Accounting Financial Procedures in Haryana Government

 Accounting Financial Procedures in Haryana Government

-Dr. Lalit Kumar Setia

There are three types of funds were maintained:

1.    Consolidated Fund:

All the receipts and payments which are done through the treasury, are come under the Consolidated Fund. Only powers are granted to withdraw the money, as per the sanctioning authority. The budget is used for taking the approval of the public/citizens through their representatives. The budget document is prepared every year and submitted to the FD by 31^st December of the previous year. For example for FY 2022-23, the proposed budget should be submitted by 31^st December 2021. After getting the budget proposal from all departments, it is presented in the assembly/parliament and the amount is allocated by 31^st March of the last year. In the field office, firstly BM-10 is prepared. Thereafter BM-2 is prepared. The DDO (HoO) will send the BM-2 to the Budget Controlling Officer (Mediators between HoO and HoD) èBudget Controlling Authority (Head of Department) èFD

The FD will prepare the consolidated form of The budget proposal and the same is converted to the Budget Speech. After allocation of the budget, the same is communicated from top to bottom.

FM èFDèBCAèBCOèDDO.

How to spend sanctioned Budget:

Seek Administrative and Financial Sanction / approval.

In each department, there are delegated powers for sanction of expenditure.

HoO – 5000 (for recurring exp.) and 10000 (for non-recurring exp.)

HoD – 50000 (for recurring exp.) and 100000 (for non-recurring exp)

FD – Full Power

If the amount of expenditure is more than the the capacity of sanctioning authority then the file will be sent to the next competent authority. In such a case, if the amount of expenditure is bifurcated into two amounts for taking the sanction at the lower level and spend the same. Then it will be considered financial irregularity, known as Split-Up Case.

Delegation of Financial Power

To speed the work of the office, generally the HoD delegates its financial powers to the HoO or Mediators.

Similarly, the FD also enhanced the powers of HoD with delegation. For example:

Suppose FD increased the power of HoD to 500000 from 100000.

HoD increased the power of HoO to 100000 from 10000.

Can HoD increase the powers of HoO further up to his delegated powers?

No. The rule is “The delegated powers cannot be further delegated”.

èAfter getting the approval of the expenditure to be done, from the competent authority

Firstly prepare the estimated expenditure in figures either with the help of approved sources or GeM or amount spent in earlier purchases.

Procure Goods / Services / Works.

Mode of Procurement:

èApproved Source èIf the items are available with the approved sources then we have to procure from them. In such as no audit objection can be raised towards the payment authority. The list of approved sources is available on https://dsndharyana.gov.in/

The Approved Source can be denied or by-pass on three parameters:

a.     The supply of the item is not available with the approved source. (No Objection Certificate / Non Availability Certificate).

b.    In case, directions from the HoD received or approval is taken from HoD to procure the items from market.

c.     In case of emergency, when there is no time to approach Approved Source and permission is granted by the Competent Authority to procure directly from the market.

Procurement from Market (Mode of Procurement in Market)

Online – Government e-Marketplace – GeM

·       Direct Purchase  - Up to 25,000

·       L-1 Purchase – 25001 to 500000

·       Online Bidding / Reverse Auction – Above Rs. 500000

Offline – Physical Market where orders are put-up in physical mode.

·       Without Quotation – Up to 10000

·       With Quotation – 10001 to 100000

·       e-Tender – Above 100000

For Direct Purchase / Without QuotationèNo Comparison is required.

For L-1 Purchase / With Quotation èAt least three prices are required.

For Online Bidding / RA / e-Tender è At least three bidders are required.

Spend the money and procure the goods.

The goods will be received by the Store in-charge / Care Taker (Store). He will inspect the items with the specifications given in the bill. If the items are not as per specifications, no entry in the stock register will be made and the items will be returned.

After finding the accurate specifications, he will accept the items and record the same in the Store register/stock register.

The bill will be sent to the Finance branch for payment. The voucher will be taken upon the concerned file and approval of payment will be taken.

After taking the approval of payment, the payment will be made to the supplier.

The items will be used to the concerned who demanded earlier.

2.    Contingency Fund

The expenditure which is unforeseen at the time of budget and required to be spent in the office, are met from the Contingency fund which is maintained at the disposal of the governor of the state. It is basically an imprest account.

3.    Public Accounts

The expenditure which is neither related to Consolidated Fund nor related to Contingency fund, is maintained in Public Accounts.

GIS, PPF, NPS, GPF, EPF etc.

For public accounts, there is an authority to monitor the expenditure which is independently allowed to create wealth.

The payments from these accounts are made as per the norms of the Government.

Payments and Receipts in Haryana Government:

èDigital Vouchers – We are supposed to scan and upload all the vouchers related to payment. In e-Billing (Maker Login).

èPayments are done directly in the account of the recipient with e-Billing UCP mode.

èThe Maker login is used to make the bill and the Checker login is used to verify the bill and the TO login is used to process the payment in the account of the payee.

èThere are two types of payments – Pay Bills (Basic Pay, DA, LTC, Arrears) and Other Bills (Medical Reimbursement, TA, Contingency Bills Payment, Personal Ledger Account related payments, and GPF Advances).

èChecker is generally DDO and the maker is a government employee supposed to support the checker for making bills.

èThe government has issued instructions for the non-maintenance of the bank account or in other words, without the permission of FD, an office cannot open and maintain a bank account for its payments or receipts.

Receipts in Haryana government:

e-GRAS è

there is a checker login for the DDOs and no maker login. The whole responsibility w.r.t. timely deposit of revenues and cash collections lie with the DDO.

In e-GRAS è

Citizen Login – 

Any person can deposit an amount directly in the receipts head of government and that receipt will be used for the entry in the cash book by the departments.

Checker Login - Checker password of e-Billing is used for it.

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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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