11.6. Postal Account office Responsible for incorporating account of all HOs in circle Head Post...

Accounting network of Post Offices

21.6

ACCOUNTING NETWORK

3

BO1.6

Receipt and opening of BO Bag at AO

• Mail PA receives bags from various sources• Hands over BO bag to treasurer• Treasurer examines the condition, opens it in

the presence of Sub Account PA• Gives acquittance for cash bag in BO daily

account• Returns all documents to Sub account PA

4Rule No 68 & 69 of PO Manual Volume VI Part-IIIRule No 68 & 69 of PO Manual Volume VI Part-III

1.6

Receipt and opening of BO Bag at AO

• Sub Account PA to: - Examine if all the documents are correctly

received - Distributes the contents to respective branches.


1.6

Distribution of contents

Description of articles Unpaid station

article, if any Paid station articles Other

unregd.articles Regd.and VP articles

Handed over to- SPM

Delivery PA Sorting PA

Registration PA


1.6


• Parcel and VP parcel• MO s booked(for re-

booking)• MO s paid vouchers

• Parcel PA• MO issue PA

• MO Paid PA


1.6


• SB/RD/TD vouchers and documents

• Acquittance rolls• BO daily account

• SBPA

• SPM• Retained by SAC PA


1.6

• Exercise 1 • Exercise 2

91.6

Checking of BO Daily A/C

• Should ensure that—– Cash from BO acknowledged by treasurer– Cash remitted to BO taken into account– Date stamp impression– Opening balance is correct– The account tallies with documents such as MO issue, MO

paid, SB deposit etc.– Details of closing balance agrees with account– Cash and stamps retained within the limits– Signature of BPM

10Rule No 68 of PO Manual Volume VI Part-IIIRule No 68 of PO Manual Volume VI Part-III

1.6

BO SUMMARY

• A consolidation of BO daily account at AO• Maintained by AO, having BOs• One line for each BO • Transactions posted

- Opening balance- Receipts- Total of Receipts- Payments- Total of payments- Closing balance- Transit


1.6

12

Index to Branch Office receipt

• Maintained by Account Office. • Whenever Branch Office receipt is used by Branch

Office it is noted against the name of Branch Office under corresponding date

• It is maintained in prescribed format month wise.• Account Office to watch continuity of receipts used

by Branch Office.

Rule No 71 of PO Manual Volume VI Part-IIIRule No 71 of PO Manual Volume VI Part-III 1.6

13

• Particulars of receipt books supplied to Branch Office should be noted against the name of Branch Office under corresponding date

• Similarly, Index to Branch Office receipt is to be maintained for other type of receipt books used by Branch Post Master. Viz.SB26, TRC, RPLI, SB28 etc.

Index to Branch Office receipt

Rule No 71 of PO Manual Volume VI Part-IIIRule No 71 of PO Manual Volume VI Part-III 1.6

Purpose of preparing BO Slip

• To acknowledge the closing balance of BO for previous day w.r.t BO summary

• To invoice accountable articles/Money orders/documents to BO’s

• To Advice remittance, if any;- Cash- Stamps

• To Instruct BPM about irregularities if any

14Rule No 27 & 63of PO Manual Volume VI Part-Rule No 27 & 63of PO Manual Volume VI Part-

IIIIII PPT 7.1.20PPT 7.1.201.6

Preparation Of BO Slip…

• Prepared by SA PA at AO

• Prepared in duplicate by carbonic process

• Particulars of other accountable articles, MOs, MO receipt after booking, RLs, RPs, SB documents etc. are invoiced

15Rule No 27 & 63of PO Manual Volume VI Part-IIIRule No 27 & 63of PO Manual Volume VI Part-III

1.6

Preparation Of BO Slip…

• Sub accounts PA to enter weight of cash bag & invoice the same in BO slip

• Treasurer to initial remittance entries

• SA PA to sign and date stamp161.6

Procedure for closing of cash bag

Obtains the orders of SPM/PM for remittance

on reverse of BODA Shows the order to treasurer & obtains his initials Completes all the entries in the BO slip, except

weight of cash bag

191.6

Procedure for closing of cash…

Treasurer notes orders of PM on daily accountTake correct cash and close it in cash bagSeals cash bag with treasury seal and hands

over to SA PA for weighing. SAC watches closing of cash bag by treasurer

201.6

Procedure for closing of cash bag…

Weighs cash bag in the presence of treasurer & notes weight on label of cash bag and both copies of BO slip

