fcKr -qq'~ ~/Finance & Accounts Divisionif)4'i11~ ~ m~/Employees State Insurance Corporation

tfqcftq 1fCR/Panchdeep Bhawan~ ~.ant.ufi. lfI1f ~ ~-110002/C.I.G. Marg, New Delhi-ll0002f3iS:ll@ Phone-0l1-23234336, VOIP-I0011129, email fal-hg@esic.in.jd-f1@esic.nic.in

F. No. Z-1311311/2011-12-A/Cs-I Dated 23/08/2019

To,The Deputy Director/Assistant Director (Fin)lIn-charge-DCBORO/SROsIESIC HospitalslESIC Medical College

Subject:- Accounting of Income & Expenditure of DCBO-reg.

Madam/Sir,

As you are aware that DCBO has started functioning in some of Regional and SubRegional Offices and accounting of Income & Expenditure of these DCBOs is to be donethrough ROs/SROs in their monthly accounts. However, it has been observed thataccounting of DCBOs is not being done as per set accounting procedures." To ensureappropriate accounting, the following procedure needs to be followed by all AccountingUnits: -

1. Accounting of salary & other allowances in respect of Medical Officers,Paramedical staffs and ministerial staffs posted in DCBO: -

S.No. Heads Accounting1 Salary & Other To be booked under the Accounting

Allowances of Medical heads earmarked for hospital's MedicalOfficers Officers

11 Salary & Other To be booked under the AccountingAllowances of heads earmarked for hospital'sparamedical staffs Paramedical Cadre... Salary & Other To be booked under the Accounting111

Allowances of heads earmarked for field work'sMinisterial staffs Ministerial Cadre

2. Other expenditure such as House Keeping, Security, Electricity, Water charges,Rent and other administrative expenses are to be booked under concerned heads offield works.

3. Accounting of Inventories:(I) Opening Balance: - Head-wise closing balance of inventory as on end of

the fmancial year will be opening inventory for Next Financial year and willappear in Receipt side. The same amount will appear in progressive balanceof respective head of inventory in all the month in Receipt side. Closingbalance of Payment side for any month will be the Opening balance of nextmonth (receipt side) and will appear in for the month column.

(II) Receipt/Purchase of InventoriesA. Inventories Provided by the ESIC Hospitals

Action at the level of ESIC Action at the level ofHospital DCBO

(ii) Based on suspense slip, accounts.DCBO will book

(ii) Hospital will book the inventories III concernedinventories (issued to DCBO) inventories heads III

in the account head "Original payment side andItems" (Account code "Responding Items" III

1070401000000001) and will Receipt side.reduce the concerned head of

(i) The Hospital will preparesuspense slip in triplicate, 2copies will be sent to DCBOand one copy to concernedRO/SRO III respect ofmedicines and otherinventories supplied to DCBOalong-with complete list ofmedicines/inventories such asname of the item, value,delivery challan number, dateand other relevant information.The suspense slip will also besent through email.

inventory in payment side.

(i) After receipt of suspenseslip III respect ofinventories provided byhospitals, DCBO willverify the items with the listand acknowledge thereceipt in proper seal andsignature of DCBO Ill-

charge on the second copyof suspense slip and send tohospital through emailcopy to RO/SRO.

will(iii) DCBO

Action at thelevelRos/SROs

of

(i) ROs/SROswill obtain themonthlyprogress reportfrom all theDCBOs in theform of A-19and the samemay be'consolidatedandincorporated intheir monthly

B. Local PurchaseIf the Medicines and other inventories are purchased by DCBO locally, theaccounting will be done as under: -

a) If inventories are received and payments are made to the suppliers inthe same month in which inventories received, then concernedinventories will be booked and "Cash with Bank" will be reduced inpayment side.

b) If medicines and other inventories are received from suppliers andentries are also made in stock register based on bills/delivery challanbut payment could not be made in the same month, in this case,DCBO will create liability under the head "Suppliers Bills Payable"(Account code 2030801010006) in the Receipt side of the monthlyprogress report and inventories will be booked in concerned

incorporate inventory III

DCR and submit toRO/SRO as usual.

b) bills, payments will be booked in the head "Suppliers Bills Payable"(Account code 2030801010006) in Payment side. Details of suchinventories such as Name ofthe firm, date, amount and other relevantdetails must be maintained separately.

