Compilation of Government Accounts

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Compilation of Government Accounts

• Accounts are “Statements of facts relating to money or things having money value”. The ‘facts’ that are incorporated in accounting records are transactions.

• A mere chronological listing of monetary transactions in the form of cash account does not bring out the significance of the transactions and their aggregate effects. Compilation of Government Accounts RTI Jammu 2

Compilation of Government Accounts

• It becomes necessary that the transactions are classified under various heads and that the results of the transactions under these heads are arranged in such a form as to show clearly not merely the significance of each separate transactions but also the combined effect of any desired series of transactions.

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Compilation of Government Accounts

• It becomes necessary that the transactions are classified under various heads and that the results of the transactions under these heads are arranged in such a form as to show clearly not merely the significance of each separate transactions but also the combined effect of any desired series of transactions.

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Compilation of Government Accounts

• As of now the Comptroller and Auditor General is responsible for maintaining the accounts of the State Governments and of Union Territories, (except that of the State of Goa and the Union Territory of Pondichery).

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Compilation of Government Accounts

• In this session we will discuss the various prescribed steps in the compilation of accounts in the Indian Audit and Accounts Department.

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Learning objective

• At the end of the session, the learner will be able to state the sources from which accounts are received in Accountants General office, procedure for receipt of accounts from the treasuries and its distribution, maintenance of Detail Book, opening of new heads of accounts, and compilation of accounts also that the, learner will be able to state limitation of the manual system and the need for Voucher Level Computerization (VLC).

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Initial Accounts

• The initial accounts of receipts and payments on behalf of the State Governments are maintained in the State Treasuries who compile and render them monthly to the Accountant General concerned. • In the case of certain large departments like Public Works and Forest vested with cheque drawing powers, the account of the moneys drawn are maintained by the Divisions themselves, who render monthly accounts to the respective Accountant General. Compilation of Government Accounts RTI Jammu 8

Sources of initial accounts

• • • • • District Treasuries; Pay and Accounts Offices of the State Government; Public Works Divisions, Forest Divisions and other departmental accounts offices which are authorized to make payments through cheques ; Clearance memos advising Inter-Government Adjustments in the books of the Reserve Bank and the statement of monthly balances from the Reserve Bank; Adjustments carried out in the office of the Accountants General Compilation of Government Accounts RTI Jammu 9

Checking of Initial Accounts and their treatment

• The Accountant in Central Treasury Section will check the contents of account received from the treasury with the printed covering list accompanying them and put his dated initials. If any documents is wanting it should be called for at once.

• (ii) The Accountant will check each entry in the Cash Account and the Lists of Payments with the schedules supporting it and write the word "Agreed" with dated initials in the beginning and end of the Cash Accounts, Lists of Payments and Schedules against each entry. In case there is a discrepancy it should be pointed out to the Treasury Officer and got reconciled without delay. Compilation of Government Accounts RTI Jammu 10

Flow diagram of Receipt of Initial Accounts

PWD Divisions Forest Divisions Compiled Accounts Treasuries AG’s of other States Ministries of GOI Vouchers and Cash Accounts Settlements Adjustments generated internally and externally

AG’s Office Accounts State Government

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Missing Vouchers / Schedules

• • Book Section should count the Vouchers/Schedules of one Major Head of one Treasury each month. The counting should be done, and details recorded in a register; As and when the Treasury Accounts are received in Central Treasury Section (or in Book Section), the contents of the bundle of Vouchers/ Schedules relating to the Major Head already selected by the Branch Officer for the purpose should be checked carefully by the Accountant in presence of the representative of the Treasury. Necessary certificate of check exercised should be issued over the signatures of the Branch Officer to the Treasury Officer concerned immediately Compilation of Government Accounts RTI Jammu 12

Missing Vouchers / Schedules

• If defects, e.g., missing vouchers, wanting schedules in respect of deductions to be accounted for by Account Compiling Sections of this office, etc. are noticed during the counting, the Treasury Officer as well as Director of Accounts and Treasuries should be addressed for taking remedial measures so that the defects do not recur in future. In the case of major defects in the accounts or bulk of the vouchers/schedules found missing the accounts should not be acknowledged unless omissions are supplied.

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Missing Vouchers / Schedules

• Timely submission of the aforesaid register to the Branch Officer should be watched through Calendar of Returns of Book Section 14 Compilation of Government Accounts RTI Jammu

Distributions of vouchers and schedules

• After completing the checks as mentioned above, the concerned Accountant should immediately arrange the distribution of vouchers and schedules accompanying the Cash Account and the List of Payments to the concerned Accounting Section.