Obtains initials of Treasurer on both copies of BO slip

Puts documents and cash bag (by treasurer)inside BO bag , closes it & seals it & transfer to Treasurer for safe custody

211.6

Procedure for closing of cash…

Observes SA PA weighing cash bag Initial entry of remittance & weight of cash bag

in BO slipKeep cash bag inside BO bag Keep sealed BO bag in his custody till

despatch

221.6

23

Preparation of Sub Office Daily Account

• As per list & vouchers of various branches SPM prepares SO Account

• SO Daily account is prepared w.r.t SO Account by SPM

• Previous day’s closing balance is taken as opening balance for the day

• Receipts & Payments taken as per Sub Office Account

Rule No:29 of Postal manual Volume : VI Part -II

24

Preparation of Sub Office Daily Account• Closing balance written in words & figures

• Details of closing balance, particulars of authorized balances & liabilities noted

• Reason for retention of excess cash should be noted

• Reason for cash below minimum & for excess stamps should be noted

• Particulars of cash and stamp remittances received & made should be noted

Rule No:29 of Postal manual Volume : VI Part -II1.6

25

Preparation of Sub Office Daily Account

• Particulars of document sent should be noted on reverse side

• Requirement of Stamps, Cash noted in the remark column

• Signed by joint custodian and SPM

• Impressed with Name stamp & date stamp

Rule No:29 of Postal manual Volume : VI Part -II1.6

Serious irregularities in SO Daily Account

• Date stamp of office impressed with wrong type fixed.

• Total of closing balance not written both words and figures

• Cash retained excess without liability• Reason for retaining cash excess/short• Amount due from BO differs with reference to actual

figures in the BODAs• Authorized balance shown wrongly

261.6

Serious irregularities in SO Daily Account…

• Authorized BO aggregate balance shown wrongly.

• ECB – SO ECB not prepared– BO ECB not prepared– No.assigned to ECB differs

• Red ink entry particulars wanting on the day of account ending

271.6


• Remittance– Particulars of remittance not furnished– Particulars of remittance furnished wrongly– Receipts of special carrier is wanting– Balance of initial credit/additional credit wanting– Particulars of cheque against which cash drawn

from bank wanting

281.6


• Wrong calculation of interest in NSC/KVP discharge.

• Will follow vouchers• Daily account is prepared by other than SPM• Signature of SPM/Joint custodian is wanting.

291.6

• Exercise 3

301.6

Cash Management

311.6

MAB and CMAB

• MAB:• Authorised balance of cash and postage

stamps of a post office, issued by Divisional Superintendent

• CMAB:• Consolidate list of MAB of SOs under a HO and

BOs under a SO, issued by Divisional Superintendent

1.6 33

Excess Cash Balance Memo

• Whenever Cash balance is kept in excess of authorized minimum cash balance SPMs have to note amount of liabilities in their Daily account

• Whenever Cash balance is kept in excess of authorized maximum cash balance in addition to above action SPMs to prepare ECB in PA-20 and submit to HO

341.6

Excess Cash Balance Memo…

• SPMs of status LSG and above need not prepare this ECB memo

• This is one of the preventive measures to avoid commission of frauds in Sub Offices and BOs

• ECB contains two parts1. ECB for Sub Office2. ECB for Branch Offices

351.6

ECB for Sub Office

• Whenever SO Cash balance is kept in excess of authorized maximum cash balance SPMs to prepare ECB

• It contains following information– Authorized Cash balances– Cash balance held on that particular day– Excess cash held– Explanation for excess retention of cash

361.6

ECB for Sub Office…

• SPM to furnish details of MO, Savings Bank/ Savings Certificates, Acquittance rolls by referring basic records of office

• The particulars of late collections, late receipt of remittance from other offices to be furnished

• Any other reason for excess retention of cash

371.6

ECB for Sub Office….

• ECB memo should be given monthly serial number and signed and stamped

381.6

ECB for Branch Offices

• Whenever total of CBs of all BOs is more than authorized BO aggregate balances , ECB for Branch Offices to be prepared

• SPM to furnish explanation for retention of excess cash by each BOs

391.6

ECB for Sub Office…

• SPM to furnish – Cash held, – amount of liability of those BOs which are

responsible for excess retention of cash w.r.t BO daily account and

– mention his remarks of justification or otherwise

• SPM to sign the ECB

401.6

Action on ECB

• A watch should be kept at HO whether ECBs are being prepared by SPMs wherever justified

• Whether ECBs are properly serial numbered• HPM to check SO ECB memo w.r.t basic

records of HO maintained in respective branches and pass his remarks whether explanation is satisfactory or otherwise

411.6

Action on ECB….