(ITI) Issue of InventoriesAs and when medicines and other inventories are issued to beneficiaries, they willbe booked as expenditure under the head "Drugs and Dressing" in Payment sideand accordingly inventories will be reduced from concerned inventories heads inPayment side.

(IV) Closing BalanceClosing Balance of Inventory for the Month in Payment side will be OpeningBalance + Receipt during the month - issue during the month. Closing balance ,inprogressive balance column will be same as for the month. Closing balance ofpayment side will be opening balance of Receipt side for the next month.

4. Circular issued by this office vide letter No. F-121121112013-14/Acs-1 dated19.06.2013 and F-121121112015-16/Acs-1 dated 07/11/2016 regarding InventoryAccounting may be referred in case of any doubt.

Enclosure:- As above.

-:FINANCE & ACCOUNTS DIVISION/

fc:m -c.rcrmm ~EMPLOYEES' STATE INSURANCE CORPORATION

~~61fa:rr~PANCHDEEP BHAWAN, C.I.G. MARG, NEW DELHI-2

~ aWcf, ~.~.;,fr.~, o:r$"~-2Phone -011-23234336, VOIP-IOO1l129, email-fal-hq@esic.in.dir-fin@esic.nic.in

F-12/ 12/1/2013-14/ A/c5-1 Dated 19.6.2013

To,The Director (Fin)/ Joint Director (Fin)/Dy Director (Fin)/ Asstt. Director (fin)ESIHospitals/ Director (Medical), Delhi .•.

Sub: Accounting Procedure of Inventory.

Sir,

Inventory accounting is introduced from Financial Year 2012-13 as a part of

new accounting policy. During 2012-13, being first year of new accounting system,inventory was booked only at year end but from financial year 2013-14 onwards,inventory accounting is to be done month wise. This will be done on the basis ofstatement of purchase and issue received from Store Department of respectiveaccounting unit and suspense-slip received from Central Store, 0 (M) 0 (For items

received from Central Store).Accounting process of inventory will be as follows.-

1. Opening Inventory (Receipt Side) - Head wise closing balance of inventory ason 31.03.2013 will be Opening Inventory in April' 2013 and will appear inReceipt Side. (For the month Column.). The same amount will appear in

; Progressive Balance of respective head of inventory in all the months (in

Receipt Side).Closing Balance (Payment Side) for any month will be the Opening

Balance of next month (Receipt Side) and will appear in for the month Column.

E:\C Orive\ACCOUNTS·I\OOF\Annual Accounts\ANNUAl ACCOUNTS 2013-14\Annual Accounts 2013-14Ietters.docx

,

r

'PurchasesI Receipt during the month: - If inventory is received and pavrnent;

/J is made to suppliers, then respective Inventory will be increased in PaymentSide and Cash with Bank will be reduced (Payment side). If inventory isreceived in Store but bill is not raised by supplier, Inventory will be increasedin Payment Side and Suppliers I service providers / contractors bill payabtes(203080100000006) will be booked in Receipt Side. (At the time of making

paymentto Suppliers,203080100000006 will be booked in Payment Side.)If Inventory is received from Central Store or Other Hospitals then at the

time of transfer of Inventory, Central Store / Transferring Unit MUST issueSuspense Slip with full detail. On issue of suspense slip, D{M)D will book -

.•• f

Original items (107040100000001) in Payment side and Cash with Bank will-be reduced in Payment Side (If payment is made to supplier) or Suppliers /service providers / contractors bill payables (203080100000006) in Receipt

Side (If bill is not raised by supplier) .If Inventory is transferred from store (From one Hospital to another

Hospital), then Original items (107040100000001) will be booked in Payment

side and respective inventory will be reduced in Payment Side.On receipt of inventory the receiving unit will book Inventory in Payment

Side and Responding items (206040100000002) in Receipt Side.For delay in preparation of monthly accounts due to non receipt of

Suspense Slip, Central Store/Issuing unit will be held responsible.

