Page 1 :
AAYUSH ACADEMY, FINANCIAL HAND BOOK, VOLUME -01, CHPATER-01, CHAPTER II General Principles and Rules A –, , RECEIPT OF MONEY General Instructions Rule 4. (1) All transactions in India to which any officer of the, Government in his official capacity is a party, must without any reservation, be brought to account., Moneys received by him as dues of Government or for deposit in the custody of Government should be, paid in full without undue delay, into a Treasury or into the Bank to be credited to the appropriate, account and made part of the general treasury balance. Other moneys, the deposit of which in the, custody of Government is not authorized by Government, should be dealt within accordance with Rule, 5. The appropriation of departmental receipts to departmental expenditure is prohibited except to the, extent indicated below: -, , In the case of Post Offices, cash receipts may be used by Postmasters, under departmental regulations,, for departmental purposes, only the surplus collections being remitted by the Postmasters to the Bank, or Treasury; other postal officials (including officials of the Railway Mail Service) should, however, lodge, in full, at the most convenient Post Office, any money which they receive in their official capacity, and, the Postmaster should credit it to the appropriate head of account, and make it part of the cash balance, of his office., , Rule 5. (a) Under Article 284 of the Constitution, all moneys received by or deposited with any Officer,, employed in connection with any affairs of the Union in his capacity as such, other than Revenues or, public money raised or received by Government shall be paid into the Public Account., , Rule 6. The Public Account is the account maintained of moneys which have passed into the custody of, Government. It does not cover moneys paid to a Government servant in an official or any other capacity,, unless such moneys have been paid by such Government servant into the Government account at a
Page 2 :
Treasury or the Bank. Every Government servant, therefore, should, without undue delay, pay into the, Public Account all moneys received by him as dues of Government or for deposit in the custody of, Government; and no Government servant should deposit in a private Bank moneys withdrawn from the, Public Account., , Rule 8. The Head of an Office where money is received on behalf of the Government must give the payer, a receipt/e-receipt duly signed by him after he has satisfied himself before signing the receipt that the, amount has been properly entered in the Cash Book. If the circumstances so justify, the Head of the, Office may, at his discretion, authorize any other Officer subordinate to him, whether Gazetted or nonGazetted, to sign such receipts for him., Unless otherwise provided, the receipt should be granted in eACG.-67 The money received by Head of, an Office shall be credited directly into Government account by using appropriate General Ledger, accounts of SAP. The person remitting the amount will be provided with appropriate acknowledgement, in e-receipt. NOTE -Manual use of ACG 67 upon introduction of technology and digitisation of working of, the Department has been discontinued., , B. PAYMENT OF MONEY General Instructions, , Rule 10. Save as expressly provided by or under these rules, or unless the Government after, consultation with the Comptroller and Auditor General otherwise direct in any case, moneys may not be, withdrawn from the Public Account without the written permission of the Disbursing Officer or of an, Accounts Officer., , Rule 11. An Accounts Officer may, within the limit of his own jurisdiction, permit withdrawal for any, purpose. Unless expressly authorized by these rules or by any special orders of the Government, an, Accounts Officer may not permit withdrawal at a place outside the limits of his own jurisdiction, , Rule 12. (1) Except as otherwise provided in these rules, a Disbursing Officer may permit withdrawal for, all or any of the following purposes, namely: - (i) To pay sums due from the Government to the Drawing, Officer;, , (ii) To provide the Drawing Officer with funds to meet claims likely to be presented against the, Government in the immediate future by: -
Page 3 :
(a) Other Government servants, or (b) Private parties., , (iii) To enable the Drawing Officer to supply funds to another Government Officer from which to, meet similar claims; (iv) To pay sums on account of loans and advances. (2) Unless expressly, authorized by an Accounts Officer, a Disbursing Officer shall not permit withdrawal for any purpose, not specified in sub-rule (1) of this rule, , Rule 15. As a general rule no Authority may incur any expenditure or enter into any liability involving, expenditure from Public Funds until the expenditure has been sanctioned by general or special, orders of the President or by an authority to whom power has been duly delegated in this behalf, and the expenditure has been provided for in the authorized grants and appropriations for the year., , Rule 16. A Disbursing Officer has no general authority to make payments on demands presented at, the office, his authority to make payments being strictly limited by the