• HPM to check BO ECB w.r.t BO daily accounts and satisfy himself that remarks of SPM against each BO is justified or other wise. HPM to pass his remarks and sign.

• All ECBs are stitched in a bundle stamped and submitted to Divisional Office on following day.

421.6

Action on ECB….

• In DO ECB is scrutinized by Divisional Supdt. Or Asst.Supdt daily and pass his remarks as to whether it should be got enquired through concerned sub divisional IPs

• ECB is finally filed at Divisional Office.

431.6

Other important documents and records at HO

• SO Summary• Treasurer cash book• HO Summary• HO Cash book & PM’s Balance sheet• Monthly cash account

441.6

SO Summary

• SO Summary is maintained by HO Sub Account PA on par with BO summary that we have discussed already in two parts viz, – Part I – Part II

• SAPA prepares SO slip to dispatch to SOs

451.6

Preparation of SO Slip (PA-3)

• Sub Account PA in HO prepares SO slip- Enters all documents- Enters closing balance - Includes all contents

• Sub Account PA shows to treasurer, the orders of PM for remittance

• Treasurer closes cash bag as discussed earlier• Sub Account PA closes account bag

46Rule No 18 of PO Manual Volume VI Part-IIIRule No 18 of PO Manual Volume VI Part-III

1.6

Treasurer’s Cash Book- Form ACG 2

• Shows entry of cash, stamps and cheques• Maintained in the treasury• Treasurer should make all entries• Make entries as and when transactions occur• Number transactions serially

471.6


• Entry of book transfers not to be made• Enter the name and designation of the official

with the amount• Obtain acquittance both in words and figures

when money is paid• All payment is to be authorized by the

HPM/Supervisor

481.6


• Hand over cash to official directly and not through any third person

• Both the side of TCB totaled for the day and balanced

• Closing balance be written in words• Book should be signed by treasurer and HPM

491.6


• Closing balance should agree with the total “particulars of closing balance” of HO summary

• Draw a line below the closing entries of each day

501.6

HO Summary (ACG-1)

• Account of cash receipts and disbursements of HO- maintained in two parts viz, – Part I – Part II

• Balance of HO summary will comprise of;i.Cash on handii.Postage stampsiii.Revenue stampsiv.Other stampsv.Amount of late IMT payment which is not accounted for

511.6

Head Office Summary (ACG-1)

• Total of i.to iv should agree with the daily balance of the TCB

• Out of account cash details• IPOs of all denominations, Insured articles in

the safe custody, and number of account bag or sealed cash bags received

• To be signed both by Head Postmaster and Treasurer

521.6

Head Office Cash Book

• Maintained in two parts viz, – Part I – Part II

• Total of HO, SO and BO will be added together• Progressive totals struck from 1st to the end of

the month

531.6

HO Cash Book (Receipt)

Items

1

HO As per HO summary

2

SOs as per SO summary

3

Bos as per BO summary

4

Total HO,SO,BO

5

Previous days total

6

Progr-essive total

7

Unpaid 50 10 - 60 290 350

MO issue

8500 4250 - 12750 30475 43225

GT 101060 50530 - 151590

541.6

HO Cash Book (Payment)

Items

1

HO As per HO summary

2

SOs as per SO summary

3

Bos as per BO summary

4

Total HO,SO,BO

5

Previous days total

6

Progre-ssive total

7

MO paid

15520 7760 - 23280 45670 68950

BP 250 25 - 275 670 945

GT 84480 43465 - 127945

551.6

Postmaster’s Balance Sheet

• At the bottom of HO cash book balance sheet will be prepared.

