session – 1 overview of functioning of treasury regional training institute, ranchi structured...

Session – 1Session – 1Overview of Functioning of Overview of Functioning of

TreasuryTreasury

Regional Training Institute, RanchiRegional Training Institute, RanchiStructured Training Courseware on Structured Training Courseware on

Treasury InspectionTreasury Inspection

RTI Ranchi – Structured Courseware on Treasury Inspection – Slide 1/2

Learning ObjectivesLearning Objectives

At the end of the session, participants will be At the end of the session, participants will be able to explain theable to explain the– Importance of TreasuryImportance of Treasury– Its organisational setupIts organisational setup– Its main functionsIts main functions


Treasuries – An IntroductionTreasuries – An Introduction

Cash transactions of Government carried Cash transactions of Government carried out through Treasuriesout through Treasuries– Collection, Disbursement and Accountal of Collection, Disbursement and Accountal of

ResourcesResources

DistrictDistrict– One District TreasuryOne District Treasury– Sub-Treasuries, under District TreasurySub-Treasuries, under District Treasury


Types of Treasuries/ Sub-TreasuriesTypes of Treasuries/ Sub-Treasuries

Banking TreasuryBanking Treasury– Cash receipt/ payment handled by bank branch, Cash receipt/ payment handled by bank branch,

attached to treasuryattached to treasury

Non-Banking TreasuryNon-Banking Treasury– Handles both cash receipt/ payment, as well as Handles both cash receipt/ payment, as well as

accountingaccounting– Segregation of duties between cash handling Segregation of duties between cash handling

and accountingand accounting


Rendering of AccountsRendering of Accounts

Treasury renders account of receipts and Treasury renders account of receipts and payments to AGpayments to AG– Non-compiled AccountsNon-compiled Accounts– Booked under 8658-Suspense, 111- DAABooked under 8658-Suspense, 111- DAA

DAA cleared by AG Office CompilationDAA cleared by AG Office Compilation

– Net Accounting, exceptNet Accounting, except Book Transfers for specified heads by TreasuryBook Transfers for specified heads by Treasury Gross Accounting for such headsGross Accounting for such heads


Rendering of Accounts (Contd.)Rendering of Accounts (Contd.)

Two accounts per monthTwo accounts per month– 11stst List List– 22ndnd List List

Sub-treasury accounts included in District Sub-treasury accounts included in District Treasury AccountsTreasury Accounts

Computerised systems in TreasuriesComputerised systems in Treasuries


Cheque-Drawing OfficersCheque-Drawing Officers

Forest, PWD etc.Forest, PWD etc. Attached to TreasuryAttached to Treasury

– Reconciliation with TreasuryReconciliation with Treasury

Issue cheques, collect receiptsIssue cheques, collect receipts Letter of Credit SystemLetter of Credit System Monthly Accounts directly to AGMonthly Accounts directly to AG


Drawing & Disbursing Officer (DDO)Drawing & Disbursing Officer (DDO)

Lowest Government unit for receipts/ Lowest Government unit for receipts/ paymentspayments

For paymentsFor payments– Submits bills to treasurySubmits bills to treasury

For receiptsFor receipts– Submits challans to treasury, with cashSubmits challans to treasury, with cash

DDO creation by Finance Department/ AGDDO creation by Finance Department/ AG Control on specimen signaturesControl on specimen signatures


Importance of TreasuryImportance of Treasury

Vital role in implementation of government policies Vital role in implementation of government policies and programmesand programmes– Backbone of State Government’s financial Backbone of State Government’s financial

administrationadministration Codes, manuals and proceduresCodes, manuals and procedures Deviation from rulesDeviation from rules

– Adverse impact on financial accountabilityAdverse impact on financial accountability No authority to keep payment claim / deposit No authority to keep payment claim / deposit

pendingpending– Honour or object without delayHonour or object without delay


Organisational SetupOrganisational Setup

Collector

Treasury OfficerAssistant Treasury

OfficerSupervisor

Treasurer(Non-Banking

Treasury)Accountant


Collector’s RoleCollector’s Role

Overall in-charge of Treasury and revenue Overall in-charge of Treasury and revenue administrationadministration

Personal responsibility forPersonal responsibility for– proper accountal of receipts and payments,proper accountal of receipts and payments,– maintenance of records,maintenance of records,– submission of returnssubmission of returns

Appointment of Treasury Officer does not Appointment of Treasury Officer does not absolve Collector of responsibilityabsolve Collector of responsibility


Collector’s Role (Contd.)Collector’s Role (Contd.)

