Functions of Accounts Branch

Functions of Accounts Branch

On March 9, 2020; the Indian Express reported news concerning embezzlement by the staff members of the accounts branch in the Police Department of Chandigarh. A Special Investigation Team was constituted to probe the scandal through the transfer of allowances, Leave Travel Allowance into the salary accounts of 40 police personnel. The Superintendent of Police (S.P.) transferred the suspected employees to investigate whether they tampered with the accounting records or not. 
The organizations are governed by rules for utilizing the amount either provided by the Government (in case of public sector organizations) or raised from the market (in case of private sector organizations). The rules are taught in various training workshops at the Administrative Training Institutes of India. The private sector organizations showed their financial information and get it audited from the Chartered Accountants (CAs). In the case of public sector organizations, the accounts branch under the supervision of the Controller of Accounts i.e. Chief Accounts Officer or Drawing and Disbursing Officer; performs various functions.

Functions of Accounts Branch in Organizations of Government of India:

The Government of India Organizations i.e. Central Public Sector Organizations are supposed to perform various functions to ensure proper utilization of budget, funds, and monies realized for specific purposes.

(i) Consolidation of Accounting Information:

The Controller General of Accounts (CGA) working under the Department of Expenditure in the Ministry of Finance, Government of India; requires accounting information from each public sector organization after consolidation in their concerned office of Principal Accounts Office (PAO). Each Government organization process its payments through PAO and also deposits its receipts through PAO.

The Accounting Information is prepared in form of the appropriate Head of Accounts. The Annual Head Wise Appropriation Accounts and Statement of Transactions are prepared for the office and based on records of each office, consolidated statements are prepared of the Ministry.

(ii) Maintenance of Banking Records with Reconciliation of Accounts:

All transactions are not performed through Principal Accounts Office, in other words, the transactions which are related to payments and receipts in Banking Accounts, are required to be maintained separately. It is required to reconcile the cash with the balance of bank accounts every month.

(iii) Internal Audit:

For each Government Organization, it is required to ensure compliance with financial rules. The accounts branch keeps the accounting records as per the rules of the Government but to ensure the proper compliance of rules, it is required to conduct the internal audit are regular intervals.

For effective conduct of internal audit, the Head of Department deputes the Accounts Officers of one office to another office and vice-versa and directs to check the irregularities. The officers are trained by the Administrative Training Institutions (ATIs) in various skills relating to the internal audit including use of Information Technology, Rules, Effective Accounting Systems, and Policies.

(iv) Use of Computers and Information Technology:

The more the use of information technology, more the effective financial control will be. It is a must to use information technology for effective financial administration. The Government organizations of Central Government, are required to use the computers and information technology as per the directions from the Ministries. Nowadays, the organizations are utilizing the COMPACT Software and e-Lekha portal for computerizing the accounting records as well as for generating various types of consolidated statements of their offices.

(a) e-Lekha:

The e-Lekha software is used by the Principal Accounts Offices to generate accounting reports including Grant-wise Reports, Major Head-wise Reports, Revenue Receipts, Payments Records etc.

It is basically an initiative of the Government of India through which the e-Governance can be strengthened. By uploading daily abstracts of accounts through PAO offices, the ministries can easily access the payments and receipts of each office and ensure the proper flow of cash.

(b) Central Plan Scheme Monitoring System:

CPSMS (Central Plan Scheme Monitoring System) is another tool that helps Government to monitor the payments or disbursement of amounts under each Government scheme and ensure payments to real beneficiaries for whom the schemes are formulated. The schemes are incorporated into the software.

(v) Preparation of Reports for Government:

The Accounts personnel are committed to preparing the following reports for the use of the Government:

i. Appropriation Accounts
ii. Finance Accounts

iii. Appropriation Audit Register

iv. Put Through and PSBS Report

v. DDR Ledger Head

vi. IEBR (Internal External Budgetary Resources)

vii. Net Expenditure report

viii. Expenditure Reports of Income Tax, Interest, Pension, Loan, CGEGIS, etc.

ix. Quarterly reports of Pay & allowances of all PAOs employees.

x. SCT (Statement of Central Transactions)

xi. Progressive expenditure report.

xii. DDO wise Head of Account wise Budget monitoring (In PAOs)

xiii. Release of loans, repayment of loans & interest payment thereon.

*Copyright © 2019 Dr. Lalit Kumar. All rights reserved.

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