1 guiding principles for an officer high standards of financial propriety financial economy...
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GUIDING PRINCIPLES FOR AN OFFICER
High standards of financial propriety Financial Economy Observance of Financial Rules and
Regulations Expenditure within limits of authorised
grants
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RULES AND REGULATIONS OF FINANCIAL MANAGEMENT
GENERAL FINANCIAL RULES, 1963 DELEGATION of FINANCIAL POWERS
RULES, 1978 CENTRAL GOVERNMENT ACCOUNT
(RECEIPTS AND PAYMENTS) RULES, 1983
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PURPOSE OF FINANCIAL MANAGEMENT
To prevent and detect errors and irregularities
To guard against loss and wastage of public money and stores
To apply prescribed systemic checks effectively
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BUDGET - definitionOxford English Dictionary has defined Budget as “a statement of probable revenue and expenditure for the ensuing year with financial proposals founded thereon annually submitted by the Exchequer for the approval of the House of Common…….hence, any analogous statement, estimate or proposals”
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BUDGET - elements
Budget comprises of three documents- a statement of the sums required for the due
conduct of affairs during the period to which such estimate relates;
an estimate of the probable income from revenue and loans on the basis of existing provisions of law regarding public dues and credit operations.
a statement showing conditions of treasury in terms of the assets and liabilities.
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BUDGETING
Involves preparation of the estimates; collection and custody of funds; disbursement and control of expenditure,
and recording of all the transactions whose
legality and regularity are duly verified by the independent offices
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ANNUAL FINANCIAL STATEMENT
AUTHORITY Article 112 (1) of the
Constitution Rule 45 of General
Financial Rules, 1963
DEFINITION
Statement of Estimated Receipts and Expenditure
of Central Government of a Financial Year
-also referred as
‘BUDGET’
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Departmental Accounting System Introduced in 1976 Applicable to all Central Civil Ministries/
Departments and Union Territories
Exceptions Defence, Postal/ Telecommunications
Departments and Railways have their own departmental accounting system.
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BROAD FEATURES
Chief Accounting Authority –Secretary of the Ministry/ Department
C & AG – provides directions to the Ministries and Departments
Pay and Accounts Officer (PAO) Cheque-Drawing and Disbursing Officer
(DDO)
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Modes of Payments
By Drafts
Legal requirement Pay and Allowances Private parties
Mail Transfer
To Autonomous Bodies To Private Sector
Undertakings To Grantee Institutions
for payment of grant-in-aid
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PROCEDURE – for Payments Submission of bills by non cheque drawing officers Pre-check of bills Payments – Form CAM 13 Post-check – objection memo Cancellation of sub-vouchers Consolidation of Accounts – Compilation Sheet
(CAM 33), Receipts (CAM 37), Disbursements (CAM 38) and Consolidated (CAM 39)
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Provident Fund Account - Maintenance Allotment of Account Number – Rule 4 of
GFRs Nominations Advance / Withdrawals Transfer of account Annual Accounts Accounts for Group ‘D’ staff
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Relevant General Financial Rules Rule 62 & 63(1)
Rule 45 r.w.r.54 & 62
Rule 53
Rule 60
Submission of Budget estimates by individual offices/ Heads of Departments
Plan and Non-Plan estimates to be given separately
Financial management for the months when budget is pending
Communication of grants to the Departments
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Budget preparation
Parliament
Ministry /Department
Estimate budget
Plan
Non- Plan
Office C
Office B
Office A
Grants
Grant
G
Grant
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Relevant General Financial Rules
- contd. Rule 70
Rule 64, 69, 71 & 72
Rule 48 & 59
Provision for Supplementary grant
Application of the grant towards a given financial year
Submission of estimates in the given forms
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REVISED ESTIMATES – aspects
Due dates Budget Estimates Plan and Non-Plan Estimates Revised Estimates Final Estimates Communication of Budget Grant
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CONTROL OF EXPENDITURE
–procedure and requirements Bill Passing –cum-Expenditure Control Register : Bill-wise and
Head-wise in Form GFR 9 [Rule 66(2)(i)] Monthly Statement –to be maintained by the DDOs Broadsheet in GFR 10 – to be maintained by the Controlling
Officer Statement in GFR 11- by the Controlling Officer Complete Expenditure in GFR 12 – to be shown by Head of the
Department Quarterly returns Liability Register Appropriation Audit Register (CAM 62)
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RECONCILIATION-procedure
PAO to send figures of expenditure/ receipts booked for a month and progressive figures up to that month, from the DDO-wise Expenditure Control Register or Compilation Sheet to the DDOs
DDO will send monthly statement (containing departmental figures, PAO’s figures, differences, and details of adjustments pending with DDO/ PAO) showing progress of reconciliation to Head of Department
Head of Department to furnish a Quarterly Certificate to the PAO certifying the correctness of the figures
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FINANCIAL POWERS - relevant GFRs and DFPRs
Defines - General powers
Head of Department – the ‘Authority’
Head of Office Powers of subordinate
authorities Delegation of enhanced
powers
Rule 34 GFRs & Rule 5 DFPRs
Rule 3(f) GFRs and Schedule I to DFPRs
Rule 14 DFPRs Rule 13 DFPRs
Rule 13(2) and 35 DFPRs, GID 1 to Rule 13 DFPRs.