provisions of the rules in this, Handbook and of the financial rules included in the Postal Manual. If a demand of any kind is, presented at a disbursing office for payment which is not authorized by or under the rules referred, to above, or is not covered by a special order received from the Accounts Office, the Disbursing, Officer shall decline payment for want of authority. A Disbursing Officer has no authority to act, under an order of Government sanctioning a payment, unless it is an express order to him to make, the payment, and even such special orders should, in the absence of urgency, be sent through the, Accounts Officer., , Rule 18. All cheques, bills, etc., preferable at a Treasury for payment being non-negotiable, instruments, can be endorsed only once in favour of the specific party to whom the money is to be, paid; Provided that—, , (1) When the endorsement is made on a cheque or a bill in favour of a Banker, a second, endorsement can be made by the Banker in favour of a messenger or an agent for collection only,, (2) In the case of a contingent bill which has been endowed in favour of a firm of suppliers, etc. the, firm, etc., can re-endorse to its Banker or to a messenger for collection only, and the Banker can in, turn endorse it to a messenger or an agent for collection only. Thus, in all three endorsements are, permissible in such cases, provided that of the three one is to the payee's Banker and one is to a, messenger or agent for collection only, and
Page 4 :
(3) An Agent may, notwithstanding anything contained in Clauses (1) and (2) for the purpose of, collecting the cheque or bill, endorse it in favour of his messenger., , Seal and Specimen Signature, , Rule 19. The Accounts Officer will supply disbursing offices under his jurisdiction with a copy of the, specimen signature of all Gazetted Officers serving under him who are authorized to sign payment, orders on bills and vouchers or to issue letters of authority for payments to be made at such, disbursing offices. Before a Disbursing Officer pays a bill on the authority of an order purporting to, have issued from the Accounts Office, he should verify the signature on the order by comparison, with the specimen signature of the Signing Officer., , Final payment of GPF money, , Rule 19-B. The copy meant for the Disbursing Officers of all General Provident Fund final payment, authorities, issued by the Circle Postal Accounts Office shall be stamped with a special metallic, embossing seal bearing the name of the office of issue. All Disbursing Officers should, before acting, on the authorities for final payment issued by the Circle Postal Accounts Offices, in addition to the, usual checks and safeguards, ensure and verify that the payment authority has been embossed with, the specific metallic seal of the office of issue. It should also be ensured that no final payment of the, General Provident Fund is made without verification of the special seal and specimen signature of, the Officer authorized to issue payment authorities for the GPF claims. The specimen of the special, seal which would be supplied by the Heads of Circle Accounts Offices to facilitate verification should, be kept in the personal custody of the Disbursing Officers. It envisages crediting the GPF final, payment directly into the Bank/POSB account of the subscriber without obtaining the signature of, the subscriber., , Presentation of claims, Rule 20. Save as otherwise provided, any person having a claim against the Department will present, his bill duly receipted and stamped, where necessary., , Claims by Government servants
Page 5 :
Rule 21. No payment shall be made on account of pay or allowances drawn for the first time from a, disbursing office by a Government servant other than a person newly appointed to Government, service, unless the claim be supported by a Last Pay Certificate in the prescribed form., Rule 22. Unless otherwise provided in the rules, no payment may be made without the orders of the, Accounts Office to a Government servant transferred from another Department or on return from, leave out of India., Rule 23. The pay, leave salary or allowances of a Gazetted Government servant, or a reward or, honorarium payable to a Gazetted Government servant or any pension shall not be paid until the, Accounts Officer has intimated to the Disbursing Officer the rate at which payment shall be made;, provided that the Government may, for special reasons and with the concurrence of the, Comptroller and Auditor-General, waive the provisions of this rule., , Arrear Claims, , Rule 24.No claims against the Government, other than those by one department against another or, by a state Government, not preferred within two years of their becoming due can be presented, without an authority from Circle Accounts Officer, provided that such claims are not exceeding Rs., 500 if presented within three years of their becoming due may be paid without pre-check by the, Circle Accounts Officer: Provided further that this rule shall not apply to the following categories of, such claims: (a) claims on account of pensions, the payment of which is regulated by Rule 124 of F. H. B. Volume, II;, (b) claims on account of interest on Government Securities; and, (c) any other class of payments which are governed by special rules or orders of THE GOVERNMENT., , (2). LTC Claims- Needs for observing prescribed procedures. - 1. This Department receives a large, number of recommendations for relaxation of some or other provision of the Central Civil Service, (Leave Travel Concession) Rules 1988, (herein after referred to as LTC (Rules) in individual cases. It is, seen that; in most cases the situation arises are due care had not been exercised by the Government, servant and/or the administrative authority in claiming LTC or in examination., , 2. The references mainly relate to: (a) Late submission of claims;