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Operating of Minor Head Departmental Adjusting Account

• The total amount of each Departmental Schedules made over to Compilation Sections should be posted against the Departmental Suspense Heads/ Sectional Suspense Heads concerned which should be opened as a detailed head under the Minor Heads 111 "Departmental Adjusting Account" subordinate to the Major Head '8658-Suspense Accounts ' in the Detail Book. Compilation of Government Accounts RTI Jammu 16

Operating of Minor Head Departmental Adjusting Account

• These debits and credits to 'Suspense' will be cleared by minus debits and minus credits shown in the same month by the Compilation Sections concerned under the same head in their Departmental Classified Abstracts. The Compilation Sections concerned through their respective Broadsheets, if any, watch the adjustment of the differences in these figures.

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Examination of Cash Accounts and List of Payments

• Check the totals of the Cash Accounts and Lists of Payments and see that they are expressed in words as well as figures; • Verify the opening balance with the previous month's closing balance; • Check the total figures of receipts and payments shown in the Closing Abstracts of the Cash Accounts with the figures in the Cash Accounts and Lists of Payments; Compilation of Government Accounts RTI Jammu 18

Examination of Cash Accounts and List of Payments

• See that closing balance as worked out in the Abstract of the Cash Accounts is arithmetically correct; • See that the amount against each head has been correctly shown and that no unauthorized head has been opened in manuscript by the Treasury Officer; • See that the Cash Accounts have been signed by the Treasury Officer.

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Accounting in respect of impounded cheques

• Where the cheques paid have been impounded by the Police at the Treasuries before their submission to the Accounts Office they should necessarily be treated on the same lines as missing/wanting cheques, as the cheques have not been received in Accounts Office for scrutiny and record. The receipts of such cheques from the Treasury may be watched through the Objection Book. As a further safeguard the receipts of these cheques may also be watched through a "Register of missing/wanting cheques". Compilation of Government Accounts RTI Jammu 20

Accounting in respect of impounded vouchers

• As regards the vouchers impounded by the Police before their submission to the Accounts Office, the charge should be kept under suspense. On receipts of certified Photostat copies of the vouchers, the question of adjustment under the final head of account should be decided on the merit of each case and, if necessary, by obtaining the specific orders of the Government. Compilation of Government Accounts RTI Jammu 21

Compilation of Accounts

• After the schedules of payments and receipts are received from the Central Treasury Section, the Accountant in the DAE Section (Compilation Section) will check the vouchers with the schedule of payments and independently total the schedule of payments to verify whether the total in the schedule as noted by the Treasury Officer is correct and record on the Schedule of Payments a certificate over his dated initials ‘checked and total agreed’.

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Compilation of Accounts

• If vouchers are not received from the treasuries before compilation is over, or if the correct classification of a recovery or receipt cannot be ascertained, the amounts should be accounted under “OB Suspense” below the minor head “Suspense Account” under the major head “8658 Suspense Account” and included in the relevant Objection Book after obtaining the orders of the Branch Officer or the Group Officer as the case may be.

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Check of vouchers in support of payments

• (a) That the vouchers are in the prescribed form and that they are duly receipted by the payees and are in original, • (b) That a brief abstract is given in the official language authorized for the purpose under the signature of the Drawing Officer on all vouchers prepared in any other language, • (c) That the sub vouchers contain notes of dates of payments.

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Check of vouchers in support of payments

• (d) That they are numbered with reference to the number in the schedule of payment, schedule docket or other account.

• (e) That the details work up to the totals and that the totals are in words as well as figures.

• (f) that they bear a pay order signed by the Treasury Officer in the case of vouchers paid at treasuries or by the responsible Disbursing Officer in case of other vouchers.

• (g) That they are stamped “paid”.

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Check of vouchers in support of payments

• (h) That there are no erasures and that any alterations in the total are attested by the officer concerned as many times as they are made.

• (i) That unless otherwise provided in the rules of Government stamps are affixed to all vouchers whose net amount is in excess the amount, prescribed under the relevant acts, and that they are punched.

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Check of vouchers in support of payments

• (j) That if a treasury vouchers be paid by transfer, it is stamped as having been paid, and that the head to which the amount is credited is noted on it and that the credit is traced in the cash account when possible.

• That the classification noted on the vouchers is correct.

• If any objection is taken to a voucher or to any item in a schedule or other account, a note of the objection should be recorded thereon in red ink in the sufficient fullness to make it readily understood.

