Government of Orissa Panchayati Raj Department Overview of Model Accounting System for Panchayats .
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Transcript of Government of Orissa Panchayati Raj Department Overview of Model Accounting System for Panchayats .
Government of OrissaPanchayati Raj Department
www.orissapanchayat.gov.in
Overview of Model Accounting System for Panchayats
http://accountingonline.gov.in
Simplified Accounting Structure for PRIs
Why Model Accounting System ?
• One of the item of e-PRI (Mission Mode Project [MMP] under National e-Governance Plan [NeGP]).
• Recommendations of C & AG and MoPR.
• TFC incentives Grant
Performance based Grant Conditions for getting Rs.897 crores
Wherewithal
• IT Infrastructure
All Block Panchayats computerised : 11th FCA
All Gram Panchayats computerised : 12th FCA
• Manpower
Qualified I T professionals : 11th FCA/ 12th FCA
• e-Connection
All Block Panchayats connected : GRAMSAT
Additional Connectivity : BSNL VPN
Precursor
PAMIS Accounting Software Implemented as a trial version in ZP/BP for
maintenance of Accounts Advantages of the application
» Follows double-entry accounting system» Daily transactions can be captured» Can be customised as per accounting requirements
Shortcoming in the application» No Standard Budget Head concept» Standalone version» Lack of security in the data-storage» Not in the public domain.» Can’t be integrated with NREGSoft, PlanPlus, AwasSoft
at National Level.
Rational for PRIASoft
• Based on Standard Head of Accounts Concept
• Complies to C& AG formats
• Standard formats(8) prescribed by C&AG for al level of PRIs
• Web based software application developed by NIC at National Level.
Need of Standardised Formats
• Preparation of Budget.
• Analysis of Eexpenditure.
• Maintenance of Accounts.
• Self disclosure of financial transactions.
• Reporting for Auditing.
What is New?
3-Tier Classification: Simple, robust, and easy to use.
Generation of Financial Reports through computers
2-Part Accounts:
Part-I: Receipts & Expenditure
Part-II: PFs, Loans, Deposits, Advances, etc.
3-Tier classification
04/19/23CAG of India
Part-I –Panchayat FundReceipts Payments Revenue Receipts (0-1) Revenue Expenditure (2-3)
- Tax Receipts *Taxes on Profession,
Land revenue, etc
-2049 Interest payment -2059 Maintenance of Community Assets, etc
-Non-Tax Receipts * Interest eared, etc
Capital Receipts (4000) -Other Receipts (800)
Capital Expenditure (4-5)
Part-II -Loan Section - Provident fund & Pension -Insurance -Civil Deposits & Advances - Suspenses Accounts
04/19/23CAG of India
Part-II –Provident fund & etc
Receipts (7000-8999) Payments (7000-8999)
Loan Section -Loan Section-7610Pension & Provident Section - Provident fund & Pension (8009)Insurance & Pension Section -Insurance (8011)Deposits & Advance Section -Civil Deposits (8443) -Civil Advances (8550)Suspense Account - Suspense Accounts (8658)
Loan Section -Loan Section-7610Pension & Provident Section - Provident fund & Pension (8009)Insurance & Pension Section -Insurance (8011)Deposits & Advance Section -Civil Deposits (8443) -Civil Advances (8550)Suspense Account - Suspense Accounts (8658)
04/19/23CAG of India
• Central Schemes assigned 2-digit sub-heads & State Scheme Alpha-numeric 2-digit subhead:
Exception to 3-Tier
Receipts Payments
1601- Grants in aid 2210-Health and Sanitation
101-Grants from GOI 101-Primary Health Centre
15- NRHM 15-NHRM
02- Wages (object head)
02-wages (object head)
Structure of Budget Head
Three layer Budget Head for receipt of Grants-in-Aid
– First 4-digit classification - major head represent function
– Second 3-digit classification - minor head represent the programme of expenditure.
– Third 2-digit subhead only for schemes
Contd..
Structure of Budget Head
Four layer Budget Head for expenditure
– First 4-digit classification - major head represent function
– Second 3-digit classification - minor head represent the programme of expenditure.
– Third 2-digit subhead only for schemes
– Fourth 2-digit (00 to 99) - object head -represent the object item of expenditure.
Major HeadsAgriculture
Soil and Water Conservation
Minor Irrigation
Animal Husbandry, Dairying, Poultry and Fuel and Fodder
Fisheries
Forestry and Minor Forest Produce
Village and Small Scale Industries
Rural Housing
Water Supply and Sanitation
Animal Husbandry, Dairying, Poultry and Fuel and Fodder
Transportation
Rural Electrification
Non-conventional Sources of Energy
Poverty Alleviation Programme
Contd..
