Manual of the D.A.O’s

An excellent compilation of financial / procedural rules, instructions,

and policies.

An invaluable handbook for practical guidance of Drawing and

Disbursing Officers.

An essential ready reference for D.A.O’s.

A practicable plan to make D.A.O’s more efficient and consumer-

friendly.

DISCLAIMER: The District Accounts Office, Okara and its employees are not liable, without limitation, for any consequences incurred or loss or damage suffered by a department or any other person / entity as a result of their reliance on the information contained in this Manual and to the maximum extent permitted by law, exclude all liability (including negligence) in respect of this Manual.

TABLE OF CONTENTS

No Contents Page No

1 A brief introduction 3-4

2 Functions of the D.A.O. 5

3 Organizational chart 6-7

4 Plan to make D.A.O. Sheikhupura a model in the Punjab. 8

a) Objectives of the plan 8

b) Tools to achieve the objectives. 9

i) Precise knowledge of functions and responsibilities. 9

ii) Eliminating discretion through provision of check-lists. 10

iii) Observance of punctuality. 10

iv) To seek co-operation of D.D.O’s. 11

v) Fixation of time limits for the disposal of cases. 11

vi) Leading by example. 11

vii) Inter section and intra-section rotation of staff. 12

viii) Provision of work-friendly atmosphere. 12

ix) Discouraging use of outside influence. 12

x) Discharging of receipt challans and paid vouchers. 12

xi) Regular issuance of schedules of payments and receipts.

13

c) Establishment of monitoring system. 13

i) Section-wise inflow and outflow reports on weekly basis.

13

ii) Inspections by the D.A.O’s. 14

iii) Easy accessibility. 15

iv) Regular returns to the higher authorities. 15

v) Inspections by higher authorities. 15

5 Long-term plan. 16

6 Special issues. 16

i) Sub-Treasuries. 16

ii) Updating G.P. Fund accounts of the subscribers. 16-17

7 D.A.O at a glance 18

8 D.A.O at work. 19-20

Annexes 21-237

2

A BRIEF INTRODUCTION

Under article 119 of the constitution of Islamic Republic of Pakistan, the

custody of the Provincial Consolidated Fund, the payment of moneys into that fund,

the withdrawal of moneys therefrom, the custody of other moneys received by or on

behalf of the Provincial Government, their payment into, and withdrawal from the

Public Account of the Province and all matters connected with or ancillary thereto are

regulated by the rules made by the Governor.

The Governor of the Punjab has issued Punjab Financial Hand Books I, II & III

i.e. Punjab Treasury and Subsidiary Treasury Rules, Punjab Financial Rules and the

Departmental Financial Rules for the proper management of receipts into and

withdrawals from the Provincial Consolidated Fund and Public Account of the

Province. The rules referred to above envisage establishment of a District Treasury

at each District Headquarters.

The Governor of the Punjab, in exercise of the powers conferred upon him

under Article 139 of the constitution of Islamic Republic of Pakistan, has framed the

Rules of Business, 1974 for the Punjab Government. Various departments of the

provincial government have been established in terms of Rule 3 of the Rules ibid.

Finance Department, Government of the Punjab has been established for the

purposes specified in schedule II of the rules referred to above. In brief, the Finance

Department is responsible for supervision and control of provincial finances,

preparation of provincial budget, formulation of financial rules and civil services rules

relating to pay, perquisites and pension of civil servants, management of public debt

and administration of Local Fund Audit Department and Treasuries. Treasuries and

Sub-treasuries, thus, work under the administrative control of the Finance

Department.

Whereas the Treasuries follow directions of the Finance Department, while

authorizing payments out of Provincial Consolidated Fund and Public Account of the

Province, the accounts of the province are maintained, as required under article 170

of the constitution, in such forms and in accordance with such principles and

methods as the Auditor General of Pakistan has, with the approval of the President,

prescribed.

3

Under the Punjab Treasury and Subsidiary Treasury Rules, the responsibility

for the proper management and supervision of the Treasuries/District Accounts

offices rests entirely with the Collector. The appointment of a Treasury Officer, as a

representative and delegate of the Collector, in no way relieves the Collector of his

responsibility.

District Treasury, Sheikhupura, was converted into a full-fledged pre-audit

office in 1974. Prior to this the Accountant General, Punjab, was performing pre-

auditorial functions regarding payments out of Federal and Provincial Consolidated

Funds and Public Accounts pertaining to District Sheikhupura. Since 1974, District

Accounts Office, Sheikhupura is performing all treasury and pre-audit functions for

Government of Pakistan and Government of the Punjab in the district. After

promulgation of the Punjab Local Government Ordinance, 2001,the District Accounts

Office is also maintaining accounts of the District Government, Sheikhupura and

operating District and Tehsil Provincial Accounts.

4

FUNCTIONS

The District Accounts Office, Sheikhupura, performs the following main

functions:-

a. Preparation and maintenance of civil accounts of the Government of

Pakistan, Government of the Punjab, District and Tehsil Provincial

Accounts (receipts as well as payments) on daily basis and compilation

of civil accounts on monthly basis.

b. Custody of valuables and stamps in the strong room and catering of

treasury services / functions to the general public and government

departments.

c. To authorize payments out of provincial/federal consolidated fund and

public accounts and District and Tehsil Provincial Accounts through

passing pre-audit bills or cheques.

d. To maintain Personal Ledger Accounts of government departments,

local/autonomous bodies etc., and authorizing payments therefrom;

e. To maintain General Provident Fund accounts of the federal and

provincial civil servants and to authorize payments therefrom;

f. To conduct post-audit of pensions directly paid by the banks;

g. To issue schedules of payments and receipts to the drawing and

disbursing officers;

h. To inspect subordinate offices at regular intervals to ensure the

implementation of all rules and instructions of the Government;

i. To advise on financial and service matters, if so warranted.

j. Disposal of pension cases by issuance of pension payment orders, and

regular payment of pension.

5

ORGANIZATIONAL CHART

Accountant General Finance DepartmentPunjab Punjab

Executive District Officer

(Revenue)

Collector/ DO (Revenue).

District Accounts Officer-I District Accounts Officer-II

G.A.D-I G.D.A-II Treasury Sub Treasuries Double Admn,Pension Lock

D.A. Section Pay fixation G.P Fund Section

Civil servants of Government of Pakistan and Government of the Punjab man

the D.A.O jointly. Out of a total sanctioned strength of 74 civil servants, 38 are

employees of the Federal Government whereas 36 are employees of the

Government of the Punjab. At present 31 posts belonging to the Federal

Government are filled and 7 posts lay vacant. Likewise one post of provincial

government lies vacant. Appointment, posting, transfer and allied administrative

matters of Federal employees are handled by the Accountant General Punjab,

6

whereas those of the provincial employees, by the Finance Department and to some

extent, by the District Collector.

According to the Federal Treasury Rules, there should be a Federal Treasury

at each District Headquarters. Since the volume of work relating to the Federal

Government is too small to justify establishment of an independent federal treasury

at Sheikhupura, therefore, the provincial district Treasury/D.A.O, Sheikhupura, has

been assigned the treasury/pre-audit work of the Federal Government. The D.A.O

Sheikhupura is also a sub- office of the Accountant General Pakistan Revenues,

Lahore.

7

SHORT AND LONG TERM PLAN TO MAKE D.A.O SHEIKHUPURA, A MODEL

DISTRICT ACCOUNTS OFFICE IN THE PUNJAB.

Objectives

a. To ensure timely preparation of monthly civil accounts of the district in

accordance with the directions of the Auditor General of Pakistan in order to ensure

that all revenue and receipts collected and expenditure and disbursements made are

correctly classified and the final account presents a complete and true statement of

all the financial transactions of the district;

b. Minimizing the time lag between receipt and disposal of claims seeking

authorization of payments out of provincial/federal consolidated fund and public

accounts of the federation/province and District and Tehsil Provincial Accounts;

c. Implementing rules/instructions regarding withdrawals of money from the

treasury; plugging avenues of misappropriation, embezzlement, and frauds as far as

is possible for a D.A.O; detection and prevention of irregularities; intelligently

watching financial interests of the state;

d. To keep a vigilant eye on, and to bring to book those employees of the D.A.O

who, with an intent to seek illegal gratification, through abuse of their official

authority, cause inconvenience for the public or the civil servants with the result that

general public or the civil servants form an unfavourable opinion about the intentions

and effectiveness of the Government;

e. To make treasury services (double lock) more efficient; to efficiently perform

all assigned duties and functions.

The logical consequence of the attainment of the above objectives are

the end of wastefulness in expenditure from the public purse, marked

reduction in public complaints, provision of visible relief to the public and

restoration of public confidence and trust in government functionaries and

institutions.

8

Tools to achieve the objectives

i. Precise knowledge of functions and responsibilities.

ii. Eliminating discretion through provision of check lists.

iii. Observance of punctuality and ensuring that no employee of the District

Account Office remains unauthorisedly away from the office during working

hours.

iv To seek co-operation of drawing and disbursing officers by imparting them

information and training;

v Fixation of time-limit for disposal of cases.

vi Leading by example.

vii Inter-section and intra-section rotation of staff.

viii Provision of work friendly atmosphere.

ix Discouraging use of outside influence in matters such as postings, transfers.

x Ensuring regular issuance of schedules of payment.

xi Discharging of paid vouchers.

Establishment of monitoring system

1) Section wise inflow and outflow reports on weekly basis;

2) Surprise inspections by the D.A.O.

3) Easy accessibility.

4) Regular returns to the higher authorities.

5) Inspections by the higher authorities.

As is evident from the following elaboration of the above points,

sustainable enhancement in efficiency and markedly improved productivity are

really attainable if the tools are employed wisely:-

i) Precise knowledge of functions and responsibilities

Each civil servant has to perform defined duties and render specific services.

Efficiency suffers badly if there exists any measure of ambiguity regarding functions

and responsibilities of a civil servant. Let there be no doubt that for what purposes an

employee has been recruited and is being retained in service and is being paid from

the public purse. Unfortunately, some of our employees do not have precise

9

knowledge of duties assigned to them. They take refuge behind their ignorance

when in an event of negligence/irregularity/fraud/complaint, responsibility is fixed.

Communication of the jobs they are expected to do is also helpful in making

supervisory control more effective and fruitful. Keeping the above goals in mind,

besides other considerations, functions and responsibilities of all the employees of

the District Accounts Office, Sheikhupura have been detailed in Annex-A. These are

being circulated among all concerned and it is being ensured that they understand

fully what this Annex means for them.

ii) Eliminating discretion through provision of "Check Lists'

District Account Office authorizes payments and disposes of claims after

applying certain checks. It is not required to be answerable for each and every thing

of each and every claim. Basically it is an office, which compiles accounts of the

district and keeps the expenditure within the released budgetary allocations. To

ascertain that whether the amounts claimed for immediate disbursement or shown

as already disbursed out of permanent advances of the departments, are really

required for disbursement or have actually been disbursed is not its responsibility.

This office has expressly been prohibited from undertaking independent inquiries as

such an action has been declared an encroachment on the functions of the executive

authorities. What this office has to see while pre-auditing various categories of

claims has been discussed in some detail in Annex-B. The auditors should always

keep it in mind that they cannot go beyond the boundaries of these check lists. If a

claim fulfils the requirements as stated in the relevant check list, it should promptly

be processed. In case of deficiencies, all objections should be written in one go in

clear and precise language on a separate paper in a way that these are easily

legible. As all objections are challengeable in the courts of law or can be agitated

against before other competent authorities, therefore no frivolous or unsubstantiated

objection should be raised.

iii) Observance of punctuality

All employees are duty bound to be on their seats at 8-00 AM sharp and

remain available to the public at large till 3-00 p.m. They should not remain

unauthorisedly away from their seats during office hours. Unauthorized absence

from duty during office hours causes great inconvenience for those who come to this

10

office from far-flung areas or from other districts in connection with their problems.

Through an elaborate plan, given in Annex- C, it has been ensured that punctuality

is observed and no employee remains unauthorizedly away from office during

working hours. Prompt disposal of claims in accordance with the rules is not possible

if punctuality is not observed. Avoidable delays occur if punctuality is ignored. Public

complaints can be minimized through strict observance of punctuality.

iv) To seek co-operation of drawing and disbursing officers

Without active co-operation of the drawing and disbursing officers, ideal

working of District Accounts Office is not possible. They can lessen the load of work

on the D.A.O if they subject their claims, before their submission in the D.A.O to

detailed scrutiny in the light of the relevant rules. The check lists are equally useful

for them. They should prepare their claims in the light of the check lists so that

avoidable objections are not raised. Active co-operation of drawing and disbursing

officers is being sought through imparting them information regarding financial

matters. Important points, which they need to focus on, have been abridged in

Annex-D.

v) Fixation of time - limits for the disposal of cases

Apart from provision of checklist and laying down of duties and responsibilities

of employees, fixation of time limits for the disposal of cases, is also necessary for

expeditions disposal of claims. Time - limits have been fixed keeping in view routine

load of work on the employees. These limits are maximum period during which a

claim must be disposed of. These limits, in no way, block the way of earlier disposal

of claims. Claims should be disposed of as early as possible but not latter than the

limits prescribed in Annex- E.

vi) Leading by example

The conduct of the D.A.O. should be an example for his subordinates to

follow. He should be punctual in attendance and prompt in disposal of work. He

should keep a watchful eye on the private and public conduct of his subordinates;

should take pains to educate, correct and guide his subordinates who have gone

astray and try to bring them back to the straight path. If he is casual in attendance

and is not devoted to his duties, his subordinates will also follow the suit. If he is not

11

able to lead by example, he will loose moral authority to lead. A.A.O’s and A.T.O.

should also exhibit enhanced sense of responsibility and fairness. Sustainable

enhancement in efficiency is possible if all work with a team spirit.

vii) Inter-section and intra - section rotation of staff

Frequent inter - section and intra - section rotation of staff is necessary to

avoid complications which may arise due to long exposure to a particular kind of

work. It is also necessary to check frauds. It is useful in imparting training of all kinds

of work of this office to all the staff members. The notion that a particular employee is

indispensable for an assignment should be broken. Graveyards are packed to

capacity with the so-called indispensable persons. However, the rotation should

be after some reasonable intervals. Nevertheless, no employee should be allowed to

stick to his seat after the expiry of a period of three years.

viii) Provision of work-friendly atmosphere

Work-friendly atmosphere enhances efficiency. Provision of furniture,

stationary, cleanliness, drinking water, suitable hot and cold weather amenities,

toilets etc., go a long way in improving working capacity of the employees. Their

personal problems should be lent a compassionate hearing. At present, furniture is

not available according to the requirements. Hot and cold weather arrangements are

also not satisfactory. Efforts are being made to provide the same.

ix) Discouraging use of outside influence

No civil servant is allowed to bring or attempt to bring political or other outside

influence, directly or indirectly, to bear on the D.A.O or the Collector, in support of

any claim arising in connection with his employment e.g. posting, transfer. Decisions

taken under outside influence loose the chain of command in the D.A.O. Discipline in

the office affects badly because of outside influence. Action under the rules shall be

initiated against those who attempt to bring outside influence. Such civil servants can

be surrendered to the A.G Punjab in addition to other action under the rules.

x) Discharging of receipt challans and paid vouchers

Each credit challan and paid voucher is discharged from the bank's credit and

payment scrolls respectively. It is necessary to plug potential occurrence of frauds

through fake credit challans and wrong/double payments. Any attempt of fraud is

detectable if this discharging is accorded due importance. Presently discharging is

being carried out cent percent in the District Accounts Office, Sheikhupura.

12

xi) Regular issuance of schedules of payments and receipts

As per rules 2.25 of the Punjab Subsidiary Treasury Rules and Para 12.5 and

13.4 of Punjab Budget Manual, the District Accounts Office, is required to send

consolidated monthly schedules of payments and receipts to the concerned

departments for re-conciliation. This practice, besides checking pilferage of

government revenues, is an effective check against fraudulent withdrawals of money

from the treasury. The consequent re-conciliation corrects misclassification and

wrong booking in the accounts. The requisite schedules are being issued regularly.

However the departmental officers do not pay due attention to re-conciliation. As the

departmental officers may be aware, they are personally responsible for carrying out

reconciliation work and in case of their inaction, accounts figures are treated as final

and correct, as decided by the Finance Department, circulated vide No.F.D.(M -

REC) 3 -1/ 89- 90 - 91 (Vol - III) dated 25-05-1992.

Establishment of monitoring system

To ensure that tools employed for attainment of stated objectives are

producing desired results and are efficient enough to sustain tangible improvements,

establishment of a reliable monitoring system is of key importance. Without a

satisfyingly effective monitoring mechanism, sustainable improvements are not

foreseeable. The following mechanism has been devised to monitor the

effectiveness of the tools employed. It is not static or a final word on the subject.

There is always a room for improvement. With the passage of time, experience will

teach us what improvements can be made in the mechanism to make it more

effective and responsive to our requirements.

i) Section-wise inflow and outflow reports on weekly basis

The A.T.O and the A.A.O's shall cause preparation, every week, of reports

exhibiting inflow and outflow of claims in their sections and the fate of each claim.

The reports shall portray, among other things, the number of claims received in the

section, number of claims passed, number of claims returned unpassed, number of

pending claims, reasons if claims have not been disposed of within the stipulated

time, accumulation of arrears on a particular seat, arrangements made, and required

to made, to clear the arrears. These reports shall be carefully examined by the

concerned D.A.O and suitable action shall be initiated, if required, to streamline the

working of the section.

13

ii) Surprise inspections by the D.A.O

Regular and surprise detailed inspections by the District Accounts Officers

can go a long way in converting District Accounts Office, Sheikhupura, into a model

D.A.O in the Punjab. Inspection is a more direct and as such more positive and

valuable tool of supervision. These inspections can produce desired results if the

D.A.O is thorough and searching in his observation and gives constructive and

helpful advice to his subordinates for rectifying shortcomings and defects. On the

spot inspections help in:-

a) Revealing concealed arrears which are being delayed due to:-

i) Limited capacity of the civil servants,

ii) Want of proper guidance;

iii) Intention to receive illegal gratification from those who are

affected by the delay.

b) Maintaining discipline by strengthening the hands of the A.A.O's who

may hesitate to assert them.

c) Establishing a more direct and personal contact with subordinates.

d) Detecting wastage or misuse of stationery.

e) Enforcing punctuality and securing undivided attention to work during

office hours.

f) Discovering cases of negligence, lack of enthusiasm or devotion to

duty.

g) Revealing other defects affecting efficiency, such as:-

i) Unsatisfactory working conditions.

ii) Non-availability of reference books, circulars, instructions and

regulations.

iii) Unsystematic maintenance of records.

iv) Lack of co-ordination between various sections.

v) Unsatisfactory personnel management.

To ensure production of desired results and to prevent deterioration of the

exercise of inspections to a routine formality, the points, which need to be focused

during inspection, have been noted in Annex- F. A seasoned and competent

inspecting officer, Mr. Muhammad Arshad, Inspector of Treasuries, Government of

the Punjab, Finance Department, has prepared Part B of this Annex. The office of

the Accountant General, Punjab, Lahore, has prepared Part C of this Annex.

14

iii) Easy accessibility

The D.A.O should be readily available to those who want to ventilate their

grievances. Doors of D.A.O. Sheikhupura are open to all and sundry. Attentive ears

are lent to all desiring to communicate their problems to the D.A.O. Prompt action

under the rules, is taken when required. This is an effective check against arbitrary

use of official authority by the subordinate staff.

iv) Regular returns to the higher authorities

Certain returns e.g. monthly accounts of federal, provincial and District

Governments (receipts as well as payments), reports regarding cases of final

payment of G.P Fund, outgoing and incoming credit memo's, pension cases, audit

reports, plus and minus statements of stamps and personal ledger accounts, are

required to be submitted to the A.G. Punjab/Finance Department/Board of Revenue

on stipulated dates. These returns are an important part of monitoring mechanism.

Through these returns, working and productivity of the D.A.O is subjected to a

constant check each month.

v) Inspections by higher authorities

The District Accounts Office is regularly inspected by the Inspector of

Treasuries, Government of the Punjab, Finance Department, Inspector of Stamps,

Board of Revenue, Accountant General, Punjab, Director General (DAOs), Collector,

Director General Civil Audit, Punjab etc. These inspections make monitoring

mechanism meaningful and effective. Audit and inspection reports play a

constructive roll in identification of lapses and shortcomings and adoption of remedial

measures to check their recurrence.

15

Long term plan

The following measures are required to be taken to further enhance efficiency

of the office:-

i) Construction of boundary wall.

ii) Provision of 2 electric water coolers.

iii) Computerization of pay roll and accounting.

iv) Construction of official residences.

v) Installation of one more telephone connection.

vi) Installation of private automatic branch exchange - come intercom.

vii) Purchase of fax machine.

viii) Purchase of furniture.

Special issuesSub - treasuries

Three sub-treasuries _________ one each at Ferozewala, Nankana Sahib,

Ahmedpur ______ are working under the jurisdiction of the District Accounts Office,

Sheikhupura. The charge of the sub - treasury is held by Tehsildars. They have not

specifically been trained for the job; nature of their administrative and revenue

assignments keeps them frequently on tours; they have to devote sufficient time to

their judicial duties for adjudication of revenue cases; since they are under direct

subordination of Deputy District Officer (Revenue), therefore, generally, they take

instructions of the Treasury Officers very casually. Presence of a S.A.S qualified,

trained, full - time and answerable to the Treasury Officer immediate supervisory

officer in the sub - treasuries can markedly improve the working of sub - treasuries.

We do not need signing machines in the sub treasuries; we need full time, trained

supervisory officer.

The Siah Nawis at Ferozewala Sub - treasury is heavily over - burdened with

the load of work. At least one more post of Sub - Accountant needs to be created for

this sub - treasury.

Updating G.P fund accounts of the subscribers

For various reasons, G.P fund accounts in Sheikhupura are not updated. This

causes avoidable problems for the subscribers. The reasons for non-updating of the

accounts and apposite solutions are given hereunder:-

16

i) Due to an acute shortage of staff, only five auditors have been posted

in the G.P Fund Section to maintain 46754 accounts of the subscribers.

A.G Punjab would be requested to post more auditors in the D.A.O. for

the purpose.

ii) Accounts are late because of non - supply of ledger cards by the A.G,

Punjab. Financial year 2001-2002 is nearing close but ledger cards,

which were required to be supplied by July 1998, have not so far been

supplied.

iii) Due to missing in G.P Fund accounts, the D.D.O's do not devote

sufficient attention to the G.P Fund schedules. No bill will be passed

unless G.P Fund schedules have been attached with the bill. It may,

kindly, be noted that this measure will result in returning of more than

95 % bills. Large-scale protests and complaints may also ensue.

Without active co-operation of the District Administration, the work

cannot be accomplished.

iv) D.D.O's have been requested to reconcile statements of G.P Fund

accounts with this office. Letters have been issued for the purpose.

Missing credits shall be adjusted if D.D.O's respond and produce

requisite certificates along with acquaintance rolls.

17

D.A.O at a glance

Year of establishment 1974

No of District Accounts Officers 2

No of Assistant Accounts Officers 3

No of Assistant Treasury Officers 1

No of Assistant Accountants 3

No of Sub Accountants 21

No of Senior Auditors 21

No of Junior Auditors 3

Class IV Staff 10

No of Junior Clerk 1

18

D.A.O at work

Payment made out of Provincial

Consolidated Fund during 1997-98

Rs.2088187205/-

Payments made out of Provincial

Consolidated Fund during 1998-99

Rs. 2163481464/-

Payments made out of Public Account

of the Province during 1997-98

Rs. 81096212/-

Payments made out of Public Account

of the Province during 1998-99

Rs.849128994/-

Total payments made on behalf of the

Provincial Government during 1997-98

Rs.2899152417/-

Total payments made on behalf of the

Provincial Government during 1998-99

Rs.3012610463/-

No. of non gazetted civil servants

(Provincial) who are paid monthly

salary form the D .A.O

30362

No. of non gazetted civil servants

(Federal) who are paid monthly salary

from the D.A.O

338

No. of pensioners (Provincial and

Federal) getting pension from the

D.A.O

8275

Personal Ledger Accounts maintained

in the D.A.O

60

No. Of gazetted civil servants who are

paid monthly salary from the D.A.O

2921

Receipt of the Provincial govt. during

1998-99 of which accounts were

maintained by D.A.O

Rs.2061092971/-

Receipts of the Federal government

during 1998-99 of which accounts were

maintained by the D.A.O

Rs. 1758560605/-

19

Payments made on behalf of the

Federal Government during 1998-99

Rs.341243490/-

No. of General Provident Fund Accounts maintained in the D.A.O

46754

No. of bills, cheques passed monthly 8521Avg

Total value of stamps in the double

lock.

Rs.405406075/-

Total sale of stamps from the District Treasury during 1997-98

Rs.67367677/-

Total sale of stamps from the District

Treasury during 1998-99

Rs.70183513/-

No. of Sub treasuries 3

Total sale of stamps by the Sub. Treasury Ahmedpur during 1998-99

Rs.946945/-

Total sale of stamps by the Sub-Treasury Ferozewala during 1998-99

Rs.32506823/-

Total number of valuables in the District Treasury

296

Number of D.D.O's 330

Number of Departments 29

No. of Primary Schools 2414

No. of Middle Schools 320

No. of Secondary Schools 184

No. Intermediate Colleges 7

No. of Degree Colleges 6

No. of Hospitals, clinics 149

No. of contingent bills received daily 62Avg

20

Annex- A

Precise knowledge of functions and responsibilities

1. Duties of Junior Auditor.

2. Duties of Senior Auditors/Sub-Accountants, Assistant Accountants in D.A,

GAD, Treasury and Compilation Section.

3. Duties of Sadder Treasurer, Assistant Treasurer.

4. Duties of A.T.O.

5. Duties of A.A.O’s in D.A, G.A.D and Compilation Section.

6. Duties of the D.A.O.

7. Responsibilities of the Collector.

8. Duties of the Inspector of Treasuries

21

Duties and responsibilities of the staff

Disclaimer: An effort has been made to make the following as comprehensive and

exhaustive as is possible. The officers /officials are bound to perform

the following functions besides other which have been laid down

elsewhere in any rules, manuals, codes, instructions etc. The District

Accounts Officer, Sheikhupura is not liable, without limitation, for any

consequences incurred or loss or damage suffered by a department or

any other person/ entity as a result of their reliance on the information

contained in this Manual and to the maximum extent permitted by law,

exclude all liability (including negligence) in respect of the information

given hereunder.

Duties of Junior Auditors

1. Maintenance of the following sectional Diaries/Registers:-

Ordinary Diary

Urgent Diary

Special Diary(Governor’s Directives etc.)

Any other diary ordered to be maintained by the A.TO/ AAO/DAO.

2. Collection of diary letters daily. Noting down important contents of each letter /reference, indicating

therein the name/designations of the sender, subject of the

letter/reference and any other remarks etc.

Delivery of these documents daily to the concerned dealing assistants

against dated initials. The special as well as other sectional diaries will

also be maintained likewise.

Collection of bills daily from cheque section, comparing them with the

covering list and delivery to the dealing assistant, after noting in the

sectional bill register against dated acknowledgement.

Delivery of return bill to the cheque section against dated

acknowledgement to be obtained in the sectional bill register.

Preparation of sectional bill report indicating the number of bills

outstanding against each assistant in the section.

-Preparation of ordinary Diary Report on every Saturday up to the last

Saturday. Get the A.A .O/ A.T.O’s letters noted by concerned assistant

with their dated initials each Saturday. The report would be submitted

22

to the A.A.O on coming Monday and Final Report would be submitted

to the D.A.O on Tuesday for his approval or otherwise.

Duties of Senior Auditors/Sub. Accountants/Assistant Accountants

in D.A, GAD, Treasury and Compilation Sections.

1. Checking and processing claims in the light of check lists.

2 100% checking of complete functional as well as object classification

on various bills/refund vouchers.

3. 100% checking of totals of the bills etc.

4. Verifications of signatures of the presenters /signee of the bill.

5. Audit of sanctions.

6. 100% sorting of budget allocation/appropriation on the bills, their

comparison with figures recorded in his registers.

7. Recording certificates on appropriate places on the bill of

"Classification checked" "Total checked" and "Signatures verified".

8. Proper maintenance of Establishment Register/Gazetted Audit

Register/Contingent Charges periodical charges Register and other

record concerning the audit of pay and allowances, T.A, contingencies,

scholarships, stipends, refund vouchers, P.W.D cheques, P.L.A.

cheques, pension payments.

9. Maintenance of T.A Register for gazetted civil servants.

10. Disposal of claims within the stipulated period.

11. Issuance of pay slip when occasion arises.

12. Issuance of Last Pay and Service Certificate.

13. Countersigning L.P.C's of non-gazetted civil servants on the occasion

of their out of district transfer.

14. Issuance of Service statements, G.P.F deductions certificate,

verification of Income Tax Returns.

15. To note all the sanctions and appropriations in the various registers

daily for the review of the A.A.O.

16. 100% post audit of pensions directly paid by the banks.

17. To watch all changes in sanctioned strength of the establishment or

addition to the post.

18. To dispose of all letters received through diary.

23

19. Maintaining broad sheets of various advances.

20. Preparation of receipt as well as payment account of the district as per

distribution of work (cash book, departmental classified/consolidated

abstract, schedule of payment, schedule of receipt).

21. Preparation of transfer/journal entries.

22. Detection and correction of misclassifications made by the bank.

23. Communication of receipt /expenditure figures to the concerned

collecting/drawing and controlling officers.

24. Collecting acceptance of receipt figures from the concerned authorities,

within, stipulated period, in case there is no difference.

25. Issuance of Schedule to payment of the concerned D.D.O's /controlling

officers.

26. Conducting monthly reconciliation of receipt/expenditure.

27. Maintenance of all record pertaining to his assignment in the Sections

and their safe custody under lock and key.

28. Maintenance of personal files of Gazetted officers with proper indexing.

29. Issuance of warning slips to D.D.O's/C.Os etc. where pace of

expenditure is found to be excessive and budget

allotment/appropriation seems to last earlier than the 30th June of the

given financial year.

30. The dealing assistants are bound to perform their duties strictly in

accordance with the rules. No unlawful order of A.T.O/A.A.O/ D.A.O

should be accepted unthinkingly. In all such cases, written orders of

the D.A.O. should be obtained.

31. To get each and every entry of Revenue Deposit receipt attested by

the A.T.O and the D.A.O.

32. To prepare lapsed Deposit statement Register.

33. To link credit challan and bank scroll with vouchers seeking

repayments of more than Rs.10000/-

34. To minus amounts withdrawn through reappropriations refunds from

the schemes.

35. Identification of pensioners.

24

Duties of Sadder Treasurers, Assistant Treasurers.

1. To watch that sufficient stock of stamps etc. is available in the Double

Lock to meet with the requirements of the public and the government

departments.

2. To requisition stamps through annual forecast from the Chief Controller

of Stamps, Karachi.

3. To requisition cheque books of P.W.D from the Director General

Accounts (Works), Lahore and that of P.L.A from the Accountant

General, Punjab.

4. To arrange supply of Refund voucher Books, receipt books, from the

Government Printing Press, Lahore.

5. To prepare monthly plus and minus statement of stamps.

6. To issue stamps in the prescribed manner.

7. To receive and deliver valuables on the orders of the District Collector.

8. To maintain registers of Double Lock /Single Lock.

9. To report regarding issuance of stamps in case in the prescribed

manner.

10. To supply stamps etc. to sub treasuries, other D.A O's and to get

supply of stamps from other D.A.O's in cases of shortage.

11. To maintain files containing policy letter/amendments in rules and

various rates fixed by Govt. for sale of stamps/forms/plain papers etc.

DUTIES OF A.T.O

Main duties

To supervise and control sections working under him. To hold permanent

imprest money, verify establishment pay, T.A and contingent bills, service books,

leave account of the staff and to deal with administrative cases of staff e.g. annual

increments, disciplinary matters etc.

Subsidiary duties

Proper functioning of his section, to maintain atmosphere of general good with

the public and to act as liaison person between the general public and the staff

directly working under him.

25

Miscellaneous functions

He assists the DAO in all matters relating to the working of the treasury side

and acts as a link between his staff and the D.A.O and general public.Since

administration of office is entrusted to the A.T.O, therefore be should focus on the

following important points:

1. Periodical returns are sent regularly on due dates, to the quarters

concerned

2. Inter section and intra section rotation of staff is carried out after proper

intervals.

3. Court cases and inquiries are attended to properly.

4. The following courses of action is adopted in case of occurrence of

fraud /serious irregularity/loss to public exchequer:-

i. Identification of irregularities/embezzlement/fraud.

ii. View point of the relevant officer/official.

iii. Constitution of fact finding departmental enquiry.

iv. Registration of case with the relevant authorities where the

losses are established.

v. Intimation to the District Collector /EDO (Revenue), A.G Punjab

and Finance Department.

vi. Intimation to the Administrative Department concerned with

details of (a) Action required to be taken (b) Action already

taken by the supervisory officer.

5. To accompany the D.A.O on regular periodical and surprise

inspections of the Sub. Treasures.

6. To conduct inspections of his section after proper intervals.

7. To get record destroyed when it becomes ripped for destruction.

Records in the D.A.O are due for destruction on the expiry of the

periods noted against each item of record as prescribed in Appendix 6

of the Punjab Financial Rules. Vol II, Para 243 and Annexure H of the

Auditor General's Manual of Standing Orders, Para No. 335 of the

Manual of Department Audit Sections and pare No. 249-B and

Appendix II of the Manual of Routine Departmental, read with letter No.

Reorg/BWN/D.O.R/86-114 dated 5-2-1987 of the A.G Punjab, and Rule

49 of Appendix 9 of PFR Vol II, Chapter 7, part III of the Punjab Stamp

26

Manual and the Punjab Renewal of Repetitive Licenses Rules, read

with the Finance Departments, Letter No. I.T (FD) 3-8/99 dated 31-5-

99.

Duties of A.A.O’s in D.A, G.A.D and Compilation Section

The Assistant Accounts Officer, (AAO) besides being ultimately responsible

for complete discipline in his section, is required to scrutinize personally the following

items of work before submitting to the D.A.O.

1 All sanctions accorded by the Competent Authorities of expenditure, grant of

monetary advancement to various categories of civil servants and others,

Appropriation and re-appropriation.

2 Arrears bills.

3 Service statement, LPC and leave Account.

4 Scale audit registers (gazetted and non gazetted)

5 Last pay bill of the officers/officials who are retiring from Government Service.

6 Pay slips in which fixation of initial pay is involved.

7 33 1/3 % review of pre-audit bills.

8 Review of post audit.

9 Certificate at the time of opening new audit register to the effect that the

entries made in the new audit register are correct.

10 To attest the charge reports in the Gazetted Audit Register.

11 To get verification of the supplementary grants from the Finance Department

as prescribed.

12 To compare and initial all scales of establishment entered in the Audit

Registers with the sanctions of the proper authority and note any alteration or

revision.

13 To check and initial the classification noted on each page of the audit

Registers and other cash registers and bills.

14 To get all sanctions verified from the concerned authorities.

15 To get all objections raised on the ground that the sanction of any authority

above the D.D.O is insufficient, and to ensure that the sanctions are

regularized.

27

16 To ensure that reports of bills are prepared regularly and bills are disposed of

within the prescribe time - limits.

17 To review all the sectional work before submission to the D.A.O.

18 To ensure that all necessary prescribed pre-audit checks have been applied

before a bill submitted to the D.A.O.

19 To see and mark daily Dak received from the general diary.

20 To maintain record/registers, with the help of a Senior Staff member. He is

required to maintain the following record:-

i) Register of Insufficient sanctions.

ii) Recovery of overpayment.

iii) Calendar of returns.

iv) Misclassification report.

v) Overhauling of seats of assistants (Monthly).

vi) Register of special points.

vii) Reconciliation of receipt/expenditure register.

viii) Attendance register (C.L register).

ix) Register of outgoing LPC’s/Service statements and LPC’s of non-

gazetted staff countersigned.

x) Register for record of LPC received from the D.A.O’s/A.G. Punjab and

LPC’s of non-gazetted civil servants.

xi) Important circulars, instruction.

Duties of D.A.O.

1. All the audit registers/contingent register, receipt/account registers, registers of

Double lock/single Lock placed before him are properly maintained and

authenticated where necessary. Each page in the register is serially numbered

and certified to the effect and no page has been torn out or replaced.

2. Only one register has been maintained for each category and no other register is

started in case of misplacement of one, except with proper sanction.

3. To examine all sanctions accorded to the incurrence of expenditure.

4. Bill reports are being prepared properly, and according to schedule.

5. Departmental classified/consolidated abstracts have been maintained properly.

6. Reconciliation of receipt/expenditure figures is carried out timely and properly

reported upon.

28

7. Maintenance of various records/Registers in the sections under him.

8. Charge report register along with statement at register files being hand our, is

submitted to him on the eve of transfer of Sub-Accountant/Assistant

Accountant/Senior Auditor/A.T.O and A.A.O. in the section under his charge. It

would unfailingly be seen that proper handing over/taking over of charge has

taken place before the civil servant concerned leaves the section.

9. To write a brief for his successor on his transfer.

Responsibilities of Collector

The responsibilities of Collector has been prescribed in the the Punjab

Treasuries and Subsidiary Treasury rules, The appointment of subordinates such as

District Accounts Officers in no way relieves the Collector from the above

responsibility. Under the Subsidiary Treasury Rules, his responsibility extends not

only to the security aspects, stock of valuables and immediate detection of any

irregular practice but right down to the correctness of returns and the punctuality of

their submission Under rule 1.3 (ibid), Collector is personally responsible to

Government for the due accounting of all moneys received and disbursed and for its

safe custody and that of other government property. Further he is bound, under the

same rules to satisfy himself about the working through periodical examination of the

D.A.O’s/Sub Treasuries. Under the same rules, unless the Collector is absent, he is

also required to sign the prescribed periodical returns. The responsibilities and other

requirements in this regard stand stipulated under rule 4 (2-5) of the Punjab Treasury

Rules, read with Rules 1.1 to 1.3 (1-7) and 1.15 and 1.20 (b) of the Punjab

Subsidiary Treasury Rules.

Duties of Inspector of Treasuries

1. Main duties.

a. Inspection of the District Treasuries.

b. Preparation of inspection note on treasuries functions.

c. Preparation of periodical reports on treasuries.

d. Liaison with the District Accounts Officers.

2. Subsidiary duties.

a. Meeting with the District Accounts Officers.

b. Annual Inspection

c. Treasuries affairs.

29

3. Miscellaneous functions.

a. Surprise visit with higher officers of the treasuries.

b. Departmental enquiries on accounts matter.

c. Administrative inspection reports.

30

Annex-B

Eliminating discretion through provision of check lists

i) Gazetted Audit Department.

ii) Departmental Audit section.

iii) General Provident Fund Section.

iv) Cheque Section.

v) Compilation Section.

vi) Pension Certificate and Report Section.

vii) Treasury Section

viii) Double Lock Section.

31

Gazetted Audit Department

1. Organizational chart and functions of the G.A.D.I.

2. Organizational chart and functions of the G.A.D.II.

3. Pay-meaning

4. Pay Slip

5. Issuance of pay slip on initial appointment.

6. Issuance of pay slip on promotion from non-gazetted to gazetted post.

7. Issuance of pay slip on award of promotion, selection grade, move-over,

advance increments.

8. Issuance of pay slip on transfer.

9. Issuance of last pay and service certificate.

10. Regular pay bills of the gazetted civil servants.

11. Adjustment for the purpose of withdrawal of pay and allowances.

12. Bills of arrears of increases in pay.

13. Bills of leave salary, L.P.R, encashment of leave in lieu of L.P.R.

14. Maintenance of leave account and furnishing certificate regarding admissibility

of leave.

15. Bills of subsistence allowance.

16. History of service/service statement.

17. Certificate of G.P Fund deductions.

18. Income Tax returns.

19. Certificate regarding reaching the maximum of a pay scale.

20. Bills of re-imbursement of medical charges.

21. T.A. claims of Gazetted civil servants/T.A advance.

22. Attachment of pay of officers.

32

0RGANIZATIONAL CHART OF THE GAZETTED AUDIT DEPARTMENT-I

D.A.O.

A.A.O.

S. Auditor Sub. Accountant. Sub. Accountant Sub. Accountant

Junior Auditor

Functions

1. To pre-audit claims of salary, T.A., D.A., reimbursement of medical charges and

other claims of all Gazetted Officers of Central & Provincial Departments except

S.S.Ts.

2. To maintain and consolidate and, if so required, to transfer the service record of

all Gazetted civil servants of Provincial and Federal Departments except S.S.Ts.

33

0RGANIZATIONAL CHART OF THE GAZETTED AUDIT DEPARTMENT-II

D.A.O.

A.A.O

S. Auditor S. Auditor S. Auditor

Functions

1. To pre-audit claims on account of salary/T.A, D.A/ Medical reimbursement of the

S.S.Ts working under audit control of the D.A.O.

2. To maintain and consolidate and if so required to transfer the service records of

S.S.Ts.