3. Issue of Inventory during the month: - At the end of every Month, head wiseissue detail will be provided by main store in-charge to Finance & Accounts

Department. The value of issue will be booked as expenditure in Payment Side

and Inventory will be reduced in Payment Side.

4. Closing Balance (Payment Side):- Closing Balance of Inventory For the Monthin Payment side will be Opening Balance + Receipt during the month - Issueduring the month. Every month Closing Balance in Progressive Balancecolumn

will be same as For the month.

E:\C Drive\ACCOUNTS-I\DDF\Annual Accounts\ANNUALACCOUNTS 2013-14\Annual Accounts 2013-14Ietters.doc)(

.' .Year End Procedure {31102/2014} :- At the end of the year on 31st March, value

of inventories lying with Sub-Stores I Department will be provided by

'main store in-charge to Finance & Accounts Department. On receipt of this

detail Finance & Accounts department will increase different inventories inPayment Side and Decrease the actual head of expenditure in Payment Side.This activity is to be done in the monthly Accounts of March '14 or March(Final}'14. However all the above activities will be done every monthl year in

future, till modified instruction, if any, is issued.

• •

Example: - Medicine Inventory (104020100000001). Closing Balance in March

{Final}'2013 t 1000001-

Month Opening Balance Purchase Issue During Closing BalanceDuringthe

the MonthMonthA B C D E F G

For the Progre- '{ '{ For the Progre-month(~) ssivetr) rnonthtt)- ssivett)

(B+D-E) (F)April' 13 100000 100000 300000 200000 400000 400000

May'13 400000 100000 ·,50000 200000 250000 250000

June'13 250000 100000 - 180000 70000 70000

July'13 70000 100000 400000 300000 170000 170000

Store In-charge will provide monthly Store Information latest by 10th of Nextmonth so that monthly accounts could be submitted to Hqrs in time.

This is issued with approval of Director (Finance).

Yoursf~.

@~ S' ,"I \ ~\L?'(Hemant Kumar Pandey)

Dy Director (Finance), Hqrs

I

Cc: 1. All Medical Suptd./ Director(Medical) Delhi, Noida) __ 2. PSto Medical Commissioner, Hqrs.

) -61 of]E:\C Drive\ACCOUNTS·I\DDF\Annual Accounts\ANNUAl ACCOUNTS 2013-14\Annual Accounts 2013-14Ietters.docx

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fct:<:r lJ'Cf ~ m=rm/ FINANCE& ACCOUNTSDIVISION

Cfliiill{) ~ 6ftm fa1m:rI~ 3icfcTf, ~.3fT$". ~. ~, ~ ~-2.EMPLOYEES'STATEINSURANCECORPORATION,PANCHDEEPBHAWAN,

c.I.G. MARG, NEW DELHI-2

~ 011-23234336;Z! jd-f1@esic.oic.io

F/12/12/1/201S-16/A/cs-1 New Delhi, 7th Nov' 2016

To

The Medical Superintendent

All ESIC Hospitals

The Director (Medical) Delhi/Noida. .. ff

Subject: -

Sir,

Inventory Accounting-reg.

This has reference to procedure for inventory accounting in medical units of ESIC. ESIC is

following the system of accrual accounting since financial year 2012-13 and inventory accounting

extremely important to prepare true and fair monthly and annual accounts of ESIC. The instructions

regarding inventory accounting has already circulated vide letter no.F-12/12/1/2013-14INCs-1 dated

19.06.2013 available on ESIC website at serial nO.327/2013. Comprehensive trainings on store

accounting and procedure were also conducted for store in-charges at the time of introduction of inventory

accounting in ESIC.