Major HeadsEducation
Technical Training and Vocational Education
Art, Culture and Libraries
Market and Fairs
Health and Family Welfare
Water Supply and Sanitation
Women and Child Welfare
Social Security and Welfare
Welfare of Scheduled Castes, Scheduled Tribes and Other Weaker Sections
Public Distribution System
Maintenance of Community Assets
Interest Receipts/Payment
Pension and Other retirement benefits
Panchayati Raj Programmes
3-Tier Classification• Major Heads:
– 23 Major Heads to cover 29 functions– New Major Head: ‘2206 –Market and Fairs’
• Schemes:– Major GoI Schemes: Standardised 2-digit
subheads.– State Schemes: 2-digit alpha-numeric subhead
• Object Heads:– Standardized object heads for common types of
expenditure (27)– Additional object heads: can be opened by
Panchayats
Standardised Sub-Heads for Some Central Schemes
Scheme Code (Sub Head)
Scheme Description
11 Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS)
12 Sampoorna Gramin Rozgar Yojana (SGRY)
13 Swaranjayanti Gram Swarozgar Yojana(SGSY)
14 Indira Awas Yojana (IAY)
15 National Rural Health (NRHM)
16 Accelerated Rural Water Supply Programme (ARWSP)
17 Total Sanitation Campaign
18 Mid Day Meal Scheme
19 Sarva Shiksha Abhiyan
20 Pradhan Mantri Gram Sadak Yojana (PMGSY)
21 Integrated Watershed Management Programme
22 Integrated Child Development Services (ICDS)
Standardised Object Head01 Salaries (1)
02 Wages
03 Overtime Allowance
04 Pensionary charges
05 Honoraria
06 Medical treatment
07 Travel Expenses
08 Office Expenses (2)
09 Rent, Rates and Taxes
10 Audit Fee
11 Printing
12Other Administrative Expenses
13 Supplies and Materials
14 Petrol/Diesel
15 Advertising and Publicity
16 Other Contractual Services
17 Grants – in – aid
18 Contributions Contd..
19 Subsidies
20 Share of taxes / duties
21 Motor Vehicles/hiring charges
22 Machinery and Equipment
23 Major Works
24 Write off / losses
25 Deduct recoveries
26 Maintenance
80 Other Expenditure
Standardised Object Head
Salaries: includes in these object head
(i) Pay of officers, (ii) Dearness pay of officers, (iii) Dearness Allowance of Officers,(iv)Pay of establishment, (v) Dearness pay of establishment, (vi) Dearness Allowance of
establishment,(vii) Bonus , (viii) Interim relief, (ix) Other allowances (CCA, HRA &
other fixed allowances), (x) Children education allowances,(xi) LTC, (xii) Transport allowance.
Other Expenses (2) includes in these object head
(i) Local purchase of stationery,
(ii) Liveries,
(iii) Telephone & trunk calls,
(iv) Furniture,
(v) Service postage stamps,
(vi) Purchase of books & publications,
(vii) Office expenses and miscellaneous ,
(viii) Staff car,
(ix) Water cooler,
(x) Typewriter,
(xi) Purchase of accounting machine,
(xii) Charges paid to the State Government for Police Guards,
(xiii) Hot and cold weather charges,
(xiv) Electricity & water charges,
(xv) Purchase of photo copier,
(xvi) Purchase of computer & laser printer.
Items included in Salary & OE
PART II - Other Heads
7610 Loans to Panchayat Employees
8009 Provident Fund
8011 Insurance
8443 Civil Deposit
8550 Civil Advances
8658 Suspense Accounts
4000 Capital Receipts
Capital Heads relate to Revenue Heads
Preparation of Accounts
Budget in prescribed (new) classification.
Accounts : on cash basis
Period of accounts : Financial year. (1st April ending 31st March)
Data/ Reports through IT Applications, PRIASoft developed by NIC
Provision for all prescribed (8) Report formats.
Simplified Accounting Procedure:
a) The accounts are prepared on cash basis i.e. a transaction is only recorded when cash is received or paid.
b) Period of accounts is a financial year as a period of 12 months ending 31st March in any year.
c) Daily transactions shall be recorded in Cash Book. – The receipts be recorded on receipts side and payments on payments
side.– Every day the cash book shall be closed and Closing Balance worked
out would then form the Opening Balance for next day.– Classification / head of account for each transaction shall be clearly
mentioned.d) Every day the details of transactions as recorded in the cash
book.‒ Transferred to Register of Receipts if the transaction is receipts
‒ Transferred to Register of Payments if it is payment.Contd..
e) Bank Reconciliation:
At the end of the month the bank and treasury reconciliation should be completed.