34

Pay - meaning

Pay means the amount drawn monthly by a Government servant as:

the pay other than special pay or pay granted in view of his personal qualifications,

which has been sanctioned for a post held by him substantively or in an officiating

capacity or to which he is entitled by reason of his position in a cadre, and

overseas pay, technical pay, special pay, and personal pay and

any other emoluments, which may be specially classed as pay by the competent

authority.

Pay slip

The District Accounts Officer informs each civil servant in BPS 16 and above what

he is entitled to draw from the Treasury on monthly basis. This written information

regarding entitlement of a civil servant is known as pay slip.

Issuance of pay slip on initial appointment.

The pay slip should normally be issued on production of the following

documents: -

1) Sanction to the creation of post if one does not exist already along with

provision of budgetary allocation

2) Offer of appointment.

3) Copy of notification of appointment and order of posting.

4) A charge report showing the date fore or afternoon on which the

charge is taken.

5) Medical fitness certificate. Copies of Secondary School certificate to

ascertain the age at the time of induction into Govt. service.

6) Request for issuance of pay slip.

7) A set of specimen signatures duly attested by an officer whose

specimen signatures are available in the office.

8) If the officer desires to draw house rent allowance, a certificate the

effect that he is not residing in or provided with an official residence. If

a designated residence is available for the officer and he wants to

reside somewhere else, certificate from the administrative secretary of

the department exempting the officer from residing in designated

house.

35

9) It should be seen that appointment has been made by the competent

authority in the prescribe manner at a time when there is no ban on

fresh recruitment. If there is a ban on appointment through initial

recruitment, relaxation of the ban must have been obtained from the

competent authority.

10) Since it is compulsory to subscribe to the General provident fund from

the date of entry in to government service, therefore, it is advisable to

suggest the officer to get a G.P Fund number allotted first or before

submission of his first pay bill.

11) A copy of secondary school certificate.

Issuance of pay slip on promotion from non-gazetted to gazetted post.

Pay slip should normally be issued on receipt of the following

documents/points:-

1) Service book complete in all respects.

2) A last pay certificate from the drawing and disbursing officer showing

the date up to and the rate at which he has been paid as a non-

gazetted civil servant and also the date of relinquishing charge of the

non-gazetted post. If the officer was serving under the audit jurisdiction

of another D.A.O/A.G. Punjab the last pay certificate should bear

countersignatures of the D.A.O/A.G. Punjab.

3) A charge report of taking over charge as gazetted officer

4) Notification of promotion.

5) Order of posting.

6) Sanction to the creation of post if one does not exist already.

7) A set of specimen signature duly attested by an officer whose

specimen signatures are available in the office.

8) Application for issuance of pay slip.

9) If the officer desires to draw house rent allowance, a certificate to the

effect that he is not residing in or is provided with an official residence,

is required. If a designated residence is available for the officer and he

wants to reside somewhere else, a certificate from the administrative

secretary exempting the officer from residing in designated house is

required.

36

10) It should be seen that a competent authority in accordance with rules of

the relevant service has ordered promotion in the prescribed manner.

Issuance of pay slip on award of selection grade, move over, advance

increments.

Pay slip should normally be issued after examining the following

documents/points.

1) Valid orders issued by a competent authority granting promotion,

selection grade, moreover, advance increments in accordance with the

service rules in the prescribe manner.

2) Charge reports, where required, of relinquishing the charge of the

previous post and taking over the charge of the new one.

3) If move over, selection grade, advance increments have been granted

with retrospective effect, a revised pay slip will be issued by the

D.A.O/A.G. Punjab under whose jurisdiction the officer was working on

the date from which change of emoluments occurred if the officer was

not working under the audit control of this office.

4) Pay has to be fixed in accordance with the instructions of the Finance

Department or the Finance Division, as the case may be.

5) An application for issuance of revised pay slip.

Issuance of pay slip on transfer

When an officer is transferred from the audit jurisdiction of other D.A.O’s/A.G.

Punjab to the audit jurisdiction of this office, a pay slip should promptly be issued to

him on the production of the following documents/examining the following points:-

1) Transfer orders against an existing vacancy or vacancy created

through transfer orders or against a specially created post.

2) Sanction of creation of post if one does not exist already.

3) A report of taking over the charge.

4) Application for issuance of pay slip.

5) A set of specimen signatures duly attested by an officer whose

specimen signatures are available in the office.

6) A sealed copy of the last pay certificate issued by his previous audit

office.

37

7) If the officer desires to draw house rent allowance, a certificate to the

effect that he is not residing in or provided with an official residence or

no designated residence is available for the officer. If designated

residence is available and he wants to reside somewhere else, a

certificate from the administrative secretary exempting the officer from

residing in designated house is required. If last pay certificate of the

officer shows that the officer was not drawing house rent allowance at

his previous place of posting, a certificate from the Building Department

to the effect that the officer has vacated his residence and has cleared

all legitimate dues, is required.

8) Pay drawn in advance at the previous station or any other over-

payments have to be adjusted/recovered by this office.

Issuance of last pay and service certificate

Last pay and service certificate on the prescribed form duly approved by the

auditor General of Pakistan, should be issued on the production of the following

documents/keeping in view the following points: -

1) Transfer order.

2) Charge relinquishing report.

3) Application for issuance of last pay and service certificate.

4) Complete name, designation, address, department should be noted on

the certificate so that the certificate reaches the proper functionary in

the audit office to which the officer has been transferred.

5) All columns of the new Last Pay and Service Certificate should be

properly filled in, with special emphasis on income tax deducted from

the pay of the officer, balance of G.P Fund at his credit, any advances

or other recoveries to be effected, service statement and leave

account.

Regular pay bill of the gazetted civil servants.

The auditor should normally focus on the following points while pre-auditing

regular pay bills of the gazetted civil servants:-

1) The bill has been received through normal channels i.e. through token

or diary.

2) Function cum-object classification is correct.

38

3) Signatures of the officer tally with the specimen signatures.

4) bill has been prepared in accordance with the pay slip issued by this

office, on the prescribed form and properly filed in.

5) No bill of an officer working in Ferozweala or Nankana Sahib has been

presented through token or of an officer working in Tehsil Sheikhupura,

through diary.

6) A bill has been presented on time. If there is considerable delay in

submission of the bill, the delay has been justified or where necessary,

sanction of the competent authority has been obtained.

7) If the bill pertains to the previous financial year, a certificate from the

budget-controlling officer to the effect that the expenditure of the claim

can be met from the budgetary allocation of the current financial year is

required. This rule does not apply to payments made in July for the pay

of June of the previous year.

8) Continuation of sanction of Schedule of New Expenditure has been

received if the officer is working in a temporary establishment.

9) No court of law has attached the pay of the officer.

10) His controlling officer has not sent his absence report.

11) Recoveries of House Building Advance, Motor Car/Motor cycle

Advance, G.P Fund advance, T.A. advance, pay advance, over

payments etc. have been effected as required by the rules. (Formula

for calculation of interest on H.B.A/M.C.A is as follows.

12) G.P Fund has been deducted according to the prescribed rates.

Schedule of G.P Fund, indicating G.P fund Account Number and

signed by the officer, has been attached with the bill. Rates of

deduction of G.P Fund for different basic pay scales are given

hereunder for the information of the auditors:-

S/No B.P.S W.e.f 1-7-87 W.e.f 1-6-94

1 1 Rs.25 Rs.50

2 2 Rs.40 Rs.85

3 3 Rs.45 Rs.85

4 4 Rs.45 Rs.90

39

5 5 Rs.50 Rs.95

6 6 Rs.50 Rs.100

7 7 Rs.55 Rs.100

8 8 Rs.60 Rs.110

9 9 Rs.60 Rs.120

10 10 Rs.65 Rs.125

11 11 Rs.70 Rs.130

12 12 Rs.75 Rs.145

13 13 Rs.130 Rs.250

14 14 Rs.140 Rs.265

15 15 Rs.150 Rs.285

16 16 Rs.175 Rs.325

17 17 Rs.250 Rs.450

18 18 Rs.300 Rs.560

19 19 Rs.400 Rs.780

20 20 Rs.500 Rs.920

21 21 Rs.550 Rs.1040

22 22 Rs.600 Rs.1120

13) Contribution on account of Group Insurance has been effected.

Schedule of deduction has been attached with the bill. For the

information and guidance of the auditors, the rates of monthly premium

and sums insured are given hereunder:-

B.P.S Monthly(Rs.) Premium(Rs.) Sum

Insured(Rs)

1-4 9.13 - 30,000/-

5-10 10.65 - 35,000/-

11-15 18.25 - 60,000/-

16 27.38 - 90,000/-

17 36.50 - 120,000/-

18 53.22 - 175,000/-

19 63.87 - 210,000

40

20 76.04 - 250,000/-

As regards the Government employees in B.P.S 1-4, the premium of

Rs.2.28 per employee per month is paid by the government of the

Punjab and the balance of premium or Rs.6-85 per month is deducted

from the pay of the employees in Besides death in service, the sums

assured are also payable in case of death within five years after

retirement.

Formula for calculation of interest on N.B.A/N.C.A

(If recovery started from 4th month of drawl)

Month:9/79

Rate of Interest: 12.50%

Amount of Advance Rs.40560

No of Instalments, 120.monthly

INTREST= N(No of Installments + Rate of Interest) + 3 AR2400 1200

N= Principal Amount/Amount of Advance.

A= Amount.

R= Rate of Interest of respective year,

Ca l c u l a t i o n

40560 X 12 X 12.50 + 40560 X 3 X 12.50

2400 1200

Rs.25661.25 + Rs.1267.50

Rs.26828.75

Rs.26829/- in round figure.

(In case of recovery started from very next month)

INTREST= N(No of installments + rate of interest)2400

41

N= Principal amount/amount of advance.

A= Amount.

R= Rate of interest of respective year,

40560 X 12 X 12.50

2400

Rs.25661.25

Rs.25661 in rounds figures.

In case of Federal Government’s employees, rates of premium and sums

assured are as under:-

S/No Monthly pay (Rs.) Monthly premium

(Rs.)

Sum assured (Rs.)

1 Upto 1500 24.50 70,000

2 1550 to 2000 29.75 85,000

3 2001 to 2500 35.00 100,000

4 25001 to 3000 40.25 115,000

5 3001 to 3500 45.50 130,000

6 3501 to 4000 50.75 145,000

7 4001 to 4500 56.00 160,000

8 4501 to 5000 61.25 175,000

9 5001 to 5500 66.50 190,000

10 5501 to 6000 71.75 205,000

11 6001 to 6500 77.00 220,000

12 6501 to 7000 82.25 235,000

13 7001 to 7500 87.50 250,000

14 7501 to 8000 92.75 265,000

15 8001 to 8500 98.50 280,000

16 8501 to 9000 103,25 295,000

17 9001 to 9500 108.50 310,000

18 9501 to 10000 113.75 325,000

19 10001 to 10500 119.00 340,000

20 10501 to 11000 124.25 355,000

42

21 11001 to 11500 129.50 370,000

22 11501 to 12000 134.75 385,000

23 12001 to 12500 140.00 400,000

24 12501 to 13000 145.25 415,000

25 13001 to 13500 150.50 430,000

26 13501 to 14000 155.75 445,000

27 14001 to 14500 161.00 460,000

28 14501 to 15000 166.25 475,000

29 15001 to 15500 171.50 490,000

30 15501 to 16000 176.75 505,000

31 16001 and above 182.00 520,000

14) Benevolent Fund contribution has been made at the prescribed rates and schedule of deduction

to this effect has been attached with the bill. For the information and guidance of auditors, the

rates of subscription to the fund are given here under:- with effect from 4-9-88.

S/No Pay Group B.Fund S/No Pay Group B.Fund

1 501-600 11 32 3601-3700 73

2 601-700 13 33 3701-3800 75

3 701-800 15 34 3801-3900 77

4 801-900 17 35 3901-4000 79

5 901-1000 19 36 4001-4100 81

6 1001-1100 21 37 4101-4200 83

7 1101-1200 23 38 4201-4300 85

8 1201-1300 25 39 4301-4400 87

9 1301-1400 27 40 4401-4500 89

10 1401-1500 29 41 4501-4600 91

11 1501-1600 31 42 4601-4700 93

12 1601-1700 33 43 4701-4800 95

13 1701-1800 35 44 4801-4900 97

14 1801-1900 37 45 4901-5000 99

15 1901-2000 39 46 5001-5100 100

16 2001-2100 41 47 5101 and above 100

43

17 2101-2200 43

18 2201-2300 45

19 2301-2400 47

20 2401-2500 49

21 2501-2600 51

22 2601-2700 53

23 2701-2800 55

24 2801-2900 57

25 2901-3000 59

26 3001-3100 61

27 3101-3200 63

28 3201-3300 65

29 3301-3400 67

30 3401-3500 69

31 3501-3600 71

At the rate of 2% at present scales.

15) Revenue stamps are leviable on the pay bills as per details below:-

a) Where salary does not exceed.

Rs.2000/- One Rupee

b) Where salary excess

Rs.2000/- but does not exceed Rs.10,000/- Two Rupees.

c) Where salary exceeds Rs.10,000/- Five Rupees.

16) If required, in come tax has been deducted. For the guidance of

auditions rates of deduction of income tax from the pay of officers are

given here under:-

44

For salaried persons

Where the total income:-

Exceeds Does not exceed Tax rate

- Rs.100,000/- 5%

Rs.100,000/- Rs.200,000/- Rs.5000/- + 10% of the

amount exceeding

Rs.100,000/-

Rs.200,000/- Rs.300,000/- Rs.15000/- + 15% of the

amount exceeding

Rs.200,000/-

Rs.300,000/- - Rs.30000/- + 20% of the

amount exceeding

Rs.300,000/-

Note:-

i) The deductions to be made for tax credit is as under:-

a) Salaries cases (excluding Director) Rs.2500/-

b) Women salaries cases (excluding Director)

Rs.3000/-.

c) Other cases Rs.2000/-

ii) Surcharge at the rate of 10% of income tax is also payable in all the

above cases except salary cases.

17) Trade Tax

From 1-7-95 Rate of Professional tax of Income Tax payees have been

increased from Rs.100/- Per Annum to Rs.200/- per annum.

Adjustment for the purpose of drawl of pay and allowances

Sometimes officers remain awaiting posting or it becomes necessary for one

reason or the other, to adjust them against a vacant post for the purpose of drawl of

regular pay and allowances only. Auditors should examine the following points in

such cases:-

1) Orders issued by a competent authority regarding adjustment for the

purpose of drawl of pay and allowances for a specific period against a

vacant post.

45

2) If the officer has been adjusted against a newly created supernumerary

post, then provision of budgetary allocation for the post is necessary or

the budget controlling officer should certify that the expenditure

involved can be met from the budgetary allocation for the current

financial year.

3) If the adjustment has been made for a period pertaining to the previous

financial years, a certificate from the budget-controlling officer to the

effect that the expenditure involved can be met from the budgetary

allocation for the current financial year is necessary.

4) Sealed last pay and Service Certificate issued by an audit office from

where he drew his last pay.

5) Reports of assuming and relinquishing charge of the post.

6) Application of the officer.

7) A set of specimen signatures of the officer duly attested by an officer

whose specimen signatures are available in this office.

8) A certificate to the effect that the officer is not residing in official

residence. If his last pay and service certificate shows that he was not

drawing his house rent allowance at his previous station, then a house

vacation certificate from the Building Department if he wants to draw

house rent allowance.

9) Orders regarding adjustment for the purpose of drawl of pay should be

verified from the order issuing authority and payment should be

authorized through a “payee’s account only” pay order in order to

check frauds.

10) If the officer so desires, the audit office of the current place of posting

of the officer should be authorized through sealed Last Pay and

Service Certificate to make payment to the officer.

11) In case of submission of bill after issuance of pay slip, the bill should be

carefully audited, keeping in view points discussed under heading of

pre-audit of regular bills.

Bills of arrears of increase in pay

The auditors should particularly examine the following points while pre -

auditing bills of arrears of increases in pay of the officers:-

46

1) The bill is on the prescribed form, properly filled in, signed and

stamped and correctly classified.

2) Calculations are correct and are in accordance with the revised pay slip

issued to the officer.

3) Claim is not time - barred and if so the requisite sanction has been

obtained from the competent authority.

4) With the exception of general revision of pay scales and regular

promotion to next higher scale of pay, certificate of availability of

budgetary allocation issued by the budget-controlling officer is attached

with or recorded in the bill.

5) The requisite deductions have been made on the bill.

Bills of leave salary, leave preparatory to retirement and encashment of leave

in lieu of leave preparatory to retirement.

The auditor should focus his attention on the following points:-

1) Orders have been issued by a competent authority under the leave

rules for grant of leave, leave preparatory to retirement or encashment

of leave in lieu of leave preparatory to retirement and these are in

accordance with the leave account of the officer and recommendations

of the audit office.

2) The officer has proceeded on leave after sanction of leave Submission

of leave application can not be equated with the grant of leave. In case

of ex-post fact sanction of leave, relaxation in the application of the

leave rules has been obtained. The nature and description of leave

should be specified.

3) The bill is on the prescribed form, properly filled in, signed, stamped,

correctly classified with accurate calculations and the rates claimed are

admissible.

4) Deductions have been made as per rules, in case of encashment of

leave in lieu of leave preparatory to retirement, the following points

merit mention:-

If a civil servant has a leave at his credit for a period of 365 days

or more he is entitled to get encashment of 180 days.

If the leave at his credit is less than 365 days, half of the leave

can be encashed.

47

Encashment of leave move of death:- IN case of death of a

civil servant, his family is entitled to draw encashment upto 180

days, subject to availability of leave at the credit of the

deceased.

When leave earned:- All service rendered by a civil servant

qualifies him to earn leave in accordance with rules but shall not

be earned during the period of leave.

Earning and accumulation of leave:- A civil servant shall earn

leave only on full pay which will be calculated at the rate of four

days for every calendar month of duty rendered.

Civil servant in vacation department:

* when he avails himself of full vacation in a calendar year at

the rate of one day for every calendar month of duty

rendered.

* When during any year he is prevented from availing himself of

full vacation as for a civil servant in a non-vacation

department for the year.

Leave on full pay :- The maximum period of leave on full pay

that may be granted at one time shall be as follows:-

Without Medical Certificate 120 days.

With Medical Certificate 180 days.

On Medical Certificate from leave i.e. in entire Service

365 days

Leave on half pay: Leave on full pay may at the option of a civil

servant, be converted into leave on half pay. There shall be no

limit on the grant of leave on half pay so long as it is available by

conversion in the leave Account.

Extraordinary leave (without pay): E.O.L without pay may be

granted on any ground upto a maximum period of five years at

a time provided a civil servant to whom such leave is granted

has been in continuance service for a period of ten years and in

case of a civil servant has not completed ten years of

continuous service E.O.L without pay for a maximum period of

two years may be granted.

48

Maternity Leave: Maternity leave may be granted on full pay,

outside the leave account, to a female civil servant to the extent

of ninety days. Such leave may not be granted for more than

three times in the entire service of a female civil servant except

female civil servants employed in Education department.

Leave preparatory to retirement: The maximum period upto

which a civil servant may be granted leave preparatory to

retirement shall be three hundred sixty five days.

Maintenance of leave account and furnishing certificate regarding

admissibility of leave:

1) District Accounts officer is responsible to maintain leave accounts of all

officers claiming their pay from this office. Leave accounts must be updated and

complete. Leave accounts of the officers should be consolidated by getting their

accounts transferred to this office from their previous audit offices.

2) Whenever controlling authority of an officer for wards his application for grant

of leave to obtain report of the audit, the auditor should assign top priority to the job.

Report regarding admissibility or otherwise of the leave should always be made with

reference to the relevant rules.

Bills of subsistence allowance

The officers, who are placed under suspension, are entitled to the drawl of

substance allowance at the rate of full pay and allowances they were drawing

immediately before their suspension. Bills of subsistence allowance should be

entertained during the currency of their suspension. The auditors should check such

bills from the following angles:-

1. The bill is on the prescribed form, properly filled in, signed, stamped correctly

classified with accurate calculations on admissible rates.

2. Deductions have been made in accordance with the rules.

3. Normally a suspension order remains operative for a maximum period of three

months, it requires extension after the expiry of this period.

History of services/ service statement

Maintenance of service statement of officers is the responsibility of the District

Accounts Office. Upon transfer, service statement should always form part of last

pay certificate. Service statement of officers should be consolidated by collecting the

49

same from previous audit offices of the officers. In majority of cases, delay in

issuance of pension payment orders on retirement of officers is caused by the non-

availability of consolidated service statement. This delay is avoidable if the auditors

educate the officers and take some measure of interest in the consolidation of

service statement.

Certificate of G.P fund deductions

Certificate regarding deductions of General Provident Fund from the pay of

officers should be issued on verbal or written request of the officer or on request of

the auditor or Assistant Accounts Officer concerned in the G.P. Fund Section. Full

name designation, place of posting of the officer should always be mentioned in the

certificate along with rates and months of deductions.

Income tax returns

Officers earning taxable income are required under the law to submit their tax

returns before target dates. They are required to get their tax returns from the District

Accounts Officer verified. The auditors should carefully check these returns and after

meticulously examining and comparing them with the audit register, verify them as

quickly as possible.

Certificate regarding reaching the maximum of a pay scale

Administrative departments, generally before granting move over to an officer

to the next higher pay scale, demand production of a certificate issued by the District

Accounts Officer concerned to the effect that the officer reached the maximum of a

given pay scale on a particular date. This certificate should immediately be issued,

after verifying the fact from the audit register, to the officer upon his written or verbal

request. However the sentence that the officer is entitled to move over from

B.P.S……….w.e.f………should never be included in the certificate as grant of move

over is subject to fulfillment of certain requirements to the satisfaction of the

Departmental Promotion committee. No hesitation should be shown in the issuance

of the certificate twice, thrice or any times on the request of the competent authority.

50

Bills of re-imbursement of medical charges

Bills of re-imbursement of medical charges should be audited keeping in view

the following points:-

1) The bill is on the prescribed form, properly filled in, signed, stamped,

correctly classified, indicating budgetary allocation with no errors in

calculations.

2) The expenditure has been incurred for purchase of medicines

necessary in the opinion of the authorized medical attendant, for the

restoration of health of the officer or his family members wholly

dependent upon him.

3) Prescription by the authorized medical attendant, duly countersigned

by the Medical Superintendent of the Govt. Hospital before actual

purchase of medicines, has been attached with the bill.

4) Cash memo of purchase of medicines, duly attested by the authorized

medical attendant has been attached with the bill.

5) Non - availability certificate issued by the M.S, machine -numbered and

embossed, to the effect that the medicines purchased or their effective

substitutes were not available in the hospital and that tonics, vitamins,

minerals or other non - reimbursable items have not been included in

the certificate, should accompany the bill.

6) Sanction for re-imbursement of medical charges accorded by a

competent authority is necessary for the re-imbursement. This is stated

for the information and guidance of the auditors that as per rules,

Heads of Attached Departments and District Coordination Officers can

accord sanction of upto Rs.10000/- and Administrative Departments

upto Rs.20000/- Sanction of the Finance Department is necessary for

claims in excess of Rs.10000/-

7) Budget is available in the relevant code of classification.

8) Under certain circumstances, civil servants of the federal government

can claim re-imbursement of medical charges for treatment in private

hospitals.

9) Officers are entitled to re-imbursement of medical charges for out-door

as well in-door treatment subject to sanction by the competent

authority, availability of budgetary allocations and fulfillment of other

51

formalities, there are no limitations on the amount of re-imbursement.

In case of non-gazetted civil servants, expenses in case in-door

treatment are reimbursable.

T.A. claims of gazetted civil servants, T.A. advance

In auditing a traveling allowance bill, the following should be checked:-

1) The bill is on the prescribed form, properly filed in, signed, stamped,

correctly classified with no errors in calculations and with budget

provision noted on the bill.

2) Rates of pay, daily, mileage allowance are correct.

3) The controlling authority of the officer has countersigned the bill.

4) Journeys have been undertaken for the purposes for which T.A. is

admissible.

5) Distances covered noted in the bill are correct.

6) There is no halt for more than ten days at a particular station.

7) No T.A is admissible for journeys of 16 kilometers within the radius of

the headquarters.

8) Rates of daily allowance are given hereunder for the guidance of the

auditors:-

Daily allowance

Pay Special Ordinary

1245-2000 80 65

2001-3000 100 85

3001-4000 120 100

4001-5000 145 120

5001-6000 175 150

6001-7000 215 180

7001-8000 260 255

8001-9000 300 280

9001-10000 350 300

10000 and above 400 350

52

Transportation charges on tours or on transfer

Rates/km.

S/No source with effect from 1-7-87 with effect from 1-6-94

1 Motor car 00.60 1.20

2 Motor cycle 00.20 00.40

Mileage allowance

Rates/km.

S/No source with effect from 1-7-87 with effect from 1-6-94

1 Motor car/Taxi 2.00 3.00

2 Motor cycle 00.65 .1.00

3 Bicycle, Animal

or foot

00.50 00.75

4 Public

Transport B7

and Above

00.32 00.50

5 Public

Transport B6

and Below

00.20 00.30

Categories

S/No with effect from 1-7-87 with effect from 1-6-94

1 By Air

(E),Highest in

Railway

B-17 and Above or Pay

Rupee 2840 and Above

B-17 and Above or Pay

Rupees 5330 and Above

2 First Class

Sleeper

910-2840 1725-5330

3 First Class

Sitter

All Excluding B-1 and 2

4 Lowest Class B-1 and 2

53

Attachment of pay of officers

The District Accounts Office executes orders of attachment of salary of

officers issued by a competent court of law. On receipt of such orders, the auditor

should follow the following course of action:-

1) Orders of the court should immediately be noted in the audit register of

the officer and be placed on the personal file of the officer.

2) On receipt of bill, two pay orders should be affixed on the pay bill.

Through pay order in the name of the officer whose pay has been

attached, payment of the first hundred rupees and one-half of the

remainder of the salary of the officer be authorized . For the rest of the

salary, a separate pay order payable through Govt Bank Draft or pay

order, as the case may be, to the court issuing attachment orders be

affixed on the bill. The court shall deposit the contents of its pay order

under head “Revenue Deposits”, and shall authorise payment, when

deemed proper, through refund voucher in the prescribed manner.

3) The court, on receipt of attachment orders, be informed, through a

letter, that its orders have been noted for compliance and shall be

executed in accordance with the law when the officer submits his pay

bill.

4) If the court withdraws its orders before execution, the officer shall draw

his salary as if no such orders had ever been issued. Orders of

withdrawal of attachment should be noted in the audit register and be

placed on his personal file.

54

Departmental Audit Section

1. Organizational Chart.

2. Functions of the Section.

3. Regular pay bills of permanent establishments.

4. Creation of temporary establishments and regular monthly pay bills there of.

5. Abstract pay bills.

6. Adjustment for the purpose of drawl of pay and allowances.

7. Countersigning last pay certificate of officials.

8. Attachment of pay of officials.

9. Early payments in special cases.

10. Effecting recoveries.

11. Arrears bills.

12. Bills of leave salary, L.P.R. and encashment of leave in lieu of LPR.

13. Re-imbursement of medical charges.

14. T.A. bills of officials.

15. Re-appropriation of budgetary allocations.

16. Abstract T.A. bills.

17. Contingent bills.

18. Personal ledger accounts, pension contributions, Grants-in-aid to

Municipalities.

19. Advances to officials.

20. Pay fixation

55

0RGANIZATIONAL CHART

D.A.O.

A.A.O.

S.Auditor S. Auditor S.Auditor S.Auditor S.Auditor

S..Auditor S.Auditor S.Auditor S.Auditor

Junior Auditor S.Acct N. Qasid

Functions

1) To pre-audit pay bills of non-gazetted civil servants (Provincial & Federal).

2) To pre-audit contingent claims of government departments (Provincial &

Federal).

3) To prepare civil accounts of payments of the government of the Punjab.

4) To prepare provincial cash book of payments of the district.

5) To authenticate pay of non-gazetted civil servants fixed by their departments.

56

Regular pay bills of permanent establishments:-

The auditors should devote their attention to the following points while pre-

auditing regular monthly pay bolls of permanent establishments:-

1) The bill has been submitted by a competent drawing and disbursing officer.

2) The bill is on the prescribed form, properly filled in, signed, stamped.

3) Signatures of the drawing and disbursing officer tally with the specimen

signature.

4) The bill has been correctly classified.

5) Arithmetical calculations of the bill are correct.

6) Amount of the bill and number of posts claimed are not in excess of what was

drawn in the previous month .In case of variation, a variation statement,

justifying the difference, has been attached with the bill. In case of excess the

number in posts claimed in comparison with the previous month, documents

concerning officials freshly included in the bill should be attached with the bill.

Increase in the number of posts claimed can occasion due to (1) fresh

appointments (11) transfer (111) promotion. In case of fresh appointment, the

following documents are required for examination of the audit:-

i) Offer of appointment.

ii) Medical fitness certificate.

iii) Posting orders.

iv) Joining report

v) Matriculation certificate and NIC.

It may also be ensured that no initial recruitment is made during the currency

of an order issued by a competent authority banning initial recruitment.

In case of appointment through transfer, the following documents are

required:-

i) Transfer orders.

ii) Last pay certificate issued by the drawing and disbursing officer and

in case of transfer from another countersigned by the concerned

D.A.O.

iii) Joining report.

iv) In case of promotion; promotion orders issued by a competent

authority along with orders of posting, relieving and joining reports

are to be seen by the auditor.

57

7) Posts claimed are not in excess of the sanctioned posts.

8) Names, designations, rates of pay, allowances, deductions, gross and

net totals have been entered in the relevant columns of the pay bill.

9) Net amount of the bill has been recorded in figures as well as in words.

10) The drawing and disbursing officer has signed the requisite certificates.

11) The absentee statement is filed in or “no leave” certificate is furnished.

12) In case of leave salary, orders sanctioning leave and relieving reports

are furnished. In case of return from leave, orders of posting as

required under Rule 29 of the Revised Leave Rules 1981 and joining

reports are attached.

If joining time has been availed in excess of what is permissible under the

rules, approval of the competent authority for extenuation in joining time has been

obtained. For guidance and information of the auditors, the formula of admissibility of

joining time is reproduced hereunder:- Maximum 30 days joining time is admissible

under the Rules.

i) Six days are allowed for preparation, in addition a period to cover the actual

journey to be calculated as follows:-

a) For the period of the journey (which he travels or might travel) one

day for each 250 miles, by rail.

b) A day is allowed for any fractional portion journey distance

prescribed as above.

c) A holiday does not count as a day for the passage of calculation in

this rule but holidays are included in the maximum period of 30 days.

d) When air journey is performed six days for preparation and days

actually taken in air journey should be allowed as joining time.

14) House rent allowance is admissible at the rate of 45 percent and 33

percent of the initial stage of B.P.S of 1991 in big and ordinary cities

respectively. It should not have been claimed on the running pay of the

officials.

15) General Provident Fund has been deducted from the pay of the

officials at the following rates:-

58

S/No B.P.S Wef 1-7-87 Wef 1-6-95

1 1 Rs.25 Rs.50

2 2 Rs.40 Rs.85

3 3 Rs.45 Rs.85

4 4 Rs.45 Rs.90

5 5 Rs.50 Rs.95

6 6 Rs.50 Rs.100

7 7 Rs.55 Rs.100

8 8 Rs.60 Rs.110

9 9 Rs.60 Rs.120

10 10 Rs.65 Rs.125

11 11 Rs.70 Rs.130

12 12 Rs.75 Rs.145

13 13 Rs.130 Rs.250

14 14 Rs.140 Rs.265

15 15 Rs.150 Rs.285

16 16 Rs.175 Rs.325

17 17 Rs.250 Rs.450

18 18 Rs.300 Rs.560

19 19 Rs.400 Rs.780

20 20 Rs.500 Rs.920

21 21 Rs.550 Rs.1040

22 22 Rs.600 Rs.1120

Subscription to G.P Fund is compulsory and over - subscription is not allowed.

Schedules of G.P Fund have been attached with the bill and are signed and are in

accordance with the deductions shown in the pay bills.

16) Benevolent Fund has been deducted and a schedule of deduction has

been attached with the bill.

17) Premiums of Group Insurance have been deducted from the pay of

officials and a schedule to this effect has been attached with the bill.

59

18) If the bill pertains to the previous financial year, a certificate from the

budget-controlling officer that the expenditure of this bill can be met

from the savings from the budgetary allocation of the current financial

year is attached with the bill.

19) The bill has been presented on time. In case of delay in submission,

sanction to investigation of time-barred claims has been obtained. No

claim against Government, with some exceptions, not preferred within

six months of its becoming due can be paid without sanction of the

Accountant General. Investigation of claims more than one year old

shall be sanctioned by the following:-

Administrative

Department and

Officers in Category

II, III, IV.

Full powers in respect of T.A. claims

not more than three years old and

other claims not more than 6 years

old.

Full powers in respect of claims not

more than 3 years old of government

servants whom they are competent to

appoint.

20) No bill of diary has been presented through token and vice versa.

21) Payment to the institutions of elementary education has been

authorized through a pay order bearing stamps “payee’s account only”

22) In bills of December, annual increment certificate has been attached.

23) Adhoc appointments are not allowed in B.P.S 1 to 15 under the rules.

Creation of temporary establishments and regular monthly pay bills thereof

The auditors should keep in view the following points while entertaining

sanctions for the creation or continuation of temporary establishments and regular

pay bills thereof, in addition to normal checks applied to regular pay bills of

permanent establishment:-

1) Sanction for creation or continuation of a temporary establishment,

accorded by the Finance Department, for a defined period, along with

60

provision of budgetary allocation is available. It is advisable to get the

audit copy of sanction confirmed from the Finance Department.

2) If a entirely new establishment drawing and disbursing officer has been

notified for the said establishment by the Finance Department.

3) In case of sanction of the Finance Department being collective for a

number of establishments, the departmental authorities have notified

distribution of posts and budgetary allocations among various

establishments.

4) If the Finance Department has accorded sanction without provision of

additional budgetary allocations and subject to the condition that the

department shall arrange funds from within its allocated budget, the

budget controlling authority should furnish a certificate that the

expenditure involved can be met out of budgetary allocations of the

current financial year.

5) No payment is allowed to a temporary establishment beyond the period

specified in the sanction. The assumption that a District Accounts

Officer can allow payment, on the request of the DDO on his furnishing

indemnity bond, on provisional basis, for a period of three months in

anticipation of sanction, is without foundation and is baseless. All

requests for provisional payments should, therefore, be rejected

summarily.

Abstract pay bills

The pay abstracts of the district police are regulated by departmental rules,

and are stated, so for as regards the lower grades, in detail of grades. There is no

need of mentioning names in the monthly pay bills of lower subordinates. However

detailed schedules of deductions are required as in the case of other departments.

The drawing officer should furnish the following certificate, “Certified that I have

satisfied myself that all pay included in bills drawn 30 days previous to this date, with

the exception of those details below (of which the total has been refunded by

deduction from this bill) have been disbursed to the proper persons and that their

receipts have been taken in acquaintance rolls filled in my office, with receipt stamps

duly cancelled for every payment in excess of Rs.20. Further certified that all

persons for whom pay has been drawn in this bill have actually been entertained”

61

Adjustment for the purpose of drawl of pay and allowances

The auditor should pre-audit claims of officials on account of adjustment for

the purpose of drawl of pay, with particular emphasis, in addition to normal checks

applied to regular pay bills, on the following points:-

1) A competent authority has issued valid orders of adjustment for the purpose

of withdrawal of pay and allowance.

2) Last pay certificate issued by the drawing and disbursing officer, and where

required countersigned by the DAO, is attached with the bill.

3) Charge relinquishing and assuming reports duly countersigned are attached.

4) The bill is for the period for which official has been adjusted for the purpose of

drawl of pay and allowances.

5) The rate of house rent allowance is that which is admissible for the post

against which adjustment has been made e.g. an official who remains

awaiting posting in Ferozewala (where rates of house rent of that of Lahore

are admissible) and adjusted in Sheikhupura, shall draw house rent allowance

at rates admissible in Sheikhupura.

6) The post against which adjustment has been ordered remained vacant during

the period for which adjustment has been made.

7) In case of adjustment for periods relating to the previous financial year, a

certificate regarding availability of budget from the allocations for the current

year, issued by the budget-controlling officer, is required.

8) In case of adjustment for considerably long period, production of service book

of the official and his personal appearance should be insisted upon to plug

any avenue of fraud. Though D.D.O. is responsible for the amounts drawn,

yet exercise of due diligence is in public interest.

9) If the official has been adjusted against a newly created supernumerary post,

then provision of budgetary allocation for the post is necessary or the budget

controlling officer should certify that the expenditure involved can be met from

the budgetary allocation for the current financial year.

62

Countersigning last pay certificate of officials

Last pay certificates, in case of transfer/adjustment of officials of all

departments of the provincial government to other districts, are required to be

countersigned by the concerned D.A.O/A.G. Punjab. When an L.P.C is submitted for

countersignatures, the auditor shall examine the following documents to ascertain its

genuineness:-

i) Transfer/adjustment orders issued by a competent authority.

ii) Service book of the official, complete in all respect.

iii) Charge reports.

iv) Office copy of the establishment bill through which the official drew his

last pay.

v) Last pay certificate issued by a competent D.D.O and, in case of

Education Department, countersigned by the District Education Officer

concerned. Signatures on the L.P.C. tally with specimen signatures.

vi) In case of inter - divisional transfer in Education Department, a

certificate should be got recorded on the L.P.C by the D.D.O. to the

effect that orders regarding inter-divisional transfer have been

reconfirmed from the issuing authority and found genuine.

vii) In case of L.P.Cs of officials working in elementary wing of the

Education Department, a certificate by the D.D.O. that the appointment

of the official has been/has not been found bogus and fake in Army

Survey or the services of the official have been/have not been

terminated and the official has been allowed to work as the operation of

the termination orders has been suspended by a competent court of

law.

viii) Pay fixed by the department and verified by the audit should be

rechecked to ascertain its correctness.

ix) If all things are found in order, the following certificate should be

recorded on the L.P.C.

Signatures of the D.D.O verified

x) It may be kept in mind that the officials face innumerable problems for

the production of all the above documents, or in some cases, original

appointment orders are not available to them. The introduction of the

63

measure of mandatory countersignatures by the D.A.O is to check,

prevent, and detect fake appointment through bogus transfer orders

and L.P.Cs. Therefore if the official establishes his bonafides beyond

reasonable measure of doubt and to the satisfaction of the DAO, L.P.C

may be countersigned even in the absence of one or more of the

above documents. This leniency is essential in view of limited joining

time and other hardships the official may face for collection of all the

documents.

xi) If sufficient space is not available in the audit register to note those

L.P.Cs which have been countersigned by the office, separate ordinary

register should be opened to note the same

Attachment of pay of officials

Some courts of law, because of their limited knowledge of auditing and

accounting procedures and financial rules, order the D.A. O’s to attach salary of civil

servants in B.P.S 1to 15 . As the auditors may be aware, such orders are

void----------------as they run contrary to the rules and a D.A.O cannot lawfully

implement them. Such orders require no action. These may be filed without getting

any orders from the Assistant Accounts Officer or the District Accounts Officer. A

letter of the District Accounts Officer, Sheikhupura, on the subject and reply of the

Honourable District and Session Judge. Sheikhupura, thereto are reproduced

hereunder for ready reference and guidance of the auditors.

64

OFFICE OF THE DISTRICT ACCOUNTS OFFICER, SHEIKHUPURA

NO.DAO/SKP/DA/H.M/278 DATED 03-11-1998.

To

The District and Sessions Judge,

Sheikhupura.

Subject:- ATTATCHMENT OF PAY AND ALLOWANCES OF NON-GAZETTED

CIVIL SERVANTS BY THE COURTS.

Sir,

1. With utmost respect, I would like to make the following submissions:-

a) According to rule 5.9 (b) (3) of the Punjab Financial Rules, Vol-I, orders

of the courts regarding attachment of pay of civil servants working in

B.P.S 16 and above are to be effected by the District Accounts Officer

concerned. In case of attachment of pay of civil servants in B.P.S 1 to

15, the orders of the courts are to be implemented by the head of the

office where the civil servant whose pay is ordered to be attached

performs his official duties. (A photocopy of the rule is enclosed for

ready reference).

b) According to Para 117 of the Audit Manual, audit of pay of non-

gazetted Government servants on provincial scale and others should

be conducted by numbers. (Copy enclosed for ready reference).

2. In view of the above, the orders issued by the Honourable courts whereby

attachment of pay of non-gazetted civil servants is directed to be attached cannot be

implemented by this office. Only the departmental heads of non-gazetted civil

servants can implement such orders.

3. I am in receipt of a number of orders issued by various courts of Sheikhupura

district where through I have been directed to attach pay of certain non-gazetted civil

servants. In case of non-compliance of the court orders, I am either directed to

appear in the court or directions have been issued for issuance of arrest warrants.