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Suspense Slips/Registers

• When an item of receipt or expenditure which is properly adjustable in the Abstract of one department appears in the treasury schedule pertaining to other department or head of account, the Accountant dealing with the schedule should classify the amount under the detailed suspense head opened in the accounts for the provisional adjustment of the treasury transaction of the department which must finally receive the credit or debit. Compilation of Government Accounts RTI Jammu 28

Outward Suspense Register

• The amount and other particulars of each suspense slip should be entered by the Accountant in a Register called the “Outward Suspense slip Register”. This register should also be used as a transit register for the transfer of the suspense slips to the various sections. Compilation of Government Accounts RTI Jammu 29

Inward Suspense Register

• A register of Suspense Slips received known as “Inward Suspense Slips Register” should be maintained in the prescribed form by the Sections, which receive the suspense slips. Compilation of Government Accounts RTI Jammu 30

Broadsheet of debits and credits

• The departmental Accountant will maintain a Broadsheet of debits and credits in the prescribed form. The original entries in the Broadsheet should be posted monthly from the schedule of receipts and the second schedule of payments of each treasury, and from the suspense slips representing items transferred from other sections. The adjusting entries, which will be minus credits or minus debits, should be posted from the Departmental Abstract. Compilation of Government Accounts RTI Jammu 31

Departmental Classified Abstracts

• From the compilation sheets the totals against each detailed head are posted against the respective treasuries in the ‘Departmental classified Abstract of Payments’. Similarly the receipts or expenditure items received through settlement account, are also dealt within the manner indicated above. The Departmental Classified Abstracts thus bring together the monthly receipts and payments pertaining to each department for the whole account circle classified under the relevant major, minor and detailed heads of account.

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Responsibility of Accountant for correctness of CA

• (i) Each entry in the compilation sheet/classified abstract of payment is supported by the necessary vouchers, schedules, suspense slips and transfer entry.

• (ii) Each entry in the Receipt Abstract is supported by credits in the receipts schedule and deduction sheets; • (iii) Every wanting document has been called for and the fact has been noted in the relevant schedule as also the register maintained for the purpose; Compilation of Government Accounts RTI Jammu 33

Responsibility of Accountant for correctness of CA

• (iv) Schedules, vouchers etc. which ought to have been made over to other sections have been made over to them and acknowledgements obtained; and • (v) Vouchers relating to Gazetted Officers together with the supporting schedules are made over to the respective Gazetted Entitlement sections by the prescribed date.

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• • • •

Check/Review of Classified Abstracts

The classified Abstracts are put up to the AAO/SO for examination with the following: Broadsheet of Departmental Adjusting Account Suspense; Register of suspense slips received; and Register of suspense slips issued.

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Check of Classification

• The check of classification of the charges is of the utmost importance and therefore very careful attention should be given to this work. Section Officer/ Assistant Accounts Officer incharge of the section will be held personally responsible for any serious errors that come to light in this regard. Compilation of Government Accounts RTI Jammu 36

Review of Monthly Accounts

• Monthly accounts are to be reviewed to find out any: • Misposting; • Defects; or • Discrepancies.

• and immediate steps taken to set right the defects etc. and to avoid recurrence thereof. Compilation of Government Accounts RTI Jammu 37

Consolidated Abstracts

• Next process is the preparation of Departmental Consolidated Abstracts, which are intended to show the Progressive figures, month by month under the major, minor and detailed heads of receipts and service payments appearing in the Departmental Classified Abstracts. The monthly totals under the various heads of account as per Departmental Classified Abstracts are posted in the relevant columns of the Consolidated Abstract and progressive total struck.

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Abstract of Major Head

T

otals

• From the Consolidated Abstract of Debt, • Deposit and Remittance Heads and the Departmental Consolidated Abstracts, the Abstract of Major Head Totals is prepared showing: • (i) the receipts and disbursements by major heads during and, • (ii) to the end of the month.

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Accounts and Book Section

• For the consolidation of accounts, the Detail Book, relating to Debt, Deposit and Remittance heads, abstracts of major heads are posted from the accounts and abstracts, etc., noted below: • (1) Monthly Cash Accounts and the Lists of Payments received from District Treasuries.

• (2) Departmental Classified and Consolidated Abstracts of Receipts and Payments received from various Compilation Sections and Consolidated Abstracts of Debt, Deposit and Remittance Transactions prepared in the Book Section.

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Accounts and Book Section

• (3) Settlement Account Classified received from the Account Current Sections.

• (4) Public Works Classified abstracts prepared from the Public Works Divisional Accounts by the Works Sections.