However it is observed that despite clear instructions regarding inventory accounting the stores

department of ESIC Hospital and Directorate (Medical) of ESIC are not following the same meticulously

resulting in abnormal delay in submission of monthly accounts and may result wrong booking of

expenditure/inventory which is a financial irregularity and extremely objectionable. In this connection, the

procedure/methodology to be followed by the stores department of ESIC Hospital \ Directorate (Medical)

is once again reiterated as under:-

1. The stores department accounts for receipt and issue of inventory and must submit a statement of

inventory in following format to accounts department by 7tl1 of the following month to which

inventory statement relates.

SI Particulars Opening Additions during Issued during the month Total Closing(A) Balance the month To To issued balance

(B) (C) (Bills paid+ Dispensaries Hospitals (F) (B+C-F)Liabilities) (D) (E)

1. Medicines - RC-Medicines -Locat Purchase ,

Total Medicines

2. Surgical Items -Disposables etc

Surgical items - Specialitems \ implants etc.

Total surgical items

3. X-Ray films and chemicals

4. lab chemicals and reagents

5. linen

6. Liveries

7. Cutleries etc.

2. Often the stores department receives inventories from various suppliers and enters that in the

stock register but passing of bills is not done in the same month. In all such cases, the stores

department along with the inventory statement must submit a list (inventory head wise) of all such

bills (in the format given below) for creation of liability under accounting code Suppliers bill

payables (accounts code -203080100000006) to head of Finance & Accounts with a copy to

Drawing & Disbursing Officer (000) . On receipt of the statement, the DDO will deduct the liability

amount from the respective budget head as liability towards medicine expenditure has been

created. On the other hand, Finance & Accounts Branch will increase inventory in monthly

accounts and simultaneously book liability against such inventory. At the time of payment of these

bills, the 000 will pass the bill against the liability already created under the head Suppliers bill

payables (accounts code -203080100000006) and Finance & Accounts branch will also exercise

utmost care in payment and accounting thereof.

Details of liabilities to be created for inventory addition for the month of '

AmountSr. No. Name of the firm Bill \ Challan no. and date

3. Along with the monthly statement of inventory, the stores department must enclose the statement

of all additions (inventory head wise) made to the inventory during the month in the format given

below.

Statement of additions made to the inventory for the month of ,

AmountSr. No. Name of the firm Bill \ Chanan no. and date

4. The stores department while conveying sanction of bills / drawing of bills must affix a red stamp on

it which should be 'TO BE PROCESSED UNDER LIABILITY'.

•

-. 5. Similarly the Cash Branch (Drawing and Disbursing Officer) must apply due diligence which .

drawing bill for liabilities created in past and must not deduct the amount of bill from the budget

while drawing the bill against liability as this will result in double deduction from budget. While

drawing the bills for liabilities, the cash branch must affix a red stamp on the face of the bill which

should be 'TO BE PROCESSED UNDER LIABILITY'.

6. Inventory issued by the Central stores at D(M)D to various hospitals situated in Delhi\NCR must

not be booked into the expenditure of D(M)D and the same should be transferred to various

hospitals by way of suspense slip. The stores department at the time of submission of monthly

inventory statement must attach a statement of issue of inventory to various hospitals by name.

7. Hospitals receiving inventory from the Central Stores at D(M)D must res~ond to the suspensJ slip

by 5th of succeeding month for inventory received during preceding month and take the value of

inventory issued to them into their inventory.

8. Submission of inventory statement in time is crucial and the due date must be complied

meticulously by the stores department to avoid financial irregularities. Issuance of inventory

statement by the Central Stores at D (M) D is particularly important as it involves preparation of

accounts of other hospitals situated in Delhi\NCR also. For all other hospitals this is important for

preparation of their monthly accounts as well as maintenance of financial discipline.

In view of above, it is requested to strictly adhere the instructions contained herein above

to avoid financial irregularities and timely preparation of ESIC monthly! annual accounts.

This issue with the approval of Director (Finance)

~eIY'

(Hem~t Kumarpand~ll \,bDy Director (Fin)

Copy to: -

(i) All JD (F)\DD (F)\ AD (F) for information and necessary action.

(ii) Website content Manager for uploading on website.