65

4. In this regard, certain verbal submissions were made before your honour by

the District Accounts Officer I & II Sheikhupura, in the last week. I shall be all thanks

if you may kindly issue necessary instructions to the judicial officers working under

your kind control. It goes without saying that frequent appearances of civil servants

in the courts, which are avoidable, badly affect Govt. work and cause problems.

Thanking you

Your obedient servant,

Muhammad Akhtar

District Accounts Officer

Sheikhupura.

66

From:

District and Sessions Judge,

Sheikhupura.

To:

1. All the Addl. District & Sessions Judges

in District Sheikhupura.

2.The Senior Civil Judge and all

The Civil Judges in District Sheikhupura.

3. All the Judicial Magistrates

in District Sheikhupura.

No. _____________ Dated _________________.

Subject:- ATTACHMENT OF PAY AND ALLOWANCES OF NON- GAZETTED

CIVIL SERVANTS BY THE COURTS.

Aslam-o-Alaikum.

According to rule 5.9 (b) (3) of the Punjab Financial Rules, Vol-I, the

orders of the courts regarding attachment of pay of the Civil Servants working in

B.S.16 and above are to be executed by the District Accounts Officer concerned and

in case of civil servant working in B.S 1 to 15 those are to be implemented by the

head of the office where the civil servant is serving.

2. In future, the orders regarding attachment of pay shall be passed in

accordance with rule supra.

(ALI NAWAZ CHOWHAN)

Endst: No. 2581/A-19_______ Dated _____5-11-98___

Copy is forwarded to the District Accounts Officer, Sheikhupura with reference to this

letter No.DAO/SKP/DA/H.M/278 dated 03-11-1998, for information please.

(ALI NAWAZ CHOWAN)

67

Early payments in special cases

If the first two days of a month are public holidays, the payment of pay and

pensions shall be made on the last working day of the month to which it relates. If

the festival of Eidul fitr, Eidul Azha,,Dussehra, Diwali, Easter, Gurau Nank’s Birthday

or Christmas falls within the last ten days of a month, pay and allowances and

pensions of that month may be disbursed to all civil servants and retired civil

servants, belonging to the community which is observing the festival. The advance

pay should not be disbursed earlier than five days before the date of festival.

In case the festival does not fall within the last then days of the month, the

auditors should continue to receive and pre-audit bills in order to ensure prompt

compliance if the Government directs that payments be authorized even if the

festival does not fall within the last ten days of a month. If the government does not

issue any instruction on the subject, the bills should to handed over to the

department on the first day of the following month.

Effecting recoveries

When it is tentatively resolved to effect recovery of any payment, the District

Accounts Officer should serve the Government servant, or the head of the office

concerned, with a notice in the following form, elaborating the grounds on which

recovery is proposed to be made, the amount to be recovered and the mode of

recovery. This notice will give an opportunity to the government servant concerned to

explain, if he so desires, his point of view to the District Accounts Officer. The order

of recovery, if finally decided, or its modification, should be issued on a retrenchment

slip on a form given hereunder:-

OFFICE OF THE DISTRICT ACCOUNTS OFFICER, SHEIKHUPURA

NO.DAO/SKP/Section/H.M __________ DATED _____________

To:

__________________________________

Subject:- Notice For retrenchment

Please notice that the following recovery is proposed to be made in/starting

from the next pay/T.A/contingent bill presented by you/your office:-

1. Amount to be recovered Rs.__________________

2. To be recovered in ___________________ installments.

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3. Reasons.

Representation, if any, against this recovery may be made to the undersigned

within fifteen days failing which the recovery would be affected.

District Accounts Officer,Sheikhupura.

OFFICE OF THE DISTRICT ACCOUNTS OFFICER, SHEIKHUPRUA

NO.DAO/SKP/Section /H.M -----------

To:-------------------------

------------------------

Subject:- Retrenchment slip

In continuation of this office Notice No. -------------------------- dated ----------------

please be advised that the following amount will be recovered starting from the next

pay/T.A /contingent bill presented by you.

1. Drawing office

2. Amount to be recovered Rs.---------------

3. To be recovered in ---------------- installments

4. Reasons.District Accounts Officer

Sheikhupura.

Arrear bills

While pre-auditing arrear bills, the auditors should, among other things

required to be watched under any rules/instructions, particularly focus on the

following points:-

1) The bill is on the prescribed form, signed and stamped by the D.D.O,

properly filled in, correctly classified, accompanied by the service book,

with accurate calculations of due, drawn and difference, the payable

amount being recorded in figures as well as in wards.

2) Arrear pay or arrears of increase in pay, should be drawn, with each

month being entered separately with quotation of the bill from which the

charge was omitted or withheld, or on which it was refunded by

deduction, or of any special order of competent authority granting

special pay or a new allowance.

3) Rules regarding presentation of claims within six months of their

becoming due, or afterwards with the sanction of the competent

69

authority, are applicable to such claims with equal force, with a slight

difference that the claim of an official becomes due on the date when

the pay fixed by his department is verified by the District Accounts

Officer.

4) Entries of amounts actually drawn as shown in the arrear bills should

be carefully cross-checked with the entries of pay fixed in their service

book by the department and verified by the D.A.O

5) In case of grant of move - over, selection grade or advance increments

by a competent authority with retrospective effect involving closed

financial years, or less drawl being caused by erroneous fixation of pay

by the department in previous financial years, a certificate issued by

the budget controlling officer that the claim can be met from the

budgetary allocations for the current financial year, is necessary. In

case of regular promotion or general revision of pay scales, no such

certificate is required.

6) If a claim is submitted within six months of its becoming due and

authorization of payment is delayed in consequence of objections

raised by the D.A. O, the bill will be passed when the objections are

satisfied even if the claim happens to have become more than six

months old.

7) The authority permitting investigation of time- barred claims shall

intimate reasons of delay in submission of the claims to the D.A.O.

8) In case of claims, which are more than one month old, the D.D.O.

should be asked to state the reasons for the delay.

Bills of leave salary, leave preparatory to retirement and encashment of leave

in lieu of L.P.R.

The auditors should lay particular emphasis on the following points, besides

checks required to be applied under any rules /instructions, before affixing pay order

on bills of ordinary leave preparatory to retirement and encashment of leave in lieu of

leave preparatory to retirement: -

1) The bills is on the prescribed form, signed and stamped by the D.D.O

completely filled in, correctly classified, with accurate calculations and

the net amount recorded in words as well as in figures.

70

2) A competent authority under the applicable leave rules has issued

order sanctioning leave.

3) Charge relinquishing reports have been attached with the bill.

4) Leave encashment upto a maximum of 180 days can be sanctioned if a

minimum balance of 365 days leave on full pay is available. In case of

encashment of L.P.R, retirement orders and service book of the official

should accompany the bill. Formula of earning leave is same as for

gazetted civil servants. Rates of encashment of leave are those, which

were admissible to the official one year prior to the date of retirement.

5) Grant of regular promotion, selection grade, move -over, advance

increment annual increment is admissible during leave and L.P.R.

Re-imbursement of medical charges

Rules for re-imbursement of medical charges for officials are the same as for

officers with the difference that officials are not entitled for reimbursement of medical

charges incurred by them for restoration of their own /their dependent family

members health as out-door patients. Only hospitalization entitles them for re-

imbursement of medical charges. The monthly medical allowance admissible is

Rs.90 per month for officials in B.P.S 1 to 15.

T.A bills of officials

As the auditors may be aware, the rules governing grant of traveling

allowance to the officials are the same as for the officers. T.A bills of the officials are

presented by their drawing and disbursing officers and unlike T.A claims of officers,

no countersignatures are required on these bills. Transfer T.A is admissible only in

case where transfer has not been ordered on the request of the transferee. T.A

advance is admissible to officials on transfer. Claims of T.A advance should be

entertained even if there exists insufficient or no budgetary allocation for the

purpose, as these are debitable to the budget of the office to which the official is

being transferred. Sanction for drawl of T.A advance is necessary.

Reappropriation of budgetary allocations

On receipt of orders of a competent authority issued under powers vested in it

by the Punjab Delegation of Financial Powers Rules 1990, the auditors should follow

the following course of action:-

71

1) To see whether re-appropriation is in accordance with the conditions

laid down in serial No.5 of part I of Second Schedule to the Delegation

of Financial Powers Rules 1990. If found in order, necessary

amendments in the budgetary allocations already noted by him in

contingency budget control register be made.

2) If found defective, the objections should be raised in clear and

precise language and the re-appropriation be not acted upon pending

satisfaction of the objections.

3) If the funds so reappropriated are not available for r e-appropriation

because of the reason that these already stand expended, the fact may

by intimated to the authority issuing orders. Such orders should not be

acted upon.

4) Some departments re-appropriate funds upon production of a

certificate of availability of funds issued by the D.A.O. If such a

certificate has been issued, this fact may be noted in the budget control

register. The department must not be allowed to expend funds

proposed for re-appropriation unless a certificate issued by the

authority competent to re-appropriate funds, is furnished to the effect

that funds proposed to be re-appropriated have not actually been

reappropriated and balance of Rs..... remains available to the D.D.O

for expenditure.

5) In case where re-appropriations have been made between various

heads and funds under some heads are available and these are not

available under some heads for re-appropriation, the whole order of re-

appropriation should be objected to and be acted upon only if it has

been properly corrected.

6) Re-appropriations have been made before dates specified by the

Finance Department for the purpose. A re-appropriation made after

that date is not a valid re-appropriation.

7) If an authority competent to accord sanction of incurrence of

expenditure has provided funds for that purpose, this re-appropriation

operates as sanction to incur expenditure.

8) Lahore High Court, Lahore, can order re-appropriation within the limits

of budgetary allocations placed at its disposal without regard to

72

conditions laid down in the Punjab Delegation of Financial Powers

Rules 1990.

Abstract T.A bills

Payment of a T.A claim is not admissible through abstract bills. The detailed

T.A bill is required for each employee for making payment of T.A. bill, divisional

accounts officer are posted and are functioning on behalf of the A.G Punjab, the

detailed T.A bill of each employee is not needed. In this regard, the abstract bills are

accepted in audit.

Contingent bills

The auditors should normally check the following points in pre-auditing

contingent bills.

1) There is provision of funds for the expenditure duly authorized by a

competent authority.

2) Expenditure is in accordance with a sanction accorded by a competent

authority and is incurred by an officer competent to incur it.

3) The expenditure sanctioned for a limited period is not admitted beyond that

period without further sanction.

4) If there is a rate and running contract for supply of certain items, payments

are made in accordance with the approved rates to the approved

contractors.

5) The claim is submitted on the prescribed Performa.

6) The claim is correctly classified.

7) Supplier’s name and nature of payment has been recorded on the bills.

8) Income Tax has been recovered on the prescribed rates. For the

information and guidance of auditors, rate of deduction of income tax are

reproduced here under:-

Every payer Technical Services Fee paid to non-residents.

15% Final

Govt, Local Authority, Registered Firms, Companies, Foreign Contractors, consultants

Supply of Goods.Supply of Rice, cotton, cottonseeds or edible oil supply of raw hides and skins cotton lint and raw wool.Morabaha transactions.Transportation of goods.

For contracts (by residents and non residents).

3.50%1.5%

1%1%2%

73

or consortiums

Where contract value.1. Does not exceed Rs.30 millions.2. Exceeds Rs.30 millions.

Non-resident contracts.1. Execution of turn key contracts.2. Execution of contracts for design and supply of equipments in power projects other than hydel.3. Execution of contracts for supply and design of equipments in hydel powers projects.

Services by residents.

5%6%

8%4%

5%

5% Final except for doctors, lawyers,

accounts, auditors,

architects, surveyors,acturaries,Advisors

and consultant

s.

9) Amount of claim has been recorded in words and figures.

10) The bill has been signed by the D.D.O and signatures tally.

11) Quotation/tender has been called in all cases of purchases involving

more than Rs.2500/-

12) A certificate to the effect that the items has been purchases at least

possible rates has been recorded by the D.D.O.

13) Stock taken entries have been recorded on the bill.

14) Quality and quantity has been recorded on the bill.

15) Budget along with up to date expenditure and balance has been

recorded on the bill under signature of D.D.O.

16) Vouchers duly signed and passed for payment by the D.D.O support

claim.

17) Page number of stock register has been recorded on the bill.

74

18) A certified to the effect that prescribed limits of telephone/POL have

been observed, has been recorded.

19) In case of repair of vehicles, no objection certificate has been obtained

from the Govt. workshop.

20) Computer prepared utility bills, duly passed for payment have been

attached and no surcharges is included in them. Electricity bills for the

period prior to 30-06-98 are not payable.

21) In case of rent of office buildings, a non-availability certificate issued by

the Buildings Department and an assessment certificate issued by the

Excise and Taxation Department are attached with the bill besides

sanction of competent authority.

22) Pay of contingent paid staff is on the prescribed rates and is not being

drawn earlier than when it is due.

23) All sales taxable goods are purchased from those suppliers who have

got them registered in the concerned Sales Tax directorate. Sales Tax

registration number has been noted and a copy of the sales tax

registration is attached.

24) If a certificate regarding exemption of income tax on account of at

source deduction of income tax is produced, the same may be got

verified from the issuing authority.

25) Austerity measures for the year be kept in view and implemented in

letter and spirit.

26) Powers delegated vide Sr. No.3 of the Delegation of Financial Powers

Rules 1990 are exercisable in items under Sr.No.3 (a).

27) Purchase of coal is permissible from 15th October to 30 January and

that of ice from 15th May to 31st August.

28) Purchase of service stamps are not allowed through cash. These are

payable through transfer credit only. Triplicate challan forms are

signed by the D.D.O. in charge of Treasury Section.

29) The requisite certificates, printed on the proforma have been signed by

the D.D.O.

30) Pre - auditorial checks should not be relaxed in the months of

June.Rather these should be strengthened and reinforced to prevent

extravagance and irregularities.

75

31) Power to accord sanction to incur expenditure and power to make local

purchase are two different things and therefore should not be taken as

synonymous to each other.

32) In cases of payments of over Rs.10,000/- to persons not in government

service and contractors, the D.D.Os should be advised to disburse the

amounts through Govt Bank Draft or pay order in favour of the valid

payee.

33) Budgetary releases after 31 Ist of May without approval of the Finance

Department are not acceptable.

34) No bill should be received after 20th of June for pre-audit except bills of

pay, G.P Fund etc.

Personal ledger accounts, pension contributions, grants -in-aid to

municipalities.

In the above cited cases, the auditors should concentrate on the following

points, besides other things:-

1) The Finance Department releases share of local bodies in the property

tax collected by the Excise and Taxation Department or extends loans

to autonomous and local bodies, or accords sanction for the payment

of pension contribution, or sanctions grant -in- aid or matching grant to

autonomous bodies or in the Education Department, Directors of

Education release matching grants to colleges. In all such cases, the

payees get disbursement through submission of bills on simple

receipt form.

2) On receipt of sanction of the competent authority for the release of

funds and on submission of simple receipt forms, the auditors should

ensure that signatures on the sanction and the receipt form are

genuine, that payment is not made in cash to the institutions which

have their personal ledger accounts; that if a special mode of

disbursement has been prescribed in the sanction, it is adhered to; that

correct code of classification has been recorded on the receipt form

and it corresponds to that which has been recorded in the sanction;

that sanction is valid and its currency has not expired; that if sanction is

subject to certain conditions, those conditions have been fulfilled; that

76

the simple receipt forms have been signed and submitted by a

competent payee.

Advances to civil servants

There are two kinds of advances, which the Civil Servants are entitled

to. One: Interest-bearing; and other: interest free.

Interest-bearing advances are as follows:

a) House Building Advance

b) Motorcar Advance

c) Motorcycle Advance

d) Cycle Advance

House building advance

1) Can be paid with the sanction of Head of Department.

2) Complete recovery should be possible before retirement of

employee.

3) Admissible for construction of house for bona fide residence of

the employee or his family.

4) Paid in two installments - first after establishing proprietary right

(including non-encumbrance) and the second after the building

has reached plinth level.

5) Advances are also admissible for reconstructions, purchase,

extension, and renovation of houses. In these cases, the entire

amount is payable in one installment, provided the documents

for mortgage are complete.

6) Recoveries toward repayment start six months after first

installment or immediately after second, whichever is earlier.

7) Repayment is to be made in 120 installments. In case of class

IV employees, in 240 installments.

8) Recovery of principle + interest must be completed before

retirement of the employee.

9) Amount of advance is equivalent to 36 months' pay.

10) Rate of recovery @ 30% of pay. If the employee is over 47

years (or 38 years in case of class IV) the rate of recovery is

enhanced.

77

11) Interest is recoverable at the same rate after the principle has

been recovered.

12) House to be mortgaged in favour of the Governor of the Punjab

and deed registered.

Advance for purchase of motor car

1) Almost on the same conditions of employees incumbency under

Government.

2) If the employee is on leave, the advances is not paid a week

before the expiry of leave.

3) Maximum amount of advances is Rs. 100,000.

4) Purchase has to be made with a month of payment.

5) Bond has to be executed hypothecating car in favour of the

Governor.

6) The car has to be insured.

7) Recoveries of principle in 60 installments plus interest thereafter

Advance for purchase of motorcycle

1) Advanced for Motorcycle payable in like conditions of mortgage

hypothecation as Motorcar Advance.

2) The maximum amount is Rs. 35,000 and recoveries of principle

are made in 60 installments and interest thereafter.

Advances for purchase of cycle

1) Cycle would be the property of Government till advance is

recovered.

2) Maximum amount is Rs. 2,000 and recoverable in installments.

3) Temporary employees have to furnish security for two

permanent employees.

Accounting and drawal of interest-bearing advances -

1) The Accountant-General first earmarks funds before it can be

sanctioned.

2) Sanction is subject to execution of prescribed bonds and

hypothecation of property.

3) The Civil Servant himself draws the amount if he is a gazetted

officer after it is sanctioned by the competent authority from the

78

DAO. If the employee is non-gazetted, it is drawn by the DDO in

a pay bill.

4) The orders sanctioning advance and certificates of

hypothecation, execution of bonds, etc. are recorded on the bill

by the DDO.

5) The Accountant-General keeps the account of advance. In case

of non-gazetted staff, a good DDO also keeps the account of

recoveries made from the pay bills.

6) When the employee is transferred from their establishment, the

information about recoveries is given on the LPC.

Interest-free advances

These are advances on transfer and advances on tour

Advances on transfer

1) These are paid to a Civil Servant under orders of transfer from

one station to the other.

2) Advance is equal to one month's pay and amount of the TA to

which he may be entitled on account of transfer.

3) Pay advance is recoverable in three equal (nearly equal)

installments and TA in one installment from the TA bill.

4) These advances are recorded on the LPC issued by the DDO or

by the District Accounts Officer..

5) Recovery is made from the pay bill/TA bill drawn at the new

station.

Advance on tour

1) It is paid to a Civil Servant (not being an inspecting officer)

proceeding on tour upto an amount sufficient to cover for a

month's contingent charges, hire of conveyance for carriage of

records, etc.

2) Adjustment of advance is made before 30th June or return to

headquarters.

3) It is also paid to non-gazetted employees accompanying officers

on tour equal to amount sufficient to cover their personal TA for

a month subject to adjustment on return to headquarters or on

301 June.

79

4) It is also admissible to the gazetted employees when proceeding

on long and expensive tours for a month subject to adjustment

on return to headquarters or 30 June.

Procedure

a) Advances on tour are debited to the functions and objects to which the TA is

debited. But the advances on transfer are debited to '5201000- OB Advances'.

b) A competent authority has accorded sanction for drawl of advance to a civil

servant of a certain specified sum.

c) Earmarking for the drawl of advance has been received from the Accountant

General, Punjab, Lahore.

d) A mortgage deed has been executed.

e) The bill has been prepared on the prescribed form, signed, stamped, correctly

classified with amounts written in figures as well as in words, within the period

specified in the sanction.

Pay fixation

The auditors while verifying pay fixed by the department should, besides

keeping in view the pay revision rules, service rules of the official, instructions issued

by the Finance Department, clarifications made by the Accountant General Punjab,

keep in mind the following main points:-

1) First page of the Service book is re-attested after every five years.

2) Each and every entry in the Service Book is attested by the D.D.O.

3) The department has provisionally fixed pay.

4) If an official joins a new service, either in lower or in higher pay scale,

and there is no gap between his quitting the previous service and

joining new one, his pay stands protected. No sanction of the Finance

Department is needed for this purpose.

5) One pre mature increment is admissible upon regular promotion and

selection grade.

6) No premature increment is allowed on move-over.

7) Move-over, selection grade, promotion is admissible during leave and

L.P.R.

8) Increments cannot be stopped permanently or with future effect.

9) Six month’s regular service at a stage is necessary for earning annual

increment.

80

10) There is no channel of promotion on non-gazetted posts in Education

Department; only appointment on fulfillment of certain conditions is

allowed.

11) A copy of the letter of the Finance Department on the subject of revised

Basic Pay Scales, 2001 and a chart of Basic Pay Scale are being

reproduced hereunder for the guidance and information of the auditors:

-

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84

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88

No.FD.PC-2-1/2001GOVERNMENT OF THE PUNJAB

FINANCE DEPARTMENT

Dated Lahore, the 22nd October 2001.From:

Mr. Salman Siddique,

Finance Secretary.

To

1) All Administrative Secretaries to Government of the Punjab.

2) The Secretary to Governor, Punjab, Lahore.

3) All Heads of attached Departments, Govt. of the Punjab.

4) All District Coordination Officers in the Punjab.

5) The Registrar, Lahore High Court, Lahore.

6) All District and Sessions Judges in the Punjab.

7) The Military Secretary to Governor, Punjab, Lahore.

8) The Secretary, Punjab Public Service commission, Lahore.

9) The Secretary o Provincial Assembly, Punjab, Lahore.

10) The Chief Pilot, VIP Flight, Lahore.

11) The Provincial Director, Local Fund Audit, Punjab, Lahore.

Subject:- REVISION OF BASIC PAY SCALES AND FRINGE BENEFITS OF

CIVIL EMPLOYEES (BS-1-22) OF PUNJAB GOVERNMENT.

Sir

I am directed to state that the Governor of the Punjab has been

pleased to sanction with effect form 1st December, 2001, a Scheme of the basic Pay

Scales, Allowances and Pension, 2001 for the employees of Government of the

Punjab in BPS-1 to BPS-22 as detailed below.

PART 1. BASIC PAY SCALES AND ALLIED MATTERS.

2. BASIC PAY SCALES: - The existing basic pay scales and the revised

basic pay scales are shown in Annexure- 1 of this letter. The revised Basic Pay

Scales shall replace the existing Basic Pay Scales, 1994, and shall be effective from

1st December 2001.

3. DISCONTINUATION OF ALLOWANCES: -

The following allowances shall ceases to be payable on introduction of

the revised pay scales w. o. f. 1-12-2001:-

89

i) Cost of Living allowance to BS 1 to BS 22 @ 7% of basic Pay.

ii) Adhoc relief of Rs. 300/-P.M and Rs.100/- P.M to BS 1 to 16 (inclusive

of BPS-17 by virtue of Move Over)

iii) Secretariat/ personal allowance.

4. SPECIAL ADDITIONAL ALLOWANCE:-

Special Additional Allowance shall be frozen at the level drawn as on

date of issue of this Order.

5. INITIAL FIXATION OF PAY: -

(1) Pay of the employees in service on 30-11-2001 shall be fixed at the

stage in the revised pay scales, which is as many stages above the minimum as the

stage occupied, by him above the minimum of the 1994 of basic Pay Scale.

6. PAY FIXATION ON PROMOTION .

The existing provisions regulating the fixation of pay in case of

promotion from lower to a higher post shall continued to apply.

7. SELECTION GRADE AND MOVE OVER: -

Selection grade in the scheme of Basic Pay Scales and Move over

scheme shall stand discontinued w. e. f the date of issue of this circular letter.

8. PAY FIXATION OF EMPLOYEES IN SELECTION GRADE AND

THOSE WHO HAVE MOVED OVER THE HIGHER SCALE.

Pay of an existing employee drawing pay by move over shall be fixed

with reference to the pay scale of the post for the time being held by him. In case the

employee was drawing pay in a selection grade, his pay will be fixed in the selection

grade pay scale. The stage of fixation will be arrived at after allowing increments on

notional basis in the original scale of the post or the selection grade, in 1994 Basic

Pay Scales, upto the point of existing pay. Pay of the employees will then be fixed at

the relevant stage in the revised pay scales 2001.

EXAMPLE- 1. Assistant, BS-11 Selection Grade, BS-15, Moved Over BS-16 and in receipt

of Pay of Rs. 5490/- Pay will be fixed in BS 15 i.e. Selection Grade Pay Scale at Rs.

8326/ - as under: -

1994 Scale Stage 15 Stage 16 Stage 17 Stage 18 Stage 19

4845 5022 5199 5376 5553

2001 Scale 7260 7625 7790 8055 8320

90

EXAMPLE –II

Pay fixation of an employee in BS-11 who has moved over to BS-14

and is in receipt of basic pay of Rs. 4480/- will be fixed after allowing notional

increments in BS-11 of 1994 Basic Pay Scales upto the stage of basic pay drawn.

Pay in revised BPS-11 will be fixed at the corresponding stage of Rs. 6790/- as

under: -

BS-11 Stg Stg Stg Stg Stg Stg Stg Stg Stg Stg 1994 15 16 17 18 19 20 21 22 23 24Pay Scale 3465 3581 3697 3813 3929 4045 4181 4277 4393 4509

BS-11 5215 5390 5565 5470 5915 6090 6265 6440 6615 67902001 Pay Scales.

EXAMPLE –III.

Pay fixation of an employee in BS-5 who has moved over to BS-11 and

is in receipt of basic pay of Rs. 3465/- will be fixed after allowing notional increments

in BS-5 of 1194 BPS upto the stage of basic pay drawn. Since basic pay of Rs.

3465. – is beyond the 30 stages in notional BS-5 (1194 BPS) & resultantly more than

the 30 stages BPS 2001, therefore his pay will be fixed at the notional 32nd stage i. e

at Rs. 5300/- The difference of Rs. 200/- (Rs. 5300-5100) will be personal to him as

under:-

BS-5 1994

Stage –30 3380

Stage-31 3446

Stage-32 3512

BS-5 2001

5100 5200 5300

In such cases future increments up to a maximum of 3 years will be allowed as

personal to such employees.

8. DATA OF INCREMENT: - Annual increment shall continue to the

admissible subject to the existing conditions, on the 1st December each year.

9. SPECIAL PAY/S ALLOWANCES FOR OFFICER: - The special Pay/

Allowances sanctioned to offices as percentage of pay shall be discontinued on the

introduction of revised pay scales w. e. f 1-12-2001 and adjusted in future

increments.

91

10. ADVANCE INCREMENTS: - The existing scheme of advance

increments is discontinued w. e. f 1-12-2001. A fresh scheme if any, will be

introduced in due course.

PART II- ALLOWANCES.

11. CONVEYANCE ALLOWANCE: - The rates of

Conveyance Allowance and Motorcycle/ Motor Car maintenance allowance presently

fixed with reference to pay drawn shall be increased and related to Basic Pay Scale

as follows.

Sr. No. Existing Revisedi Civil Servants in BS –16 and above maintaining

a motor car not registered for commercial purpose Rs.355/- P. M.

BS –16 (Gazetted) & Above Rs. 620/- P. M

ii Civil servants drawing pay of Bs –3240/- per month and above other than those at (i) above. Rs. 193/ -P.M.

BS 11 and AboveRs. 340/- P. M.

iii Civil servants drawing pay of Rs. 1688/- P. M. and above but less than Rs. 3240/- P. M. and maintaining Motorcycle/ Scooter. Rs. 130/ - P. M.

BS 1–10 maintaining Motor Cycle/ ScooterRs. 230/- P. M.

iv Others.Rs. 96/ - P. M.

BS 1-10Rs. 170/- P. M.

12. DAILY ALLOWANCE: - Daily Allowance rates presently fixed with reference to

pay drawn shall be increased and related to Basic Pay Scales as under:

BPS Special Rates per day (Rs) Ordinary Rates per day (Rs)

1-4 110 805-11 120 10012-16 200 18017-18 350 32019-20 450 40021-22 550 450

13. MEDICAL ALLOWANCE: - Medical allowance to employees in

BS. 1-15 shall be increased from Rs. 90/ - P. M to Rs. 160/ - P. M. 14. COMPUTER ALLOWANCE: - The Computer Allowance shall be

increased subject to the existing conditions of admissibility as under:

Existing Rate Revised RateRs. 300/ - P. M Rs. 450/- P. MRs. 1000/ - P. M Rs. 1500/- P. M

92

15. SPECIAL PAY/S ALLOWANCES: - All the Special Pay and

Allowances admissible on certain POSTS as percentage of are revised subject to the

following limits:

a) Special Pay/ Allowances RevisedSanctioned @ 20% and above

of pay. On existing rates

subject to a maximum of Rs.

2000/- P. M.

b) Special Pay/ allowances

Sanctioned @ 10%- 19% of pay. On existing rates

subject to a maximum

of Rs. 1500/- P. M.

c) Special Pay/ allowances

Sanctioned @ 5% - 9% of pay.

On existing rates subject to a

maximum of Rs.1000/- P. M.

16. PENSION: - The Govt. has made the following reforms in pension/

Commutation scheme w. e. f 1-12-2001 in respect of civil pensioners of Punjab Govt.

including civilian paid from Defence Estimates as well as retired Armed forces

Personnel.

a) Commutation Table shall be replaced by replaced by the new Commutation

Table at Annexure – II to this letter.

b) Commutation upto 40% of gross pension shall be admissible at the option of

the pensioner.

c) The additional benefit of 2% -10% for extra years of service after completion

on 30 years of qualifying service in respect of civil pensioners shall be discontinued.

d) The increase in pension @ 20% to Civil pensioners allowed vide this

Department letter No. FD. SR. 111-4-72/99, dated 27-7-1999. shall be discontinued.

e) The benefit of restoration of surrendered portion of pension in lieu of

commutation/ gratuity shall be withdrawn.

f) In future, the increase in pension to the pensioners shall be allowed on the

pension instead of gross.

93

g) All the pensioners shall be allowed an increase in net pension (inclusive of

dearness increases allowed in the past) as follows:-

INCREASE IN NET PENSION

(ii) Pensioners who retired prior to the introduction of 1991 Basic Pay Scale.

15%

(ii) Pensioners who retired prior to the introduction of 1994 Basic Pay

Scales but on or after the Introduction of 1999/ Pay Scales.

10%

(iii) Pensioners who retired on or after the introduction of 1994 Basic Pay

Scales and up to the date of introduction of revised Basic Pay Scales i.

e.1-12-2001. 5%

17. OPTION: -

(a) All the existing Civil employees (BPS 1 to 22) of the Provincial Govt. shall

within 45 days from the date of issue of this circular letter, exercise an option in

writing addressed to the Audit Office concerned in the case of employees in BPS 15

and above, either to DDO concerned in the case of employees in BPS. 15 and

below, either to drqw pay in the existing Basic Pay Scales 1994 or in the Revised

basic pay Scales and pension/commutation scheme 2001 as specified in this circular

letter Option once exercised shall be final.

(b) An existing employee as aforesaid who does not exercise and communicate

such an option within the prescribed time limit shall be deemed to have opted to be

governed by the Revised Basic Pay Scales. Pension and Commutation Scheme,

2001.

18. The Govt. servant who will retire w. e. f 1-7-2001 shall be given the benefit of

revised pay scales on presumptive basis discounted by 5% increase in pension if

availed subject to the condition that all those who may like to avail this benefit should

opt for the entire package i. e revised schemes of Basic Pay Scales as contained in

Part-I and this circular letter and revised package of pension as contained in part-III

of this letter.

94

19. All existing rules/ orders on the subject shall be deemed to have been

modified to the extent indicated above. All existing rules/ orders not so modified shall

continue in force under this scheme.

20. ANOMALIES: - Anomalies Committee shall be set up in the Finance

Division (Regulations Wing) Government on the Punjab, to resolve the anomalies if

any, arising in the implementation of this office Memorandum.

Your obedient servant,

(MIAN MUHAMMAD YOUSAF)

ADDITIONAL FINANCE SECRETARY (REG)

95

ANNEXURE-I TO FINANCE DEPARTMENTS LETTER NO FD. PC. 2-1/2001

DATED 22ND, OCTOBER, 2001 .

PAY SCALES OF 1994 , REVISED PAY SCALES, 2001

Scale Min Iner Max Stages Scale Min Iner Max Stages

1 1245 35 1770 15 1 1870 55 3520 30

2 1275 44 1935 15 2 1915 65 3865 30

3 1320 50 2070 15 3 1980 75 4230 30

4 1360 58 2230 15 4 2040 85 4590 30

5 1400 66 2390 15 5 2100 100 5100 30

6 1440 73 2535 15 6 2160 110 5460 30

7 1480 81 2695 15 7 2220 120 5820 30

8 1540 88 2860 15 8 2310 130 6210 30

9 1605 97 3060 15 9 2410 145 6760 30

10 1660 107 3265 15 10 2490 160 7290 30

11 1725 116 3465 15 11 2590 175 7840 30

12 1830 130 3780 15 12 2745 195 8595 30

13 1950 144 4110 15 13 2925 215 9375 30

14 2065 161 4448 15 14 3100 240 10300 30

15 2190 177 4845 15 15 3285 265 11235 30

16 2535 197 5490 15 16 3805 295 12655 30

17 3880 290 7360 10 17 6210 465 15510 20

18 5085 366 8745 10 18 8135 585 19835 20

19 7750 385 11600 10 19 12400 615 24700 20

20 9195 440 13595 10 20 14710 950 28010 14

21 10190 545 15640 10 21 16305 1070 31285 14

22 10900 610 17000 10 22 17440 1250 34940 14

96

ANNEXURE-II TO FINANCE DEPARTMENTS LETTER NO FD. PC. 2-1/2001

DATED 22ND, OCTOBER 2001.

COMMUTATION TABLE

Next

Birthday

No. Of ears

Purchased

Age Next Birthday No. Of years

Purchased

20 40.5043 51 17.6526

21 39.734 52 17.0050

22 38.6553 53 16.3710

23 38.1974 54 15.7517

24 37.4307 55 15.1438

25 36.6651 56 14.5602

26 35.9006 57 13.9888

27 35.1372 58 13.4340

28 34.3750 59 12.8953

29 33.6143 60 12.3719

30 32.8071 61 11.8632

31 32.0974 62 11.3685

32 31.3412 63 10.8872

33 30.5869 64 10.4191

34 29.8343 65 9.9639

35 29.0841 66 9.5214

36 28.3362 67 9.0914

37 27.5908 68 8.6742

38 26.8482 69 8.2697

39 26.1009 70 7.8778

40 25.3728 71 7.4943

41 24.6406 72 7.1314

42 23.9186 73 6.7766

43 23.1840 74 6.4342

44 22.4713 75 6.1039

45 21.7592 76 5.7858

46 21.0538 77 6.4797

97

47 20.3555 78 5.1854

48 19.6653 79 4.9030

49 18.9841 80 4.6321

50 18.3129 81 4.6321

98

General Provident Fund Section

1. Organizational Chart.

2. Functions of the Section.

3. Allotment of G.P. Fund Account Number.

4. G.P.Fund Balance Slips.

5. Rates of Profit on G.P. Fund balances.

6. G.P.Fund Subscription rates.

7. Bills of advances out of G.P. Fund Accumulations.

8. Final withdrawals of G.P.Fund accumulations.

9. Adjustment of missing credits.

10. Transfer of G.P.Fund from Sheikhupura to other districts.

11. Transfer of G.P. Fund from other districts to Sheikhupura.

12 Conversion of profit bearing accounts into non-profit bearing accounts and vice versa.

99

ORGANIZATIONAL CHART

D.A.O

A.A.O

Asstt. Superintendent

S. Auditor S. Auditor S. Auditor

Sub Acctt. Sub. Acctt.

Functions

1. To maintain G.P Fund Accounts of civil servants, working under audit jurisdiction

of D.A.O Sheikhupura.

2. To authorize payments of advances out of G.P fund accumulations and to make

final payments of G.P Fund.

3. Consolidate G.P Fund Accounts of subscribers who have worked under the audit

jurisdiction of other D.A.Os, A.G Punjab, A.G. PR and other provinces.

4. To transfer G.P Fund balances of the subscribers to other Districts, A.G. Punjab,

AG PR, and other provinces on the request of subscribers.

100

Allotment of G.P Fund account number

On receipt of application for allotment of G.P Fund Account Number, the

account number should normally be allotted if the following information is given:-

1) Name of the civil servant.

2) Father’s Name.

3) Designation and BPS.

4) Date of Birth.

5) Date of joining service.

6) Nationality.

7) Nature of appointment i.e. (Permanent, Temporary, Adhoc or contract)

appointment.

8) Rate of emoluments.

9) Rate of subscription

10) Compulsory or optional subscription.

11) Marital status.

12) Nomination of the family members to whom payment of G.P Fund

accumulations is to be disbursed in case of death of the subscriber

with details of their share. It must be witnessed by two of the

subscribers who are subscribing towards G.P Fund under Rule 137 (3)

of CSR (Pb) Vol.II.

13) Whether the subscriber wants profit on his account or not? If no

intimation is given in this regard, profit shall be credited to the account

of the subscriber.

14) National Identity card No. This number should be noted on the ledger

card.

15) If the subscriber has already served under jurisdiction of another

Accounts Office, his G.P.F account No. at the office.

16) Date of joining at Sheikhupura.

17) The department will be informed of the number allotted.

G.P fund balance slips

G.P Fund balance slips on form No. A.T.M-80 are issued on the close of

every financial year. These slips indicate opening balance, subscriptions during the

101

year, withdrawals during the year, profit on accumulations, bonus on profits. Rates of

profit and bonus and formulas of their calculations are as under:-

Rates of profits on G.P fund balances

S/No Year Profit rate (%) Bonus on profit

in %

Total

1 1953-56 3.00 - 3.00

2 1956-63 3.50 - 3.50

3 1963-64 4.00 - 4.00

4 1964-65 5.00 - 5.00

5 1965-66 5.25 - 5.25

6 1966-68 6.00 - 6.00

7 1968-71 6.25 - 6.25

8 1971-72 6.50 - 6.50

9 1972-73 7.25 - 7.25

10 1973-74 8.25 - 8.25

11 1974-75 10.25 - 10.25

12 1975-76 10.50 - 10.50

13 1976-77 10.75 - 10.75

14 1977-78 11.75 - 11.75

15 1978-79 12.00 - 12.00

16 1979-80 12.50 - 2.50

17 1980-82 13.00 - 13.00

18 1982-83 13.20 - 13.20

19 1983-84 14.00 - 14.00

20 1984-85 14.60 - 14.60

21 1985-86 14.72 - 14.72

22 1986-87 14.66 30 19.05

23 1987-88 14.00 30 18.20

24 1988-89 14.84 30 19.29

25 1989-93 15.93 30 20.70

26 1993-94 15.54 30 20.20

27 1994-95 15.44 30 20.07

102

28 1995-96 15.49 30 20.14

29 1996-97 16.76 30 21.78

30 1997-98 17.51 30 22.763

31 1998-99 17.35 30 22.555

32 1999-00 16-11 30 20-943

33 2000-01 15 00 15

34 2001-02

35 2002-03

36 2003-04

37 2004-05

38 2005-06

39 2006-07

40 2007-08

41 2008-09

42 2009-10

103

How to work out closing balance on GP fund

Months Subscription Recovery of advance

Withdrawals Progressive Balance

7/91 250 - - 250

8/91 250 500

9/91 250 750

10/91 250 15000 -14000

11/91 250 500 -13250

12/91 250 500 -12500

1/92 250 500 -11750

2/92 250 500 -11000

3/92 250 500 -10250

4/92 250 500 -9500

5/92 250 500 -8750

6/92 250 500 -8000

Total 3000 4000 -97500

Average Progressive Total of the Year / 12

= -97500/12

-8125/-

Suppose Opening Balance = Rupees 35000/-

Interest (Opening Balance+Avg) * 20.709 %

35000-8125*20.709%

Rs.5566/-

Closing Balance for fiscal Year 1991-92

Opening Balance 35000/-

Deposit (3000+4000) 7000/-

Interest 5566/-

Withdrawals -15000/-

Closing Balance 32566/-

104

GP fund subscriptions (rates)

S.No B.P.S Rates (Rs)Prior to 1-6-1994

Rates (Rs.)After 1-6-1994

1 1 25 50

2 2 40 85

3 3 45 85

4 4 45 90

5 5 50 95

6 6 50 100

7 7 55 100

8 8 60 110

9 9 60 120

10 10 65 125

11 11 70 130

12 12 75 145

13 13 130 250

14 14 140 265

15 15 150 285

16 16 175 325

17 17 250 450

18 18 300 560

19 19 400 780

20 20 500 920

21 21 550 1040

22 22 600 1120

105

NO.FDSR.1-2-1/95GOVERNMENT OF THE PUNJAB

FINANCE DEPARTMENT.