• Classified Abstract of Forest transactions from the Forest Compilation sections.

• (6) Combined Transfer Ledger and Abstract relating to Debt, Deposit and Remittance heads prepared in the Book Section.

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Detail Book

• Particulars relating to Debt, Deposit and Remittance transactions appearing in the Treasury Cash Accounts and List of Payments and in the Departmental and other abstracts shall be collected for the whole circle of account under each head of account from month to month in a Detail Book Compilation of Government Accounts RTI Jammu 42

Preparation of Proof Sheets

• Before posting the Detail Book, the Accountant should first prepare a proof sheet by Major Heads of Accounts from Cash Account and the List of Payments of each Treasury. After posting all the Treasury Accounts in the Detail Books, the figures should be totaled and agreed with the proof sheet referred to above and with Disburser's Account. Compilation of Government Accounts RTI Jammu 43

Opening of New Heads

• Whenever any Department/Office of the State Government approaches Accountants General office for opening of a New Sub-head/Detailed Head of Account the dealing section should advise to refer the matter to the Finance Department. Compilation of Government Accounts RTI Jammu 44

Opening of New Heads

• If and when the Finance Department seeks advice/opinion about the opening of new sub-heads/detailed heads of account the case should be scrutinized carefully and advice tendered after consulting Book, Budget and TM Sections and with the approval of the Accountant General. Compilation of Government Accounts RTI Jammu 45

Monthly Accounts of the State Governments

•

Each State Accountant General should, as soon as the accounts of a month are closed, submit to the State Government a monthly account of its transactions. The figures for this account should be taken from the Consolidated Abstracts.

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Annual Closing of Accounts

• Besides the regular monthly accounts, the Annual Accounts have to be furnished to the State Government with the Accounts for March and March Supplementary. 47 Compilation of Government Accounts RTI Jammu

March Final and Supplementary Accounts

• After 31st March of each year and after the accounts for the month of March are closed, adjustments are required to be carries out in the accounts. These adjustments may be on account of adjustment of accounts received from other account circles after March, missing vouchers received after March from Treasuries, corrections and adjustments necessitated to correct mispostings, and adjustments carried out in accounts like adjustment of accrued interest on the accounts in the Public Account (like General Provident Fund, etc.).

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March Final and Supplementary Accounts

• These adjustments are carried out through accounts created for purpose called March (Final) and March (Supplementary).

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• • •

Reconciliation of Departmental figures of receipt/expenditure with A.G

(i) responsibility lies jointly with the Heads of departments and Accountant General.

(ii) enables and efficient watch over the progress of expenditure of grants & appropriation.

(iii) enable rectification of misclassification occurred during compilation of government accounts.

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Compilation of Accounts under Voucher Level Computerisation (VLC) Environment Compilation of Government Accounts RTI Jammu 51

Infrastructure

• Hardware – Server – Nodes – Networking • Software – Operating System-Unix – RDBMS- Oracle – Developer 2000 Compilation of Government Accounts RTI Jammu 52

Compilation of Accounts- Book Section List of Payment Compilation of Government Accounts RTI Jammu 53

Compilation of Accounts- Book Section Cash Account Compilation of Government Accounts RTI Jammu 54

Compilation of Accounts- DC Sections Schedule of Payment Compilation of Government Accounts RTI Jammu 55

Compilation of Accounts- DC Sections Voucher Format I Compilation of Government Accounts RTI Jammu 56

Compilation of Accounts- DC Sections Voucher Format II Compilation of Government Accounts RTI Jammu 57

Compilation of Accounts- DC Sections Voucher Format III Compilation of Government Accounts RTI Jammu 58

Compilation of Accounts- DC Sections Voucher Format IV Compilation of Government Accounts RTI Jammu 59

SOP- Voucher Check Process

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SOR Challan Entry

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Challan Entry

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Outgoing Suspense Slip

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Incoming Suspense Slip

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Accounting Transfer Entry

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Non-Accounting Transfer Entry

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Compilation Process

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Process for Generation of Finance Accounts Compilation of Government Accounts RTI Jammu 68

Some of the reports Generated Through VLC Compilation Book • Input Screen Compilation of Government Accounts RTI Jammu 69

Compilation Book- Details

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Classified Abstract Check List

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Classified Abstract Check List -Details Compilation of Government Accounts RTI Jammu 72

Consolidated Abstract

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Consolidated Abstract

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Monthly Civil Account

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Monthly Civil Account

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Thank You Compilation of Government Accounts RTI Jammu 77