• The object of the postmaster’s balance sheet is to work out reconciliation between the HO cash book and TCB, actual balance of SOs, BOs and transit

• Balance sheet will be written by Head postmaster personally and must sign the certificate at the foot

561.6

Postmaster Balance sheet

1 Opening balance 286502 Total receipt as per col.5 of HO cash

book151590

3 Total (1 plus 2 above) 1802404 Total payment as per HO cash book 127945

5 Closing balance (3 minus 4) 522956 Deduct balance in SOs and BOs 190657 Net Balance of Cash and stamps in HO

(5 minus 6)33230

571.6

Details of CB in SOs & BOs

1 CB as per SO summary 166152 SO transit as per so

summary2450

3 CB as per BO summary -4 BO transit as per BO

summary-

5 Total 19065

581.6

Submission of Cash Account to PAO

• 1st of each month cash account of HO for the previous month will be submitted in the prescribed form to the postal accounts office

591.6

• FINANCING OF POSTOFFICES

601.6

Financing of PO-Principles

• Cash should be available to meet demand• Not to be held in excess of demand• Easy Mode of

– Clearance of cash – Getting of cash

• Security arrangement• In collecting office minimum kept

611.6

Financing of PO-Principles…

• In other offices normally minimum plus liability to be kept

• Liabilities exceed maximum balance, cash equal to actual liability to be kept

• Liabilities includes MIS interest, matured NSC/KVP can also be foreseen

621.6

Fixing of authorized balances

• On the basis of cash handled by an office–Cash receipts–Cash payments

• This can be arrived at by collecting four quarterly months statistics as discussed in next slides

631.6

Collection of statistics

• Suppose you are visiting a SO today (1.6.2013), then the statistics for the following months are collected– August 2012– November 2012– February 2013– May 2013

641.6

Collection of statistics -Receipt side

• Total of all columns in SO account except the following– Opening Balance column– Cash received from cash office– Book adjustment items– Cheque transaction

651.6

Collection of statistics –Payment side

• Total of all columns in SO account except the following– Cash remitted to cash office– Book adjustment items– Payment by cheques– Closing balance column

661.6

Fixing of authorized balances…General Rule

• Three type of offices will be there– Collecting office– Paying office– Office where receipt & payment equal

• Minimum normally average requirement + 25%

• Maximum normally 1.5 times of minimum

671.6

Fixing of authorized balances…other points

• Time required to replenish or clear cash• Safety arrangements for cash• Line limits for remittance• Whether the office is

– Collecting office– Paying office– Both equal

681.6

Fixing of authorized balance (collecting office)

• Minimum cash– 50% of daily average payment (Bank transaction)– Daily average payment + 25%

• Maximum – Min + {(difference betn receipts & payments) x

No.of days required for remittance to remove surplus cash}

691.6

Fixing of authorized balance.(Paying office)

• Minimum – (Daily average payment x No.of days for rem) +

25%

• Maximum – Min + {(Daily payment-Daily receipts) x No. of days

for remittance}

701.6

Fixing of authorized balances

Receipts & Payments are equal•Minimum

– Daily average pmt + {(difference between receipts & pmts) x No.of days for remittance}

•Maximum– Min + {(difference between receipts & pmts) x

No.of days for remittance}

711.6

Fixing of authorized Stamp balances

• SO/BO– Daily average sale of PS x 15

• Head Office– Daily average sale x (30 + transit from CSD to HO)– Daily average = (HO Sale + Supply to SOs +Supply

to BOs)

721.6

Exercise- 4

731.6

Line – limits

• Loose cash upto Rs.2 lakhs by any departmental employee.

• In case of deptl. MMS with and MTS, the limit is Rs. 2 lakhs in cash bag enclosed in account bag.

• In case of hired MMS(exclusive MMS), the limit is Rs. 1 lakh in cash bag enclosed in account bag. ( this limit is applicable to RMS section also.)

• In case of weighment system, road transport, in account bag, the limit is Rs.40,000/

741.6

Line-limits

• For loose conveyance of above Rs.2 lakhs, remittance should be only accompanied by police guard or private guard.

• These limits are applicable to branch offices, irrespective of foot, cycle or mechanised routes.

751.6

Suggestions to reduce cash handling

• Deposits by cheque or DD• Payment by cheque• Automatic transfer to POSB account• Reinvestments• Payments credited to POSB account• TRC by cheque

761.6

Security vigilance on cash by IP

• MAB-Memo of Authorized Balance • CMAB-Consolidated Memo of Authorized Balances• MR-Monthly Report

771.6

Security vigilance on cash by IP…

• ECB Memo-Excess Cash Balance Memo• BO Abstract and MO payment

781.6

11.6. Postal Account office Responsible for incorporating account of all HOs in circle Head Post...

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Transcript of 11.6. Postal Account office Responsible for incorporating account of all HOs in circle Head Post...