Dated Lahore, the 19th November 2001.To

1) All Administrative Secretaries to Government of the Punjab.2) The Secretary to Governor, Punjab, Lahore.3) The Military Secretary to Governor, Punjab, Lahore.4) All Heads of Attached Departments, Govt. of the Punjab.5) All District Coordination Officers in the Punjab.6) All the District & Sessions Judges in the Punjab.7) The Registrar, Lahore High Court, Lahore.8) The Director General, Audit & Accounts (Works), Lahore9) The Director General, Audit, Punjab, Lahore.10) The Secretary, Punjab Public Service Commission, Lahore

Subject: UNIFORM RATES OF SUBSCRIPTION TOWARDS GENERAL PROVIDENT FUND.

Sir,I am directed to this Department circular letter No.F.D. SRI-2-

1/95,dated 5th July, 1995 regarding uniform rates of subscription and to state that

consequent upon the revision of basic pay scales for the civil employees of the

Provincial Government vide Finance Department's circular letter No.FD-PC-2-

1/2001, dated 22nd October, 2001, it has been decided to review the rates of

subscription towards General Provident Fund as shown in column 6 of the Annex to

this circular letter. The deductions from the pay of employees on the basis of new

rates shall be made in December to be paid on 1st January, 2002 until further

orders.

2. There shall be no option to postpone subscription to the above fund either during leave (except extraordinary leave without pay) or during the training period.

Your obedient servant

(RIAZ AHMED)SECTION OFFICER (SR-I)

No. & Date Even.A copy is forwarded to the Accountant General, Punjab Lahore and all District

Accounts Officers in the Punjab and Budget & Accounts Officer, Forestry,

Wildlife, Fisheries & Tourism Department, Lahore.

(RIAZ AHMAD)SECTION OFFICER (SR-I)

106

No. & Date Even. Copy forwarded for information to: -

1. The Secretaries, Government of Sind, NWFP & Baluchistan, Finance Department, Karachi, Peshawar and Quetta.2. The Secretary, government of Azad Jammu & Kashmir, Finance Department, Muzaffarabad. 3. All Officers working in the Finance Department.

(RIAZ AHMAD)SECTION OFFICER (SR-I)

STATEMENT SHOWING UNIFORM RATES OF SUBSCRIPTION TOWARDS GENERAL PROVIDENT FUND EFFECTIVE FROM 1ST

DECEMBER 2001 VIDE CIRCULAR LETTER NO.FD.SR.I. 2-1/95, DATED 19th NOVEMBER 2001.

Scale Minimum Maximum Mean Minimum Subscription (On Mean) At

The Rates Shown In Column 7

Rate Of Monthly

Subscription

Remarks

1 2 3 4 5 6 7BS123456789

10111213141516171819202122

RS.187019151980204021002160222023102410249025902745292531003285380562108135

12400147101630517440

RS.3520386542304590510054605820621067607290784085959375

103001123512655155101983524700280103128534940

RS.2695289031053315360038104020426045854890521556706150670072608230

108601398518550213602379526190

RS.80.85

144.50155.25165.75180.00190.50201.00213.00229.25244.50260.75453.60492.00536.00580.80658.40868.80

1118.801484.001708.801903.602095.20

RS.85

145160170180195205215230245265455495540585660870

11201485171019052100

Minimum rates of subscription

(on mean) will be as under: -

Pay Range @1) Upto Rs. 2700 03%

2) Upto Rs. 2701 to 5600 05%

3) Above Rs. 5600 08%

107

G.P Fund rule 1-13 (6) Explanation (2) No profit or bonus admissible on over

deposits, if {G.P Fund rule 1-12 (3)}a civil servant has not subscribed to the fund

during the period when subscription was compulsory for him, he can be ordered to

deposit the subscriptions for the entire period along with upto date profit on the

subscriptions.

Bills of advances out of G.P fund accumulations

On receipt of sanctions for drawl of temporary or non-refundable advances

out of G.P Fund accumulations of the subscribers, the auditors should follow the

following course of action.

1) Sanctions should be audited. If the sanction has been accorded by a

competent authority under the G.P Fund rules, and the balance

indicated in the sanction is found correct, and in case of non-

refundable advance, the age of the subscriber is above 55 years and a

year has elapsed since the drawl of last non-refundable advance, the

last refundable advance, if any, has been refunded along with profit,

the sanction should be placed before the D.A.O. The D.A.O shall note

the sanction in a register maintained by him and shall write a letter to

the sanctioning authority to seek confirmation of the sanction. If the

sanction is not in order, the specific observation shall be raised by the

auditor and reviewed by the A.A.O and approved by the D.A.O. The

sanction shall not be accepted unless the objection is removed. For the

information and guidance of the auditors, the authorities competent to

accord sanctions and the extent of their powers are noted hereunder:-

S/

No

Name of Authority For and in

Respect of whom

the powers are to

be exercised.

Extent of

Powers.

1 District/Divisional

Heads/Regional

Heads of

Departments /Heads

of Departments/

For the staff in and

upto NPS 18

working under

them.

Full powers in

accordance

with the

provident Fund

Rules.

108

Head of attached

Deptts.

2 Administrative

Deptt.

For Officers in

NPS-19 & 20

working directly

under the

Administrative

Deptt.

Ditto.

3 Registrar, Lahore

High Court.

For the Staff in and

upto NPS-18

working in the High

Court.

Ditto.

4 Chief Justice or the

Sr. Judge/Judges of

the High Court

empowered by the

Chief Justice in this

behalf.

For judicial officers

upto and including

District and

Sessions Judges.

Ditto

5 Executive

Head/Managing

Director of the

Statutory Bodies.

For all the civil

servants working

on deputation with

the respective

Statutory Bodies.

Ditto

6 Dy. Secretary In

charge of

Administration.

For staff in NPS-1

to 4 working in the

Secretariat.

Ditto

7 Additional

Secretary.

For Staff in NPS 5

to 18 working in the

Secretariat.

Ditto

8 Administrative

Secretary.

For staff in NPS-19

working in the

Secretariat.

Ditto

9 Chief Secretary. For staff in NPS-20 Ditto

109

and above working

in the Secretariat.

2) Extent of amount permissible.

(1) A temporary advance may be granted to the subscriber from the

amount standing to his credit in the Fund at the discretion of the

competent authority subject to the following conditions:-

(a) No advance shall be granted unless sanctioning authority

is satisfied that the applicant’s pecuniary circumstances

justify it, and that it will be expended on the following

object or objects and not otherwise:-

i) to pay expenses incurred in connection with the

prolonged illness of the applicant or applicant’s spouse

or any person actually dependent upon the applicant;

ii) to pay for the overseas passage for reasons of health

or education of the applicant or any person actually

dependent on him;

iii) to pay obligatory expenses on a scale appropriate

to the applicant’s status in connection with the

marriages, funerals or ceremonies which by his religion

it is incumbent on him to perform.

iv) to purchase a plot of land for the construction of a

house or to purchase a house or to construct one for

the occupation of the subscriber himself or his family

on a piece of land owned by the subscriber or to make

additions to or alterations in an existing house owned

by the subscriber, whether or not constructed or

purchased with a house building advance;

v) to purchase a conveyance (car, scooter, motor cycle or

bicycle);

vi) to meet other expenditure which is considered by

the sanctioning authority to be essential and

unavoidable.

110

(Explanation—A temporary advance may be granted to the

subscriber for the performance of Haj.)

Note:-In case falling under item (I) above, advances may be

granted by the sanctioning authority to pay within a reasonable

time after the event to which it relates. What is a reasonable

time will be determined on the merits of each case. Advances to

pay debts incurred in cases falling under item (ii) and (iii) require

the sanction of Government.

(b) The sanctioning authority shall record in writing its

reasons for granting the advances:

Provided that if the reason is of a confidential nature, it may be communicated to the

Accounts Officer personally and/or confidentially.

(c) An advance other than that covered by clause (a) (iv) and

(v) shall not except for special reasons to be recorded in

writing by the sanctioning authority:-

(i) exceed three months pay or half the amount at the

credit of the subscriber in the Fund whichever is less,

or

(ii) unless the amount already advanced does not

exceed two thirds of the amount admissible under

clause (I), be granted until at least twelve months after

the final repayment of all previous advances together

with interest thereon:

Provided that the above conditions shall not be relaxed in the case of an

advance falling under clause (a) (vi) above;

*(Provided further that in no case the second advance shall be granted before

the final repayment of the previous advances together with interest thereon;

(*Added vide notification No.FD/SRI-2-3/83 (Prov) dated 02-04-1989.)

Provided further that a second non-refundable advance shall not be granted

until a period of one year has elapsed since the drawl of the previous advance.)

(d) an advance under clause. (a) (vi) shall be subject to the

following special conditions:-

111

i) Advance shall in no case exceed twenty four months

pay of the subscriber or eighty per cent of the amount

at the credit of the subscriber in the Fund, whichever is

less;

ii) Advance granted for construction of a house shall be

paid in two equated installments;

iii) If the first installment is not utilized for the purpose

of construction of the house within eight months of its

drawl, it should be refunded unless the sanctioning

authority extends this period;

iv) For the purpose of drawl of the second installment

the subscriber shall be required to give under his hand

a certificate to the effect that he has actually utilized

the first installment on the construction of the house;

v) The subscriber shall not dispose of the house

purchased or constructed with an advance from the

Fund until the advance has been repaid or the

subscriber retires from Government service;

vi) Recovery shall be made at the rate of seven per

cent of the subscriber’s pay commencing from the

fourth issue of pay after the first installment of the

advance is drawn;

vii) In case of subscriber also draws or has drawn a

house building advance from Government, the

recovery on account of the advance from the Fund

shall commence immediately after the advance

obtained from Government has been fully repaid with

interest thereon.

(e) i) An advance for the purchase of car,

scooter/motorcycle or a bicycle shall not exceed:--

In the case of car-12 months pay of the subscriber

or half the balance at his credit in the Fund

whichever is less;

112

In case of scooter/motor cycle—six months pay of

the subscriber or half the balance at credit in the

Fund, whichever is less;

In the case of a bicycle—four months pay of the

subscriber or half the balance at his credit in the

Fund, whichever is less.

ii) The subscriber shall give under his hand a certificate

to the effect that he has actually utilized the advance

for the purchase of the conveyance for which the

advance was applied.

iii) The subscriber shall not dispose of the

conveyance so purchased unless the advance has

been repaid or the subscriber retires form Government

service.

iv) In all cases in which the conveyance is sold before

the advance has been fully repaid with interest, the

sale proceeds must be applied, so far as may be

necessary, towards the repayment of any outstanding

balance.’

v) The recovery shall be made at the rate of seven per

cent of the subscriber’s pay commencing from the

fourth issue of pay after the drawl of the advance.

vi) * Advance drawn for conveyance (i.e. balance

thereof) shall become non refundable on the

subscriber attaining the age of 50 years.

(*Added vide F.D. notification No.FD-SRIV-2-15/79 dated 4th August, 1980.)

2. In fixing the amount of an advance the sanctioning authority

shall pay due regard to the amount at the credit of the

subscriber in the Fund.

1.15.After a subscriber has attained the age of fifty years, the competent authority

may, in its discretion, grant him an advance for any of the purposes specified below

subject to the conditions mentioned against each purpose:-

a) For construction of a house on a (1) The advance shall mutatis mutandis be

113

piece of land owned by the

subscriber or to make additions to

or alternation in an existing house

owned by him.

governed by the same terms and conditions

as applicable to an advance under clause

(a) (vi) of sub-rule (!) of rule 1.14.

Provided that, subject to condition (3) no

recovery of the advance shall be made

from the subscriber and the amount

advanced shall be treated as part of the

final payment of the amount standing at the

credit of the subscriber when the final

payment becomes due.

(2) The first installment of the advance shall

be drawn only after an agreement is

executed between the subscriber and the

Governor Form P.F.9.

(3) In case the house is sold or otherwise

alienated by the subscriber without

repayment of the advances and before his

retirement from service, the subscriber shall

forthwith repay into the Fund the entire

amount of the advance together with the

interest accrued thereon, in a lump sum.

(b) For purchase of a house for his

residence.

(1) The amount of the advance shall not

exceed eighty per cent of the amount

standing to his credit in the fund.

(2) Subject to conditions (1), (3) and (4) the

advance shall, mutatis mutandis, be

governed by the same terms and conditions

as applicable to an advance under sub rule

(a).

(3) In case the house is not purchased

within three months of the drawl of the

advance the subscriber shall forthwith

repay into the Fund the entire amount of

114

the advance together with the interest

accrued thereon, in a lump sum.

(4) The Advance may be drawn in full at

once but satisfactory evidence shall be

produced before the Audit officer to show

that the Advance for the purchase of the

house has been spent within three months

of its drawl. This can be done by showing to

the Audit Officer a duly executed receipt for

the amount paid.

(5) The advance shall be drawn only after

an agreement is executed between the

subscriber and the Governor in Form

P.F.10.

© For purchase of agricultural land

from Government.

(1) The amount of the advance shall not

exceed eighty percent of the amount

standing at hid credit in the fund.

(2) Subject to condition (1) the advance

shall mutatis mutandis, be governed by the

same terms and conditions as applicable to

an advance under sub-rule(a). Provided

that the advance may be drawn in lump

sum if so desired by the subscriber.

(3) The advance shall be drawn oily after

an agreement is executed by the subscriber

and the Governor in form P.F.11.

(d) For any of the following

purposes, namely:-

*( (1) The amount of the advance

shall not exceed 12 months

pay of the subscriber or

115

(i) to defray expense in connection

with the prolonged illness of the

subscriber or a member of his

family actually dependent upon

him.

80 per cent of the amount (standing to his

credit (in the Fund whichever is more.

(2) No recovery of an advance under this

clause shall be

(ii) To pay for the overseas

passages of the subscriber for

reason of

made from the subscriber and the amount

shall be treated as part, of the final

payment

health or for the performance of

Haj.

(iii) To pay for the overseas

passage for reasons of education

of any member of the subscriber’s

family actually dependent on him

and such other lump sum

expenditure as admission or

advance tuition fees of any such

members.

(iv) To pay obligatory expenses on

a scale appropriate to the

subscriber’s status in connection

with funerals or ceremonies which

by his religion it is incumbent upon

him to perform or in connection

with the marriage of any member

of his family actually dependent on

him.

of the amount standing at the credit of the

subscriber when the final payment

becomes due.

3) If the sanction is confirmed by the sanctioning authority, an authority for

the drawl of advance shall be issued to the D.D.O, in the following words.

Irrelevant portions should be crossed.

116

OFFICE OF THE DISTRICTS ACCOUNT OFFICER, SHEIKUPURANO.D.AO/SKP/G.P.F/H.M-----------------------Dated--------------------------To:

----------------------------------------------------------

Subject:- Authority for drawl of G.P fund advanceSir,

I have the honour to inform you that the sanction for drawl of refundable/non-

refundable advance out of General Provident Fund accumulations of

Mr./Ms/Mrs------------------subscriber to G.P Fund Account No.-------------------

amounting to Rs.-------------------- accorded by ----------------------------- vide

No.--------------------------dated ------------------has been found in accordance with the

rules.

You are hereby authorized to submit a bill for drawl and subsequent

disbursement of the said amount to the subscriber. Since the subscriber is a non-

gazetted civil servant, therefore, his personal appearance along with you or your

authorized representative, as required under Government of the Punjab, Finance

Departments letter No.S.O(B&E-1)4-3/90 dated 27-08-1999, before the undersigned

is necessary . The subscriber and you or your authorized representative, along with

their original National Identity Cards and authority letter, are requested to attend the

office of the undersigned on------------ at-----------------A.M/PM.

You are hereby authorized to submit bill for the said amount for authorization

of payment of the advance.

Since you are a gazetted civil servant, therefore, your personal appearance

before the undersigned is not necessary.

Deduction of Zakat at the rate of 2.5 percent is compulsory for non-refundable

advances. The bill may be prepared accordingly.

117

Your Obedient Servant

District Accounts Officer Sheikhupura.

4. After identification of the subscriber, the bill shall be examined to see whether

it is on the prescribed form, signed, stamped, properly filled in, correctly classified,

with accurate calculations and the amount being recorded in words as well as in

figures. The auditor, after satisfying himself that all necessary conditions have been

fulfilled, office pay order to State Bank of Pakistan or N.B.P where State Bank is not

situated, in favour of the Government servant or DDO on the bill. The sanction and

the documents, after passage of bill, shall be retained by the A.A.O (G.P.G Section)

5. Second refundable advance on completion of recovery, within one year is

permissible with the sanction of the next higher authority.

6. Bills of advances are to be signed by two DAOs . An authority for final

withdrawal of G.P fund accumulations should normally be issued on production of

the following documents:-

Final withdrawal of G.P fund accumulations.

a. G.P Fund 10 Form complete in all respects and signed by the

competent authority.

b. Attested copy of the National Identity Card of the subscriber.

c. A hand written application of the subscriber illiterate, an application

having his thumb impression.

d. Retirement orders/ orders regarding acceptance of

resignation/intimation from the department that the subscriber has

quitted service/ orders of compulsory retirement, orders regarding

termination, dismissal from service /intimation of the subscriber, duly

forwarded that he is going to superannuate within six months /death

certificate of the subscriber, with application and copy of National

Identity Card of the nominee duly forwarded by the D.D.O If there is no

nomination, a single widow certificate.

118

e. It is a common practice that in case of death of the subscriber,

authority is issued in favour of the D.D.O for disbursement to the valid

payees. However if the subscriber has nominated someone to receive

payment in case of his death, the authority should be issued to the

DDO for payment to the nominee.

f. If the subscriber has agitated his compulsory retirement, termination,

dismissal from service in a competent court of law, has not drawn his

G.P Fund accumulations, and the court sets aside his compulsory

retirement etc., interest shall be allowed to the subscriber on his

accumulations till the month proceeding the month of such decision. If

his case, submitted within six months of superannuating, is delayed

interest shall be paid upto the date of issuance of authority, and those

in the D.A.O whose negligence has caused delay in finalization of the

case, shall be brought to book.

g. Zakat should not be deducted on the balance at the time of final

payment. It should be deducted @ 2.5% of the balance standing at the

credit of the subscriber as on valuation date which is the first of the

Ramzan preceding the date when final payment is authorized.

h. Residual payment, which is normally caused due to non-receipt of

profit - rates on time, should be authorized on receipt of rates. The

subscriber has not to submit an application for the purpose.

Adjustment of missing credits

If subscriptions to General Provident fund have not properly been accounted

for and recorded in the record of G.P Fund Section, adjustments should be effected

on production of a certificate of deductions issued by the GAD Section in case of

gazetted civil servant, and on production of a certificate, along with acquaintance

rolls, issued by the D.D.O. of the subscribers. On the close of each financial year,

the D.D.O’s should be requested to reconcile the G.P fund subscriptions with the

record maintained in this office.

Transfer of G.P fund from Sheikhupura to other districts

Upon receipt of request of the subscriber, duly forwarded by his present

accounts office, giving his name, parentage, designation, department, last fund

deduction, (date & rate) G.P Fund account No at Sheikhupura and confirmation of

G.P Fund account No. at his present accounts office, the balance at the credit of the

119

subscriber should be transferred to his present accounts office. This transfer is final.

No reconfirmation is needed for the amount so transferred.

Transfer of G.P fund from other districts to Sheikhupura.

On receipt of application containing details as aforesaid, of the subscriber for

transfer of his G.P Fund balance from his previous accounts office to Sheikhupura,

the same after verification of its contents from the available office record, should be

forwarded to his previous accounts office for doing the needful.

When a civil servant comes under the accounts jurisdiction of this office, the

following letter should be sent to him for consolidation/review of his G.P Fund

account:-

OFFICE OF THE DISTRICT ACCOUNTS OFFICER, SHEIKUPURA.

NO.DAO/SKP/GPF/HM---------------------Dated

To,

---------------------

---------------------

---------------------

Subject:- Consolidation/review of G.P fund account

Sir,

As a result of your posting as ---------------------in B.PS----------------------through

transfer from the post of -------------------------------------------------------------the following

documents/information may, kindly, be furnished to enable this office to get your G.P

Fund account reviewed/consolidated in the District Accounts Office, Sheikhupura.

a) Application in form G.P F.3 for allotment of G.P Fund Account No.

along with nomination papers, forms of contingent notice of

cancellation and N.I.C No.

b) G.P Fund Account (s) No allotted by previous accounts office (s) in

whose books balance is available.

c) Month of Ist deduction of G.P Fund with rate of deduction and name of

the department and name of accounts office.

d) Month and rare of last deduction under accounts jurisdiction of

previous accounts office.

e) Month and rate of first deduction under the accounts control of DAO,

Sheikhupura.

120

District Accounts Officer Sheikhupura.

Conversion of profit bearing accounts into non-profit bearing accounts and

vice versa

If a subscriber desires to convert his non-profit bearing account into a profit

bearing account, the request shall be granted subject to the condition that if he had

availed interest free advances from the Government, he shall be charged the amount

of interest on loans equal to the difference between the amount of interest acquired

on loans and the amount of profit foregone on G.P Fund account. If he applies for

conversion of his profit-bearing account into a non -profit bearing account, his

account shall be reversed and profit shall be deducted from his account.

121

Cheque Section

1. Organizational Chart.

2. Functions of the Section.

3. Receipt and delivery of bills.

122

ORGANIZATIONAL CHART

D.A.O

A.A.O

S. Acctt. S. Acctt S. Auditor J. Auditor

Naib Qasid

Functions

1. Reception of claims.

2. Advice of passed claims for payment at bank.

3. Delivery of passed claims to concerned department.

4. Receipt of Dak.

5. Dispatch of Dak.

6. Discharging of paid vouchers.

7. Issuance of Schedules of payment to departments.

123

Receipts and delivery of bills

No bill, pension case, service book. G.P fund final payment case or any claim

seeking authorization of payment should be accepted unless a Transit Register,

bearing entry of the claim under signature of the D.D.O is not presented with the

claim. No disposed of claim should be returned unless token issued by this office is

returned.

In cases of claims relating to Tehsil Ferozewala and Nankana Sahib, Transit

Register should be produced when delivery of disposed of claims is demanded, at

the Sub-Treasury.

If a claim is accepted or delivered without ensuring its entry in the Transit

Register, the Sub Accountant or the auditor concerned shall be held personally

responsible if it is subsequently discovered that a fraud has occurred, and the claim

was not entered in the Transit Register of the D.D.O.

124

MAINTENANCE OF ACCOUNTS.

i. Introduction.

ii. Scope of Accounting.

iii. Role of Auditor General.

iv. Procedure of Accounting.

v. Reconciliation of Accounts.

vi. Chart of Classification.

vii. Changes in the system of maintenance of accounts after the

implementation of the Devolution Plan

125

Introduction.

Government of the Punjab undertakes activities in the light of the principles of

policy as set forth in Article 29 to 40 of the constitution of the Islamic Republic of

Pakistan. These activities have financial implications. Elaborate and systematic

arrangements have been made to keep written records of its activities, which are

wholly or in part of financial nature. These written records or statements are called

accounts. Accounting means the art of recording, classifying and summarizing

financial and quasi-financial transactions in terms of money and interpreting results

thereof. The Government has established District Accounts Offices in all the 34

Districts of the Punjab, save Lahore, for the purpose of maintenance of accounts of

each District on daily basis and compilation of daily accounts on monthly basis.

These accounts exhibit receipts into and withdrawal from the Provincial Consolidated

Fund and Public Account of the Province. Provincial Consolidated Fund is a fund into

which all revenues and loans raised by the Government and all moneys received in

repayment of loans are credited, whereas, Public Account of the Province contains

all other moneys, which are received by or on behalf of the Government and moneys

deposited with courts, which are to be repaid and are not part of revenues of the

province.

Under an agreement, the Governor of the Punjab has entrusted the business

of handling of cash on behalf of the Provincial Government to the State Bank of

Pakistan. At places where State Bank of Pakistan has no branch of its own, it has

appointed National Bank of Pakistan to act as its agent to handle cash on behalf of

the Government. The bank receives and disburses money as per directions of the

Government and renders accounts to the District Accounts Office on the next

working day following the transaction. District Accounts Office prepares accounts in

such form and in accordance with such principles and methods as the Auditor

General of Pakistan, with the approval of the President, has prescribed.

126

Scope of accounting.As said earlier, accounting is the art of recording, classifying and summarizing

transactions, wholly or in part of a financial nature in terms of money and interpreting

the results thereof. It is an activity which is carried out by the Government with a

view to regulate receipts and expenditures in a way as to enable it to exercise

meaningful and determinant watch over each step of financial transactions

undertaken by its organizations and functionaries. To ensure that accounts prepared

by the District Accounts Offices depict a true and reliable picture of its financial

transactions, it has made obligatory for the District Accounts Office to implement

such measures and employ such methods as are essential for the preparation of

accounts in accordance with the directions of the Auditor General of Pakistan.

Besides it, a little measure of responsibility regarding implementation of rules framed

by the Governor of the Punjab, in exercise of authority conferred upon him under

Article 119 of the constitution, regarding receipts into and authorization of payments

from the public purse, is vested in the District Accounts Offices. The aim is to ensure

that the Auditor General of Pakistan raises the minimum possible objections when

accounts of the province and its organizations are subjected to audit. These pre-

cautionary measures are collectively know as pre-audit i.e. means, measures

methods adopted in respect of financial transactions by the government prior to

conduct of audit by the Auditor General of Pakistan. Since no man can be a judge in

his own cause therefore, quite logically, the Auditor General of Pakistan has been

relieved of the responsibility of keeping initial and subsidiary accounts of the

province and its organizations, in terms of Rule 3 of the Initial and Subsidiary

Accounts Rules which have been issued under sub-clause 3 of article 9 of the

Pakistan (Audit and Account) Order, 1973. By initial accounts, we mean primary

record of all money transactions of the province and by subsidiary accounts we

mean statements of accounts prepared on the basis of initial accounts. Thus the

District Accounts Offices render a valuable pre-audit service at district level.

Pre-audit being an integral part of accounting, remains, almost everywhere in

the world in the hands of the government or separate agency subordinate and

answerable to it. Assigning the job to an independent and an unaccountable agency

as the Auditor General is, is equal to subjecting the unqualified competence of the

Governor regarding Provincial Consolidated Fund and Public Account of the

127

province to an uncalled for veto, which may, as the experience has shown us, result

into many complications which are otherwise avoidable.

Accounting assists the Government in planning, evaluating, and monitoring its

activities and programmes and helps in kindly amendments in plans. It also enables

the legislature to exercise material control over budgetary allocations and the

consequent appropriations.

128

Role of the Auditor General

Article 170 of our constitution authorizes the Auditor General of Pakistan to

issue direction with the approval of the President regarding maintenance of

accounts. The accounts of the province are kept in the form and in accordance with

the principles and methods prescribed by the Auditor General. This article speaks of

the Auditor General’s power to give directions on accounting, implying there by that

directions are to be given to those agencies, which maintain accounts. No one is

supposed to give directions to himself; directions are given to others. It can be

inferred that the letter and sprit of this article requires that the act of accounting be

done by an agency other than the Auditor General of Pakistan. Whereas, the

competence of Auditor General in respect of audit of the accounts is absolute and

indivisible, he has no concern with the maintenance of initial and subsidiary accounts

except to issue direction to the Provincial Government in this regard. The

Government of the Punjab has made its own arrangements for maintenance of initial

and subsidiary accounts at district level. However, services of a reasonable number

of civil servants form the Pakistan Audit Department are available to the District

Accounts Offices. The District Accounts Offices are under the administrative control

of the provincial Government.

The directions of the Auditor General regarding maintenance of accounts are

contained in Account Codes Volume I to IV. Certain material amendments in these

codes have been made through the District Accounts Offices Scheme, introduced by

the Government of the Punjab in consultation with the Auditor General, in 1967.

Accounts are maintained by the District Accounts Offices in accordance with the

Account Codes as amended by the District Accounts Offices Scheme.

It is said that Auditor General is responsible, under the Pakistan (Audit &

Accounts) Order, 1973, to render the following accounts:

Monthly Account

Compilation and submission of monthly accounts of receipts and expenditure of the

Provincial Government.

Annual Accounts

Compilation and submission of annual accounts of receipts and disbursements of the

Provincial Government.

129

Appropriation Accounts

Preparation of appropriation accounts indicating the expenditure incurred by the

various Departments against the budgetary allocations and their submission to the

Governor of the Punjab.

Finance Accounts

Compilation of finance accounts showing annual receipts and disbursement under

respective functions and objects of the chart of classification, and its submission to

the Governor.

Combined Finance and Revenue Accounts

Preparation and submission to the President of combined finance and revenue

accounts incorporating a summary of the federal and provincial accounts including

their balances and outstanding liabilities.

130

Procedure of accountingDrawing and Disbursing Officers (DDOs) prepare detailed estimates of

expected receipts and payments for the coming financial year (In Pakistan a financial

year starts on 1st of July and ends on 30th June) and submit these estimates to their

designated budget controlling officers.

Budget controlling officers consolidate estimates of receipts and expenditure

submitted by the DDOs subordinate to them and submit the same to the Principal

Accounting Officer of their respective department.

Principal Accounting Officer of each department (all Secretaries to the

Government in the administrative departments are ex-officio Principal Accounting

Officers in respect of their departments) submits budget estimates to the Finance

Department (Services General Administration and Information Department acts as

Finance Department for the Finance Department of the Government of the Punjab).

Finance Department prepares the annual budget statement, which is placed

before Provincial Legislature for approval.

After approval from the Legislature, the Finance Department releases

budgetary allocations to the Principal Accounting Officers of various departments.

The Principal Accounting officers distribute budgetary allocation to the

Drawing and Disbursing Officers, and endorse a copy of the distribution letter to the

District Accounts Officer concerned.

The Drawing and Disbursing Officers incur expenditure and submit their

claims in the concerned District Accounts Office. The District Accounts Office

authorizes payments in accordance with the rules.

The Drawing and Disbursing Officers get cash from the bank. The paid claim,

along with a payment scroll, is submitted to the District Accounts Officer by the bank.

The following chart illustrate the system:

131

SYSTEM OF FINANCIAL TRANSACTION IN GOVERNMENT.

BUDGET FORMULATION BY FINANCE DEPARTMENT AND APPROVAL BY LEGILATURE.

DISTRIBUTION OF BUDGET TO DEPARTMENTS. GRANT WISE / OBJECT WISE.

DISTRIBUTION OF BUDGET BY DEPARTMENTS TO VARIOUS TIRES (GW/OW)

BUDGET REACHES A DRAWING AND DISBURSING OFFICER (DDO). THE SMALLEST UNIT FOR PURPOSE OF EXPENDITURE (OBJECT WISE)

AG (Pb), DAOs ALSO NOTIFIED ABOUT BUDGET

DDO PREPARES CLAIMS

WHILE ENSURING THAT:Claim a valid charge.Budget availability.Sanctioned by competent authority.All prescribed requirement (quotations /

tenders etc.) completed.Any other requirement as to form and manner

of claim. Duly signed certified.

CLAIM SUBMITTED IN DAO OF RESPECTIVE DISTRICT AFTER

SIGNING, SPECIMEN SIGNATURES ALREADY WITH

DAO / BANK.Each claim to be sent through an

authorized representative.Duly entered in a TRANSIT

REGISTER.

CLAIM RECEIVED AT

PRE-AUDIT COUNTER

ENTERED I A REGISTER

VIS-À-VIS ITS

PARTICULARS.A token issued in lieu of claim.Bill / claim transmitted to concerned

Sector in the DAO.Pre-audit checks exercised by the

concerned auditors.

CLAIM

SCRUTINIZED

WITH REGARD TO

BY AUDITOR.Regularity.Budget availability.Sanction / powers of DDO.Classification.Totals.Specimen signatures.Enters in the audit register.Affixes pay order stamps if

found in order. Initials.Submission to Assistant

Accounts Officer for cross check / scrutiny.

CLAIM RE-VERIFIED AND

SCRUTINIZED BY AAO.Affixes his initial to pay order.Initials in the audit register against

relevant entry.Sends it to the DAO for approving

payments and signing pay order.Pay order embossed.

DAO RE-VERIFIES ALL PRE-AUDIT CHECKS.

Sign pay order & audit register.

CLAIM RETURNED TO

CONCERNED SECTION.All authorized claims entered in a drawing

schedule.Drawing schedule along with claim again

submitted to DAO for authentication of each entry.

Drawing schedule signed by DAO.

CLAIM RETURNED TO

TOKEN COUNTER.Approved drawing schedule sent to

NBP / SBP in a sealed cover.The bill returned / reclaimed by the

DDO after surrendering the token and due acknowledgment.

The authorized claim is presented by the DDO at the Bank.

The bank makes payment after checking the drawing schedule & bonafide of payees.

Bank after making payments on all authorization enter them in a scroll & sends them along with paid vouchers back to the respective DAO on the following day. Similarly all receipts are sent accordingly.

132

THE POST PAYMENT / RECEIPT ACTIONS ARE ILLUSTRATED THROUGH THIS CHART

BANK REPORT DAILY RECEIPTS /

PAYMENTS TO SBP KARACHI.

RECEIVED AND ACKNOWLEDGED BY

DAO IN THE PRESCRIBED

MANNER.

ALL PAID VOUCHERS DISCHARGED AGAINST

DRAWING SCHEDULE ALL CREDIT CHALLANS

MARKED OFF AGAINST CHALLAN PASSING

REGISTER.

ALL VOUCHERS SORTED /

CLASSIFIED AND POSTED IN

SUBSIDIARY REGISTERS.

PAID VOUCHERS / CREDIT CHALLANS

SENT TO DAO BY SBP / NBP ALONG WITH

DEBIT / CREDIT SCROLLS.

VOUCHERS / CHALALNS FILED AND

CONSIGNED TO RECORD.

AG CONSOLIDATES FOR WHOLE OF PROVINCE AND

SUBMIS TO GOVT.

DISPATCHES MONTHLY A/C TO AG(Pb) FOR

PRODUCING MONTHLY CIVIL ACCOUNTS 5TH OF

FOLLOWING MONTH

PREPARES MONTHLY CASH

ACCOUNT AND LIST OF PAYMENTS.

ENTER

DAILY

TOTALS IN

CASH

BOOK.

GRANT

WISE, DAILY

BASIS.

PREPARE ABSTRACTS

OBJECT WISE AND WORKS OUT STATE

BANK DEPOSIT.

MISCLASSIFICATIONS BY BANK RECTIFIED /

ADJUSTMENT BY BOOK TRANSFERS

EFFECTED.

SENDS

SCHEDULES OF

RRRRRRECEIPTS /

PAYMENTS TO

DDOs / CO.

DDO TO

COMPARE WITH

HIS RECORD

CASH BOOK

AND AGREE /

CERTIFY.

UNDERTAKERS DAILY / MONTHLY RECONCILIATION

WITH BANKS (LOCALY)

AD CONSOLIDATE

DEPARTMENTAL

ACCOUNTS AND

RECONCILE WITH

AG.

DDO SUBMITS ACCOUNTS TO CO, WHO RECONCILE AND SENDS

TO AD.

DDO PREPARES EXPENDITURES / RECEIPTS STATEMENTS. RECONCILES WITH DAO.

CARRIES OUT RECONCILIATION OF CASH BALANCE WITH SBP.

133

Reconciliation of provincial data

Introduction:

Fiscal reporting and data management is the prime requirement of the

Government as a tool for prioritising its economic and budgetary policies. This

information essentially flows from the accounting returns prepared by the entities viz:

the A.G/(pb)/DAO/T.Os. Besides, the collecting and expending governmental

agencies are also required to keep initial and subsidiary accounts, as prescribed and

file such accounting returns periodically to their designated authorities in a given

time-frame. Timely reconciliation of such information between the two agencies i.e

the A.G/DAOs and the departmental authorities is imperative for ensuring accuracy

and reliability of the financial reporting mechanism. The third element in this

arrangement is the State Bank of Pakistan and the National Bank of Pakistan, which

has been authorized the cash handling business by the government.

Although, an elaborate arrangement for ensuring accuracy, timelines and

reliability of accounting information already stands prescribed, however, the fiscal

data, for various reasons, is deficient and does not come up to the requisite

standards to be considered as authentic. Thus there is not only a need for

substantial improvement in the existing reporting structure, but also that the system

requires to be revamped and updated to meet the present day requirements.

Past efforts:

The Finance department being mindful of the aforesaid shortcomings has

been making concerted efforts for improving its accounting and fiscal reporting

system. In this regard it has been persistently reiterating the respective

responsibilities as enjoined upon the A.G/DAOs and the Drawing and Disbursing

Officer/Controlling officers in the matter of reconciliation of accounts with the

Accountant General/DAOs and the banks in the term of the procedure prescribed in

Chapter 13 of the Punjab Budget Manual.

In this regard, in pursuance of the directions given by the former Chief

Minister, a comprehensive arrangement for reconciliation of accounts was worked

out in consultation with the A.G Punjab. A set of instructions was issued to all

government departments prescribing a detailed schedule for undertaking

134

reconciliation with the A.G/DAOs/ Banks in an organized and meaningful manner.

The measures achieved limited success. Many areas still leave much to be desired.

Problem areas;

Various problem areas have been identified in the matter of improper

maintenance of accounts, their effective reconciliation and timely reporting of

financial data. Accordingly, appropriate measures have been taken to rectify the

situation, these are discussed as hereunder:-

a) Duality of administrative control in District Accounts Offices.

This aspect has been the sore point in the management of Treasuries (now

District Accounts Offices). The Finance department has already been stressing for its

resolution. Consequently, the F.D has taken up the matte with the highest authority

in the Federal Government. The problem is, meanwhile badly affecting the efficiency

out put and discipline in the District Accounts Offices. This is one of the main causes

of poor fiscal reporting management.

b) Compilation of accounts:

Before the reorganization of treasuries into DAOs, the compilation of receipt

and payment accounts was essentially done by the Treasury officials. After the

reorganization of these offices into DAOs a dual system of compilation of accounts is

in vogue. In certain DAOs the payment accounts is compiled by the A.G staff, which

also pre-audit payments. This staff is not well poised to undertake compilation of

accounts, as it is not competent in the matter, nor it is disciplined enough. Even

otherwise, they take more interest in pre-audit functions rather to compile, accounts

and to carry out reconciliation of work.

In order to address this problem the Finance department directed

establishment of compilation cells in the DAOs with the concurrence of A.G Punjab.

These were to be jointly manned by the Treasury and Audit Staff. However, this

effort has not succeeded because the A.G Punjab has refused to let the

arrangement be implemented in the desired manner.

c) Lack of effort on the part of DDOs /COs/ Government Department.

There is a visible lack of effort on the part of the respective government

functionaries, who perform various functions as DDOs/COs etc. The elaborate

arrangement already prescribed under the Rules in not followed in the rightful

manner with the result that reconciliation of accounts is being ignored. This element

is compounded by the fact that such functionaries are not aware as to their

135

responsibilities, besides, having lack of comprehensive knowledge of Rules /

instructions required to be followed by them. The Finance department is taking

measures for holding training courses for such functionaries at the Punjab institute of

Human Resources Development.

d) Responsibility of banks :

The banks constitute a vital element in the fiscal reporting mechanism of the

Provincial government. It has however been observed that they are not discharging

their responsibility in the prescribed manner, in- that the provincial receipts and

payment are not reported in time, besides the reconciliation responsibility as required

of them (banks) are not being performed in the rightful manner, causing huge

discrepancies in the accounts as maintained by the D.A.Os/A.G Punjab , and those

reported by the State Bank of Pakistan. This results in huge unreconciliated figures

regarding State Banks Deposit.

The Provincial government has taken up the matter with the SBP and NBP

Authorities to address the concerns.

e) Mis-classifications by departments

Lack of accounting knowledge on the parts of D.D.Os /C.Os leads them to

mis-classify their financial transactions, causing considerable discrepancies in their

accounting reports. This problem is further aggravated due to improper reconciliation

of accounts. The Finance Department has taken certain measures to over-come this

situation. The receipt and expenditure classification of important departments have

been re-notified with clarity so as to make such authorities conversant with their

accounting classification for obviating large scale mis-classified accounts. Visible

improvement has been observed in this area.

f) Other problems

Another factor contributing to financial mis-reporting and delayed

reconciliation efforts is that administrative hierarchy of large departments like the

departments of Health, Education, Agriculture, Police and Administration does not

correspond with the reporting fiscal hierarchy as prescribed in the Budget Manual.

This has caused mis-understanding and confusion, whereby fiscal reporting is

delayed and is not accurately reported. Some of these functionaries merely work as

post offices, instead of undertaking reconciliation work in the prescribed manner.

The immediate solution to this difficulty lies in the fact that the DAOs may be

required to send copies of expenditure statement direct to their Controlling officers,

136

besides handing them to their administrative superiors. This would cut down delays

etc.

g) Role of heads of department and Finance department.

The heads of administrative departments are required to consolidate financial

information as received from the DDOs and C.Os and prepare a consolidated return

of the department for reconciliation with the A.G Punjab. This requirement is not

being undertaken in rightful manner.

For this purpose a Monitoring Wing headed by an Additional Secretary

already exists in the Finance department. Presently, it is only concentrating its efforts

to settle audit paras etc. This Wing needs to be activated further for undertaking

reconciliation of accounts as prescribed, as it is already in receipt of appropriation of

accounts form the Auditor General of Pakistan.

