appendix 9 of PFR Vol-I).
g) 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) Attestation of daily indent by the DAO/TO/CTO. (Para 28 of
appendix 9 PFR Vol-I).
b) Comparison of entries in double lock/single lock registers and
fortnightly verification under para 28 of Appendix 9 of PFR Vol-II.
c) Preparation of abstract. of the items indented from double lock.
d) 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. MONTHLY PLS AND MINUS STATEMENTS OF STAMPS.
(Para 36 of appendix 9 PER Vol.11.
12. MONTHLY STAMPS TRANSACTION STATEMENT OF STAMPS IN
FORM A&T,347.
13. HALF YEARLY VERIFICATION OF STOCKS OF STAMPS. PARA 28OF
APPENDIX 9 OF PER VOL-11.
14. STOCK EXPENSE REGISTER.
a) Maintenance of stokes expense register. Para 29 of appendix 9 of
PER VOL-11.
b) 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
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Finance Department vide letter No. SO(TT)26(6)/69,dated
19.8.1986.
15. 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) Payment of cash handling allowance without deposit of securities.
16. REGISTER OF DOCUMENTS.
a) 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) Duties assigned to the Treasurer/ Assistant/DAO vide para
10,11&12 of interaction ibid followed.
17. MAINTAINING OF REGISTER OF R.R.
18. ISSUANCE OF STAMPS ON THE SAME DAY AFTER/PROPER
VERIFICATION OF CREDIT AND PERMISSION OF DAO/STO
NO.IT(FD)6-19--83, DATED 28.12. 1986.
19. REGISTER OF INVOICES.
(Under para 23(iii) of Appendix 9 per Vol-11
20. REGISTER OF ACCOUNTS OF EMPLOY WOODEN BOXES (SALE
PROCEED QUARTERLY STATEMENT).
21 PERIODIC INDENTS/ANNUAL FORECAST.
Para a of auditing 9 of PFR Vol-II
22 INDEX REGISTER OF FILES.
23. REGISTER OF INSPECTION.
24. 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.
260
ACCOUNTANTS DEPARTMENT.
1. CASH BOOKS.
Under rule 3.16 of PER Vol.-I and para 32 of account code Vol.-II
a) Maintenance of each books/page marking whether maintained
financial year-wise.
b) Cross checking of entries with compilation registers and its
attestation by the DAO (Rule 3.19 PER Vol.-I)
2. COMPILATION REGISTERS SUB-SIDERY REGISTERS. Para 35 of
Account Code Vol-I.
a) Compilation of accounts.
b) Classification etc. (Paras 32-41 of account code Vol-II.
3. 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. B.T. Register. (Para 39 of Account Code Vol-II).
6. REGISTER OF STATE BANK DEPOSIT.
Para 44 Account Code Vol-II.
7. REGISTER OF MISS-CLASSIFICATIONS BY BANK. (Para 45(c) of
Account Code Vol-II.
8. REGISTER OF ADJUSTMENT BY TRANSFER under Para 39 of Account
Code Vol-II.
9. 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.
10. RECEIPT SCHEDULES.
12.5 Budget Manual.
261
11. SUBSIDIARY REGISTERS (RECEIPTS).
Para 35 of Account Code Vol-II.
12. Refunds i) Specimen signatures of issuing authorities/collecting
banks/advice of issuing authority/challans intimation of refund book issued
to DDO's by Treasurer.
Rule 4.58 of Subsidiary Treasury Rules.
13. Verification of C.T.Rs (REVENUE DEPOSIT SECTION) (Rule 3.38 PER
Vol-I.
14. MAINTENANCE OF REGISTER OF REVENUE
DEPOSITS/ATTESTATION BY DAO/details of credits OF STO's.(Article
64 of Account code Vol-II).
15. Repayment of Revenue Deposits. (Para 66 of Account Code Vol-II).
16. Repayment accounts register.
17. Observance of formalities on admitting refunds. (4.58 of STR).
18. a) Lapsed deposits statement.
b) Countersignatures of Collector. (Para 127 of Account code Vol-II).
19. 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. Certificate of genuineness of receipt entries by Collector in the R.D.
register as required under para 124 of Account Code Vol-II.
21. Clearance Register. (Para 125 of Account Code Vol-II).
22. Maintenance of file of specimen signatures of DDO/refund issuing
authority for verification of genuineness of payments.
23. Incorporation of payments made at Sub-Treasuries/Daily Saiahas
(Para 77 of Account Code Vol-II and Rule 3.18 of PFR Vol-I).
24. PERSONAL LEDGER ACCOUNTS
i) Maintenance of P.L Accounts Register. (12.16) PFR Vol-I.
ii) Maintenance of P.L. Accounts pass books/verification. (12.19) PFR
Vol-I
iii) Receipt challans/authorities.
262
iv) File for intimation slips of cheque books in use.
v) Cheque passing Register. (Provincial).
vi) Specimen signatures file.
vii) Plus and Minus of P.L Accounts. (Article 110 Account Code Vol-II).
viii) 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 9-
12-90.
25. PENSION
i) Guard files (along with index).
ii) Index Register of PPO (from same office, others districts & A.G.
Punjab, Lahore, etc. (Rule 4.94 of STR).
iii) 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) Annual physical appearance/attendance of pensioners. (Rule 4,107
STR).
v) Post Audit of pension paid by Banks. As per instructions issued
vide No.SO(TT)2-3/87, dated 19-8-87.
vi) Recovery of overpayments (if paid in excess by Banks.) vide
instructions No.SO(TT) 9(1)/77, dated 27-8-77.
vii) 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 19-8-
1987.
viii) Correction of loss payment to pensioners.
ix) Authorization of first payment of commutation/pension by two
DAO's as per instructions issued vide No.SO(TT)2-3/87, dated 19-
8-87.
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 & 22-3-
73.
263
ii) Discharging of paid vouchers Rule 3.63 PFR Vol-I.
iii) Receipt of account from the bank and entry thereof in the register
PAO-52.
iv) 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) Maintenance of departmental cash book as per rule 2.2 of the PFR
Vol-I.
2) Budget/contingent register.
3) Payment/receipt schedules (as DDO).
4) Maintenance of service books. Rule 12.10 & 12.11 of CSR Vol-I.
5) List of officials retiring within next year.
6) Option of G.P Fund.
7) Index register of files.
8) Service stamps accounts register.
9) Receipt/dispatch registers.
10) Register of library books.
11) Stock registers (consumable & non-consumable articles).
12) Stationery expense register.
13) Telephone accounts register.
14. History sheets of typewriters, calculators and other machinery
equipments.
15) Acquaintance roll of pay/TA (affixing of revenue stamps).
16) Actual payees receipts.
28 P.W.D. CHEQUES.
i) Maintenance of budget register of P.W.D.payments through
cheques
ii) Checking of excess/over-payments against the provision of budget.
264
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.).
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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.
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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.
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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.
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