Page 6 :
(b) Bookingofair-ticketsthroughanagencynotauthorizedbytheGovernmentforthis purpose; (c) Travel, by private vehiclesand, (d) Claims for wrong block of years., 4. Late Submission of Claim:-In terms of Rules 14 & 15 (vi) of LTC Rules, the time limit for submission, of LTC claims:i) Within three months of completion of return journey, if no advance is drawn;, ii) Within one month of completion of return journey, if advance is drawn., , Powers have been delegated, as under, to the Ministries/Departments to relax these limits with the, concurrence of the Financial Advisor., a. Up-to 6 months, if no advance is drawn;, b. Up-to 3 months if advance is drawn, provided the Government servant refunds the entire, amount of advance (not merely the unutilised portion) within 45 days of completion of return, journey., , Rule 27. Claims of officials to arrears of pay and allowances, increments, or other dues which are not, preferred *within two years of their becoming due shall not be investigated and authorized by Circle, Account Officer unless –, (i), (ii), , In the case of claims more than two years, but not more than **six years old, specific, approval for investigation of such claims is received from the Head of the Department, In the case of claims more than six years old and connected records are available in the, Circle Postal Accounts Office; specific approval to investigation of such claims is received, from the Head of Department., , Payments to Persons not in Government Service, , Rule 30. Where a person not in the Government service claims payment for work done, services, rendered, or articles supplied, the Disbursing Officer, unless otherwise expressly provided, should, require(a) The submission of the claim by the Head of the Circle, or other responsible Government Officer, under whose immediate order the service was done or the equivalent was given for which payment is, demanded, unless there are express orders of the Government to the contrary.
Page 7 :
(b) Failing the above in cases when it may be necessary to pay the amount of a bill drawn by a person, not in the Government Service, and also when the authority of the Head of the Circle or responsible, Officer is insufficient, an order from the Circle Accounts Officer should be sought, by furnishing that, Officer with any particulars for obtaining the sanction of the higher authority, should such be needed., Payments to Persons not in Government Service, , Rule 30. Where a person not in the Government service claims payment for work done, services, rendered, or articles supplied, the Disbursing Officer, unless otherwise expressly provided, should, require(a) The submission of the claim by the Head of the Circle, or other responsible Government Officer, under whose immediate order the service was done or the equivalent was given for which payment is, demanded, unless there are express orders of the Government to the contrary., (b) Failing the above in cases when it may be necessary to pay the amount of a bill drawn by a person, not in the Government Service, and also when the authority of the Head of the Circle or responsible, Officer is insufficient, an order from the Circle Accounts Officer should be sought, by furnishing that, Officer with any particulars for obtaining the sanction of the higher authority, should such be needed., , C-MISCELLANEOUS, Preparation of bills and their check, Rule 35. The following general instructions regarding the preparation and form of bills should be, observed by the Drawing Officer: (a) Printed forms of bills as prescribed should be adopted as much as possible. Bills for all debit heads, item should be drawn in separate forms printed in red ink on white PPAER., (b) If, in any case, the use of a bill purely in Hindi or any Indian language is unavoidable a brief, abstract should be endorsed in English under the signature of the preferring officer stating the, amount, the name of the payee, and the nature of the payment., (b) All bills must be filled in and signed in ink. The amount of each bill should, as far as whole rupees are, concerned, be written in words as well as in figures. The fractions of a rupee may however, be, written in figures after the words stating the number of rupees, but in case of there being no, fraction of a rupee the word "only" should be inserted after the number of whole rupees and care, should be taken to leave no space for interpolation as in the following examples: -"Rupees twentysix only”.“Rupees twenty-five and Paise 25.