137

Chart of Classification

The Chart of Classification of Federal and Provincial government receipts and

disbursements constitutes Appendix 2 of the Account Code, Volume I. It has been

issued by the Auditor General of Pakistan, with the approval of the President, under

Article 170 of the Constitution of Islamic Republic of Pakistan, 1973.

Up to 1978-79, the form of the accounts of the Federation and of the Province

had been determined largely by the scheme prescribed in the ‘List of Major and

Minor Heads of Account’, which was department-oriented i.e., an item of receipt and

expenditure was identified with the Ministry or Department which collected the

receipt or incurred the expenditure.

In recent years, Governments have been undertaking ever-increasing

responsibilities in matters affecting the economic growth of the country. With these

added responsibilities, the need has been increased to improve the quality of

information about the economic and social effects of their action for the purpose of

providing an adequately analyzed database for well-conceived and rational policy

decisions with regard to such matters as the choice of resource inputs, allocation of

resources and their most economical use. A new classification was, therefore,

evolved which was essentially ‘function-cum-object’ in character so that the receipts

showed the sources of their generation and expenditure was classified so as to

indicate both the Government function where occurred as well as the object it was

meant serve.

The chart can be divided into three distinct parts for the purpose of

classification i.e. ( i ) Receipts, ( ii ) Expenditure and ( iii ) Public Account. The

expenditure portion is further divided into 2 parts viz Functions and Objects.

The Federal Government has introduced the Function-Cum-Object

Classification with effect from the 1st July 1979 and by the Provincial Governments

from the 1st July, 1980. Thus the Federal Accounts for 1979-80 and Provincial

Accounts for 1980-81 have been prepared on new Chart of Classification.

138

OFFICE OF THECONTROLLER-GENERAL ACCOUNTS,

3rd FLOOR, TAIMUR CHAMBERS, 10-D WEST,FAZAL-E-HAQ ROAD, BLUE AREA,

ISLAMABAD

No. -CGA/DISTT-GOVT/2001 Dated: 11-08-2001

SUBJECT - GUIDELINES FOR DISTRICT GOVERNMENTS ACCOUNTSUNDER DEVOLUTION PLAN

Reference: Meeting held on the subject matter in the Finance Division on 10.8-2001.

A copy of Guidelines for opening and keeping of Bank Accounts,

transfer of funds to District Governments, Tehsil and Town Municipal

Administration and keeping and maintaining accounts of these

Governments by the DAOs/TOs is sent herewith for further action.

(MUHAMMAD USMAN)

Controller General of Accounts

1. The Secretary Finance, Government of the Punjab/Sindh/NWFP/Baluchistan.2. The Accountant General Punjab/Sindh/NWFP/Baluchistan.

3. The Governor of State Bank of Pakistan, Karachi (Attention: Mr. Bar

Bruce Ishaq, Additional Director, Accounts Department).

4. The President, National Bank of Pakistan, I.I. Chundrigar Road, Karachi.Copy also forwarded for information to: -1. The Secretary Finance, Government of Pakistan, Islamabad.2. The Consultants NRB (Mr. Daniyal Aziz).3. The Accountant General Pakistan Revenues, Islamabad.

139

GUIDELINES FOR OPENING OF BANK ACCOUNTS AND

TRANSFER OF FUNDS

FORDISTRICT GOVERNMENTS, TEHSIL & TOWN MUNICIPAL

ADMINISTRATION, UNION ADMINISTRATION1. Local Funds and Provincial Accounts (1). Every District

Government, Tehsil Municipal Administration and Town Municipal Administration

shall establish under Section 107 (1) of the Local Government Ordinance, 2001,

the following: -

i). A Local Fund for every District Government, Tehsil Municipal

Administration, Town Municipal Administration, and Union Administration.

ii). A District Provincial Account for every District Government, a Tehsil

Provincial Account for every Tehsil Municipal Administration, and a Town

Provincial Account for every Town Municipal Administration.

(2). Local Fund will receive credits from the sources laid down in Local

Government Ordinance, 2001. The District Provincial Account will be credited

with budgetary releases transferred by Provincial Government to the District

Government. The Tehsil Provincial Account will be credited with sums

transferred by District Government to the Tehsil Municipal Administration. The

Town Provincial Account will be credited with sums transferred by City District

Government to the Town Municipal Administration.

(3). The accounts of the Local Fund and the Provincial Account shall be

maintained and kept separate from each other. The accounts of Local Fund will

be kept and maintained by the Local Governments themselves under the existing

system and arrangements. The accounts of the Provincial Accounts will be

kept and maintained by the DAOs/TOs in the manner laid down in the

succeeding paragraphs.

2. District Provincial Account:

(1). In terms of Section 107 (3) Local Government Ordinance 2001 the

"District Provincial Account" shall consist of all monies budgeted in the Provincial

Government budget for Offices and Functions decentralized to the District

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Governments, other than the sums for establishment charges of Government

employees of such decentralized offices. It will also include Octroi and Zila grants

from Government. For this purpose detailed District wise budget estimates will be

prepared by the Provincial Government and printed copies provided to the

concerned Zila Nazim, DAO/TO and AG.These provincial budget estimates will

also include share of Tehsils or Town Municipal Administration as the case may

be, which is to be transferred by District Government.

(2). The establishment/pension budget of the Government employees

shall continue to form part of Provincial Consolidated Fund and disbursed by the

DAOs/TO as per existing procedure.

(3). The Tehsil and Town Provincial Accounts shall consist of all monies

transferred to them by the District Government out of District Provincial Account.

3. Custody of District Provincial Account:

(1) Each Provincial Government will make arrangements with the State Bank of

Pakistan to keep and maintain a "District Provincial Account" separately for each

District in the Province. The Account at Province level will be titled: -

Punjab District Governments Account No. IV

Sindh District Governments Account No. IV

NWFP District Governments Account No. IV

Baluchistan District Governments Account No. IV

(2). Each of the above Account No.IV will be further divided into "District

Provincial Account" with a separate Sub No. (allotted by State Bank of Pakistan)

for each District to accommodate receipts and payments of that District

separately and independently. These District Provincial Accounts will be kept in

the State Bank of Pakistan.

(3) The State Bank will provide District wise daily closing balances of cash

to the DAO/TO, AG, DCO/EDO Finance of the concerned District and Finance

Department of the Provincial Government for monitoring the cash flow.

Monthly statement of District wise closing balances of cash will also be

provided to the DAO/TO, AG, DCO/EDO Finance and Finance Department.

141

(4). Where the State Bank has no branches at District level, the business

shall be conducted by the branches of National Bank of Pakistan, as an agent of

the State Bank of Pakistan. It will be conducted in the same manner as the

business of the Provincial Governments is currently being conducted in respect

of their Accounts No. I & II.

The concerned National Bank branch will keep two separate accounts

i.e.one for the Provincial Consolidated Fund of the Provincial Government and

the other for the District Provincial Account of the District Government.The

reimbursement by the NBP will be claimed separately for the two accounts from

the State Bank. This will make it possible for the State Bank to debit the

respective accounts.

(5) The District Provincial Account with the State Bank of Pakistan will be

operated by the concerned DAO/TO.

(4) Custody of Tehsil/Town Provincial Accounts

(1). The NBP will maintain separate account for each Tehsil/Town

Municipal Administration within the District in the NBP branch at the

Tehsil/Town level.

(2) The Tehsil/Town Provincial Account with the National Bank of Pakistan

will be operated by the concerned DAO/TO till such time that an Accounts Officer

is notified for the Tehsil/Town.

(5) Re-appropriations (1). The Funds credited to the District and Tehsil/Town

Provincial Account will be expended by the Local Governments in accordance

with budget approved by the concerned Council and as amended form time to

time.

(2). The DCO will examine budget estimates immediately on receipt from

the Finance Department and prepare, in consultation with the Zila Nazim,

statement of Re-appropriation for approval of the Council. After approval DCO

will communicate revised budget allocations of the District Budget to the

Provincial Finance Department, heads of the District Offices, DDO’s, DAO/TO

and AG. Till this is done expenditure will be incurred as per budget allocations

provided by the Finance Department.

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(3). Re-appropriation will, however, not be allowed from salary budget to

District Provincial Account and vice versa.

6. Classification: (1) For new offices and for any transaction arising in the

District, which is/are not covered by the existing classification heads, new heads

will be issued by the CGA upon intimation by Provincial Finance Departments.

7. Accounts and Payments:

(1). Under new system, the DAO/TO will be responsible to keep and

maintain following Government accounts separately from each other: -

(i). Provincial Government Account.

(ii). District Provincial Account

(iii) Tehsil/Town Provincial Account

(iv). Federal Government Account

(2). The Provincial Government account comprising the transactions

relating to the salary of the Government employees of offices decentralized to the

District Government, as laid down in para-2 (2) and of those functions and

departments/offices not decentralized to the District Government, will continue to

be kept, maintained and submitted by the DAO/TO to the AG under the existing

system and procedure.

(3). Similarly, Federal Government account comprising the transactions of

the Federal Government arising out in the district will continue to be kept,

maintain and submitted to the AGPR or its concerned sub-office under the

existing system and procedure.

8. (1). Releases from Provincial Government: - The funds budgeted for

transfer to District Provincial Account will be released by the Provincial

Government in monthly installments by 1st day of each month (Note: Federal

transfers are on the last day of the month). The Finance Department will issue

advice under intimation to AG, DAO/TO to the State Bank of Pakistan, Karachi

on the 1st day of the month, to transfer the sanctioned amount to the concerned

District Provincial Account by debit to the Provincial Government Account No. I.

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(2). The following accounting entries will be made in respect of above

adjustment in the books of the A.G. and the DAO/TO on receipt of intimation of

adjustment from SBP: -

AG's Books

DR 8308000-Funds remitted to the District Governments

Note: (Subsidiary register will be maintained by AG to keep a

record of the transfer of funds to each district separately).

CR 9201000-State Bank Deposits. (Account I)

DAO's/T.O's Books

DR District Provincial Account.

Head: 9201000-State Bank Deposits. (Account IV)

CR Provincial Government Account:

Head: 8308000-Funds Remitted to the District Governments.

(3). Releases to Tehsil Provincial Accounts by District

Government.The funds budgeted for transfer to Tehsil/Town Provincial Account

will be released by the District Government in monthly installments by 3rd day of

each month. The DCO will issue advice to the State Bank of Pakistan, Karachi on

the 3rd day of the month to transfer (i.e. actual cash transfer) the sanctioned

amount to the concerned Branch of the NBP maintaining the Tehsil/Town

Provincial Account by debit to the District Provincial Account No. IV of the District

concerned.

The following accounting entries will be made in respect of above adjustment in

the books of the DAO/TO: -

DAOs Books (District Government)

DR 8309000-Funds Remitted to the Tehsil/Town Municipal

Administration

Note: (Subsidiary register will be maintained by DAO/TO to keep a record

of the transfer of funds to each Tehsil/Town separately).

CR 9201000-State Bank Deposits. (District Provincial IV)

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DAO's Books (Tehsil Books)

DR Head : 9201000-State Bank Deposits.

CR Head : 8309000-Funds Remitted to the Tehsil/Town Municipal

Administration

(4). Any Budget cut, necessitated by financial constraint, and imposed by

the Provincial Government will be communicated immediately by Finance

Department to the DCO/EDO Finance under intimation to DAO/TO. The DCO

will, with the approval of the Nazim/Zila Council, impose the same on District and

Tehsil/Town budgetary allocations proportionately. The revised budgetary

allocations will be intimated to the concerned DAOAG/TO by the DCO/EDO

Finance.

9. (1). Payments: The payments out of District Provincial Account will be made

by the DAO/TO on presentation of bills by the DDO’s through cheques drawn on

SBP. Till the system of disbursement by cheques is introduced in all the districts

the existing system of payments through sealed authority shall continue.

The payments out of Tehsil/Town Provincial Account will be made by the

DAO/TO on presentation of bills by the DDO’s through cheques drawn on NBP.

(2). The DAO/TO, as well as the National Bank branch, will deal with the

accounts of more than one Govt., VIZ. Provincial Government, District

Government, Tehsil/Town Municipal Administration and Federal Government.

Therefore each DAO/TO must ensure that the Account number with sub-number

to which the expenditure is debitable is clearly marked on the top of the

cheque/bill. This is necessary for accurate accounting and to debit the correct

Account.

(3). The DAO/TO will be responsible to keep and maintain Tehsil/Town

Provincial Account and make payments out of it through cheques drawn on NBP

on presentation of bills by the DDO’s. This arrangement will continue till

Tehsil/Town Accounts Officer is notified by AG. Expenditure will be incurred as

per budget allocation communicated by the DCO. It will be the joint responsibility

of the DCO and DAO to keep the expenditure within the limits of the sanctioned

budget and cash releases by Provincial Government.

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10. Reconciliation:

(1). The DDO’s will carry out reconciliation of expenditure/receipts with the

DAO/TO on monthly basis on the format prescribed by Auditor-General of

Pakistan already supplied to all Federal/Provincial Governments, AGs and

DAOs/TOs. The process of reconciliation will be completed by 12th of the

following month. The DDO’s will submit reconciled statement to the DCO, the

Principal Accounting Officer, of the District by 13th of the following month. The

DCO will consolidate the DDO’s figures under each object-cum-functional heads

in respect of each budget grant and carry out reconciliation with DAO/TO for

overall expenditure of the District by the 19th of the following month. The DCO

will provide a copy of reconciled statement of District expenditure/receipt to the

Finance Department by 20th of the following month' The DAO/TO will also submit

a copy of the reconciled statement to the AG by the 20th of the following month.

To enforce timely reconciliation, the DAO/TO may stop payments of the defaulter

DDO’s under intimation to DCO.

(2). The reconciliation of expenditure/receipt in respect of Tehsil/Town

Provincial Accounts will similarly be carried out by the DDO’s with DAO/TO, till

Tehsil/Town Accounts Officer is notified. The reconciled statements will be

furnished to DCO and DAO/TO by the 7th of the month. The DCO will include the

same in his statement for consolidated reconciliation with the DAO/TO of the

District expenditure/receipt.

(3). The cash balance will be reconciled by DAO/TO with concerned

National Bank of Pakistan branch (or State Bank Branch where situated in the

district) on daily/monthly basis in accordance with procedure prescribed by the

Auditor-General in December 2000 and circulated by the Ministry of Finance to

all Provincial Governments and State Bank/National Bank in February 2001.

The monthly account, for District Government, Tehsil/Town Municipal

Administration and Provincial Government, should exhibit closing cash balance

duly supported with reconciled statement signed by the branch Manager and the

DAO/TO.

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11. Expenditure on common projects: (1) The projects/schemes which are to

be funded from the sources of two Funds, viz. Local Fund and Provincial

Accounts, shall reflect the specific share out of the two Funds in its PC-1 and

budget estimates of the respective Funds. The accounts of the project/scheme

will exhibit separately and distinctly the expenditure incurred out of the respective

Funds.

12. Maintenance of Accounts records:

(1). Cash Book & Registers: Cash book and all subsidiary register will be

maintained in accordance with rules and procedure contained in Treasury Rules

and Account Code Vol.II in the same manner as being maintained in respect of

Provincial Government accounts

(2). Compilation Sheet, Classified & Consolidated Abstracts:

The voucher wise compilation in the Compilation Sheet and preparation of

classified and Consolidated Abstracts will be done under rules and on forms as

contained in Account Code Vol.IV. It will be in the same manner as being

compiled in respect of Provincial Government. These will contain the Tehsil

figures distinctly.

(3). Monthly Accounts: From the Classified and Consolidated Abstract,

monthly accounts will be compiled by the DAO/TO showing expenditure of the

Tehsil/Town separately for submission to the Zila Nazim by 5th of the following

month, with a copy to the DAO/TO, AG and Finance Department. This will be

prepared on the same form in which AG prepares the monthly civil account for

submission to the Finance Department.

Another monthly account in respect of salaries expenditure of the

Government employees of the offices decentralized to District Governments and

charged to the Provincial consolidated Fund, will also be prepared and submitted

to the AG alongwith the Provincial Government Account by 8th of the following

month.

(4).Till Tehsil/Town Accounts Officer is notified the DAO/TO will compile

all the above records similarly in respect of Tehsil Provincial Account and submit

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monthly account to the concerned Nazim, with a copy to the DCO, Finance

Department and AG.

13. Annual Accounts:

(1). Appropriation Account: The Annual Appropriation Accounts of the

District Government inclusive of Tehsil expenditure will be prepared by the

DAO/TO on the same format as used by AG. The Appropriation Account will

contain 100% reconciled expenditure with DCO/DDO’s and be prepared within

one month of close of the accounts.

(2). The manuscript will be sent to the District Audit Officer, the

representative of the Auditor-General, for certification. The District Audit

Officer/DG Audit will return it after necessary checking to the DAO/TO within 15

days.

(3). Correction in the account as a result of audit scrutiny and verification,

if found necessary, will be carried out within a week and accounts of the year

treated as finally closed. Thereafter appropriation accounts will be finalized and

printed by the DAO/TO and sent to the AG duly signed by him and District Audit

Officer/DG Audit. The AG will countersign Appropriation Accounts and also get

the audit certificate of District Audit Officer countersigned by the DG Audit of the

Province. AG will then submit the same to Zila Nazim with copy to the Finance

Department.

4). The following time schedule will be observed for preparation and

submission of the District Appropriation Account:

Closing of June (Final Accounts... 15 Sep.

Preparation of manuscript and submission to District Audit Officer.

15 Oct.

Returned by Audit...Correction/Adjustment, if any, 1st Nov.

As a result of Audit check... 5th Nov.

Finalization/printing/submission to the AG... 25th Nov.

Submission to Nazim by AG. 1st Dec.

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(5). Annual Finance Accounts: (i) There will be one Consolidated Finance

Account containing entire receipts and expenditure of the Provincial Government

relating to the Consolidated Fund and Public Account. This will be compiled by

the AG on the existing format for submission to the Provincial Government from

the accounts prepared by the AG and DAOs/TOs. Necessary material for this

purpose in respect of the District Provincial Accounts and Tehsil/Town Provincial

Accounts will be submitted by the DAOs/TOs. Printed copy of the Finance

Accounts will also be supplied by AG to District Governments.

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No. IT (FD) 3-4/2001

GOVERNMENT OF THE PUNJAB

FINANCE DEPARTMENT

Dated Lahore the 10th January, 2002

To

1) All Zila Nazims in the Punjab.

2) All District Coordination Officers in the Punjab.

Subject: - FINANCIAL GUIDELINES FOR THE DISTRICT GOVERNMENTS .

The establishment of District / Tehsil / Town Provincial Accounts,

passing of budgets by the respective District Governments and implementation of

monthly cash transfer mechanism has effectively led to operationalization of the

financial system prescribed under the Punjab Local Government Ordinance 2001

and rules / instructions on the subject. Various interim measures allowed by the

Finance Department from time to time would accordingly be withdrawn gradually.

2. In order to facilitate the implementation of the system in the

prescribed manner, and after taking into consideration the practical aspects

regarding various steps required of the respective functionaries of the district

governments, Finance Department has formulated financial guidelines for the

District Governments, in consultation with the Accountant General Punjab, (copy

enclosed). The specimen of draft orders/sanctions required to be issued by the

DCO and other functionaries are also annexed for guidance and uniformity.

3. While efforts have been made to cover the entire spectrum of

functions and financial activity of the district governments, the guidelines may not

be exhaustive, as certain aspects may still require clarification/elaboration, as

fresh problems are identified by the district governments.

150

4. Nevertheless, it is expected that the District Governments would be

better poised in managing their financial affairs. Meanwhile, the FD would

endeavor to address all issues relating to finance, budget and accounting, as and

when referred to it by the District Governments.

(SHAHID MAHMOOD)

Additional Finance Secretary (Budget)

No. & Date Even:

A copy with a copy of the guidelines is forwarded for information to:

1. The Chairman, National Reconstruction Bureau, Chief Executive

Secretariat, Islamabad.

2. The Finance Minister, Punjab Lahore.

3. The Minister, Local Government & Rural Development Department,

Punjab, Lahore.

4. The Secretary to Government of Pakistan, Finance Division,

Islamabad.

5. The Consultant NRB (Attention: Mr. Daniyal Aziz) Chief Executive

Secretariat, Islamabad.

6. The Chairman, Planning and Development Board, Punjab, Lahore.

7. The Secretary, LG&RD, Punjab, Lahore.

8. The Secretary to Governor, Punjab, Lahore.

9. All Administrative Secretaries to Government of the Punjab,

Lahore.

10 All Tehsil /Town Nazims in the Punjab.

(SHAHID MAHMOOD)

Additional Finance Secretary (Budget)

151

No. & Date Even:

A copy with a copy of the guidelines is forwarded to:

1. The Controller General of Accounts, Taimur Plaza, West, Blue

Area, Islamabad.

2. The Accountant General, Punjab, Lahore.

3. The Director General (Accounts) Works, Punjab, Lahore.

4. The Director General (Audit) Works, Punjab, Lahore.

5. The Director General (Civil Audit), Punjab, Lahore.

6. All District Accounts Officers in the Punjab.

(SHAHID MAHMOOD)

Additional Finance Secretary (Budget)

152

GOVERNMENT OF THE PUNJAB

FINANCE DEPARTMENT

Dated Lahore, the 10th January, 2002

FINANCIAL GUIDELINES FOR THE DISTRICT GOVERNMENTS

With the promulgation of the Punjab Local Government Ordinance,

2001, the provisions contained in Chapter XII “Local Government Finance”

have become operational with effect from 14th August, 2001 requiring certain

changes in the budgetary and accounting mechanism from that prevalent in the

pre-devolution period.

2. The financial year 2001-2002, therefore, ought to be

compartmentalized into three distinct periods:

i) From 1st July, 2001 to 13th August, 2001:

This was the normal pre-devolution period. The provincial budget

in this period was operated in the usual manner as before, with the only

condition that the provincial departments and their lower formations, which

were to be devolved to the districts were to incur expenditure for this

period on proportionate/pro-rata basis, computed on the basis of the entire

financial year. The accounting for this expenditure was to be done in the

existing form and manner, and reporting done as per previous procedure.

Such expenditures were debitable to the Provincial Account No. I.

ii) From 14th August, 2001 to 31st October, 2001:

The second period, denotes the beginning of the devolution period.

With the establishment of district governments, the provisions relating to

Finance, Budget and Accounting as envisaged in Chapter XII of the

Punjab Local Government Ordinance, 2001 (PLGO) were put into

operation. However, as the district governments had yet to formulate their

budgets, as envisaged in Section 111 of the Ordinance, the district

governments were required to:

153

a) operate budgetary and accounting mechanism on the

basis of budgetary authorizations as reflected in the District

Budgets formulated by the Finance Department.

b) incur expenditures out of their budgets on pro-rata

basis, for each grant, worked out on the basis of the entire

financial year 2001-2002.

Since separate accounts (Account-IV) for the district governments were

established by the end of October 2001, expenditures of the district

governments were temporarily debitable to Provincial A/c No. I. However,

the Accountant General, Punjab (A.G.)/ District Accounts Officers (DAOs)

were required to keep a segregated account of expenditure relating to

Provincial Government departments and those of the District Government

(devolved departments) by sending separate drawing schedules to the

banks. Likewise, the banks were to send separate debit scrolls for the

payments authorized for provincial and district government departments.

With this exercise in place, the A G (Punjab) is in a position to give

segregated accounting details for the expenditure incurred out of

provincial account No. I during the period 14th August, 2001 to 31st

October, 2001 for the provincial and the district governments.

Another position which emerged is with regard to the financial

operations of departments which (i) already existed in the districts, and

were devolved and (ii) those offices, which existed at district levels but

were restructured or wound up in the devolved set ups. The first category

of offices did not face any dis-continuity in their financial activity in the new

set up. However, the restructured/devolved departments had to realign

their financial systems in the new set up. The financial liabilities of such

departments falling in category (ii) for the pre-devolution period shall be

borne by the provincial government, after such claims are scrutinized and

authenticated by the respective administrative departments. Finance

154

Department would accordingly provide requisite budgetary cover, where

necessary. As regards departments, which have continued in the new

district set up, they would have to own their liabilities, and meet them from

their existing budgets.

iii) From 1st November, 2001 to 30th June, 2002:

After decision by the Ministry of Finance (MOF) / National

Reconstruction Bureau (NRB) as to the mode of financial transfers to the

district governments, the Finance Department established the District

Provincial Accounts for every District Government, a Tehsil Provincial

Account for every Tehsil Municipal Administration and a Town Provincial

Account for every Town Municipal Administration, in terms of Section

107(1)(b), (c) and (d) of the PLG Ordinance, 2001. In effect separate

Account No. for each District Government, Tehsil Municipal Administration

and Town Municipal Administration was opened with a distinct Sub-No.

allotted by the State Bank of Pakistan (SBP)/National Bank of Pakistan

(NBP), for the District Governments, and Tehsil/Town Municipal

Administrations, respectively.

It was also decided by the MOF and the NRB in consultation with

the provincial governments and the State Bank of Pakistan that CASH

BALANCES in account No.IV of the District / Tehsil / Town Provincial

Accounts shall remain part of the Provincial Consolidated Fund (Account

No.1), and that the composite cash balance of the said two accounts shall

be considered as the aggregate cash balance of the province.

3. With the above arrangements in place the Finance Department

authorized the ;

a) establishment of District Provincial Accounts vide

No.IT(FD)3-4/2001 dated 23rd October, 2001.

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b) establishment of Tehsil / Town Provincial Accounts vide

No.IT(FD)3-4/2001 dated 31st October, 2001.

4. Meanwhile, the Controller General of Accounts (CGA) circulated

guidelines for opening, maintaining and transfer of funds to the bank accounts of

District Governments, Tehsil and Town Municipal Administrations. Besides, the

guidelines also prescribed the maintenance and reconciliation of accounts of

these governments by the District Accounts Officers/ Treasury Officers (T.O.). In

order to cater for subsequent accounting requirements, the CGA has circulated

amendments in the guidelines vide No.122/116-CGA/DISTT-GOVT/2001 dated

19.11.2001. The Finance Department has circulated these amendments vide

No. IT (FD) 3-4/2001 dated 1st December, 2001.

TRANSFER MECHANISM

5. In accordance with the provisions contained in Section 107(3)(1), of

PLG 0rdinance 2001, the Provincial Government is required to transfer from the

Provincial Consolidated Fund by monthly installments, moneys budgeted for the

offices and functions decentralized to district government, for credit to the District

Provincial Accounts (Account No.IV). This does not include establishment costs

of employees of the Government Offices decentralized to District Governments.

6. The cash transfers shall be authorized by the Finance Department

for a month, on the first of the month for each district separately, consisting of the

following components, for credit to the respective Sub No: in Account No.IV.

a) Non-salary budget

b) Annual Development Programme (ADP)

c) Khushhal Pakistan Programme (KPP)

d) Octroi Grant

e) Zila Grant/Goods Exit Tax (G.E.T.)

f) Urban Immoveable Property Tax Share (UIP)

156

7. The cash transfers pertaining to components listed at ‘a’, ‘b’ and ‘c’

above shall be available for utilization by the District Governments in accordance

with the budgetary allocations, depicted in the district budgets. The unspent

cash balance available in the respective District Provincial Account on the last

day of the month shall constitute the opening balance, and would be added to the

cash transfers of the next month, as afore stated, for the purpose of utilization in

the said manner during the month.

8. The expenditure out of the cash transfers may only be incurred by

the District Governments in accordance with their approved budgets and be

strictly restricted to the respective budgetary appropriations, of each department

proportionately allocated for the month under various grants/objects.

9. ACTIONS TO BE TAKEN BY THE DISTRICT GOVERNMENTS

i. Immediately on receipt of the monthly installment of cash transfer

from the Finance Department, the D.C.O. shall compute his cash

balance pertaining to non-salary component available for the

month. It shall comprise the cash transfer for the month received

from the Finance Department for the non-salary component. He

shall accordingly notify each Executive District Officer, (E.D.O.) the

proportionate share of cash balance vis-à-vis the pro-rata

budgetary allocation for that month (Annex-I). This position would

also be intimated to the DAO concerned. The EDOs shall in turn

ensure to confine their expenditures within the budgetary allocation

of the respective grant. All funds sanctioned by Finance

Department through supplementary grants shall also be made

available to District Governments in cash for credit and utilization

through Account No.IV.

ii. As regards ADP funds, the DCO shall intimate the concerned

EDOs in the same manner as for Sr. No. (i) above the cash balance

available during the month, for incurrence of expenditure vis-à-vis

157

the pro-rata budgetary resource releases under this head. This

position would also be intimated to the respective DAO/AG/TO.

iii. Regarding KPP, the DCO would make budgetary releases, after

approval of the schemes, and also intimate monthly availability of

cash to the respective executing agencies (Annex-II).

iv. The DCO will also ensure the transfer of proportionate cash

balance pertaining to the Public Health Engineering, Housing and

Physical Planning and Local Government departments devolved to

the Tehsil Municipal Administration for credit to Tehsil Provincial

Accounts as required under Section 107(3)(b) of the Punjab Local

Government Ordinance, 2001. The requirements of Section 109

ibid shall also be kept in view. The DCO shall issue an advice to the

local State Bank of Pakistan/National Bank of Pakistan branch of

the concerned district on the third day of each month to transfer the

proportionate amount for credit to Tehsil Provincial Account by

debit to District Provincial Account (Annex-III).

v. The transfer of Octroi Grant/UIP Tax Share to Local Fund Accounts

of the Tehsil /Town Municipal Administration (T.M.A.) shall be done

by the DCO, through sanctions (Annex-IV&V), requiring the TMA to

draw the respective shares / allocation through their bank

maintaining the Local Fund of the TMA, from the concerned DAO

on Simple Receipt Form (Annex-VI). The position as clarified by

Finance Department vide letter No. IT (FD) 3-4/2001, dated 29-12-

2001 shall be kept in view (Annex-VII).

vi. The aforementioned procedure in para-9 (v) above shall mutatis-

mutandis apply to the transfer of Zila Tax to the Local Fund

Account of the Union Administrations.

158

10. ACTIONS TO BE TAKEN BY THE TEHSIL/TOWN MUNICIPAL

OFFICERS

i) Tehsil / Town Provincial Account:

On receipt of an advice from the DCO {as envisaged in para 9(iv)

above} regarding the transfer of funds (non-salary, ADP/KPP etc)

from the District Provincial Account to Tehsil/Town Provincial

Accounts, the Tehsil/Town Municipal Officer (TMO) shall make

arrangements for the distribution of budgetary allocation to the

respective Tehsil/Town Officers according to the proportionate

share of cash balance, vis-à-vis the pro-rata budgetary allocation

for the month, under intimation to the District Accounts Officer

concerned (Annex-VIII). The Tehsil/Town Officers shall ensure to

confine their respective expenditures within the budget/resource

availability.

ii) Octroi/UIP Tax Share

The Tehsil/Town Municipal Officers shall proceed in the manner

prescribed in para 9(v) above and ensure credit to the bank

account as stated.

ACTION BY THE UNION NAZIM

11. The procedure as prescribed in para 9(v) above shall mutatis

mutandis apply to receipt of grant by the Union Administration in respect of

Goods Exit Tax.

159

FUNCTIONING OF FOREST AND WORKS DEPARTMENT

IN THE DISTRICT SETUP

12. The Forest and the Public Works Departments are peculiar in that

they have the status of self-accounting entities. They have departmentalized

accounts, in accordance with a separate system prescribed by the Auditor

General of Pakistan. All payments of such departments are authorized through

cheques specifically prescribed for these departments.

13. These two departments have not been devolved to the District

Governments in their entirety as some functions have been retained at the

provincial level, while others have been devolved to the District Governments.

This position has affected the self-accounting status of these departments in

respect of the offices, the functions whereof have been devolved to the district.

14. Consequently, the existing set up for undertaking pre-audit and

accounting functions of these offices have ceased to be operational, while no

alternate accounting mechanism has meanwhile been prescribed. Given the fact

that the Works and Forest accounts are specialized functions, the DAOs who are

envisaged to operate such functions are not in a position to take up this work

unless an accounting unit is established in the DAOs from the persons drawn

from the accounting set ups of the erstwhile Forest and Works departments.

15. Therefore, till such time that the Controller General of Accounts

prescribes an alternate system, it is necessary that the existing accounting status

of the Forest and the Works Departments is kept intact i.e. the pre-audit and

accounting work is done by their respective accounting entities as hitherto-fore,

and payments are made by their accounting units through cheques. The

Accountant General, Punjab has accordingly issued instructions to this effect.

160

Annex-I

From

The District Coordination Officer_______________________

ToThe Executive District Officer_____________________

Memo. No.__________ Dated:____________

SUBJECT: BUDGETARY ALLOCATION (CASH TRANSFERS) FOR THE MONTH OF . Finance Department has transferred a sum of

Rs._________(Rupees ____________________________) as cash transfer for

the non-salary component for District _____________ for the month of

_____________.

2. In accordance with the pro-rata budgetary appropriation available to

the district during the month i.e. Rs. _____________________, the available

cash transfers show an aggregate shortfall of (percentage)____________ vis-à-

vis the approved budget.

3. Therefore, a uniform cut of _______% may be applied to all

grants/functions for the purpose of incurrence of expenditure on non-salary

component (commodities & services) during the month of ___________.

DISTRICT COORDINATION OFFICER________________

No. & Date Even:

A copy is forwarded for information and necessary action to:

1. The Accountant General, Punjab, Lahore.2. The Secretary, Government of the Punjab, LG&RD Department,

Lahore.3. The Deputy Secretary (Budget), Finance Department, Lahore.4. The District Accounts Officer_____________.

DISTRICT COORDINATION OFFICER________________

161

Annex-IIFrom

The District Coordination Officer_______________________

ToThe Executive District Officer_____________________

Memo. No.__________ Dated:____________SUBJECT: RELEASE OF FUNDS REGARDING KHUSHHAL PAKISTAN

PROGRAMME .It is to intimate that the District Development Committee has

approved the following scheme(s) at the cost indicated against each for execution during the current financial year 2001-2002 in district___________:

1. _____________________________________

2. _____________________________________

3. _____________________________________

2. A sum of Rs.___________ (Rupees____________________) is hereby placed at your disposal for the execution of schemes, as mentioned above. The expenditure involved will be debitable to Grant No. 36-Development, 50000-Economic Services, 56000-Rural Development, 56200-Rural Works Programme/IRUDP during the year 2001-2002.

DISTRICT COORDINATION OFFICER________________________

No. & Date Even:

A copy is forwarded for information and necessary action to:1. The Accountant General, Punjab, Lahore.2. The Director General, Accounts Works, Lahore3. The Director General, Audit Works, Lahore.4. The Deputy Secretary (Budget), Finance Department, Lahore.5. The District Accounts Officer_____________.

DISTRICT COORDINATION OFFICER_______________________

No. & Date Even:A copy is forwarded for information to:

1. The Chairman, Planning & Development Department, Punjab, Lahore.

2. The Secretary, Government of the Punjab, LG&RD Department, Lahore.

DISTRICT COORDINATION OFFICER______________________

162

Annex-IIIDISTRICT GOVERNMENT

__________________To

The Chief Manager,State Bank of Pakistan, orManager, National Bank of Pakistan,(Name of city)

Subject: RELEASE OF FUNDS TO THE TEHSIL MUNICIPAL ADMINISTRATION(S) FOR THE MONTH OF 2002

Dear Sir,

In pursuance of Finance Department’s release order vide letter No. ________________

dated ___________ allowing cash transfers for the month of ______, you are advised to credit Tehsil

Provincial Accounts with a sum of Rs._______ million (Rupees _______________ million) in respect of

Public Health Engineering, Housing & Physical Planning and Local Government Departments to

Tehsil/Town Municipal Administration, per contra debit to the District Provincial Account No. _____ of

District ________ as per following detail. The amount is adjustable in the accounts for 2001-02:-

Sr. # Name of TMA

A/C No.

Non-Salary

KPP ADP Others Total

Total:

2. I am to request that necessary action may be taken under

intimation to all concerned Offices.

Yours sincerely,

District Coordination Officer_________________

No. & Date Even:

A copy is forwarded for information and necessary action to:

i) The Accountant General, Punjab, Lahore.

163

ii) The District Accounts Officer, ______. The amount of Rs._____ may be booked under the following heads of account during the financial year 2001-2002.

ACCOUNTING BY BOOK ADJUSTMENT

DR. CR.

8309000-Funds remitted to Tehsil/Town Municipal Administration

Rs._____million

9201000-State Bank Deposits (District Provincial Account IV).

Rs._______million

District Coordination Officer_____________________

No. & Date Even:

A copy is forwarded for information and necessary action to:-

i) The Chairman, National Reconstruction Bureau, Chief Executive’s Secretariat, Islamabad.

ii) State Bank of Pakistan / National Bank of Pakistan, Head Office, Karachi.

iii) The Secretary, Government of the Punjab, Finance Department Lahore.

iv) The Secretary, Government of the Punjab, LG&RD Department, Lahore.

v) Tehsil Municipal Officer, _________. The department-wise breakup is being intimated separately.

District Coordination Officer

____________________Annex-IV

DISTRICT GOVERNMENT

_____________

164

No.______________ In pursuance of Finance Department’s letter No.____________ dated _____________ sanction is hereby accorded to the release of Octroi grant to the Tehsil / Town Municipal Administration(s) as per following detail.

Sr. No. Name of T M A Amount of Octroi grant

Total

2. The expenditure involved shall be debitable to the grant No.31-

Misc., 6-70000- Debt servicing, investible funds and grants, 6-74000-Grant, and

subventions, 6-74200- grants to local bodies _______ 60000 Transfer Payments,

64000- Grants, 64200- Octroi / Zila Tax grants to local bodies during the year

2001-02.

District Coordination Officer

____________________

No. & Date Even:

A copy is forwarded for information and necessary action to:

i) The Secretary, Government of the Punjab, LG&RD Department,

Lahore.

ii) The Secretary, Govt. of the Punjab, Finance Department, Lahore.

iii) Accountant General Punjab, Lahore.

iv) The District Accounts Officer __________.

v) The Tehsil / Town Municipal Officer ___________.

District Coordination Officer

________________

165

Annex-VDISTRICT GOVERNMENT____________________

No. ____________ In pursuance of Finance Department’s letter No. ________ dated_________,

sanction is hereby accorded to the release of Urban Immoveable Property Tax share to the Tehsil Municipal

Administration(s) as per following detail:-

Sr. No.

Name of TMA UIP Tax Share Total

TOTAL2. The expenditure involved shall be debited by minus credit to the

Head “0000000-Tax-Revenue-0122000-Immovable property Tax (Urban share of

net proceeds assigned to Corporations/Municipalities, 0122900-Deduct share of

net proceeds assigned to Corporations/Municipalities etc. for the year 2001-

2002.

District Coordination Officer_____________________

No. & Date Even

A copy is forwarded for information and necessary action to:-

i) The Secretary, Government of the Punjab, LG&RD Department, Lahore.

ii) The Secretary, Government of the Punjab, Finance Department, Lahore.

iii) Accountant General Punjab, Lahore.iv) The District Accounts Officer ____________.v) The Tehsil Municipal Officer, ____________.

District Coordination Officer__________________

166

Annex-VI

A.T. No. 319

VOUCHER NO. ______________

___________ Treasury. Month of _________ 200 .

Head of service chargeable

Received this ________ day of __________ the sum of Rupees ___________________

being the amount due to me for

Examined and approved for payment for Rs.(Words) _________

Rs. _____________

Accountant Claimant’s Signature

Treasury Officer/ DAO/ AO

Admitted:

Objected to:

Auditor Asstt. Supdt.

Supdt.

167

Annex-VII

IMMEDIATE / OUT TODAY No. IT(FD)3-4/2001GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT

Dated Lahore the 29th December, 2001To

All the District Accounts Officers in the Punjab.

Subject:- TRANSFER OF FUNDS PERTAINING TO OCTROI, GOODS EXIT TAX (ZILA TAX) AND SHARE OF URBAN IMMOVEABLE PROPERTY TAX

Kindly refer to the subject cited above.

2. Feedback received by the Finance Department from the District Governments, reveals a lack of clarity at the latter level regarding the mechanism to be adopted for the transfer of funds by District Governments on account of GST in lieu of Octroi & Goods Exit Tax and on account of UIP Tax share.

3. According to the provision of Section 109(2) of the Punjab Local Government Ordinance, 2001, the funds released by the Finance Department to the District Governments on account of Octroi grant are to be transferred by the DCOs to the Local Fund of respective Tehsil Municipal Administration, or the Town Municipal Administration as the case be.

4. Likewise, according to Section 109(4) ibid, the funds released by Finance Department on account of Goods Exit Tax (Zila Tax) are to be transferred by the DCOs to each Union Administration for credit to the Union Local Fund. Also, the respective shares of UIP Tax, shall be transferred by DCOs for credited to the Local Fund of the Tehsil/Town/Union Administration.