Differences between cash book, bank and treasury balances are to be rectified.
Corrections should be made then & there in the Register of Receipts and Register of Payments.
Totals in Register of Receipts and Payments can be struck which would give the total expenditure under each head of account for the month.
Where PRIs and Bank / Treasury are computerized, online reconciliation with Bank/Treasury may be followed.
Simplified Accounting Procedure:
Contd..
f) At the end of each month, totals of Receipts and Payments (upto object head level) are to be posted to the Monthly Receipts and Payment Account.
g) The figure is added to previous month’s progressive total and the figures up to the end of the current month can be worked out in the Consolidated Abstract.
h) Annual Receipts and Payment Account can be worked out at the end of the year.
i) After closing of March Accounts, Reconciliation of Receipts and Expenditure figures with the Departments (online, where facility is available) should be carried out to detect any misclassification clear the unclassified transaction booked in the Suspense accounts and all transactions appearing as Transfer entries. The final progressive figure under each head be worked which completes the accounting process for that year.
j) Receipts and Payment account is prepared on the basis of figures from the Consolidated Abstract.
Simplified Accounting Procedure:
Contd..
k) The Budget of PRIs for the year be prepared by adopting the classification prescribed in the Receipts and Payment Account/ List of Codes for functions, programmes and activities prescribed.
l) Refund of revenues/re-imbursement of expenditure of the current year is to be accounted as reduction of receipts/expenditure.
m) Bank/Treasury Reconciliation Statements.
Register of Receivable and Payable, Register of Movable and Immovable property, Register of Inventory, Register of Demand, Collection and Balance form integral part of the annual accounts.
o) Maintenance of these register would help in subsequent switch over to the modified accrual system of accounting.
Simplified Accounting Procedure:
Contd..
Rectification of error/ misclassification – Transfer Entry In the Monthly and Annual Accounts , any mistakes noticed after closure of the monthly accounts and before closure of annual accounts, it can be rectified as detailed here under:
Simplified Accounting Procedure:
Example 1: A sum of Rs.1000/- being Property Tax collected in the month of June 2008 has been misclassified as Entertainment Tax and the mistake is noticed after the closure of Monthly Accounts in the month of December 2008.
Solution: Minus Credit under MH 0045-101 (to be deducted) is posted in Register of Receipts with a small note for the minus credit.
Credit is given under MH 0035-101 in Register of Receipts with a small note for the plus credit.
This has to be done in the month in which the error/misclassification is noticed and rectified.
Contd..
Simplified Accounting Procedure:Example 2: A sum of Rs.9000/- for the month of November 2008
towards payment of overtime allowance to Primary School Teachers of Education Department was misclassified as office expenditure of Primary Health Centre of Health Department.
This mistake is noticed after the closure of Monthly Accounts of November 2008.
Solution: Minus Debit (to be deducted from the expenditure of the head) is to be posted in the Register of Payments against the 2210-101-08-office expenses with a small note for the minus debit.
• Similarly a contra debit is given in the Register of Payments against the 2202-101-03-overtime allowance with a small note for the contra debit to be done in the current month in which the error/misclassification is noticed and rectified. Contd..
Simplified Accounting Procedure:
Example 3 : If misclassification occurs in scheme expenditure
and noticed after the closure of Annual Accounts
and the items of expenditure are related to
different schemes under Revenue/ Capital Heads.
Solution : The progressive figures have to be changed by ‘+’
and ‘-’entries against the heads concerned in order
to arrive the correct figures if the scheme are
continued further next financial year.
Contd..
Example 4 : A GP received an advance of Rs. 10,000/- under BRGF>Development Grant from ZP for doing Deposit Work. GP may also have received its own funds under BRGF. While any expenditure incurred from its own BRGF funds will be booked under BRGF, how about expenditure incurred out of advance given by ZP? Will a separate head be required?
Solution :When ZP gives advance to GP/BP for deposit works;
— Payment – 8550-Civil Advance -102-Advance to Agencies for works & Supplies-10-BRGF - <object Head> Receivable -Rs.10000/- (UC or fund)
BP/GP receives the advance— Receipts – 8550-Civil Advance-102- Advance to Agencies for
works & Supplies-10-BRGF.-Rs.10,000/-.
Simplified Accounting Procedure:
Contd..
