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GUIDING PRINCIPLES FOR AN OFFICER

High standards of financial propriety Financial Economy Observance of Financial Rules and

Regulations Expenditure within limits of authorised

grants

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RULES AND REGULATIONS OF FINANCIAL MANAGEMENT

GENERAL FINANCIAL RULES, 1963 DELEGATION of FINANCIAL POWERS

RULES, 1978 CENTRAL GOVERNMENT ACCOUNT

(RECEIPTS AND PAYMENTS) RULES, 1983

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PURPOSE OF FINANCIAL MANAGEMENT

To prevent and detect errors and irregularities

To guard against loss and wastage of public money and stores

To apply prescribed systemic checks effectively

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BUDGET - definitionOxford English Dictionary has defined Budget as “a statement of probable revenue and expenditure for the ensuing year with financial proposals founded thereon annually submitted by the Exchequer for the approval of the House of Common…….hence, any analogous statement, estimate or proposals”

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BUDGET - elements

Budget comprises of three documents- a statement of the sums required for the due

conduct of affairs during the period to which such estimate relates;

an estimate of the probable income from revenue and loans on the basis of existing provisions of law regarding public dues and credit operations.

a statement showing conditions of treasury in terms of the assets and liabilities.

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BUDGETING

Involves preparation of the estimates; collection and custody of funds; disbursement and control of expenditure,

and recording of all the transactions whose

legality and regularity are duly verified by the independent offices

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ANNUAL FINANCIAL STATEMENT

AUTHORITY Article 112 (1) of the

Constitution Rule 45 of General

Financial Rules, 1963

DEFINITION

Statement of Estimated Receipts and Expenditure

of Central Government of a Financial Year -also referred as ‘BUDGET’

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Departmental Accounting System Introduced in 1976 Applicable to all Central Civil Ministries/

Departments and Union Territories

Exceptions Defence, Postal/ Telecommunications

Departments and Railways have their own departmental accounting system.

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BROAD FEATURES

Chief Accounting Authority –Secretary of the Ministry/ Department

C & AG – provides directions to the Ministries and Departments

Pay and Accounts Officer (PAO) Cheque-Drawing and Disbursing Officer

(DDO)

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TYPES OF CHEQUES

Negotiable cheques Non-transferable cheques Government account cheques

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Modes of Payments

By Drafts

Legal requirement Pay and Allowances Private parties

Mail Transfer

To Autonomous Bodies To Private Sector

Undertakings To Grantee Institutions

for payment of grant-in-aid

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PROCEDURE – for Payments Submission of bills by non cheque drawing officers Pre-check of bills Payments – Form CAM 13 Post-check – objection memo Cancellation of sub-vouchers Consolidation of Accounts – Compilation Sheet

(CAM 33), Receipts (CAM 37), Disbursements (CAM 38) and Consolidated (CAM 39)

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Provident Fund Account - Maintenance Allotment of Account Number – Rule 4 of

GFRs Nominations Advance / Withdrawals Transfer of account Annual Accounts Accounts for Group ‘D’ staff

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Relevant General Financial Rules Rule 62 & 63(1)

Rule 45 r.w.r.54 & 62

Rule 53

Rule 60

Submission of Budget estimates by individual offices/ Heads of Departments

Plan and Non-Plan estimates to be given separately

Financial management for the months when budget is pending

Communication of grants to the Departments

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Budget preparation

Parliament

Ministry /Department

Estimate budget

Plan

Non- Plan

Office C

Office B

Office A

Grants

Grant

G

Grant

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Relevant General Financial Rules

- contd. Rule 70

Rule 64, 69, 71 & 72

Rule 48 & 59

Provision for Supplementary grant

Application of the grant towards a given financial year

Submission of estimates in the given forms

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REVISED ESTIMATES – aspects

Due dates Budget Estimates Plan and Non-Plan Estimates Revised Estimates Final Estimates Communication of Budget Grant

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CONTROL OF EXPENDITURE

–procedure and requirements Bill Passing –cum-Expenditure Control Register : Bill-wise and

Head-wise in Form GFR 9 [Rule 66(2)(i)] Monthly Statement –to be maintained by the DDOs Broadsheet in GFR 10 – to be maintained by the Controlling

Officer Statement in GFR 11- by the Controlling Officer Complete Expenditure in GFR 12 – to be shown by Head of the

Department Quarterly returns Liability Register Appropriation Audit Register (CAM 62)

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RECONCILIATION-procedure

PAO to send figures of expenditure/ receipts booked for a month and progressive figures up to that month, from the DDO-wise Expenditure Control Register or Compilation Sheet to the DDOs

DDO will send monthly statement (containing departmental figures, PAO’s figures, differences, and details of adjustments pending with DDO/ PAO) showing progress of reconciliation to Head of Department

Head of Department to furnish a Quarterly Certificate to the PAO certifying the correctness of the figures

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FINANCIAL POWERS - relevant GFRs and DFPRs

Defines - General powers

Head of Department – the ‘Authority’

Head of Office Powers of subordinate

authorities Delegation of enhanced

powers

Rule 34 GFRs & Rule 5 DFPRs

Rule 3(f) GFRs and Schedule I to DFPRs

Rule 14 DFPRs Rule 13 DFPRs

Rule 13(2) and 35 DFPRs, GID 1 to Rule 13 DFPRs.

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FINANCIAL POWERS - relevant GFRs and

DFPRs contd.- Authorisation of subordinate officers

Powers are to be exercised subject to availability of budget provisions

Sanctions

Rule 13(3) and 16DFPRs.

Rule 89 GFRs and Rule 13 DFPRs

Explanation below Schedule V to DFPRs and GID 1, Rule 89, GFRs