5. It is clarified that all the three transfers as aforestated, are ultimately creditable to the respective Local Fund and NOT, repeat NOT to Tehsil/Town Provincial Accounts etc. You are, accordingly directed to ensure that while authorizing such transfers, through “simple receipt forms”, the pay orders should clearly denote that the payments are creditable to the “payees account” operated for maintaining Local Funds of the respective Tehsil/Town Municipal/Union Administration, as the case be.

Sd/-(MUHAMMAD ZUBAIR)

168

CHIEF INSPECTOR OF TREASURIES

No. & Date Even.

A copy is forwarded for information and necessary action to:-

1. Mr. Daniyal Aziz, Consultant National Reconstruction Bureau, Chief Executive Secretariat, Islamabad.

2. The Secretary to Government of the Punjab, Local Govt. and Rural Development Department, Lahore.

3. All the District Nazims in the Punjab.4. All the District Coordination Officers in the Punjab.5. All the Executive District Officers (Finance) in the Punjab.

Sd/-

(MUHAMMAD ZUBAIR)CHIEF INSPECTOR OF TREASURIES

No. & Date Even.

A copy is forwarded for information and necessary action the Accountant General, Punjab, Lahore.

Sd/-(MUHAMMAD ZUBAIR)

CHIEF INSPECTOR OF TREASURIES

169

ANNEX-VIIIFrom

*Tehsil/Town Municipal Officer,_______________________

To*The Tehsil /Town Officer,_____________________Memo. No.__________ Dated:____________

SUBJECT: BUDGETARY ALLOCATION (CASH TRANSFERS) FOR THE MONTH OF__________ 2002.

The District Coordination Officer___________ has transferred in

cash Rs.______(Rupees__________) and Rs_______ (Rupees__________)..

as current Non-Salary, Development/KPP/Devolution cost respectively for the

month of ____________ as Non Salary component in the Tehsil/Town Municipal

Account.

2. In accordance with the pro-rata current non-salary budgetary

appropriation available in respect of Public Health Engineering, Housing and

Physical Planning and Local Government Departments i.e.

Rs._______(Rupees______), the cash transfer show an aggregate short fall of

_________% vis-à-vis the current non salary approved budget. The said

amount(s) is/are placed at your disposal with uniform cut of ______% on

approved current non-salary budget against each grant/function, for incurrence of

expenditure during the month.

3. Insofar Development/Khushhal Pakistan

Programme/Devolution Cost funds are concerned, Rs.______

(Rupees _________) are placed at your disposal for the

execution of the schemes mentioned below under

ADP/KPP/Devolution Cost.

Sr.# Name of Scheme Amount

170

Total:

TEHSIL/TOWN MUNICIPAL OFFICER________________________

No. & Date Even:A copy is forwarded for information and necessary action to:

1. The District Coordination Officer_____________________.2. The Secretary, Government of the Punjab, LG & RD Department,

Lahore.

3. The Deputy Secretary (Budget), Finance Department, Lahore.4. The District Accounts Officer_____________.5. Tehsil/Town Accounts Officer _____________

TEHSIL/TOWN MUNICIPAL OFFICER_______________________

*Score out where not applicable

171

Pension Certificate and Report Section.

i). Organizational Chart

ii) Verification of service qualifying for pension.

iii) Issuance of pension payment order.

iv) Commutation chart.

v) Issuance of Revised P.P.O’S

vi) Grant of Anticipatory Pension.

172

ORGANIZATIONAL CHART

D.A.O.

A.A.O

Sr. Auditor

Functions

1.Verification of service qualifying for pension.

2.Issuance of pension payment orders.

3. Revision of pension payment orders.

173

Verification of service qualifying for pension

After 10 and 25 years of continuous service countable towards pension,

verification of service of non-gazetted civil servants from the D.A.O is required.

The requisite proforma for the purpose, in triplicate, complete in all respects,

should be verified keeping in view the following important points:-

1. There are three conditions for service to be qualifying towards

pension:-

a. Service must be under government. If under autonomous, local

body etc. pension contribution for the period must have been

deposited in the Treasury.

b. Service must be pensionable (more than 5 years and

continuous, breaks or deficiencies, if any, having been

condoned).

c. Pay must have been paid from the consolidated fund.

2. The following periods are counted as qualifying service towards

pension:-

i) Service rendered during the period which fulfils the above three

conditions.

ii) Service begins on the day one takes over the charge of the post

to which one is appointed and ends on the day one makes over

charge of his post. In case of death, salary for the day of death

is paid and pension, if any, begins from the following day.

iii) Period of training during service.

iv) Army service if the gap between army and civil service is not

more than one year. In case of gap for more than one year,

sanction of the government is necessary.

v) Suspension period followed by re-instatement.

vi) Probationary period followed by confirmation.

vii) Half of period of apprenticeship.

3. The following periods are not counted as qualifying service for

pension:-

174

i) Leave without pay/absence without leave.

ii) Overstay of joining time, not regularized.

iii) Period after resignation from government service.

iv) Period after removal/dismissal from service, if one is allowed

to rejoin but the intervening periods are not counted as duty.

v) Service rendered after attaining the age of 60 years.

vi) Period spent on training before joining the service.

vii) Half of the apprenticeship period.

viii) Period of deputation under local, autonomous body if

pension contribution has not been deposited.

4. A deficiency in service upto one month is automatically condoned

for instance, service for 26 years and six months shall be treated as

27 years for the purpose of pension. A deficiency in service for

more than six months upto one year can be counted by pension

sanctioning authority. Appointing authority is the pension

sanctioning authority.

5. At least 25 years service is necessary for retiring pension.

However in the following cases, pension can be granted after ten

years:-

i) Compulsory retirement by government as measure of penalty.

ii) Abolition of the post on which he was appointed.

iii) Is declared medically invalid and unfit for future service.

6. No pension is granted if the length of service is less than 10 years.

Only gratuity is admissible if the length of service is 5 years or more

but less than 10 years. It is paid at the rate of one month’s pay

based on the last pay drawn for each completed year of service.

However, if a civil servant is retired on medical grounds or dies and

the total service is less than 10 years the rate would be 1 1/2

month’s pay for each completed year of service.

7. If a person joins service after the age of 35 years under special

circumstances, he will proceed on superannuating pension after

175

attaining the age of 60 years irrespective of the fact whether his

service is 25 years or less.

7. The formula of calculation of pension contribution is as follows:-

Formula:

Pension contribution = (Minimum of the time scale + maximum of the time scale) x1 2 3Example: The rate of pension contribution for a B.P.S 17 Officer is as under:-

(Minimum of B.P.S 17 + Maximum of B.P.S 17) x 1 2 3

=(3880 + 7360) x 1 2 3

=1873.33 per month.

Issuance of pension payment orders

After calculation of service qualifying for pension, most important thing is

ascertaining the pay of the civil servant. The following are treated as

emoluments reckoning for pension:-

i) Pay

ii) Special

iii) Personal pay

iv) Technical pay

v) Senior Post allowance

vi) Increments incurred during leave preparatory to retirement.

vii) Any other emoluments, which may be specially classed as pay.

If the length of qualifying service and reckonable emoluments are ascertained, the pension is calculated as per the following formula:-

176

Pension= Last pay drawn x length of service x 7300

If the pension application is supported by following documents, a P.P.O

should normally be issued to the pensioner:-

i) Service Book where required, duly completed in all respects.

ii) Three copies of specimen signatures duly attested.

iii) Three copies of passport size photographs duly attested.

iv) Two set of thumb and finger impressions duly attested.

v) No demand certificate in respect of any dues of the government.

vi) No demand certificate from the Buildings Department.

vii) Last pay certificate.

viii) Invalidation certificate in original, in case the civil servant retires on

medical ground.

ix) Certificate regarding receipt or otherwise of anticipatory pension.

x) Consent of the civil servant regarding recovery of dues.

xi) Duly filled in commutation form.

xii) List of family members.

Family pension cases:

i) Death certificate in original.

ii) List of family member.

iii) Descriptive rolls of the family members along with marital status

and age of each member.

177

iv) Certificate to the effect that there is no other family member of the

deceased other than those mentioned in the list.

v) Guardianship certificate in the case of minor children.

vi) An undertaking for recovery of dues, if any, from

pension/commuted value of pension.

vii) Single widow certificate.

viii) No remarriage certificate.

Family members are as follows:-

i) Widow

ii) Widower

iii) Children

iv) Father

v) Mother

vi) Unmarried and widowed sister

vii) Divorced daughters.

viii) Brothers below the age of 21 years.

In case of presence of member at serial No.1 above, no other

member is entitled to family pension. Same is the case with other

members.

2. To those who have served for more than 30 years, an additional benefit of

2% of pension for each year of service will be allowed upto 35 years of service.

Extra benefit beyond 10% of pension is not admissible.

3. Government has provided a facility to the retiring civil servants that they

can draw in advance upto 50% of the grass pension as amount of commutation.

Commuted value of pension is worked out in accordance with the following

table:-

178

Age next birthday

Number of years purchased

Age next birthday Number of years purchased

20 50.6304 50 22.8911

21 49.6676 51 22.0658

22 48.7066 52 21.2563

23 47.7467 53 20.4638

24 46.78884 54 19.6896

25 45.8314 55 18.9348

26 44.8758 56 18.2002

27 43.9215 57 17.4860

28 42.9688 58 16.7925

29 42.0179 59 16.1191

30 41.0089 60 15.4649

31 40.1218 61 14.8290

32 39.1767 62 14.2105

33 38.2336 63 13.6090

34 37.2929 64 13.0239

35 36.3551 65 12.4549

36 35.4203 66 11.9017

37 34.4885 67 11.3643

38 33.6503 68 10.8428

39 32.6361 69 10.3371

40 31.7160 70 9.8472

41 30.8007 71 9.3729

42 29.8907 72 8.9142

43 28.9800 73 8.4708

44 28.0891 74 8.0427

45 27.1990 75 7.6299

46 26.3172 76 7.2322

47 25.4444 77 6.8496

179

48 24.8516 78 6.4818

49 23.7301 79 6.1287

80 5.7901

4. The amount of commutation decreases with the increase in age. An option

for commutation must be exercised within one year of retirement. If it is exercised

after one year, medical certificate is necessary. In case of invalid pension,

medical certificate is necessary even if the option is exercised within one year of

retirement. If it is exercised after one year, medical certificate is necessary. In

case of invalid pension, medical certificate is necessary even if the option is

exercised within one year of retirement. If a civil servant dies after retirement

before signing commutation papers, his family would be entitled to commutation.

5. In case the civil servant dies during service, family would be allowed 50%

of gross pension. In case the civil servant dies while he was receiving pension or

his family has obtained ¼ of the gratuity in lieu of pension, his family would be

allowed 50% of the reduced pension. A widow can draw family pension along

with her own pension, if she was in government service, till death. In case of re-

marriage she would draw only her own pension.

Issuance of revised P.P.O’s

If a change in emoluments with retrospective effect through grant of more

over, selection grade, promotion, advance increments occurs, the P.P.O shall be

revised in accordance with the revised emoluments. The difference of due and

drawn shall be paid to the pensioner.

The Government have decided with effect from 1-7-1986 that the amount

of commuted portion of pension to the extent of ¼ the shall be restored in case of

those pensioners who have completed the number of years for which commuted

value of pension was paid. Those who had commuted half of the pension, only

1/4th of pension shall be restored, the remaining 1/4th being treated as gratuity for

the purpose of this rule and will not be restored. However, those who had drawn

180

only gratuity in lieu of 1/4th of pension, they would be entitled to get the same

restored after completion of the period for which gratuity was paid.

Grant of anticipatory pension

If there is an apprehension that the finalization of pension case of a civil

servant will be delayed and to avoid hardship to him, pension up to 80% of

anticipated amount of pension and/or commuted value of pension can be

sanctioned by the Administrative Department concerned without reference to

Audit Office.

181

Treasury Section.1. Organisational Chart.

2. Functions of the Section.

3. Pension payments.

4. Transfer of P.P.O’S to Banks, other D.A O and Sub-treasuries.

5. Increases in pension.

6. Payment of pension to insane pensioners.

7. Issuance of duplicate P.P.O’s

8. Re-imbursement of medical charges to pensioners.

9. Opening of personal ledger accounts and authorizing withdrawals there from.

10. Assignment accounts.

11. Cheques issued lay the public works departments.

12. Re-validation or re-authorization of budgetary provisions

13. Issuance of credit certificates.

14. Passing receipt challans of stamps.

15. Receipts through transfer credit.

1. Deposit works.

2. Special cheques not payable in cash.

3. Refunds of revenue.

4. Refund of unused stamps

5. Revenue deposit repayments.

6. Repayment of lapsed deposits.

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ORGANIZATIONAL CHART

D.A.O

.A.T.O.

A. Acctt A. Acctt. Sub. Acctt. Sub. Acctt.

S. Auditor S. Acctt. S. Acctt. S. Acctt.

Junior Clerk Junior Auditor

Functions

1. To authorize payments out of all personal ledger accounts.

2. To authorize payments to public works departments or contractors.

3. To authorize payments of pension of all departments.

4. To authorize refund of revenue deposits.

5. Maintenance of accounts of federal receipts and payments.

6. Maintenance of cash book of receipts of the provincial government.

7. Maintenance of accounts of S.B.D of provincial and federal governments

8. To authorize payment of reimbursement of medical charges to pensioners.

9. Maintaining accounts of payments of public works department

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Pension payments

First payment of pension and/or commuted value of pension should be

authorized after exercise of all precautionary measures prescribed in the Punjab

Subsidiary Treasury Rules and the instructions issued by the Finance

Department. The following points merit special mention:-

1. A valid pension payment order has been issued in favour of the

pensioner by the A.G. Punjab/D.A.O. If the P.P.O has been issued

by another D.A.O, it has been transferred to this office after making

payment of commuted value of pension and upto date arrears of

regular pension. Payment on P.P.O’s issued by other D.A.O’s/A.G

Punjab is subject to confirmation of the genuineness of the P.P.O

by the issuing authority.

2. The pensioner produces information letter through which he has

been informed about the fact that his P.P.O has been transferred to

the Treasury.

3. Except the pensioners who fulfill conditions making them eligible for

exemption from personally appearing before the Treasury Officer,

all pensioners are required to appear before the Treasury Officer,

along with their departmental representatives, for their

identification. Genuineness of the pensioner is certified with the

help of his photographs. N.I.C signatures, thumb impression,

suitable quires etc.

4. All entries of both halves of the P.P.O are critically examined, upto

date pension is calculated and the pensioner is directed to submit

the pension vouchers after getting following endorsements from his

banker on the vouchers:-

i) Received payment.

ii) Payee’s signatures verified.

iii) Payee’s account will be credited on realization.

iv) Disbursement Guaranteed.

v) Our Branch endorsement confirmed.

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Initially in all cases of first payment of pension and commuted value

of pension, payment is authorized through payees account only.

5. If the P.P.O makes payment subject to certain conditions, the

payment is not authorized unless these conditions have been

fulfilled.

6. If a pensioner is unable to appear in consequence of bodily illness

or infirmity, pension payment can be authorized on production of

life certificate issued by a responsible officer of the Government or

other well-known, trust-worthy person.

7. After making the payment, pension-sanctioning authority of the

pensioner should be informed that the payment has been made.

8. Vouchers of first payment of pension and commuted value of

pension are to be signed with impression of embossing seals by

two D.A.O’s. If there is only one D.A.O the senior-most

A.A.O/A.T.O is required to co-sign.

9. The both halves should be stamped as paid.

10. In the months of June and December each year, a certificate of

non-marriage or re-marriage in case of female pensioners whose

pension is terminable on the occurrence of such events as

marriage is required.

11. Pension vouchers of regular monthly pension are entertained when

pension payment becomes due.

12. Life time arrears of pension on behalf of a deceased pensioner is

paid as follows:-

amount of claim authorities who can order payment

1.Claims upto Rs.1000/- Deputy Commissioner or other

Government servants responsible for

making such payments. Payments

should be made after such inquiries

into the right and title of the claims as

may be deemed sufficient.

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2.Claims upto

Rs.10000/-

Commissioners on the execution of

indemnity bond with such sureties as

he may require. If he is satisfied of the

right and title of the claimant and

considers that undue delay and

hardship would be caused by insisting

on the production of letters of

administration.

3. Claims exceeding

Rs.10000/-

Board of Revenue subject to the

conditions laid down in the foregoing

item.

Transfer of P.P.O’s to banks, other D.A.O’s and Sub -treasuries

When a pensioner applies for transfer of his P.P.O to a Sub-treasury

within the district or to a branch of National Bank of Pakistan within the district or

to an other D.A.O, his request should be granted subject to the condition that his

can be done after making first payment of pension and commuted value of

pensions. A certificate should be recorded on both halves in the following words

“paid upto and for -----------------at the rate of ---------------------------P.M”. Both

halves are transferred through a forwarding memo, a copy of which should be

endorsed to the pensioner. Same procedure is adopted in case of change of

branch of N.B.P or Sub-Treasury. In the latter case, the branch of N.B.P or the

Sub - Treasury is directed to return both halves after recording certificate of

payment as aforesaid. In case of revision of pension the P.P.O is called back

from the Bank, Sub Treasury, other D.A.O and the revised P.P.O is sent at the

direction of the pensioner, to the Bank, other D.A.O or Sub Treasury.

Increases in pensions

If the pensioner is getting his pension from a branch of the Nation Bank of

Pakistan, the Manager of the branch shall calculate increase in the pension in

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accordance with instructions of the government. Such pensioners need not to

contact the D.A.O if Government announces an increase in pension.

If they are receiving their pension from the D.A.O, the dealing auditor/Sub

Accountant shall add increase in pension on his half of the P.P.O soon after

receipt of instructions from the Government regarding increase in pension. The

increase shall be noted on the pension voucher passed.

For the guidance of auditors/sub-accountants, the increases in pension

announced by the Government from time to time are noted here under. Increase

for the pensioners who are paid under 60% formula, commonly known as five

increases:-

Date Pension Rate/conditions.

1-6-73 Rs. 1/- to Rs.5/- 20% of pension Minimum

Rs.5 Maximum Rs.10.

Rs.51/- to Rs.500/- 20% of pension.

Minimum Rs.10/- Maximum

Rs.30 with marginal adjustment

upto Rs.530/- P.M.

Dearness increase

It is paid upto pension for Rs.735/- PM. At the rate of 15% of pension.

Maximum increase allowed is Rs.35 w.e.f. 1-08-1973.

Special Dearness Increase

It is paid at the rate of 15% of pension maximum Rs.100 w.e.f 08-06-1974

without limit of pension.

Additional Dearness Increase

10% subject to a maximum of Rs.25 P.M w.e.f 07-04-1975.

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Service benefit

It is paid at the rate of Rs.1.50 PM. For each complete year of service

where the qualifying service is less than 10 years subject to a maximum of

Rs.45/-.

The above noted increases are applicable only for those pensioners

whose pensions have not been calculated at the rate of 70%.

Special Adhoc Increase w.e.f 01-07-1980

B.P.S INCREASE

1 to 10 Rs.40/- PM.

11 to 16 Rs. 70/- PM.

17 to 18 Rs. 100/- PM.

19 to 20 Rs. 150/- PM.

21 to 22 Rs.200/- PM.

Additional Adhoc Increase w.e.f 01-07-1981

It is calculated at the rate of 10% of gross pension plus dearness/Adhoc

increase subject to a maximum of Rs.200/- per month. It is admissible to those

who retired from service before 31-12-1982. It is not admissible to those who

rejoin service after retirement. It cannot be commuted.

Decrease Increase w.e.f 01-07-1982

It is admissible at the rate of 10% of pension subject to a maximum of

Rs.200/- per month.

Further Dearness Increase w.e.f 01-07-1983

This increase is admissible @ 10% of pension subject to a maximum of

Rs.200/- per month. It is admissible to only those who retired upto 30-6-1983 at

the rate of 10% of gross pension including all the dearness increase subject to a

maximum of Rs.200/- p.m. It cannot be commuted. Re-employed pensioner is

not entitled to get this increase during the period of re-employment.

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Indexation of Pension 1-7-1985

The indexation at the following rates is admissible to the pensioners who

retired up to 31-12-85.

a) Pensioners drawing Pension up to rs.1500/- @13.50% PM.

b) Pensioners drawing pension more than Rs.1500/- @ 10% PM.

Pensioners falling category (b) above will not be allowed less Pension

than Rs.1703/- after indexation.

Indexation of Pension 1-7-86

The indexation at the following rates is admissible to the Pensioners who

retired up to 31-12-85.

a) Pensioners drawing Pension up to rs.1500/- @18% PM. (inclusive the

rate of last year.)

b) Pensioners drawing pension more than Rs.1500/- @ 13.5% PM.

(inclusive the rate of last year.)

Pensioners falling in category (b) above will not be allowed less pension

than Rs.1770/- PM.

The pensioners who retired between the period 1-1-86 to 30-6-86 will be

allowed the benefit of indexation at the following rates.

a) Pensioners drawing Pension up to rs.1500/- 4%

b) Pensioners drawing pension more than Rs.1500/- 3%

Indexation of Pension 1-7-87

The indexation at the following rates is admissible who retired up to 30-6-

87. @ 4%.

Indexation of Pension 1-7-88

The indexation at the following rates is admissible who retired up to 30-6-

88 @ 7%.

Note:- The adhoc increases allowed to the pensioners in the year 1980, 1981, 1982 and 1983 may be taken into account for making acct the indexation.

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Adhoc Relief w.e.f 1-7-90

This increase is admissible at the rate of 10% While calculating this

increase, all increases sanctioned from time to time may be included.

Adhoc Increase w.e.f 1-6-91

The increase is admissible at the following rates:-

a. Pensioners retired prior to 30-4-77 at the rate of 32 %.

b. Pensioners retired upto 31-5-91 at the rate of 12%.

Increase in Pension w.e.f 1-7-95

This increase is admissible at the following rates:-

a. Pensioners retired prior to 30-4-77 at the rate of 15%.

b. Pensioners retired upto 31-5-91 at the rate of 10%.

c. Pensioners retired between 1-6-91 to 31-5-94 at the rate of 5%.

d. Pensioners retired after 1-6-94 nil.

Increase in Pension w.e.f 1-3-97

This increase is admissible to the pensioners upto B.P.S- 16 and 17 (By

Move over) who retired upto 28-2-97 at the rate of 10%.

Special Adhoc Increase w.e.f 1-7-99

This increase is admissible at the following rates to all the pensioners who

retired and will retire up to the introduction of new scales:-

Pensioners upto BS - 16 25%.

Pensioners upto BS - 17 and above 20%.

Payment of pension to insane pensioners

If the fact of insanity of a pensioner is established and a Magistrate

furnishes a certificate to this effect, part of his pension would be given to Mental

Hospital for his treatment and part to his family. Such distribution would be made

by the pension sanctioning authority.

Issuance of duplicate P.P.O

If a pensioner applies that his half of P.P.O has been lost or is

untraceable, the Manager of the branch of National Bank of Pakistan from where

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the pensioner gets pension shall issue him a duplicate P.P.O. The Manager can

get blank P.P.O's from the D.A.O for this purpose.

If the pensioner is getting pension from the D.A.O, the dealing auditor/sub

accountant, on receipt of application of the pensioner, shall initiate action for

issuance of duplicate P.P.O. Insistence on production of a copy of F.I.R for

issuance of a duplicate P.P.O is not justified as the pensioner can not get double

payment by using duplicate P.P.O.

Reimbursement of medical charges to pensioners

Reimbursement of medical charges is admissible for the retired civil

servants, their families and families of deceased civil servants. Their claims on

the account of reimbursement of medical charges should be checked keeping in

view the points noted above in annexure B. The additional considerations for

checking of their claims are as follows:-

1) For the purpose of reimbursement of medical charges, pensioners

are attached with the district head of the department from where

they retired or from where they are getting pension.

2) The pension sanctioning authority will provide a list of family

members and other particulars of the retiring government

servant/deceased government servant.

3) The identity of the pensioner retired from a gazetted post shall be

verified from his photograph and specimen signatures. No. of

P.P.O, should invariably be written on the sanction.

4) The gazetted retired civil servants shall submit their claim on forms

used for drawl of regular salary.

5) Claims of the non-gazetted pensioners are submitted by the district

head concerned on forms used for establishment pay bills.

6) There is no need of recording budgetary allocations on these bills.

Budget to meet with expenditure is placed at the disposal of the

District Accounts Officer by the Finance Department for the whole

district. Claims should only be entertained if the budget is available.

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7) The facility of re-imbursement of medical charges is available to the

pensioners and their families up to and for the period they are

entitled to pension.

8) A pensioner can draw only one bill after the curement of the

disease. If he is suffering from chronic disease, one bill during a

calendar month can be drawn.

Opening of personal ledger accounts and authorizing withdrawals

therefrom.

An appreciably comprehensive, admirably exhaustive and ably drafted

letter issued by Mr. Mohammed Zubair, Chief Inspector of Treasuries, Govt. of

the Punjab, Finance Department, on behalf of the Secretary, Government of the

Punjab, Finance Department, circulated vide No. IT (FD) 3-6-92 dated 16-12-92,

is reproduced hereunder for ready reference and guidance of the sub

accountants/auditors dealing with opening of Personal Ledger Accounts and

authorizations of payment therefrom:-

Subject:- OPERATION OF PERSONAL LEDGER ACCOUNTS

Sir,

I am directed to refer to the subject cited above, and to state that the

operation of various Personal Ledger Accounts, opened in the Provincial Section

of Accounts, and maintained in the District Accounts Offices/Treasury Offices in

the Punjab has been under review for sometime.

Notwithstanding clear provisions of rules and instructions on the subject,

and a number of supplementary guidelines issued by the Finance Department

from time to time, clearly specifying areas where under Personal Ledger Account

could be lawfully operated, without misuse and deviation from the established

principles, numerous incidences continue to come to the notice of the Finance

Department showing unauthorized channeling of funds from the Personal Ledger

Accounts. This situation not only grossly contravenes the provision of rules

regarding Personal Ledger Accounts, but also adversely affects the resource

position of the Province.

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I am further directed to say that while serious attention of all concerned is

once again invited to the existing provisions of rules and instructions issued to

date for strict compliance, it has been decided after consultation with the

Accountant General, Punjab, to circulate the requisite rules/ instructions in a

consolidated form, with explanatory notes, for information and ready guidance of

the operators of the Personal Ledger Accounts, and to obviate all chances of

contravention of rules through any excuse or miss-interpretation thereof.

The contents of this circular are by no way exhaustive, and do not relieve

the operator of the Personal Ledger Account of any of his/her responsibility in the

matter regarding Personal Ledger Accounts, not covered in this circular.

1. PURPOSE OF PERSONAL LEDGER ACCOUNTS:

(a) Withdrawals from Personal Ledger Accounts are made through

cheques drawn by authorized officers. While passing the cheques

the concerned Treasury Officer/District Accounts Officers are only

required to see that balance is available in the Personal Ledger

Account. Payments are thus made without any pre-audit check,

This procedure for withdrawals from Personal Ledger Accounts by

cheques does not in any way authorize departure from the rules

relating to sanction for incurrence of expenditure. As such all

expenditure out of Personal Ledger Accounts should be incurred

strictly in accordance with the relevant rules and regulations,

besides, all pre-requisites as necessary in respect of bills drawn

fulfilled before any cheque is drawn from Personal Ledger Account

and disbursement made therefrom. All connecting record of each

transaction like quotations, bills/vouchers should be made available

to the concerned authorities for scrutiny as and when required

besides submitting it to the audit. (FD's letter No.FD(FR)VI-1/87,

dated 11-4-1989).

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II. OPERATION OF PERSONAL LEDGER ACCOUNTS:

(a) OPENING OF ACCOUNTS:

Personal Ledger Accounts are exclusively sanctioned by the

Finance Department on the recommendations of concerned

administrative departments under rule 12.16 and 12.17 of Punjab

Financial Rules, Volume-I. Every Personal Ledger Account is for a

specific purpose An Account is only operatable at a designated

Treasury/District Accounts Office. Funds for any other purpose may

not be credited to the Personal Ledger Account except with the

prior permission of the Finance Department.

(b) MAINTENANCE OF ACCOUNTS

The maintenance of accounts regarding Personal Ledger Accounts

is regulated by Rules 12.18 ibid. Further more, the operators of

Personal Ledger Accounts are required to maintain pass books in

Form PFR25 under Rule 12.19 ibid, which has to be reconciled

every month with the Treasury Officer/District Accounts Officer who

is required to authenticate the pass book after re-conciliation under

rule 12.2O ibid. The pass book shall remain in the personal custody

of the Administrator/Operator of the Personal Ledger Account

Note:- The Finance Department circulates a list of Personal

Ledger Accounts maintained in the Punjab in the

Month of July every year.

III. CHEQUE BOOKS:

(a) ISSUANCE OF CHEQUE BOOKS:

Personal Ledger Accounts are operated through specially

prescribed cheque book, which is issued to designated operator of

the accounts from the respective District Accounts Office/Treasury

on requisition under rule 2.43 of P.F.R Vol-I. Not more than one

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cheque book is supplied on a single requisition. Rules 2.12 to 2.19

ibid and Rules 4.13 and 4.14 of the Punjab Subsidiary Treasury

Rules regulate the use of cheques, which must be strictly observed

by operators of Personal Ledger Accounts.

(b) VALIDITY OF CHEQUES:

As per Rule 2.16 of the PFR Volume-I, cheque remains current for

three months only after the month of issue. Further more, the

payment order recorded on the cheque by the Treasury

Officer/District Accounts Officers bear a currency of one month

under Rule 4.185 of the Punjab Subsidiary Treasury Rules,

provided the proceeds of the cheques are collected before the

expiry of the validity of the cheque itself.

Note:- Cheques issued for those Personal Ledger Accounts

which lapse with the close of a financial year shall

remain valid for three month only after the month of

issue or upto and for 30th June which ever is earlier,

and the payment order recorded thereon by the

DAO/TO shall be also valid for one month or upto

30th June of that year whichever is earlier.

Accordingly the proceeds of the cheques shall have to

be collected by the payee on or before 30th June of

the particular year.

IV. WITHDRAWALS FROM THE PERSONAL LEDGER ACCOUNTS:

(a) The general policy governing the withdrawals from personal ledger

accounts is contained in Rule 4.132 of the Punjab Subsidiary

Treasury Rules. Moreover the principles and instructions relating to

expenditure, as contained in Rule 2.10 of the PFR- Vol. I are also

fully applicable to the withdrawals from the Personal Ledger

Accounts. Special attention is invited to Rule 2.10(b) (5) of the

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Rules ibid, where under any money should not be drawn from the

treasury unless it is required for immediate disbursement. It is clear

that all PLA’s maintained by Government departments are only

operatable from the respective DAO/Treasury; and that no amount,

however small, should be placed in any personal account of the

operator etc., in any commercial bank or a development financial

institution, as required by Rule 9 of the Punjab Treasury Rules. As

an exception to this policy, local bodies are allowed to maintain

certain percentage of their Personal Ledger Account balance in

Commercial Banks, or a DFI for which detailed instructions stand

issued by the Finance Department vide No.DP(FD)/1-1-70, dated

14-11-1972, subsequently clarified vide No.FD(W&M) (DP)-1-1/85

dated 15-9-1985 where under it is explicitly stated that autonomous

and large local bodies are only allowed to keep working balances

equal to one month's requirements with the commercial banks,

while the surplus funds, over and above the limits of approved

working balance have to be kept in the Personal Ledger Account in

the Government Treasuries/DAOs, as required under Rule 12 7 (b)

of P T R Vol-I.

(b) As an exception to the above certain autonomous/Local bodies,

whose resources accrue almost entirely from their own resources,

may keep surplus funds in Post Offices, either in a saving account,

or fixed deposit, or under the profit-cum-bonus scheme, in addition

to existing option of keeping funds in the Personal Ledger

Accounts.

(c) The surplus funds, which emanate from Government grant-in-aid

shall invariably be kept in the Personal Ledger Accounts at the

Government Treasury without exception. No funds shall ever be

kept in a commercial Bank or in DFI, except with the explicit

permission of Finance Department. It also ought to be invariably

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ensured that the said funds shall only be spent on the purpose for

which they stand originally granted/sanctioned.

(d) Fixation of working balances by local council and Autonomous

Bodies in order to facilitate the financial operations of the Local

Councils and Autonomous Bodies, the Government vide its letter

No.W&M-DP(FD)1-1/70, dated 31-12-1988 has allowed working

balance of such organizations to be fixed @ 8% of the total

budgetary expenditures for a given financial year. A reference to

the Finance Department in this regard will no longer be required.

(e) The list of approved banks and financial institutions which have

been authorized to receive/accept the approved working balances

of the Local Bodies/Autonomous Bodies stand circulated vide F.D's

letter No.DP(FD)1(2)/89 dated 25-10-89, and letter of same number

dated 11-5-1992.

(f) Payments of definite/accrued liability should directly be made to the

concerned persons/parties/ companies by issuing a Personal

Ledger Account cheque in their name. Self cheques should only be

issued for drawing amount for recoupment of approved working

balance, wherefrom petty expenditure pertaining to day to day

running of the organization may only be incurred. Such cheques

should contain a certificate to the effect that the amount is being

drawn for the recoupment of working balance only. The available

balance should be clearly indicated along with the certificate.

V. LAPSEABILITY OF PERSONAL LEDGER ACCOUNT:

Generally, all personal ledger accounts of government departments are

lapsable at the close of financial year, unless otherwise stated in the sanction for

the particular personal ledger account.

As a general policy the following factors determine the criteria as to the

lapseability of the Personal Ledger Account or otherwise:

(a) Source of funding the Personal Ledger Account.

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(b) Nature and purpose for which personal ledger Account was

opened.

(c) Name of person or department operating Personal Ledger Account.

Non-governmental funds of international agencies, autonomous bodies

etc., kept in the Personal Ledger Account are non-lapsable.

The following principle will be applicable for deciding whether or not a

Personal Ledger Account should lapse at the end of a financial year:-

(i) If the source of funding is not the Government budget i.e. Personal

Ledger Account contains non-Governmental funds, then the

balance would not lapse on 30th June, notwithstanding whether the

fund is operated by a Government servant or a private person. The

balance would, however, lapse in this case if it is so stated in the

purpose of opening the fund.

(ii) If the source of funding is Government budget, the balance on 30th

June will lapse, except if the purpose of fund is to finance operation

of a non-Governmental organization notwithstanding whether the

operator of Personal Ledger Account is a Government servant or a

private person e.g. official of a local body, corporation etc.

Note:- Detailed instructions regarding lapseability of

grants/Personal Ledger Accounts stand already

circulated by the Finance Department vide No.SO(TT)

6(2)/89 dated 30-9-1989.

VI WEEDING OUT OF PERSONAL LEDGER ACCOUNTS:

It has been observed that a number of Personal Ledger Accounts opened

from time to time remain inoperative, and that no transactions are undertaken for

considerable periods. Consequently, the number of Personal Ledger Accounts

have enormously increased over the years due to accumulation of such Personal

Ledger Accounts. It has, therefore, been decided to weed out such Personal

Ledger Accounts for keeping their numbers within reasonable limits for proper

monitoring and management. As such all Personal Ledger Accounts wherein no

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transactions are undertaken for a period of one year or more shall be considered

as closed. However, in case these are to be revived, specific request from the

operator/administrative department would be required.

VII. AUDIT OF PERSONAL LEDGER ACCOUNTS:

The Personal Ledger Accounts shall be subject to Statuary Post Audit by

the Pakistan Audit Department in accordance with the rules.

Yours obedient servant,

(MUHAMMAD ZUBAIR)INSPECTOR OF TREASURIES-I

Cheque of P.L.A should be authorized for payment after seeing, in addition to the above, the following points:-

1. A person who has been authorized to operate the P.L.A has signed

the cheque. His signatures tally with his specimen signatures.

2. Balance is available in the P.L.A.

3. The cheque is from the cheque book provided to the operator of the P.L.A.

4. The cheque has been issued in favour of a contractor or supplier.

Cheque issued in favour of “self” must specify the reasons of

withdrawal; no such cheque except for payment of salaries or

pensions or recoupment of working balance should be authorized

for payment.

5. There is red entry on the cheque.

6. With the exception of cheques in favour of “self”, the cheque must

have the following endorsements. Meanings of these endorsements

have been explained for information of the staff of the D.A.O.

i) Received payment: This endorsement is affixed on

cheques made in the name of bank or bank account of

Mr/Mrs/-----------. In both cases, the bank gives receipt of

amount on behalf of the beneficiary who must be an account

holder and who can be produced if so requested.

ii) Payee’s signatures verified: This endorsement means

that the payee is a customer of the bank and that his

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signatures are verified from the record available with the

bank, and that he can be produced if so required.

iii) Payee’s account will be credited on realization: This

endorsement means that payee’s account will only be

credited when the issuing authority clears the instrument. It

also insists that only the payee’s account will be credited and

no body else’s account can be credited. Again the payee

being an account holder can be produced, if so required.

iv) Disbursement guaranteed: This endorsement is affixed

only on instruments belonging to very well known customers

of the bank. It indemnifies against all wrong payments. Any

wrong payment against such instruments can be claimed

back from the bank.

v) Our branch endorsement confirmed: Through this

endorsement, the main branch of the bank confirms

endorsements of the branch.

7. A sealed advice of the cheque has been recorded. The operator of

the P.L.A issues the advice.

8. Payment of salary through self-cheque should not be allowed in

advance.

9. The cheque is less than three months old.

Assignment accounts

The government, some times, authorizes withdrawals of cash from a

specified branch of National Bank of Pakistan without interruption of the Treasury

Officer/DAO. For this purpose an account is opened in the Bank, which is called

assignment account. When funds are released through an assignment account,

the A.G. Punjab, issues a letter of assignment to the Treasury Officer endorsing

a copy thereof to the Manager, State Bank of Pakistan in whose area the account

is opened. The letter of assignment issued by the A.G. specifies the amount upto

which the authorized officer can draw cash, the head of account to which the

amounts drawn are debitable and the section of accounts within which the

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assignment account is operated. The Treasury Officer, on receipt of letter of

assignment and in consultation with the bank, opens the assignment account in

favour of the authorized officer of the government department or a local body or

an autonomous body at the Branch of the N.P.P specified therein, to cash,

without the intervention of the Treasury such cheques presented by the

authorized officer within limits specified in the letter of assignment. Withdrawals

from this account are debited to the provincial government. The N.B.P gets re-

imbursement of the payments from the S.B.P who debits the amount to the cash

balance of the province. Paid cheques and their advice are sent to the Treasury

by the N.B.P branch; the Treasury maintains an assignment ledger. These

payments are included in the monthly civil accounts of the district (Provincial) and

a plus and minus statement are sent to the A.G. regarding each assignment

account. With the close of a financial year, un-drawn balances lapses to the

Government. At present, there is no assignment account in district Sheikhupura.

Cheques issued by Public Works Departments

The present procedure of authorization of PWD cheques by DAOs/TOs

was enforced w.e.f 1-1-1991 after the Finance Department detected that the

Public Works Departments had incurred an expenditure of Rs. 3.32 billion in

excess against the revised estimates for financial year 1989-90.

Ever-since the instructions were first issued by the Finance Department

on the subject, further procedural refinements have been made in this regard.

The implementation of the policy has been effective and has brought about

improvement in the enforcement of financial discipline in the Public Works

Departments viz.: -

i) Stoppage of excess over budget.

ii) Minimization of misuse of “deposit work”.

iii) Stoppage of irregular transfer of funds through “special

cheques” & their subsequent retrievals.

iv) Stoppage of irregular expenditure against securities of

contractors.

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v) Stoppage of irregular expenditure against funds of other

schemes.

vi) Stoppage of misuse of “suspense accounts”.

vii) Stoppage of irregular re-appropriations.

The auditors/sub - accountants should concentrate on the following points

before affixing pay order on cheques issued by Public Works Departments.

1) Copies of the distribution of budget grant have been received in the

office.

2) Budget is available in the scheme.

3) Cheque has been issued, with cross entry upon it, by a Sub.

Divisional Officer; his signatures tally with his specimen signatures.

4) The cheque is from the chequebook supplied to the S.D.O.

5) From II is attached with the cheque; this form, complete in all

respects, has been signed by the Divisional Engineer (XEN). His

signatures tally with his specimen signatures.

6) If the cheque has been issued to the contractor for refund of

securities deducted from his running and final bills, the details of

cheques and Form II through which securities were deducted have

been noted as Form II. These details are correct according to

record available in this office.

7) Budget was communicated to the XEN not later than 31 of May in a

financial year. Subsequent releases without approval of the

Finance Department are not acceptable.

8) No payments of contractual liabilities, entered into between 15th

and 30th of June each year, can be made without approval of the

Finance Department.

9) Cheque has been presented in the DAO before 21st of June.

10) In case of re-appropriation of funds, the funds are available in the

schemes from where amounts have been withdrawn. If the funds

have been expended before receipt of orders of re-appropriation, or

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these have partly been expended, the re-appropriation should not

be acted upon and it should be objected to.

11) Cheque has been issued within the last three months.