Other Examples :
• BP/GP make expenditure of Rs.8000/- and shall book under expenditure head i.e 2049 up to 3054 major head (Exp: for Construction of Road)
• 3054-Transportation-101-Roads-10-BRGF-52-Cement Concrete Road – Rs.8,000/-.
• BP/ GP shall have to book their expenditure of own BRGF (transfer) fund from ZP also in same head as mentioned above after receiving under the major head 1601-101-10-BRGF.
• (Case Record no. is the only key to identify the exact amount of expenditure under that project/ deposit works)
Simplified Accounting Procedure:
Contd..
Simplified Accounting Procedure:
Refund of Advance
ZP gives an advance of Rs.10,000/- to BP/GP to do some deposit works. GP spends Rs.8,000 and completes the work and refunded the remaining Rs.2,000 to ZP. (Which heads of account will be debited and credited in the entire process?)
Answer:
i. BP/GP make the expenditure of Rs.8000/- and shall book under expenditure head i.e 2 or 3 1st digit of major head (Example for Construction of Road) (3054- Transportation-101-Roads- 10-BRGF-52-Cement Concrete Road – Rs.8000/-)
ii. Refund- Payment : 8550-Civil Advance-102- Advance to Agencies for works & Supplies-10-BRGF – <Object Head> - Advance Payable - Rs.2000/- & U.C for Rs.8,000/-
iii. ZP –Receipt: 8550-Civil Advance-102- Advance to Agencies for works & Supplies-10-BRGF –<Object Head> Receivable- Rs.2000/- & UC for Rs.8,000/-
•
Data Maintenance/ 8 - Formats
1. Format I : Monthly/Annual Receipts & Payment Accounts
2. Format II : Consolidated abstract register
3. Format III : Reconciliation Statement with Bank and Treasury
4. Format IV : Statement of Receivable and Payable
5. Format V : Register of Immovable of Property
6. Format VI : Register of Movable property
7. Format VII: Inventory Register
8. Format VIII: Register of Demand, Collection and Balance
Above formats designed to facilitate Switch Over to Accrual System
Sl. No.
Letter No. and Date Subject
1 1385 14-01-2010
Maintenance and Rationalisation of Gram Panchayat Accounts - Uploading of daily financial transactions of two GPs from each Block for the month of December,2009 in PRIASoft on pilot basis along with instruction manual.
2 5999 25-02-2010
Maintenance and Rationalisation of Gram Panchayat Accounts – Administrative Readiness, Proposed job of Chartered Accountant Firms.
3 15987 31-05-2010
Maintenance of daily financial transactions and Organizing State Level sensitization workshop on 3rd June, 2010.
INSTRUCTIONS FROM P.R. DEPARTMENT
Sl. No.
Letter No. and Date
Subject
4 1848825-06-2010
PRIASoft Data Entry – Master Data Entry, training-cum-awareness generation workshop of GRS.
5 2534030-08-2010
Maintenance of Accounts in 8-formats prescribed by CAG.
6 2681013-09-2010
Uploading of Financial Transactions (Vouchers) in PRIASoft from 1st April 2010.
INSTRUCTIONS FROM P.R. DEPARTMENT
Steps taken so far
• Creation of master treasury along with DDO and TC code.
• Creation master of all the banks functioning in along with MICR, RTGS and BSR Code details.
• Account-wise balance of each scheme and each bank account as on 1.4.2010.
• Advances against all, including
• current and old employees,
• executants and agencies including line department has to be recorded and entered in to the application to arrive at current and correct level of money being available at each tier and with each unit of PRIs.
• The cheque book details including cheque LEAF NUMBER be entered to facilitate transaction at later date.
• The old practice of “release to the block” by DRDA being shown as expenditure or advance and becoming eligible for subsequent installment is no longer true.
• Unless we do it now and right now, we may be caught and loose the Government money despite good work at field level.
Transfer Entry• Release from DRDA to Block and from Block to GP is a transfer entry
& vice -versa• Can be treated as utilised only when the voucher of payment to the
case record is recorded in the system. Advantage of new PRIASoft
• Total availability of fund. • Unspent funds of various closed schemes under PRIs
Additional Connectivity• If required, any other connectivity tool from BSNL or any other service
provider can be availed out of 6% contingency available in MG NREGA Capacity Building
• Training-cum-awareness generation workshop” for all the GRS and CPs at block level .
Performance based Incentives• Online entry is one of the conditions for getting Rs.897 crores under
13th FCA.
Steps taken so far
Government of OrissaPanchayati Raj Department
www.orissapanchayat.gov.in
Thanks ….
Simplified Accounting Structure for PRIs