Periodical ExaminationPeriodical Examination– Every 3 months for cash and depositsEvery 3 months for cash and deposits– Every 6 months for opiumEvery 6 months for opium– Every year for stamps, securities, drafts and chequesEvery year for stamps, securities, drafts and cheques

During ExaminationDuring Examination– Actual stock corresponds to book balance, and is under Actual stock corresponds to book balance, and is under

lock and keylock and key– Deposit registers maintained properlyDeposit registers maintained properly

While taking/ handing over chargeWhile taking/ handing over charge– Stock verification, intimation to Chief SecretaryStock verification, intimation to Chief Secretary


Treasury Officer and StaffTreasury Officer and Staff

Appointed by Finance DepartmentAppointed by Finance Department– Reports to CollectorReports to Collector– Responsible for proper discharge of duties by Responsible for proper discharge of duties by

himself and subordinate staffhimself and subordinate staff Under Treasury OfficerUnder Treasury Officer

– TreasurerTreasurer Cash handling at Non-Banking TreasuryCash handling at Non-Banking Treasury

– AccountantAccountant Recording of cash transactionsRecording of cash transactions


Accountant’s Role (Contd.)Accountant’s Role (Contd.)

Responsibility forResponsibility for– Compilation of accounts and returnsCompilation of accounts and returns– Ensuring compliance with all rules and ordersEnsuring compliance with all rules and orders– Highlight irregularitiesHighlight irregularities– Inspect accounts records of sub-treasuriesInspect accounts records of sub-treasuries


Handling of Govt. FundsHandling of Govt. Funds

All money received asAll money received as– Government revenues (Consolidated Fund)Government revenues (Consolidated Fund)– Deposit into Government Custody (Public Deposit into Government Custody (Public

Account)Account)

Should be immediately deposited in the Should be immediately deposited in the TreasuryTreasury

Cannot be used to meet departmental Cannot be used to meet departmental expensesexpenses


Withdrawal from Government’s Withdrawal from Government’s AccountAccount

Withdrawals only under authority ofWithdrawals only under authority of– Treasury Officer (TO), orTreasury Officer (TO), or– Authorised officials of AGAuthorised officials of AG

Treasury Officer may permit withdrawals forTreasury Officer may permit withdrawals for– Payments due from Govt. to DDOPayments due from Govt. to DDO– Funds to DDO to pay claims ofFunds to DDO to pay claims of

Govt. ServantsGovt. Servants Private PartiesPrivate Parties

– Direct payment to private partiesDirect payment to private parties


Withdrawals (Contd.)Withdrawals (Contd.)

– Investment of Public Account funds by Investment of Public Account funds by authorised officialsauthorised officials

TO should decline demands forTO should decline demands for– Unauthorised paymentsUnauthorised payments– Payments not as per rulesPayments not as per rules

TO responsible to AG forTO responsible to AG for– Acceptance of validity of claims paidAcceptance of validity of claims paid– Evidence of receipt by payeeEvidence of receipt by payee


Withdrawals (Contd.)Withdrawals (Contd.)

Payments only within district where claim Payments only within district where claim arises, except pensionarises, except pension

Urgent payments ordered by Collector to be Urgent payments ordered by Collector to be reported to Finance Dept and AGreported to Finance Dept and AG

DDO’s Signature to be verified DDO’s Signature to be verified Recoveries ordered by AG should be made Recoveries ordered by AG should be made

by TO without delayby TO without delay


Bills Presented by DDOsBills Presented by DDOs

In printed formIn printed form Duly signed, and corrections attestedDuly signed, and corrections attested Full accounting classificationFull accounting classification Should only cover 1 Major HeadShould only cover 1 Major Head Sanction order enclosed Sanction order enclosed


Daily Accounts and Returns Daily Accounts and Returns (Banking Treasury)(Banking Treasury)

From BankFrom Bank– Daily account of receipts and payments (daily Daily account of receipts and payments (daily

scroll) with challans and vouchersscroll) with challans and vouchers– Passbook/ Register of receipts and paymentsPassbook/ Register of receipts and payments

Forwarded daily to TOForwarded daily to TO TO will verify total daily receipts and payments, and TO will verify total daily receipts and payments, and

signsign


Daily Accounts (Contd.)Daily Accounts (Contd.)

TO RegistersTO Registers– Register of receipt challans issuedRegister of receipt challans issued– Register of orders for paymentRegister of orders for payment

Entries in bank scroll to be reconciled with Entries in bank scroll to be reconciled with TO registers, and discharge date enteredTO registers, and discharge date entered


Daily PostingDaily Posting

Individual receipts and payments toIndividual receipts and payments to– Cash Book, orCash Book, or– Subsidiary RegistersSubsidiary Registers

Net Daily Receipts / PaymentsNet Daily Receipts / Payments– To Register for Reserve Bank DepositsTo Register for Reserve Bank Deposits

session – 1 overview of functioning of treasury regional training institute, ranchi structured...

Documents

treasury inspection

treasury officer

treasury inspectionsession

charge of treasury

rendering of accounts

account of receipts

collectors role contd

cash handling