Transcript Simplified Accounting Structure for PRIs Overview of Model Accounting System for Panchayats http://accountingonline.gov.in Government of Orissa Panchayati Raj Department www.orissapanchayat.gov.in.

Simplified Accounting
Structure for PRIs
Overview of Model Accounting
System for Panchayats
http://accountingonline.gov.in
Government of Orissa
Panchayati Raj Department
www.orissapanchayat.gov.in
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
• Major Head: 4 digit
1st tier
• Relates to ‘Functions’ given in 11th Schedule
• 23 Major Heads
2nd
3rd
tier
• Minor Head: 3 digit
• Programs/ Unit within ‘Functions’
tier
• Object Head: 2 digit
• Item of Receipt/ Expenditure
Part-I –Panchayat Fund
Receipts
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)
Capital Expenditure (4-5)
-Other Receipts (800)
Part-II
-Loan Section
CAG of India
11/7/2015
- Provident fund & Pension
Part-II –Provident fund & etc
Receipts (7000-8999)
Payments (7000-8999)
Loan Section
-Loan Section-7610
Pension & Provident Section
- Provident fund & Pension
Loan Section
-Loan Section-7610
Pension & Provident Section
- Provident fund & Pension
(8009)
Insurance & Pension Section
-Insurance (8011)
Deposits & Advance Section
-Civil Deposits (8443)
-Civil Advances (8550)
Suspense Account
CAG of India
- Suspense Accounts (8658)
(8009)
Insurance & Pension Section
-Insurance (8011)
Deposits & Advance Section
-Civil Deposits (8443)
-Civil Advances (8550)
Suspense Account
11/7/2015
- Suspense Accounts (8658)
Exception to 3-Tier
• Central Schemes assigned 2-digit sub-heads & State
Scheme Alpha-numeric 2-digit subhead:
Receipts
Payments
1601- Grants in aid
101-Grants from GOI
15- NRHM
CAG of India
02- Wages
(object head)
2210-Health and Sanitation
101-Primary Health
Centre
15-NHRM
02-wages
(object head)
11/7/2015
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 Heads
 Agriculture
 Rural Housing
 Soil and Water Conservation
 Water Supply and Sanitation
 Minor Irrigation
 Animal Husbandry, Dairying,
Poultry and Fuel and Fodder
 Fisheries
 Forestry and Minor Forest
Produce
 Village and Small Scale
Industries
 Animal Husbandry, Dairying,
Poultry and Fuel and Fodder
 Transportation
 Rural Electrification
 Non-conventional Sources of
Energy
 Poverty Alleviation
Programme
Contd..
Major Heads
 Education
 Social Security and Welfare
 Technical Training and
Vocational Education
 Welfare of Scheduled Castes,
Scheduled Tribes and Other
Weaker Sections
 Art, Culture and Libraries
 Market and Fairs
 Public Distribution System
 Health and Family Welfare
 Maintenance of Community
Assets
 Water Supply and Sanitation
 Interest Receipts/Payment
 Women and Child Welfare
 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)
11
Scheme Description
12
Mahatma Gandhi National Rural Employment Guarantee
Scheme (MGNREGS)
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 Head
01 Salaries (1)
02 Wages
11 Printing
03 Overtime Allowance
12 Other Administrative
Expenses
04 Pensionary charges
13 Supplies and Materials
05 Honoraria
06 Medical treatment
14 Petrol/Diesel
15 Advertising and Publicity
07 Travel Expenses
08 Office Expenses (2)
16 Other Contractual Services
09 Rent, Rates and Taxes
17 Grants – in – aid
10 Audit Fee
18 Contributions
Contd..
Standardised Object Head
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
Items included in Salary & OE
Salaries: includes in these object head Other Expenses (2) includes in these object head
(i) Local purchase of stationery,
(i) Pay of officers,
(ii) Liveries,
(ii) Dearness pay of officers,
(iii) Telephone & trunk calls,
(iii) Dearness Allowance of Officers,
(iv) Furniture,
(v) Service postage stamps,
(iv)Pay of establishment,
(vi) Purchase of books & publications,
(v) Dearness pay of establishment,
(vii) Office expenses and miscellaneous ,
(vi) Dearness Allowance of
(viii) Staff car,
establishment,
(ix) Water cooler,
(vii) Bonus ,
(x) Typewriter,
(viii) Interim relief,
(xi) Purchase of accounting machine,
(ix) Other allowances (CCA, HRA & other (xii) Charges paid to the State Government for
Police Guards,
fixed allowances),
(xiii) Hot and cold weather charges,
(x) Children education allowances,
(xiv) Electricity & water charges,
(xi) LTC,
(xv) Purchase of photo copier,
(xii) Transport allowance.
(xvi) Purchase of computer & laser printer.
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..
Simplified Accounting Procedure:
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.
Contd..
Simplified Accounting Procedure:
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.
Contd..
Simplified Accounting Procedure:
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.
Contd..
Simplified Accounting Procedure:
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:
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..
Simplified Accounting Procedure:
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/-.
Contd..
Simplified Accounting Procedure:
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)
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-52Cement 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
INSTRUCTIONS FROM P.R. DEPARTMENT
Sl.
No.
Letter No.
and Date
Subject
1
Maintenance and Rationalisation of Gram
Panchayat Accounts - Uploading of daily financial
1385
transactions of two GPs from each Block for the
14-01-2010
month of December,2009 in PRIASoft on pilot basis
along with instruction manual.
2
Maintenance and Rationalisation of Gram
5999
Panchayat Accounts – Administrative Readiness,
25-02-2010
Proposed job of Chartered Accountant Firms.
3
Maintenance of daily financial transactions and
15987
Organizing State Level sensitization workshop on
31-05-2010 rd
3 June, 2010.
INSTRUCTIONS FROM P.R. DEPARTMENT
Sl.
No.
Letter No.
and Date
Subject
4
PRIASoft Data Entry – Master Data Entry,
18488
training-cum-awareness generation workshop
25-06-2010
of GRS.
5
25340
Maintenance of Accounts in 8-formats
30-08-2010 prescribed by CAG.
6
26810
Uploading of Financial Transactions (Vouchers)
13-09-2010 in PRIASoft from 1st April 2010.
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.
Steps taken so far
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.
Simplified Accounting
Structure for PRIs
Thanks ….
Government of Orissa
Panchayati Raj Department
www.orissapanchayat.gov.in