12) It is the same financial year. If a cheque is presented for re-

validation because of the reason that it was not encashed within the

currency of the pay order of the D.A.O. i.e. within 30 days, the

same should be revalidated. No revalidation is permissible after

30th June except with the approval of the Finance Department. Can

Finance Department, without authorization from the Legislature,

authorize utilization of budgetary allocations of a given financial

year in a subsequent financial year is a question, which merits

attention of the quarters concerned.

13) If the cheque is for the work-charged establishment’s pay, a

certificate to this effect must be recorded. Only on this account, a

cheque in favour of self can be drawn. No advance payment of pay

should be allowed.

14) P.W.D cheques must be disposed of within 24 hours.

15) The payment should be authorized through payee's account only.

RE-VALIDATION OR RE-AUTHORIZATION OF BUDGETARY PROVISIONS

The question of carrying over of certain provisions in the budget for a

fiscal year to the next financial year through `re-validation' or re-authorization

merits consideration in view of the fact that the Finance Department sometimes

allows utilization of budgetary allocations of a fiscal year during the subsequent

fiscal year through re-validation' or re-authorization.

The words `re-authorization' and `re-validation' are alien to the

Constitution and the financial rules of Government of the Punjab. Only the word

`authorization' exists in the Constitution and it signifies incurrence of expenditure

by the provincial government in accordance with the grants approved by the

legislature under Article 122 of the Constitution and authenticated in the schedule

of authorized expenditure by the Chief Minister under Article 123.

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The public finances of the province are managed on the basis of a

financial year i.e. period from July 1 to June 30, both days inclusive. This

explicitly appears in Article 120 of the Constitution and the term `Annual Budget

Statement' is its direct connotation. Similarly, the term `financial year' appears in

Article 124 of the Constitution regarding the Supplementary Budget Statement.

All budgetary grants and appropriations are authorized for a financial year and no

expenditure authorized for a particular financial year can be carried beyond that

year.

This standpoint is further supported by the submission of the first and

second statements of excesses and surrenders, which are based on the well-

defined finiteness of the financial year. These budgetary steps have been

prescribed to ensure that the funds allocated during a financial year are validly

utilized to the maximum, and that these may not lapse, a fact which denotes poor

budgeting and bad financial management.

The maintenance and closing of accounts is also linked with the financial

year. In the absence of such a requirement, the Auditor General of Pakistan

would perhaps never be in a position to submit various accounting reports as

required to be submitted by him in accordance with his constitutional

responsibilities.

Issuance of credit certificates

When a citizen requires issuance of credit certificate for the reason that he

deposited a certain amount of money under a certain head of account on a

specified date but his copy of receipt challan has been lost, or he needs a credit

certificate for any other reasons, he should be advised to deposit a fee of Rs.5

under the following head of account 1390000 others.

When he deposits the requisite fee and produces a receipted challan, a credit

certificate should be issued to him.

Passing receipt challans of stamps

National Bank of Pakistan is not allowed to accept receipts on account of

stamps unless the receipt challans are first verified by the D.A.O. When a citizen

presents receipt challan for such verification, the entries in the challan with

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particular emphasis on the purpose for which money is intended to be deposited

and the head of account should be checked. If necessary, corrections should be

made. If found in order, the challans should be verified. All passed challans

should be noted in the challan passing register.

Receipts through transfer credit

Payments on certain passed pre-audit bills are not allowed in cash. These

are effected through transfer of credit. The dealing assistant should see the

following points while entertaining such claims:-

i) The bill has been passed by the D.A. Section with condition "Not

payable in cash, payable through transfer credit".

ii) Heads of account have correctly been recorded on the bill and in

the receipt challans.

iii) When found in order, the triplicate challans should be signed. A

stamp on the passed pre-audit bill "incorporated in the account

for------------" be affixed, and triplicate challans should be signed.

iv) Passed pre-audit bill should be returned to the Accounts cell for

preparation of accounts.

Deposit works

Public Works Departments can also execute works on behalf of private

parties, local bodies, autonomous bodies etc. Such works are called deposit

works. Funds of these works are non-lapsable, if the source of funding is not

government budget. The dealing assistant should carefully watch the following

aspects, in addition to normal cheques, before authorizing payments, on checks

relating to deposit works: -

i) The entire cost of the work has been deposited into the Treasury.

ii) Technical sanction and administrative approval has been accorded

by the competent authorities.

Special cheques not payable in cash

The following instructions of the Finance Department regulate operation of

special cheques (not payable in cash):-

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i) The use of special cheque for inter-divisional financial transactions

shall only be permissible in case of bonafide transfer of funds, after

due observance of respective provisions of rules as contained in

Annexure-6 of the Punjab Departmental Financial Rules and as

also outlined in F.D.s circular No.F.D.SO.F.R.(1) 1-1-1/63 -12/63

dated 4th January 1963;

ii) Special cheque issued by a P.W.D. officer and presented to the

respective DAO/TO for authorization shall in addition to the existing

requirements, also accompany a copy of the request made to the

counter part division for undertaking work/supply of stores, as the

case may be, besides the consent of the recipient division to

undertake such work/or supply of stores as required, and a copy of

the approval to the estimate, equivalent to the amount of the

special cheque.

iii) All financial transactions made through special cheques shall be

strictly non-retransferable, neither during the financial year in which

these transactions originally occur, or in the subsequent financial

year on any pretext, except for bonafide refunds of unspent

balances.

iv) The funds transferred through special cheques shall not essentially

constitute "Deposit Work" as a matter of routine, unless these

strictly qualify the conditions as prescribed under Rules 7.128 and

7.130 of the Punjab Departmental Financial Rules, besides the fact

that the competent authority of the executing department has

issued orders for undertaking the work in the prescribed manner in

terms of par 5.31 of Punjab PWD Code, and Para 5.28 and 5.29 of

B & R Department Code, as the case may be.

v) The special cheques for hire charges of machinery should only be

issued if the amounts have been deposited by the contractors in

advance and kept under part. V of Public Works Deposits.

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Refunds of revenue

The dealing auditor/sub accountant should proceed as under on receipt of

vouchers of refunds of revenue i.e. he should see that:-

1:- Form No.STR 34 has been properly filled in and no column of it has

been left blank.

2:- It has been issued by a competent authority within the permissible

time limits e.g. a collector can not order refund on account of

stamps after the expiry of two years in special cases and six

months in usual cases.

3:- Signatures of the issuing authority tally with its specimen signatures

available in the Treasury.

4:- The refund vouchers book from which the form S.T.R.34 has been

obtained was issued to the refunding authority from this Treasury.

5:- Revenue was actually deposited in the Treasury and it remains

unrefunded. If a partial refund has already been ordered, sufficient

balance is available to enable this office to clear the refund

voucher. In cases of reasonably heavy amounts of refund, the fact

of actual deposit of revenue should be confirmed by checking totals

of the date and verifying from the bank credit scrolls.

6:- Five endorsements of the bank, described in detail in this

Annexure, are present on the voucher.

7:- The refunding authority has sent, in a sealed cover, advice

regarding issuance of refund voucher.

8:- Name of payee and his signatures or thumb impression appears on

the voucher.

9:- In case of refund on account of unused stamps, the Sadder

Treasurer has reported that these stamp papers were issued by

him and the same have been cancelled to prevent their reuse.

10:- 10% deduction has been effected in case of refund on account of

unused stamps.

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11:- Refund voucher has been issued in favour of the person who

actually deposited the amount.

Refund of unused stamps

Procedure in the office of Collector

a) The concerned person or his duly authorized agent claims refund of unused

stamps by submitting such stamps and an affidavit along with his application

(Rules 14, 15 & 20 of the Punjab Stamp (Non-Judicial) Refund, Renewal and

Disposal Rules, 1954)

b) After receipt of the application for refund, the action to be taken by the Refund

Cleric is detailed in rules 22 & 23 of the Punjab Stamp (Non-Judicial) Refund,

Renewal and Disposal Rules, 1954.

c) Then the actual purchase of the stamp is ought to be verified from the register

of the stamp vendor concerned or the ex officio stamp vendor (Treasurer), as the

case may be (rule 24 of the rules).

d) After verification of the actual purchase of stamps, the Refund Clerk then

submits the case with the register in form S.R-1 along with a refund statement

(voucher) in form SR-2 or SR-3 to the Office Superintendent (rule 24 of the

rules).

e) Office Superintendent carefully checks the application and the relevant papers

submitted to him and satisfy him that the various checks prescribed for

examining the application and instructions for filling up the register and the refund

have been fully observed. He has also to see that the rules and orders in this

behalf contained in other Manuals, Codes or Acts and other orders issued from

time to time have been strictly complied with. If he finds the claim to be in order,

he signs the refund and then submits the case to the Collector (rule 25 of the

rules).

f) As per rule 26 of the Punjab Stamp (Non-Judicial) Refund, Renewal and

Disposal Rules, 1954, the Collector shall satisfy himself that the claim is

admissible, check the register and the refund with the relevant stamps and see

that the amount of the refund is correctly entered both in the register and the

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refund. He shall then tear off the right hand top corner of each stamp, punch the

head of the figure and record on it the following with a large rubber stamp:-

"Cancelled.

Refund sanctioned on ____

Signature of the Collector,

________ District".

Thereafter, the Collector shall sign the statement of refund and fill up

columns 16 and 17 of the register

g] Office Superintendent then arranges to hand over the refund to the applicant

(rule 27 the Punjab Stamp (Non-Judicial) Refund, Renewal and Disposal Rules,

1954). , Note 3 below rule 9.4 of Punjab Financial Rules (PFR- Vol-1 ) and rule

4.58 (3) of Subsidiary Treasury Rules (STR). The sanctioning authority

(Collector) issues an advice of the refund order direct to the Treasury

Officer/DAO (rule 4.58 (3) of STR).

Procedure in the Treasury Office /DAO

a) Refunds of stamps can be drawn on appearance at the treasury and on the

receipt of the person entitled to them (rule 4.55) and 4.58(3) of STR) or through

his bank (Finance Department's instructions contained in letters No.OSD (LA&T)-

7(8)/72 dated 26.1.1973.No.SO (TT) 7(6)/80 dated 25.3.1981 and No. SO (TT)

7(6)/80 dated 29.8.1981).

b) On receipt of refund voucher from the payee's bank, the concerned Sub-

Accountant of TO office/DAO takes action and exercises following checks: -

i. Whether the signatures of the Collector as put on refund voucher and on

advice tally with his specimen signatures as available in the treasury office (rule

4.147(a) of STR).

ii. Whether the payee has signed on the refund voucher (rule 4.55 of STR) and

his banker has attested his signatures. Whether the relevant stamps have been

affixed/ signed by the concerned bank officer and the authorized officer of the

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Main Branch of that bank has confirmed the endorsements of his bank branch.

Whether the signatures of the officer of the main branch tally with his specimen

signatures available in the treasury office.

iii. Whether the particulars given in the advice tally with the particulars given in

the refund voucher.

iv. Traces the original amount deposited for purchase of stamps, in the receipts

register of stamps (rule 9.4 of PFR Vol-1). It is traced from the date, given under

D.O.P. (date of purchase) in the refund voucher. The refund voucher on form SR-

2 or SR-3 should also contain the particulars of date of purchase of stamps

(D.O.P.) and date of deed (D.O.D.), although these particulars have not been

provided in these forms.

v) After exercising the above checks, the payment of refund is noted against the

original item of credit in the Treasury Receipts Register in order to make the

double payment impossible (rule 9.1 & 9.4 of PFR Vol-I). He then affixes the pay

order to the State Bank of Pakistan or National Bank Of Pakistan, on the voucher

and puts his initials on pay order, advice and receipts register. He then places

the register along with voucher and advice before the Accountant.

vi) The Accountant exercises all the above checks and after satisfying himself

that the claim is in order puts his initials on the voucher, advice and the receipts

register. He then places the register along with voucher and advice before the

Treasury Officer.

vi) The Treasury Officer exercises all the above checks and after satisfying

himself that the claim is in order puts his signatures on the pay order and initials

on the advice and the receipts register. He then sends these back to the

concerned Sub-Accountant who prepares advice of all vouchers passed in a day.

The advice is accordingly initialed by the Accountant and signed by the Treasury

Officer. It is then sent to the State Bank under a sealed cover. The passed

vouchers are returned to the payee's bank for receiving payment from the State

Bank.

The monthly statements of receipts of stamps (including the figures of

refunds) are submitted to the Controlling Officer and the Head of Department i.e.

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the EDO (Revenue) and the Board of Revenue, Punjab respectively as provided

in paragraph 12.5 of the Punjab Budget Manual. The purpose of the rule makers

for not sending such statement to the collecting officer is that the collecting office

should prepare his statement independently and not from treasury figures

(paragraph 12.3 of the Punjab Budget Manual]. Hence, sending of monthly

statement to the Collector’s office is not required.

Revenue deposits repayments

The dealing sub-accountant/auditor should examine vouchers of revenue

deposit repayments from the following angles:-

1) Repayment voucher has been issued on form No.S.T.R 41.

2) It has been issued by the court or other authority, which accepted

deposits.

3) The refund voucher book from which the present voucher has been

detached was issued to the court by the Treasury.

4) The voucher has properly been filled in; name of payee has been

written clearly and there are no cuttings or over-writings.

5) The amount actually deposited and the amount ordered to be

refunded is written in figures as well as in words.

6) If repayment has to be made to the attorneys of the payees,

particulars and signatures of the attorneys have been verified on

the voucher, by the court or other competent authority. This aspect

assumes particular importance after occurrence of frauds in

repayments of revenue deposits on instructions issued by some

Land Acquisition Collectors. Besides insisting upon attestation of

particulars of the attorneys, production, and verification form the

Sub-Registrar concerned, of the judicial papers through which the

actual payee has appointed his attorney should be ensured. The

Land Acquisition Collector is bound to endorse a copy of his award

to the D.A.O. Where necessary, the L.A.C is also required to send

completely filed in Form A and Form A.A; as prescribed in

Appendix 17 of the P.F.R Vol-II to the D.A.O.

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7) The authority which orders repayment shall be informed of the

payment soon after it is authorized.

8) There is no variation in particulars noted in the voucher and the

advice received in sealed cover from the court, LAC etc.

9) The repayments is being ordered within three years of the deposit.

10) The validity of the voucher is for a period of one month. If payment

is not authorized by the D.A.O within a period of one month after its

issuance, no payment can be authorized on it unless it is

revalidated by the issuing authority.

11) The most important thing to be watched with gazeful eyes is to

ensure that money was actually deposited in the Treasury. Each

entry of receipt register of R.D. is doubly verified by the A.T.O and

the D.A.O with their initials. No space should be left to allow

subsequent entries. Initials of A.T.O and the D.A.O are not

conclusively reliable evidence that the money was actually

deposited. Before allowing repayments in excess of Rs.10000/-

daily totals, original credit challans and bank credit scrolls should

be consulted. In addition to 5 endorsements by the bank personal

appearance of the claimant should also be ensured. Quarterly

certificate of the Collector on the R.D receipt register should be

obtained.

Repayment of lapsed deposits

Revenue deposits not repaid within a period of three years stand lapsed to

the government and are treated as revenue of the government. Deposits, which

have lapsed and so have been credited to government, cannot be repaid without

the sanction of the District Accounts Officer. The application for sanction will be

made in Form S.T.R.42. There must be a separate application for deposits

repayable to each person, and it will be used as the voucher on which the

payment is to be made.

All points, mutatus mutandus, discussed in case of revenue deposits, are

applicable to such claims.

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Double Lock Section.

1. Organizational Chart.

2. Functions of the Section.

3. Issuance of stamps

4. Issuance of receipt books, chequebooks, and refund voucher books.

5. Verification of issuance of stamps.

6. Receipt and delivery of valuables.

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ORGANIZATIONAL CHART

D.A.O

Sadar Treasurer Assistant Treasurer

Peon

Head Constable - 1 Constables - 4

Functions

1. Custody of valuables and stamps.

2. Sale of Stamps (Judicial, Non Judicial, entertainment stamps, Special

adhesive stamps, Driving License stamps, Arms Stamps, Service Stamps,

Notorial Stamps, etc.).

3. Provision of cheque books and refund vouchers to various departments.

4. Preparation of monthly plus and minus statements of stamps.

5. Custody of material and ballet papers pertaining to previous general

elections.

214

Issuance of stamps

The Double lock issues the following stamps:-

1 Court Fee Stamps.

2 Non Judicial Stamps

3 Revenue Stamps

4 Notorial Stamps

5 Special Adhesive Stamps

6 Driving License Stamps

7 Motor Vehicle Stamps

8 Arms License Stamps

9 Postal Stationery

10 Postal Stamps

11 Refugee Stamps

12 Central Excise Stamps

13 Air Mail Stationery.

14 Entertainment Stamps

15 Welfare Stamps

16 Tobacco License Forms.

17 Service Stamps

18 Defence Saving Stamps

19 Plain papers

20 Registration Revenue Stamps

Stamps are issued on production of receipted credit challans and their

confirmation from the Bank credit scroll, to the depositors or their authorized

representatives. Stamps noted against serial No.6, 7,8,9,10,13,18 are issued

only to the Post Office on receipt of credit. Service Stamps are not allowed to be

issued in consideration of cash; these are issued on production of transfer credit

receipt challans. Special adhesive stamps are not issued; these are affixed on

the documents and are signed by the A.T.O. A register of documents is

maintained to note all documents upon which special adhesive stamps are

affixed.

215

Normally stamps are issued one day after the credit of amount in the

bank. However in case of urgency, the D.A.O, after verifying credit from the bank,

can order issuance of stamps on the same day of deposit.

If someone has deposited amount to obtain non-judicial stamps, and

subsequently desires to obtain special adhesive stamps, he will be advised to

deposit the requisite amount under proper head and seek refund of the amount

already deposited from the collector.

Issuance of receipt books, cheque books, refund voucher books

On receipt of requisition for issuance of receipt books, cheque books,

refund voucher books etc. the Sadder treasurer should see that:-

1:- Signatures of the requisitioning officer tally with his specimen

signatures available with him.

2:- The requisition slip has been detained from the book already

provided to him, if no new requisitioning authority has been

established. In case of first requisition, the entitlement and

competence of the requisitioning officer should be ascertained

before issuance.

3:- The requisitioning officer should receive the requisitioned book from

the Double Lock himself. He may authorize someone to receive on

his behalf. The specimen signatures of the representative so

nominated should be attested.

4:- Whether requisite fee, if any, has been deposited in the Bank under

proper head of account.

5:- Only one book can be issue at a time. When a financial year nears

close, the D.D.O’s especially in the Public Works Departments, try

to claim as many cheque books as they can, without first using the

cheque books already issued to them. To check this malpractice,

after 10th of June each year, new chequebooks should only be

issued on production of contour-foils of used chequebooks.

6:- The A.T.O should be informed about the issuance of cheque

books, its number and the D.D.O to whom it has been issued.

216

Issuance of voucher books should also be intimated to the A.T.O in

the same manner.

Verification of issuance of stamps

Collectors normally seek report of the Sadder Treasurer before issuing

sanctions for refund of stamps. The report should be furnished promptly after

consulting the relevant record.

Receipt and delivery of valuables

Nothing can be kept in the Double Lock without prior written permission of

the District Collector. Valuables and election material are kept and delivered on

the orders of the Collector. Valuables should be in a sealed cover and a

specimen of the seal should also be in the sealed cover. All valuables are noted

in the register of valuables. It is also noted that what the sealed covers reportedly

contain.

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Annex-C

Observance of punctuality and enforcement of office hours.

i) Hours of attendance.

ii) Leaving office during office hours.

iii) Attendance register.

iv) Penalty for late attendance.

v) Absence without leave.

vi) Casual leave account.

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Hours of attendance

The ordinary office hours of attendance on all working days are from 8-00

am to 3.00 PM. except on Friday when the office hours are from 8.00 am to

12.00 noon. It is the duty of the A.A.O to prevent the accumulation of arrears and

he has the power to require earlier or later attendance when the work is in

arrears or interests of public service require it. In case of compulsory attendance

on holidays, the A.A.O should obtain the approval of the D.A.O.

Leaving office during office hours

All civil servants should remain available on their seats during office hours.

No one should leave the office without prior permission of his immediate boss.

The A.A.O. should report each incidence of unauthorized absence from their

seats of his subordinates to the D.A.O for suitable action.

Attendance register

All employees of this office are expected to be on their seats punctually at

8.00 am. An attendance Register is maintained for each branch of this office and

is kept on the table of the ATO/AAO. As each person arrives, he should initial in

the Attendance Register.

At 8.30 am, the A.A.O will make a red cross mark against the name of civil

servant absent and initial and submit the register to the D.A.O. A civil servant

who has obtained previous permission for coming late, his name should be

marked with "will come late", in the Attendance Register.

Penalty for late attendance

No casual leave will be forfeited on account of late attendance of a civil

servant, but habitual late comers will be death with suitably under the E&D Rules,

This fact will also be noted in their A.C.Rs.

The question as to what constitutes a habitual late comer and when

departmental action should be resorted to shall be decided in accordance with

the following:-

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i) If a person is late, he should report, immediately on arrival, to

A.A.O, reason of being late. If the A.A.O is satisfied with his

explanation, no action is to be taken.

ii) If the explanation is not acceptable, the person concerned should

be warned orally on the first two occasions. On the third and fourth

occasion, warning should be issued in writing.

iii) If the person is still found coming late, departmental action should

be initiated against him for disobedience, which is treated as

misconduct.

iv) Departmental action shall be resorted to if a person, is any calendar

month, comes late on more than five occasions.

Absence without leave

Staying away from office without leave renders a person liable to dismissal

except when the cause is sudden illness or unforeseen circumstances of a

pressing nature. In every case of absence without previous sanction, the reason

of absence should be communicated at once and if it is due to illness, a medical

certificate should be produced if so directed by the A.T.O/A.A.O/D.A.O.

Casual leave account

The A.A.O (Adman) shall maintain a casual leave account of all civil

servants of this office.

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Annex-D

EDUCATION AND CO-OPERATION OF THE DRAWING AND DISBURSING

OFFICERS.

i) Responsibilities of the D.D.O’s.

ii) The points the D.D.O’s should see before submission of claims in the

D.A.O.

iii) Other important points

221

As the D.D.O’s may be aware, entire responsibility for moneys drawn from

government exchequer through cheques or pre-audit bills is on their shoulders.

They are answerable for each and every penny drawn from the Treasury.

According to Rule 2.31 (a) of the Punjab Financial Rules, Vol.-I, "A drawer of bill

for pay, allowances, contingent and other expenses will be held responsible for

any overcharges, frauds and misappropriations”. He should therefore, make

himself thoroughly acquainted with the meaning of the various financial checks

which he is expected to exercise so that he can be in a position to detect

immediately any attempt at defalcation, and should pay special care to those

points in financial process at which leakage is likely to occur.

Before submitting a claim in the D.A.O, D.D.O. should satisfy himself that

his claim is perfect in all respects and is admissible under the rules. Annexure B

is for his guidance. Attention paid to this annexure will eliminate the chances of

avoidable audit objections. The D.D.O's should see the following points with

particular keenness:-

i) All totals in the bills should be personally checked by the D.D.O's.

ii) The grant number and codal classification of accounts should be

properly entered in the relevant columns of the bills.

iii) The claims should be valid charges, supported by necessary

vouchers, bills. The D.D.O's should ensure that all the

bills/vouchers are properly cancelled after their use to obviate their

reuse.

iv) The D.D.O should check the rate of pay of each official working

under him in the light of pay verified by the D.A.O in his service

book.

v) Specimen signatures of the D.D.O along with telephone number

should invariably be sent to the D.A.O's for their record.

vi) All changes in the sanctioned strength of the establishment should

be promptly communicated to the D.A.O.

vii) Sanction of the competent authority, where required, should be

attached with the claims.

222

viii) Schedules regarding deduction on account of G.P Fund, Income

Tax and Benevolent Fund etc. should be personally checked by the

D.D.O.

ix) Budget appropriations should be filled in the respective columns on

the bills under the supervision of the D.D.O after checking the same

from the budget registers.

x) All amounts received on behalf of government or withdrawn for

disbursement should invariably be entered in the cash book.

xi) As prescribed vide note below rule 4.5 of the S.T.R. and

instructions issued by the Finance Department vide letter

No.IT(FD)6 13/83-III dated 21-6-89, all bills should be entered in

the transit register before submission to the D.A.O.

xii) Under Rule 2.25 of the S.T.R and 13.4 of the Punjab Budget

Manual, reconciliation of all payment and receipt figures should be

carried out each month with the D.A.O.

xiii) In accordance with the instructions of the Finance Department

circulated vide letter No.S.O (TT) 7 (5)/77-A dated 26-5-77, all

sanctions to incur the expenditure should be accorded by the

competent authority under intimation to the D.A.O. All sanctions

endorsed to the D.A.O should be signed in ink, giving clearly the

name, designation, telephone number of the signing authority, so

that before admitting the claim/sanction, confirmation is sought on

telephone, Any change in specimen signatures/telephone numbers

should be promptly reported to the D.A.O.

xiv) It has been observed that some D.D.O's unnecessarily put their

signatures on many spaces on the bill. These unwanted signatures

should be avoided to obviate the chance of their misuse by the

cashiers, accounts clerks, etc.

xv) In case of any difficulty, complaint they should personally contact

the D.A.O on telephone No.04931-55880. Many problems can be

avoided if personal contact is made with the D.A.O.

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Acquisition of stores and stock

The stores purchased by government departments vary from petty

items of office requirement to huge stocks of goods needed for the working of

departments. The basic principles underlying the rules for purchase of stores and

stock are:

Economy and Efficiency;

Quality of goods to be obtained;

Correct quantities of goods acquired; and

Transparency of procedures.

The rules for store purchase have been made by the government for the

guidance of its staff and are contained in the Punjab Financial Rules.. The main

points are as follows:

The conditions of sanction of competent authority and

existence of budget provision equally apply in store

purchase for incurrence of expenditure. (The powers for

sanctioning purchase of stores are contained in the

Delegation of Financial Powers Rules.

Purchases are required to be made in the most economical

manner in accordance with the definite requirements, but not

much in advance of actual requirements.

Purchase orders should not be split up to avoid the sanction

of higher authority.

Tenders have to be invited in Pakistan and also abroad

unless the value of order is small and sufficient reasons exist

for not inviting tenders.

Tenders have to be opened after intimation to tenderers in

presence of tenderers who desire to attend.

All articles whether manufactured in Pakistan or abroad are

subject to inspection. The articles have to conform to the

specification and tests as prescribed.

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Important plant, machinery, etc. has to be obtained from

approved firms.

Purchases are to be made by indenting upon the central

purchase agencies established in some departments for

acquisitions of specialized items of stores.

Purchases have to be made in accordance with the rates or

running contract, where established for supply of certain

specialized articles of stores.

Open bidding: Before inviting bids, the bidding documents should be

completed in all respects. Specifications and/or drawings based on profiles and

contours must be available to support the bidding documents. Sufficient time

should be allowed to tenderers for submission of bids.

Notice inviting tenders must be published in leading newspapers,

depending on the type of competition required so that wide publicity generates

healthy competition. Addendum to tender, if any, must be advertised in the same

manner as had been done for original tender. Appendices to tenders must be

attached to bidding documents, which shall specify the conditions particular to

the case in question. Bids for 'works' should not be invited as percentage above

or below the schedule of rates. It should be invited on item rate. Bill of quantities

must be drawn and attached to bidding documents. Criteria of evaluation of bids

must be announced.

Evaluating bids: Drawing out a simple comparison of bids is not

advisable. The bids should be critically examined to see that:

i) Those are free from computing errors;

ii) Those conform to specifications given in the bidding

documents;

iii) Those do not contain any conditions, especially effecting the

cost; and

iv) Those do not alter conditions of bidding documents.

A committee should-be constituted to evaluate and adjudicate the bids.

Encumbrances in bid(s), if any, must be brought and weight/cost worked out. The

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evaluated bids should then be compared and recommendations recorded by the

committee.

Acceptance/approval of bids: The bids after full evaluation have to be

compared and the lowest evaluated, qualified and responsive one should be

identified. The deliberations of the committee evaluating the bids must be

minuted and put up to competent authority for consideration and approval.

Purchase orders/contracts: After obtaining approval of bids from the

competent authority, the purchase orders should be issued, and contract signed.

The purchase orders and contracts must contain clear and concise conditions of

supply. Memo of understanding must be drawn out for ambiguities, if any. No

variation should be made after issue of purchase orders/signing of contracts,

except as provided in those documents. In case of variation, approval must be

got approved from the authority, which approved the original bid.

Receipt and inspection of stores: On receipt of stores from suppliers, it

is incumbent on the DDO to inspect the stores. It must be ensured that the stores

are correct in quantity and good in quality. Inspection certificate should be drawn

and signed before acknowledging the stores. Any substandard item must be

rejected and got replaced within the stipulated period. A warranty certificate,

where applicable, must be obtained from the supplier while receiving the stores;

Items nearing expiry date must not be accepted and should be replaced.

Store accounts

The articles of stores with the government organizations are as

valuable a property as cash and other assets are. Special care is required to be

taken for their safe custody, keeping them in good order, and their protection

from loss, damage, deterioration and pilferage. Suitable accounts, inventories

and reports are prepared, making it possible to be controlled and compared with

the actual balance. The responsibilities of various officials for safe custody,

maintenance, upkeep and accounting together with the supervisory controls

should be laid down in writing,

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Kinds of stores

Basically, there are two broad categories of stores and stocks, a DDO has

to supervise: 'dead stock' or non-consumable goods and the consumable stores.

The 'dead stock' articles include plant, machinery, furniture and fixtures. The

'consumable' stores consist of items, like office requisites i.e. stationary, soaps,

detergents and others for the functional use of an organization such as

medicines.

Store accounting

Accounts are kept for both the categories of stores and stocks. The

accounts of consumable stores are kept in store ledgers/registers to show the

receipt of goods, issues and the balances on hand, while those for dead stocks

items, are recorded in little more details, like detailed specifications, exact

location (room, office, halls etc.) where article is kept and in whose custody it lies.

A list of dead stock is also kept at the site of those articles. That list authenticated

by the custodian of all the articles there. With the transfer of charge, the articles

are transferred to the custody of the official who takes over charge.

Note: In larger organizations, the stores on receipt are recorded in 'Goods Received Registers'

before being posted in store legers.

Receipt and issues of stores: All receipts of stores must be entered in

aforesaid accounts giving reference on invoices or delivery notes of the entries in

ledgers / registers. Up to date balance is struck after every entry of receipt and

issue.

The goods are issued to users against approval indents. A better way of

control would be to use printed and pre-numbered forms of indents and their

references should be given in stock registers. Issues must also be traceable to

consumption record. The closing balance must follow each entry of issue.

Physical verification of stores: Physical verifications of store means comparing

the book balance and the actual balances in stock. This is done at least once a

year for both the consumable and non-consumable stores. The physical

verification of stores is necessary so as to:

Verify that book balances agree with ground balance.

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Help pinpoint calculation errors in books and pilferage.

Verify that no item has become obsolete, broken or is

nearing the expiry date.

Verify that no items are held up for long time or are in excess

of requirements.

Physical verification must be carried out by person(s) other then

storekeepers but in the presence of the latter. Excesses and shortages must be

recorded in a report, accounted for and investigated properly. Packages and

containers must be checked carefully to ensure that those are not lying empty or

with less quantities. Periodical verifications of ground balances should be so

arranged that all items are verified at least once every year. Unserviceable items

must be taken out and surveyed off after obtaining sanction of the competent

authority. The items in excess of requirement should be shifted to needy units.

Stock registers of non-consumable items should also be reviewed in the same

way and physical existence of balances certified. The physical verification helps

repairing the damaged items of dead stock articles.

Consumption accounts: Authentic daily consumption accounts of goods

must be maintained accurately. For example in Health Units, Daily Expense Book

should be maintained in prescribed form and issues must agree with entries in

OPD Register. Similarly in other Departments the prescribed consumption of

goods accounts be maintained. Responsible officer(s) must attest all

consumptions. Unless authentic consumption accounts are maintained the whole

system becomes doubtful. Some offices keep control over consumption through

frequency of placing requisitions. This type of control can be used for regulating

issues of office supplies and other stores, which cannot be tied with consumption

accounts.

Unserviceable and disposals

Dead stock items deteriorate through long time use so are the

consumable stores, which become unserviceable if held for a long time. The

supervisors and storekeepers should identify, and determine, if it was not due to

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any negligence on the part of the custodians, and institute arrangements for their

disposal after obtaining sanction of the competent authority.

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WITHDRAWAL OF FUNDS, DISBURSEMENT AND ACCOUNTING

Withdrawal from Treasury

The claims on account of salaries, allowance and purchases on invoices

are drawn through bills and then disbursed to claimants. For petty expenditure,

the DDO's are provided with funds in shape of Permanent Advance (Rule 132 of

GFR Vol. I). The Permanent Advance is operated like imprest and is recouped by

drawing bills from the treasury.

The above arrangement enables the Government offices to carry with

them small amount of cash, and saves the government from the risk of 'major'

loss through pilferage.

Basic conditions

The DDO's are guided by the following conditions for drawal of money

from the treasury:

No money should be drawn from the treasury unless it is

required for immediate disbursement or has already been

paid out of permanent advance.

No authority may incur expenditure unless there is a

sanction of competent authority for incurrence of that

expenditure and that the expenditure has been provided for

in the authorized budget grants.

Finance is notoriously vulnerable to abuse through fraud, negligence and

inefficiency. It is therefore essential that due care is taken and effective controls

are exercised in matters of withdrawal and the rules framed by the government

should be followed in letter and spirit.

Canons of financial propriety

The rules require that the officer incurring or authorizing expenditure from

public funds should be guided by high standard of financial propriety. Among the

principles on which the emphasis is generally laid are as under:

i) Every public servant is expected to exercise the same

vigilance in respect of expenditure from public money, as a

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person of ordinary prudence would exercise in respect of

expenditure of his own money.

ii) The expenditure should not be prima facie more than the

occasion demands.

iii) No authority should pass any order which will be directly or

indirectly to his own benefit;

iv) Public moneys should not be utilized for the benefit of a

particular person or section of the community unless:

a) the expenditure involved is insignificant; or

b) a claim for the amount can be enforced in a court of

law, or

c) the expenditure is in pursuance of a recognized policy

or custom.

v) The amount of allowances granted to meet expenditure of a

particular type should be so regulated that the allowance are

not, on the whole, a source of profit to the recipients.

Time limits of presentation of claims

No claims against the Government not preferred within six months of its

becoming due can be presented without an authority from the Accountant-

General/District Accounts Officer.

Form, preparation, and presentation of bills

The general instructions for the preparation of bills have been given

earlier. Points of general applicability are as under:

Printed forms of bills in English should be used, but when a

bill in any other language is unavoidable, bilingual form

should be used.

All bills must be filled in and signed in ink. The amount of

each bill should be written in words as well as in figures. No

space should be left for interpolation.

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Corrections and alterations in the bill should be attested by

the dated initials of the person signing the bill. Erasures and

over-writings in any bill are absolutely forbidden.

The full account classification must be recorded on each bill

by the drawing & disbursing officer, the classification in the

budget being taken as a guide.

When bills are presented on account of charges occurred

under any special orders, the orders sanctioning the charges

should be quoted.

When the Drawing Officer requires payment to be made

through some other person or agency, he must specifically

endorse an order or furnish such authorization, as may be

necessary, to pay to that specified person or agency.

Specimen signatures of drawing and disbursing officer

All bills drawn from the treasury have to be signed by the head of office or

by the gazetted officer who has been authorized by the former to draw and

disburse claims on his behalf. A set of specimen signatures of authorized officer

is supplied to Treasury Officer/District Accounts Officer.

Bills of non-gazetted staff

Bills for pay, regular allowances and leave salaries are to be prepared

separately in the prescribed forms for permanent and temporary establishments

and for those classes of establishments for which no service books are

maintained. The instructions printed on the form need be carefully observed. The

name of every employee has to be shown against each post. The orders

sanctioning temporary post are to be noted in the bill. The rate of pay with dates

for which it is claimed, requires to be noted when pay is claimed for a portion of

month.

The entries in all the money columns of the bill are to be totaled separately

under each section and the totals written in red ink. The totals must be checked

by the drawing officer himself or by some responsible person other than the clerk

preparing the bill.

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Absentee statement and absenteeism

The monthly bill is supported with an Absentee Statement on the

prescribed form if any person is:

Absent on leave or otherwise;

Under suspension; or

When the post is left vacant.

Note: 1) The submission of Absentee Statement with individual bills is not

necessary when in case of amalgamated cadres, the controlling

officer supplies the Consolidated Absentee Statement.

2) The DDOs, it is suggested, may consult the attendance records

of the staff or the cut statements or Reports of Absentees of the

Sectional heads before signing the bills.

Periodical increment certificate

To the first bill in which a periodical increment is drawn for a Government

Servant, a certificate on the prescribed form is required to be appended.

First and last in series of payment

When a Government Servant presents his pay bill for the first time, or

when the name of a Government Servant appears for the first time in an

establishment bill, the bill shall be supported by a Last Pay Certificate or if he did

not previously hold any post under the Government or is re-employed after

resignation or forfeiture of past service, a health certificate must accompany the

bill in conformity with, and if so required by, any rule or order governing the

conditions of the service to which he belongs. If a pensioner is re-employed the

fact shall be stated in the bill.

The last payment of pay or allowances shall not be made to, or in

respect of a Government servant whose pay is drawn on Gazetted Government

Servants' Bill form, finally quitting the service of the Government by retirement,

resignation, dismissal, death or otherwise, or placed under suspension until the

disbursing officer has satisfied himself, by reference both to the AG/DAO and his

own records, that there are no demands outstanding against him.

Deductions and recoveries from bills

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The duty of noting the proper deduction to be made from pay bills on

account of Provident Fund, etc., devolves on the drawer of the bill. All deductions

should be supported by separate schedules setting down full details of

deductions.

Bills of contingent charges

The term, "Contingent Charges" or "Contingencies" means and includes

all incidental and other expenses which are incurred for the management of an

office or for the technical working of a department, other than those which under

prescribed rules of classification of expenditure fall under some other head of

expenditure, e.g. "Works" and "Pay".

All charges actually incurred are required to be paid and drawn at once,

and under no circumstances they are allowed to stand over to be paid from the

grant of another year.

The certificates printed on the form need be carefully read before signing

the bills, in particular the certificates about the quality and quantities of articles,

the cost whereof is included in the bill.

Permanent advance

Drawing and Disbursing Officers are placed in funds to enable them

making payments for claims of small amounts. The amount of this fund is

determined on the basis of monthly average for the year. The heads of

departments, in consultation with the Accountant General/District Accounts

Office, sanctions this amount, which is called Permanent Advance. The claims

paid out of this advance are replenished by drawal of bills from the treasury. The

DDO is required to supply an acknowledgement of the amount of permanent

advance to the AG/DAO every year on 15 July or on transfer of charge.

Utilities

In case of bills for utilities, the DDO has to check that proper registers for

private telephone calls, use of electricity, gas and staff care etc. are maintained

and proper entries are made and amounts recovered.

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DDO's role in preparation of bills

The DDO's has multifarious responsibilities. His specific responsibilities in

the functioning of system of withdrawal of money and disbursement have been

set down at different places in the Treasury Rules and Punjab Financial Rules.

The main responsibilities are as under:

Amounts drawn from treasury should be recorded in

cashbook immediately on receipt of cheque / cash.

Amounts drawn are disbursed within reasonable time and all

un-disbursed amounts are refunded either through short

drawal in next bill or deposited into treasury.

No salary is drawn for an employee, who has been absent

from duty.

In respect of store articles the amounts for purchase of

which are drawn in a bill, it has to be seen that they have

been received in good quality and correct quantities and that

notes are kept in stock registers. This he can ensure by

cross-checking notes on sub-vouchers received.

All payroll deductions, like GP Fund and rent of buildings

have to be supported by deductions schedules, setting down

full particulars of deduction.

The new names in the bills have to be supported with LPCs

or if the employee has been newly appointed with a

certificate of fitness issued by an authorized medical officer.

In both the cases, availability of sanctioned post has to be

ascertained with reference to sanctioned strength of staff.

The entries in the bill have to be checked and test checked.

The functioning of system of review by senior subordinates

needs be reviewed every time a bill is signed. The cash

handling staff should not be entrusted with the check of bills.

All amounts drawn on bill need be recorded on the receipt

side of the Cash Book and checked regularly.

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Recoveries should make from the officials for private use of

telephones, staff cars and government vehicles, etc.

Absenteeism

An important function of the DDO is to see that the bills prepared in his

office do not contain the names of the officials who had been absent without

leave. This can be checked with reference to monthly 'cut statement' sent by the

immediate supervisors of the Sections/Branches to the Bill Branch or by

reference to the attendance registers. Certificate number 2 recorded on the

establishment bill demands that this kind of check be carried out before signing

an establishment bill.

Disbursement and accounting

The principle underlying the rules demands effective system of

controls over moneys withdrawn from public funds, keeping record of all receipts

and payments, proof of their accuracy, correct authority supporting the

transaction and all other records with proper trails to enable making audit.