Page 8 :
Rule 36. Bill which under any rule or order requires to be pre-checked by the Circle Accounts Officer, before disbursement shall not be presented to the Disbursing Officer except through the Circle Accounts, Officer., , Rule 37. The following checks should inter alia, be adopted by a Disbursing Officer in dealing with bills, presented for payments: - (a) That the bill has been prepared as prescribed in Rule 35; (b)That the claim, is admissible, the authority good, the signature and countersignature, where necessary, genuine and in, order and the receipt, a legal quittance; (c) That the arithmetical computations on the bill are accurate., , Rule 38. After all the checks prescribed in the rules have been applied and the Disbursing Officer is, satisfied about the admissibility of the claim, he should- (a) Make necessary correction, if any, in the bill, under his dated initials; (b) Endorse a pay order on the bill authorizing the treasurer to make the, payment., , Rule 41. A Disbursing Officer must not honour a claim which on the face of it is disputable; he will, request the claimant to refer the question to the Accounts Officer. Nor may he undertake, correspondence for a Government Servant or a private individual making a claim to any special, allowance or concession, but will request him to address the Accounts Officer either direct or through, his own official superior, as the case may be., , Rule 42. The Disbursing Officer shall be responsible to the Accounts Officer for acceptance of the, validity of a claim against which he has made payment, and for evidence that the payee has actually, received the sum charged. He shall obtain sufficient information as to the nature of every payment; he is, making and shall not accept a claim which does not normally present that information, unless there are, valid reasons for omission which should be recorded., , Stamps for Receipts, , Rule 48. Receipts for all sums exceeding Rs.5000 must be stamped under Section 3, read with item 53 of, Schedule 1 of the Indian Stamp Act (Act II of 1899) unless they are exempt FROM STAMP DUTY., , Losses of Government Property
Page 9 :
Rule 51. Rule 269-B of the Postal Manual, Volume II, prescribes the procedure for the maintenance of, inventories in respect of Government stores. A detailed record of all losses of Stock and Stores, prescribed in Rule 269-C, should be maintained and an annual statement showing all deduction entries, (other than those of issues) made in the inventory together with full particulars of the articles and the, reasons for removing them from stock should be submitted to Accounts Office annually on the 15th May, of each year in the form prescribed by the Director General for the purpose., , Internal Check against irregularities, waste and fraud, Rule 56. In the discharge of his ultimate responsibilities for the administration of a grant or part of a, grant placed at his disposal, every Controlling Officer must satisfy himself not only that adequate, provisions exist within the departmental organization for systematic internal checks calculated to, prevent and detect errors and irregularities in the financial proceedings of his subordinate Officers and, to guard against waste and loss of public money and stores, but that the prescribed checks are, effectively applied. Accidents, Rule 57. Any serious loss of immovable property such as buildings, communications, or other works, caused by fire, flood, cyclone, earthquake, or any other natural cause, should be reported at once by the, departmental Officer to the Head of the Department and by the latter to Government. When a full, enquiry as to the cause and extent of the loss has been made, a further report should be made to the, Head of the Department, a copy of the report or an abstract thereof being sent simultaneously to the, Audit Officer/Accounts Officer concerned. NOTE 1. —The term “serious loss" occurring in this rule, should be interpreted as meaning all losses exceeding *Rs. 50,000in value. The term 'value' for this, purpose means the BOOK VALUE., , Responsibility for losses, etc., , Rule 58. Every Government Officer should realize fully and clearly that he will be held personally, responsible for any loss sustained by Government through fraud or negligence on his part and that he, will also be held personally responsible for any loss arising from fraud or negligence on the part of any, other Government Officer to the extent to which it may be shown that he contributed to the loss by his, own action or negligence. Detailed instructions for regulating the enforcement of such responsibility will, be found in Appendix 2.
Page 10 :
Standards of financial propriety, , Rule 60. Every Officer incurring or authorizing expenditure from public funds should be guided by high, standards of financial propriety. Every Officer should also enforce financial order and strict economy at, every step and see that all relevant financial rules and regulations are observed, by his own office and by, subordinate Disbursing Officers. Among the principles on which emphasis is generally laid are the, following:(1) Every Officer is expected to exercise the same vigilance in respect of expenditure incurred from, public moneys as a person of ordinary prudence would exercise in respect of expenditure of his own, money., (2) The expenditure should not be prima facie more than the occasion demands., (3) No authority should exercise its powers of sanctioning expenditure to pass an order which will be, directly or indirectly to its own advantage., , Control of expenditure, , Rule 61. Each head of a department is responsible for enforcing financial order and strict economy at, every step. He is responsible for observance of all relevant financial rules and regulations by his own, office and by subordinate Disbursing Officers., , Demand for information by audit, Rule 66.It is the duty of every Departmental and Controlling Officer to see that the Account/Audit, Officer, as the case may be is afforded all reasonable facilities in the discharge of his functions and, furnished with the fullest possible information for which he may ask, for the preparation of any account, or report, which it is his duty to prepare.