Broadly, the rules require keeping Cash Book, vouchers and other supporting

records to enable audit verify the validity of the transactions taking place in

Government Offices.

MAINTENANCE OF CASH BOOK

Cashbook is a very important document in any office, in which government

money being received or disbursed is recorded. All cash transactions should be

entered in the cash book as soon as they occur and attested in token of check.

The cash book should be closed regularly by initialing the last entry with date. At

the end of each month the head of the office should personally verify the cash

balance and record below the closing entries in the cash book. If the head is

absent from headquarters, at the end of a month, he made the delegate the duty

of verifying the cash balance to an other officer or if there is no officer, his office

superintendent, head clerk or other similar ministerial official of corresponding

rank. However, the head of the office should personally verify the cash balance

on his return to headquarters.

236

The following important points should be kept in mind during the

maintenance of the cash book:-

a) A certificate duly singed by the Drawing and Disbursing Officer

(D.D.O.) regarding the total number of pages, containing the

cash book, should be recorded on the very first page of the

book and each page should also be numbered.

b) If there is difference between the cash chest and cash balance

of the book, it should be immediately rectified by recording the

factual position / remarks against the wrong entry. In case of

any difference an administrative action to be taken against the

defaulter by reporting to the departmental superior depending

on the nature of each case.

c) The counting should be made on the last working day of each

month immediately after closing the cash account of the month,

but where this is not possible, the cash balance may be counted

on first working day of the following month before any

disbursement is made on that day.

d) A certificate duly singed by the head of the office regarding

closing cash balance specifying it both in words and figures

(exclusive of imprest and temporary advances) should be

recorded at the end of each month.

e) All receipts, disbursements and charges of whatever sort

connected with public service must be, and no other may be,

shown in the cash book.

f) Sufficient details should be given in the column “particulars” to

admit of the main points of each transaction with out reference

to the detailed vouchers.

g) The entries in the cash book of the cheques or amount

withdrawn from Audit Office should be compared and checked

with the Treasury Schedules issued by the Audit Office /

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Treasury Office. A certificate to this effect be recorded in the

cash book.

Exceptions:

Cash book for the Forest, Public Works, Commercial Departments

and Other Offices should be maintained in accordance with the

concerned rules or orders.

Source :

i) Cash book is maintained under the Rule 2.2 of PUNJAB

FINANCIAL RULES (VOULME 1.) also known as P.F.R.

(VOL.1)& FINANCIAL HANDBOOK #2.

ii) Cash book is maintained as per Form 1 mentioned in

PUNJAB FINANCIAL RULES (VOULME 2.) also known as

P.F.R.(VOL.1)& FINANCIAL HANDBOOK #2.

General instructions for handling of cash

Government dues should not pass through the hands of

departmental officers unnecessarily; moneys should be

deposited directly by the person, who tenders such money.

Cash Book must be maintained properly in the prescribed

form.

Before opening, number of pages should be counted and a

certificate recorded on 1st page.

All monetary transactions should be entered in Cash Book

immediately.

All transactions should be attested by head of office or by

any authorized officer.

Cash Book should be closed regularly/daily.

Totals should be checked by head of office or authorized

officer other than writer of the cashbook.

Totals should be initialed by the head of the office or

authorized officer.

Cash balance should be verified at frequent intervals.

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At monthly closing the physical cash balance should be

counted by head of the office or authorized officer and

matched with the book balance and a certificate recorded in

the cash book, which should be signed, and dated.

Cash in hand should be recorded in figures as well as in

words.

Over-writing should be avoided.

Error should be corrected by drawing the pen through the

incorrect entry and inserting a new entry in red ink in

between the lines.

Correction should be initialed.

Entries of deposit of money in bank/treasury should be

compared by head of the office or authorized officer with the

treasury receipt / challan of bank.

Reconciliation with the bank/treasury be conducted monthly.

If an official has to handle non-Government money in his

official capacity, it should be kept in separate chest and

books.

B-l to B-3 should not be deputed to carry the cash, but if it is

unavoidable, senior man of reliable character should be put

on the job.

In case of large amount, police guards should be procured.

The cashier's messengers should be provided official

transport if possible.

Securities be taken for cash handling.

Maintenance of Acquittance Roll

This is a document being maintained in an office in which details of

every pay drawn are incorporated. The head of an office is personally

responsible for every pay drawn on a bill signed by him or on his behalf until he

has paid it to the person entitled to receive it and obtain his receipt, duly stamped

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where necessary, on the office copy of the pay bill. If in any case, owing to the

large size of an establishment or because certain of its men being working in

outstations, it is not found feasible or convenient to obtain the receipts of payees

on the office copy of the pay bill, the head of the office concerned may, at his

discretion, maintain separate acquittance roll for each set of payments made at

one place or at one time. It is an important record and should be preserved for

the period specified under the rules.

A CHECKLIST for maintenance of acquittance roll is as follows;

When a drawing officer checks an acquittance roll, he should

either himself total up the items of it, check the total against

the total of the corresponding establishment bill and the

money received and see any difference between the total is

properly is accounted for or cause all this to be done an

officer or where no officer is available by the superintendent

or the head clerk of the office.

Where practicable it should be arranged that disbursement

on account of establishment bills are not made by the clerk

who prepared them, and the maintenance of separate

acquittance rolls is dispensed with, as far as possible.

Heads of offices are responsible for seeing that signatures of

office copies of the pay bills of acquittance rolls are taken by

the official making the payment at the time of payment and

not by the Bill Clerk previous to payments.

In case of office in which Government Servants are present

on the spot, payments are ordinarily made to them in person

and not to a third person on the authority of the payees.

The head of an office is not at liberty to readjust the pay of a

Government Servant by giving one Government Servant and

another less than the sanctioned pay of his post.

240

No payment should be made against an absentee except

provided in the Civil Services Rules (Punjab), Volume-I or

the Fundamental Rules, as the case may be.

An official on leave in Pakistan must make his own

arrangements for getting his leave allowances remitted to

him.

Source

Maintenance of the acquittance roll has been provided under

Rule 7.12 of Punjab Financial Rules Volume-I also known as

P.F.R Vol-I and Financial Handbook No.2.

The prescribed proforma for acquittance roll has been

mentioned in Punjab Financial Rules Volume-II also known

as P.F.R Vol-II and Financial Handbook No.2, as P.F.R

Form-11.

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BUDGET

The basic source of all financial activities of the Government is the

annual budget. The estimates of receipts and expenditures for the ensuing

financial year are prepared by the Government every year, and are laid before

the Legislature. After approval, and passing of Finance Act, the distributions are

made to the departments and offices and that is the legal cover for their future

activities of collection of taxes and making expenditures.

Budget cycle

The budget process is usually divided into four cycles namely,

Formulation, Authorization or Approval, Implementation and Review. Each of the

four phases is explained as under:

Formulation means developing proposals. The estimates of

revenues and expenditures are made in advance for the next year. Formulation

of budget is the responsibility of the executive. All heads of offices, controlling

officers, heads of departments develop proposals relating to receipts and

expenditures of their own fields and send to the Finance Department. The

Finance Department consolidates those estimates for being laid before the

Provincial Assembly.

Approval or authorization implies approval by the Provincial

Assembly. The proposals - total for the province - are given shape of Annual

Budget Statement by group heads supported by " Demands for Grant", The

Demands are discussed in the House, voted and finally the Authenticated

Schedule containing several Grants and Appropriations signifies approval. The

approved grants are communicated to the departments and down to controlling

officers and the DDO’s.

Implementation means action on approved programs and services

by executive agencies. The departments and agencies draw money from the

treasury and spend on the projects and programs for which the funds have been

provided in the budget. On the revenues side they issue demand notes and

collect revenues and the accounts of revenues and expenditures are compiled

concurrently.

242

Review is the last stage of the process. It is done both concurrently

as well as post facto. The administrative authorities themselves do the

concurrent review, while the post review is done by the legislature, which

authorized the budget grants. The administrative departments, heads of

departments and controlling officers are supplied with expenditure statements

and receipts collection statements by the Drawing and Disbursing Officers, they

consolidate figures of entire grant and compare with the revenue targets and

authorized grant. They also reconcile the figures developed by them with those of

Accountant General. The controlling officers also inspect the subordinate offices

and during that inspection they scrutinize the flow of expenditure. For legislative

review, the independent agency of the Auditor-General is used. The audit teams

move around to make audit of accounts, and on the basis of their individual

reports, the year-end Audit Report is compiled by the Auditor-General, which is

laid before the House. A House committee-Public Accounts Committee examines

the reports in presence of Administrative Secretary and the representatives of the

Auditor-General and its recommendations are considered by the full House.

Role of administrative departments

The administrative departments collect data from its offices, add the

proposals relating to its own headquarters establishment, consolidates the entire

data and submit proposals to the Finance Department, The Budget Wing of the

Finance Department merges proposals with those of other departments and

consolidates expenditure. After taking the approval of the Chief Minister or that of

Cabinet, the entire budget is laid before the Provincial Assembly in shape of

Annual Budget Statement. The Administrative Departments have little role in the

'Authorization' phase of the Budget, except perhaps clarifying some points arisen

during pre-budget exercises in Finance Department.

Communication of grants: The several Grants in the approved budget are

communicated by the Finance Department to the Departments,, who in turn

communicate the sanctioned grant to the heads of offices through the heads of

attached departments and controlling officers.

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Budget making by DDOs

The DDOs in the departments play an important role in the budgetary

process. Their role is much greater in the first and third phases - Formulation and

Implementation. Formulation is concerned with forecasting receipts and

expenditures, as close to the would-be-actual as possible, and Implementation

requires keeping close to authorization. Both the activities of budget making, and

budget implementation are, by and large, account-based and relate to

comparatively small areas. It becomes easier to look into the reality with the

experience and foresight of the DDOs.

Budget is a statistical prediction. It needs imagination, foresight and

circumspection in arriving at correct estimates. Guidance is though taken from

past years' actuals but only to determine the trend of figures. All expenditures of

the year and the liabilities of past are put together to work out a correct demand

for expenditure. In the same way revenue estimation is done. The current

demand of revenue for the next year plus un-recovered arrears make the

estimates of receipts.

Rules of budget making

To regulate budget making and to avoid any shortfalls, or exceptionally big

savings, the budget experts have spelt out some basic rules for the guidance of

budget makers in the departments and offices. Those rules are briefly described

as under:

The estimates be proposed on what is expected to be

received (as revenue) or paid (as expenditure) on the basis

of operative sanctions;

The figures of gross receipts and gross expenditure be

shown in the proposals;

No provision be proposed for expenditure not covered by

sanction;

Nominal rolls should be prepared to support the proposals

for 'Establishment Charges';

244

Increments accruing during the year be included in

estimates;

Provision be made for leave-salary;

No lump sump provision be made without the approval of

Finance Department; and

No provision be made for posts held in abeyance.

Format of budget proposals

The offices and departments under the Government are required to

prepare budget proposals in two parts - Part I and Part II. The budget experts for

facility of scrutiny have created this distinction of 'parts'. After that scrutiny, the

figures in two parts are merged in one consolidated proposal for the year.

The most certain items are permanent establishment, fixed allowances,

and ordinary contingent expenditure- Other items relate to fresh charges, which

include new items of expenditure, such as temporary additions to existing

establishment or to services and facilities, which are either continued on year to

year basis or have been sanctioned anew with the clearance of Finance

Department and have not been provided for in current year's budget. The

proposals for this kind of expenditure are submitted in form of self-contained

notes, or memoranda supported by details.

The prescribed forms provide columns for:

Subheads and detailed heads (Function-cum-objects).

Actuals for last three years.

Actuals for last eight months of previous year.

Actuals for first four months of current year.

Sanctioned budget for the current year.

Revised estimates for the current year.

Budget estimates of the ensuing year.

The budget estimates for the ensuing year are accompanied by nominal

rolls, calculations sheets of allowances, honoraria and other charges and

comparative statement, showing the actuals of past 3 years, the sanctioned

grant, revised estimates of current year and proposed estimates for the next.

245

Nominal Rolls

The Nominal Rolls are prepared on a prescribed form containing seven

columns:

Name and Designation

Reference column

Sanctioned pay divided into sub-columns for minimum,

maximum and actual pay on 1st July.

Amount of provision for the ensuing year.

Increment column,

Total provision.

The seventh column is for 'Remarks'.

Estimating allowances

The next step is that of estimating 'allowances'. It is done by preparing a

statement with vertical columns for 'Designation' and one each for allowances. It

has the columns for following allowances:

House Rent Allowance

Conveyance Allowance

Washing Allowance

Dress Allowance

Cash Handling Allowance

Computer allowance

Medical Allowance

Non-Practicing Allowance

Compensatory Allowance

Ad-hoc Relief

It may not be necessary that all the allowances noted in preceding

para are applicable in all cases. But a combination of some of them is sure to

happen. An attempt should be made to conjecture the title to allowances with

reference to names of the officer and staff and those likely to be posted out or

transferred. The total of allowances are worked out for the year and filled in the

246

statement. The columns are totaled across and vertically and totals posted after

the 'Establishment Charges".

Estimating other charges

The other charges include Purchase of Durable Goods, Repair and

Maintenance of Durable Goods, Commodities and Services and may be

sometime somewhere Transfer Payments. There is hardly an item of expenditure

classifiable under 'Purchase of Durable Goods’, which could be permanent

except expenditures on rents of buildings, telephones, etc.

The estimation of expenditure other than pay and allowance is basically

an account-based exercise, but it is here that the budget makers have to use

their experience, foresight and judgment.

The budget estimates are proposed eight to nine months before the

commencement of the financial year. Some of the factors were not correctly

foreseeable at the time the budget exercise was undertaken. The rules require

that at the time of making estimates for the next year, opportunity should be

taken to review the approved/sanctioned estimates for the current year, and

action initiated to include or omit commitments that are likely to materialize, or

not, during the current year.

The making of revised estimates in actual effect precedes the making of

budget estimates of the next year. They are framed in light of:

Actual of first four months of current year;

Actual of last eight months of last year;

Twelve months' actual of last three year; and

Orders issued or proposed to be issued regarding

appropriation or re-appropriation within the grant, new items

of expenditure sanctioned through supplementary grant and

surrenders within the grant.

In determining the figures for revised estimates, it is not necessary nor is it

required that the nominal rolls and statement of allowances should be prepared

again. It is reviewed in general and what actually is needed, in light of the

guidelines reproduced in preceding para should be proposed in the revised

247

estimates. The idea is that the actual need for expenditure is clearer during the

year and unnecessary funds should be surrendered, or re-appropriation could be

made within the grant.

Supplementary grants

Cases, which involve a supplementary grant, are accepted by Finance

Department only if they relate to matters of real imperative necessity, or to the

earning or safeguarding of revenues. In such cases the demand for a

supplementary grant or for a token demand if the request is for a new service to

be met by re-appropriation, is presented to the Legislature as soon as practicable

after the need arises.

Article 124 of the Constitution of Pakistan, 1973, specifies the financial

procedure in case of supplementary grants, justification thereof rests only on

following considerations:

Sudden, unexpected and urgent demands, not included in the Annual

Budget Statement.

Need for an additional grant where the amount authorized is insufficient.

The administrative departments are required to explain the following at the

time of submitting proposals for supplementary grants:

Why need for increased provision could not be foreseen at the time of

finalizing the original estimates?

Why the expenditure cannot be postponed to the next financial year?

Why the additional expenditure cannot be funded by way of re-

appropriation?

While processing the demands for supplementary sanctions, Finance

Department examines the following:

Whether in the absence of such additional expenditure, serious

inconvenience, substantial loss or damage would result or not. If no

such inconvenience, loss or damage is apprehended, the proposal

is dropped altogether.

248

In case the urgency of a demand is justified, the additional

expenditure is first proposed to be met by re-appropriation of

savings from within the grant.

If re-appropriations are not possible, supplementary grants are

sanctioned when absolutely necessary.

In case of new expenditure on account of statutes or by orders of a court

of law or other competent authority, Finance Department invariably agrees with

the proposal. Also where the postponement of expenditure involves extra

expenditure ultimately or where receipts are to be safeguarded, the need for

such additional expenditures is generally agreed to.

If the supplementary sanctions are absorbed within the original

authorization for a particular grant by way of savings elsewhere, only a token

sum (Rs.10) is demanded/submitted for approval of the Assembly.

Supplementary sanctions are consolidated by the Finance Department in

the form of a Supplementary Budget Statement.

It requires approval of the Cabinet and recommendations of the Chief

Minister before it is laid before the Provincial Assembly.

The manner in which the Supplementary Budget Statement is presented,

discussed and voted in the Assembly is the same as that prescribed in respect of

the Annual Budget Statement.

The rules specify that:

The authority administering a grant is ultimately responsible

for watching progress-of expenditure on public service under

its control and for keeping expenditure within the grant.

The controlling officer has to see that the funds placed at his

disposal are expended in public interest and on objects for

which the money was provided.

The controlling officers should see that the irregularities and

errors in the use of funds are prevented and safeguards

exist against waste and loss of public money and stores.

249

There should be no delay in payment of money indisputably

payable by the Government.

Moneys should not be spent in hurry nor in ill-considered

manner, merely because it is available. Nor should any

money be spent to avoid the lapse of a grant. The rush of

expenditure in the closing months of the financial amounts to

breach of standards of financial propriety.

250

Annex-E

TIME LIMITS FOR THE DISPOSAL OF CASES.

All claims received in this office should be disposed of as early as

possible. However the maximum time limits within which claims should normally

be disposed of are prescribed hereunder. The concerned Assistant Accounts

Officers are advised to implement these time limits. Cases in which disposal is

not made within the prescribed limits should be reported to the D.A.O. The limits

prescribed hereunder are suggested and not binding unless orders to this effect

are issued by the competent authority.

Sr.No Nature of claim Time limit

1 Issuance of pay slip to gazetted officers. One week.

2 Issuance of last pay and service certificate. One week

3 Regular pay bill if received till 27th of the

month.

Latest by Ist of the

month.

4 Regular pay bill if received after 27th of the

month

within 4 days.

5 Bills of adjustment for the purpose of drawl of

pay.

10 days.

6 Bills of arrears of increases in pay. 15 days.

7 Bills of leave salary, LPR, Leave encashment. One week.

8 Certificate of Admissibility of leave 4 days

9 Bills of subsistence allowance 3 days.

10 Provision of service statement. 10 days.

11 Provision of certificate of G.P Fund

deductions.

2 days.

12 Verification of income tax returns 2 days

13 Certificate regarding reaching the maximum

of a pay scale.

2 days

14. Bills of reimbursement of medical charges. 7 days

251

15 T.A. bills 7 days

16 Execution of orders of courts regarding

attachment of pay of officers.

On receipt of bill.

17 Countersigning L.P.C of officials. 2 days

18 Utility bills 3 days

19 Other contingent bills 7 days

20 Bills of advances 7 days

21 Pay fixation. 15 days

22 Allotment of G.P fund account number. 2 days

23 Issuance of G.P. fund balance slips on

demand

2 days

24 Final payment of G.P Fund. 15 days

25 Adjustment of missing credits. 7 days

26 Transfer of G.P Fund balance to other

districts.

20 days

27 Payment of first pension, .(commuted value of

pension.

7 days

28 Regular pension. 2 days

29 Transfer of PPO's to banks, other districts. 7 days

30 Noting increases in pensions. 15 days

31 Issuance of Duplicate P.P.O's. 7 days

32 Re-imbursement of medical charges to

pensioners.

7 days

33 Opening of Personal Ledger Accounts. 7 days

34 Clearance of cheques of PLA P.W.D

cheques.

24 hours.

35 P.W.D cheques 24 Hours.

36 Issuance of credit certificate. 7 days

37 Passing credit challans of stamps Same day.

38 Incorporating triplicate challans of transfer

credit bills

3 days

252

39 Refunds of revenue 7 days

40 Repayment of revenue deposits. 12 days

41 Repayment of lapsed deposits. 15 days

42 Issuance of stamps from the Double Lock. 2 days

43 Issuance of receipt books, cheque books,

refund voucher books etc.

4 days

44 Verification of issuance of stamps 2 days

45 Delivery of valuables. Same day.

46 Keeping valuables in the Double Lock. Same day.

47 Verification of service qualifying for pension. 10 days

48 Issuance of CBR and P.P.O. 15 days

49 Issuance of revised P.P.O. 15 days

50 Granting Token for bills received. As soon as bills are

received.

51 Bills of advances out of G.P Fund. 7 days.

253

Annex-F

INSPECTIONS

i) General questions.

ii) Special aspects.

254

GENERAL QUESTIONS

1) Is the distribution of work equitable and according to ability and

temperament? Does each functionary know the precise nature of his

duties and functions?

2) Is the out put of work of various functionaries reasonably satisfactory?

Does it conform to accepted standards?

3) Is the rate of disposal of work satisfactory? Do actual pending bills tally

with arrears statement?

4) Is there any indication of unnecessary accumulation of work at any point?

5) Are " please speak" cases attended to promptly? Is the number of such

cases excessive?

6) Are periodical reports and returns sent out to the authorities concerned

regularly? Is a list of such reports and returns maintained?

7) Are bills, claims received on token, or diary? Are tokens available in

sufficient quantity?

8) Is there any wastage or misuse of stationary, furniture, electricity,

telephone etc.?

9) Is the procedure for the receipt, custody and issue of stationery efficient?

10) Are stock register, dead stock register depict true position of stocks?

11) Are the working conditions satisfactory?

12) Is the office lay out convenient? Are tables and chairs properly arranged?

13) Are the office premises kept clean and tidy?

14) Are the necessary reference books, codes, manuals, prescribed forms of

reports and returns readily available?

15) Are the service records, leave accounts, seniority lists etc. properly

maintained. What is the degree of punctuality of staff? Is there any

indication of habitual late attendance?

17) Does the staff pay undivided attention to work during office hours?

255

18) Is the procedure for the receipt and distribution of claims efficient? Is there

any avoidable delay between the receipt of claims on the pre-audit counter

and its delivery to the concerned section?

19) Are the arrangements for the identification of pensioners convenient to the

pensioners?

20) Are the schedules of G.P Fund deductions being regularly detached from

the bills and provided to the G.P Section?

256

PART B/ SPECIAL ASPECTS

TREASURER’S SECTION

SR.NO Salient items to be examined during inspection of DAOs/STOs

DOUBLE LOCK

1 Cipher Code

a) Kept in safe custody. (Rule 3.47 PER Vol-I).

b) Submission of Annual possession certificate. (Rule 3.47 (6) PFR

Vol-I)

c) Incorporation of upto date amendments. (Note 1 under Rule 3.47

PFR Vol-I).

2 Pad Locks Register

a) Maintenance of pad locks register. (Rule 3.11 PFR Vol-I, Page

marking and certificate).

b) Use of padlock on the occasions as in indicated in the pad locks

register.

c) Annual oiling and cleaning & certificate. (Note bellow rule 3.11 (4)

PFR Vol-I).

d) Physician verification of spare pad locks. (Rule 3.11 (5) PFR Vol-I).

e) Disposal/replacement of unserviceable pad locks. (Page marking &

certificate). (Rule 3.11 (3-A) PFR Vol-I).

3 Duplicate Keys.

As above. (Rule 3.11 (5) PFR Vol-I).

4 Duplicate Keys with the D.C

a) To check the safe custody of duplicate keys of strong room with the

D.C (Rule 3.11 (5) PFR Vol-I).

b) Annual physical checking/verification of key deposited.(Note below

para 4 of Rule 3.11 of the PFR Vol-I).

c) Recording of certificate in the register regarding annual verification.

(Rule 3.11 (7) PFR Vol-I).

5. Disposal of duplicate keys o various departments kept under Note 3 below

3.8 PFR Vol-I and final disposal as per instructions contained in Finance

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Department's circular letter No. IT (FD)-III-5 (18) 81, dated 23-4-86, SO

(TT) 8 (1)/77, dated 22-9-86.

6. Registers of Valuables

a) Maintenance of registers of valuables. (Rule 3.8 PFR Vol-I) (page

marking and certificate).

i) To be taken out frequently.

ii) Not to be taken out frequently (Rule 3.8 (iv) PFR Vol-I).

b) File containing the orders of the Collector for their deposit and

disposal. (Rule 3.8 (ii) PFR Vol-I).

c) Monthly physical verification of valuables. (Rule 3.8 PFR Vol-I).

7 Cheque Books/Refund Voucher Books and PWD Receipt Books.

a) Issue of cheque books/receipt books to XEN's/SDO's and PL

Accounts Operators. Issue of refund vouchers books. (Rule 2.13 (a)

PFR Vol-I).

b) Physical verification of balance of cheque book, receipt books and

refund books. (rule 3.46 PFR Vol-I).

c) Authentication of counting certificate in the cheque books. (Rule

3.46, PFR Vol-I).

d) Preparation of quarterly statement regarding issuance of PWD

cheque/receipts books and its dispatch to XEN's/SDO's. (Note 2

below Rule 3.46 PFR Vol-I).

8. Double Lock Registers

a. Recording of entries in the double lock registers i.e. originals &

duplicates by sub-Accountant/Sub-Treasurer respectively. (Para 8

chapter 5 of Punjab Stamp manual) (page marking and certificate).

b) Physical checking of stamps kept in the double lock. (Rule 3.12 (b)

PFR Vol-I).

c) Authentication of entries/cuttings & over-writings in the double lock

registers. (Rule 3.25 PFR Vol-I).

d) Recording No. and date of dispatch of advises after verification in

the double lock registers. (Para 23 (ii) appendix 9 of PFR Vol-I).

258

e) Comparison of entries of double lock registers with the advises

received from C.Os Karachi. Para 23 (iii) appendix 9 PFR Vol-I).

f) Preparation of certificate regarding half yearly verification in Form

A&T -48. (Para 35 of appendix 9 of PFR Vol-I).

g) Comparison of entries of double lock registers with indent register

prepared for taking out the stocks of stamps from the strong room

and credit challans. (Paging & its certificate) (Para 28 of appendix 9

PFR Vol-I)

9. Indent Register.

a) Attestation of daily indent by the DAO/TO/CTO. (Para 28 of

appendix 9 PFR Vol-I).

b) Comparison of entries in double lock/single lock registers and

fortnightly verification under para 28 of Appendix 9 of PFR Vol-II.

c) Preparation of abstract. of the items indented from double lock.

d) Recording of total value of stamps taken out from the double lock,

in words as well as figures. (Page marking).

10. STRONG ROOM SAFETY CERTIFICATE

Issuance of fitness certificate by the Building Department. (Rule 3.13 (a) of

STR.)

11. MONTHLY PLS AND MINUS STATEMENTS OF STAMPS.

(Para 36 of appendix 9 PER Vol.11.

12. MONTHLY STAMPS TRANSACTION STATEMENT OF STAMPS IN

FORM A&T,347.

13. HALF YEARLY VERIFICATION OF STOCKS OF STAMPS. PARA 28OF

APPENDIX 9 OF PER VOL-11.

14. STOCK EXPENSE REGISTER.

a) Maintenance of stokes expense register. Para 29 of appendix 9 of

PER VOL-11.

b) Keeping of balance in the single lock as per limit fixed by the

Finance Department.(Rule 3.5(1) PER VOL-1and limits fixed by

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Finance Department vide letter No. SO(TT)26(6)/69,dated

19.8.1986.

15. SECURITIES. (3.5STR).

a) Cash as well as tangible securities rendered by Head

Treasurer/Assistant Treasurer and Sub-treasurers. Instructions

issued vide No. SO(TT)26/69,dated 19.8.1986.

b) Payment of cash handling allowance without deposit of securities.

16. REGISTER OF DOCUMENTS.

a) Register maintained in the prescribed form if not columns opened

according to the para 9(iii)of the BOR's instructions circulated vide

NO.1091-78/619-ST-I, dated 18.3.1978

b) Duties assigned to the Treasurer/ Assistant/DAO vide para

10,11&12 of interaction ibid followed.

17. MAINTAINING OF REGISTER OF R.R.

18. ISSUANCE OF STAMPS ON THE SAME DAY AFTER/PROPER

VERIFICATION OF CREDIT AND PERMISSION OF DAO/STO

NO.IT(FD)6-19--83, DATED 28.12. 1986.

19. REGISTER OF INVOICES.

(Under para 23(iii) of Appendix 9 per Vol-11

20. REGISTER OF ACCOUNTS OF EMPLOY WOODEN BOXES (SALE

PROCEED QUARTERLY STATEMENT).

21 PERIODIC INDENTS/ANNUAL FORECAST.

Para a of auditing 9 of PFR Vol-II

22 INDEX REGISTER OF FILES.

23. REGISTER OF INSPECTION.

24. MONTHLY PHYSICAL VERIFICATION OF STOCKS OF STAMPS

LYING IN THE SINGLE LOCK BY THE DAO.

Rule 3 of chapter 4 Part III of Punjab Stamp Manual and explanation

below note under para 28 of Appendix 9 PER Vol-II.

260

ACCOUNTANTS DEPARTMENT.

1. CASH BOOKS.

Under rule 3.16 of PER Vol.-I and para 32 of account code Vol.-II

a) Maintenance of each books/page marking whether maintained

financial year-wise.

b) Cross checking of entries with compilation registers and its

attestation by the DAO (Rule 3.19 PER Vol.-I)

2. COMPILATION REGISTERS SUB-SIDERY REGISTERS. Para 35 of

Account Code Vol-I.

a) Compilation of accounts.

b) Classification etc. (Paras 32-41 of account code Vol-II.

3. DEPARTMENTAL/TREASURY SCHEDULES.

Preparation of monthly departmental/ treasury schedules & dispatch there

of to the DDO's.(Rule 2.2 PER Vol-I and 13.4 of Budget Manual. Note

below Rule 2.13 PFR Vol-I and 4.156 (e) of Subsidiary rule.)

4. DRAWING SCHEDULES.

Preparation of drawing schedule and its submission to the National Bank

of Pakistan branch under sealed cover.

5. B.T. Register. (Para 39 of Account Code Vol-II).

6. REGISTER OF STATE BANK DEPOSIT.

Para 44 Account Code Vol-II.

7. REGISTER OF MISS-CLASSIFICATIONS BY BANK. (Para 45(c) of

Account Code Vol-II.

8. REGISTER OF ADJUSTMENT BY TRANSFER under Para 39 of Account

Code Vol-II.

9. Maintenance of Appropriation Register Form ATM-10.

AG's instructions issued vide No. Record/1-8/A.G.F.D. meeting/CD/

18206, dated 09-09-86 & F.D's instructions bearing No. IT(FD)6(8)/83,

dated 18-09-86.

10. RECEIPT SCHEDULES.

12.5 Budget Manual.

261

11. SUBSIDIARY REGISTERS (RECEIPTS).

Para 35 of Account Code Vol-II.

12. Refunds i) Specimen signatures of issuing authorities/collecting

banks/advice of issuing authority/challans intimation of refund book issued

to DDO's by Treasurer.

Rule 4.58 of Subsidiary Treasury Rules.

13. Verification of C.T.Rs (REVENUE DEPOSIT SECTION) (Rule 3.38 PER

Vol-I.

14. MAINTENANCE OF REGISTER OF REVENUE

DEPOSITS/ATTESTATION BY DAO/details of credits OF STO's.(Article

64 of Account code Vol-II).

15. Repayment of Revenue Deposits. (Para 66 of Account Code Vol-II).

16. Repayment accounts register.

17. Observance of formalities on admitting refunds. (4.58 of STR).

18. a) Lapsed deposits statement.

b) Countersignatures of Collector. (Para 127 of Account code Vol-II).

19. Subsidiary register of repayments of lapsed deposits. Sanctioned

register. Indication against entries in the lapsed deposits statement &

receipt register of Revenue Deposits. (12.7 PFR Vol -I).

20. Certificate of genuineness of receipt entries by Collector in the R.D.

register as required under para 124 of Account Code Vol-II.

21. Clearance Register. (Para 125 of Account Code Vol-II).

22. Maintenance of file of specimen signatures of DDO/refund issuing

authority for verification of genuineness of payments.

23. Incorporation of payments made at Sub-Treasuries/Daily Saiahas

(Para 77 of Account Code Vol-II and Rule 3.18 of PFR Vol-I).

24. PERSONAL LEDGER ACCOUNTS

i) Maintenance of P.L Accounts Register. (12.16) PFR Vol-I.

ii) Maintenance of P.L. Accounts pass books/verification. (12.19) PFR

Vol-I

iii) Receipt challans/authorities.

262

iv) File for intimation slips of cheque books in use.

v) Cheque passing Register. (Provincial).

vi) Specimen signatures file.

vii) Plus and Minus of P.L Accounts. (Article 110 Account Code Vol-II).

viii) To watch the PLA fed with Govt. grants being lapsed on 30th June

of each year vide Instructions bearing No.B-I127 (259)/90, dated 9-

12-90.

25. PENSION

i) Guard files (along with index).

ii) Index Register of PPO (from same office, others districts & A.G.

Punjab, Lahore, etc. (Rule 4.94 of STR).

iii) Payment of pension and increases, and transfer of PPO to National

Bank of Pakistan branches & other D.A.O's SO(TT) FD-9(1)/77,

dated 27-8-77.

iv) Annual physical appearance/attendance of pensioners. (Rule 4,107

STR).

v) Post Audit of pension paid by Banks. As per instructions issued

vide No.SO(TT)2-3/87, dated 19-8-87.

vi) Recovery of overpayments (if paid in excess by Banks.) vide

instructions No.SO(TT) 9(1)/77, dated 27-8-77.

vii) Payment of pension on disburses, halves, as required in Rule 4.93

STR. F.D's instructions issued vide No.SO(TT)2 (3)/87 dated 19-8-

1987.

viii) Correction of loss payment to pensioners.

ix) Authorization of first payment of commutation/pension by two

DAO's as per instructions issued vide No.SO(TT)2-3/87, dated 19-

8-87.

26 CHEQUE SECTION

i) Delivery of daily advice under sealed cover to Banks, Letter sealed

cover to Banks. Letter No. Try/62 (Part-II), dated 16-1-69 & 22-3-

73.

263

ii) Discharging of paid vouchers Rule 3.63 PFR Vol-I.

iii) Receipt of account from the bank and entry thereof in the register

PAO-52.

iv) Transit Register/Token system. Note 4 below Rule 4.5 STR. F.D's

instructions issued vide No. OSD (LA&T) 7-1/75, dated 13-5-76,

A.G's instructions issued vide No. Record/AS/Transit

Register/CD/1302, dated 18.3.1992.

27. ADMINISTRATION.

1) Maintenance of departmental cash book as per rule 2.2 of the PFR

Vol-I.

2) Budget/contingent register.

3) Payment/receipt schedules (as DDO).

4) Maintenance of service books. Rule 12.10 & 12.11 of CSR Vol-I.

5) List of officials retiring within next year.

6) Option of G.P Fund.

7) Index register of files.

8) Service stamps accounts register.

9) Receipt/dispatch registers.

10) Register of library books.

11) Stock registers (consumable & non-consumable articles).

12) Stationery expense register.

13) Telephone accounts register.

14. History sheets of typewriters, calculators and other machinery

equipments.

15) Acquaintance roll of pay/TA (affixing of revenue stamps).

16) Actual payees receipts.

28 P.W.D. CHEQUES.

i) Maintenance of budget register of P.W.D.payments through

cheques

ii) Checking of excess/over-payments against the provision of budget.

264

PART C / INSPECTION BY THE AG OFFICE

Office of the Accountant General, Punjab, Lahore, has devised the

following questionnaire for inspection of the District Accounts Offices.

SECTION-I DEPARTMENTAL AUDIT SECTION (DA ) .

1) Sectional Bill Register properly / not properly maintained and report

prepared upto…………………

2) Sectional Diary Report prepared upto………………..

3) Any other Diary maintained and reported upto……………... or not

maintained.

4) Budgetary allocations have / have not been found noted on the Special

Charges Registers under proper attestation (Please mention the

Department and period indicated in the Register).

5) Has the number and date of the memo for allotment of budgetary

allotment noted in the register under proper attestation?

6) Particulars of sample checking of register with memos of budget.

7) Has the Post Audit Register maintained and kept updated (Please indicate

the post audited vouchers checked).

8) Position of reconciliation of expenditure figures with the concerned

Departments (Please indicate the period upto which Reconciliation has

been completed).

9) Position of court cases / Wafaqi Mohtasib’s cases.

10) Position of Scale Audit Register (s).

11) Comparison of at least one week’s Scroll of D.A. Section with the

vouchers (indicate the dates, the Scroll of which was examined).

12) Sample checking of Departmental Classified Abstract with contingent bills

and pay bills (Please indicate the Token number and date and amounts of

the bills checked).

13) Detailed examination of at least ten arrear claims of pay & allowances.

14) Has the Register of Record of L.P.C. countersigned by the DAO,

maintained? (Sample checking of L.P.C. countersigned by the D.A.O.).

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15) Position of transmission of G.P.Fund Schedules to G.P.Fund Section.

(Generally and specially from arrear claims).

SECTION-2 GAZETTED AUDIT DEPARTMENT (G.A.D).

1) Position of sectional Bill Register. Delivery of Bills to the Assistants

against acknowledgements and reports prepared.

2) Position of maintenance of various diaries.

3) Position of post audit.

4) Has the Post Audit Register been maintained and updated?

5) Maintenance of personal files of the officers (Test check with certain files

with due comparison with the Gazetted Audit Register).

6) Completion of Form S.98 in Gazetted Audit Register (Please mention the

particulars of officers).

7) Position of the maintenance of Special Charges Registers/ T.A. Registers

etc. (Budget and expenditure properly worked out to indicate updated

balance). Please mention the particulars of the Departments checked.

8) Comparison of vouchers with Compilation Sheets (Sample checking).

Please indicate the particulars of vouchers checked and state

shortcomings, if any.

9) Results of sample comparison of G.A.D. vouchers with Scroll of the

Cheque Section, especially arrear of pay and allowances claims and

encashment of leave in lieu of leave preparatory to retirement cases.

10) Results of sample comparison of arrear claims vouchers with Gazetted

Audit Register (Please indicate the Token number, date and amounts of

claims checked).

11) Maintenance of various broad sheets.

12) Position of recoveries of loans and advances (Sample checking by

indicating the cases checked with general remarks, if any).

13) Position of transmission of General Provident Fund Schedules to

G.P.Fund Section.

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SECTION-3 COMPILATION SECTION.

1) Position of discharging of DAO’s Scroll with the vouchers and Bank Scroll

(Sample checking of at least one week’s Scrolls with their full particulars).

2) Results of sample comparison of Compilation Sheets with vouchers

(Please mention the period and the Departments).

3) Comparison of accounts figures (Receipt / payment) communicated to

A.G. Punjab with the Classified Abstracts…Please mention full particulars

of area checked).

4) Reconciliation of Classified Abstract figures with the Cash Book.

5) Is Schedule of Payments issued to DDOs?

6) Is Monthly account compiled correctly and submitted to A.G. in time.

7) Is Gross / or Net amounts taken in accounts.

SECTION-4 GENERAL PROVIDENT FUND (GPF) SECTION.

1) General Provident Fund Accounts maintained upto………

2) Post audit conducted upto………..

3) Comparison of Post Audit Register with vouchers and G.P.Fund Ledger

Cards as well as Sectional Bill Registers (Please indicate the particulars of

cases checked).

4) Does the opening balance / closing balance in Ledger Cards stand

properly attested (Sample checking with particulars of Ledger Card

checked).

5) Position of proving of G.P.Fund Broad Sheets.

6) Comparison of G.P.Fund Scroll with Ledger Cards and Post Audit

Register. (Sample checking with particulars).

7) Have Disbursement Certificates been received in final payment cases?

(Sample checking with full particulars).

8) Detailed scrutiny of G.P.Fund advances, final payment cases, with full

particulars of cases checked.

9) Examination of Different Sheets and Missing G.P.Fund credits.

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SECTION-5 PENSION.

1) Detailed scrutiny of pension cases. (Sample checking with full particulars

of cases checked).

2) Position of post audit of pension payment. (Especially the payment of

commutation / gratuity). Please indicate the cases checked. (Sample

checking).

3) Detailed scrutiny or sample checking of pay fixation cases on Service

Books. (Please indicate full particulars).

4) Position of pension account.

SECTION-6 COMPUTERIZATION

(Applicable only to those DAOs where computerization has been started).

1) Position of post audit of computerized pay rolls (Gazetted & Non

Gazetted) .

2) Audit Register (Gazetted) and Establishment Register.

3) Position of computerized pay and allowances with various Scale Audit

Register to know that no excess payment allowed. (Particulars of cases

checked to be mentioned).

4) Detailed scrutiny of computer changes with reference to record maintained

in D.A. Section and G.A.D. Section. (Particulars of cases checked to be

mentioned).

SECTION-7 MISCELLANEOUS

1) General remarks.

2) General remarks with reference to last Inspection Report.

3) Excess and shortage of staff.

4) Detailed post audit of Sub-Treasury payments with scroll etc; of at least

one week’s payment, intimating their full particulars.

5) Scrutiny of accounting with other DAOs / AG Punjab with reference to

relevant papers and their genuineness.

6) Results of reconciliation of cash balance with State Bank of Pakistan /

National Bank of Pakistan.

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