INDEX. NAME OF THE CHAPTER NO. 1. INTRODUCTION AND OUTLINE MANUAL 2 to INTERNAL CONTROL AND INTERNAL 5 to CHART OF ACCOUNTS 9 to 15

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1 INDEX CHAPTER NAME OF THE CHAPTER PAGE NO. NO. 1. INTRODUCTION AND OUTLINE MANUAL 2 to 4 2. INTERNAL CONTROL AND INTERNAL 5 to 8 CHECKS 3. CHART OF ACCOUNTS 9 to CASH TRANSACTIONS 16 to BANK TRANSACTIONS 22 to EXPENSES JOURNAL 27 to FIXED ASSETS 39 to FINALISATION AND COMPILATION OF 43 & 44 ACCOUNTS 9. BUDGET 45 & DELEGATIONS OF POWERS 47 & ORGANIZATION CHART 49 FORMATS 1

2 CHAPTER-1 INTRODUCTION AND OUTLINE MANUAL 1. ACCOUNTING: 1.1. Gujarat State Information Commission adopts this manual describing the formal systems, policies, procedures and methods for discharging the Accounting functions to ensure Effectiveness of System and uniformity of procedures; Standardization of Forms and Records ; Financial responsibilities of Secretary, other officers of the Commission and responsibilities of Accounting Personnel; Timeliness of recording transactions and finalization of accounts; Compliance with various Statutory and other requirements; Instruction to new recruits in familiarizing themselves with the established systems and procedures. 1.2 The Account is maintained adopting double entry book keeping system. 2. THIS MANUAL, ITS NEEDS, OBJECTIVES AND CONTENTS: 2.1 This manual compiles the accounting policies, standards and practices governing the accounts of the Commission and it includes the classification of accounts. 2.2 This manual provides exhaustive guideline for the compilation and maintenance of Accounts of the Commission. The manual contains the following: The Statutory requirements relating to Accounting Accounting Policies, Standards, Methods, Practices and procedures to be followed for using grants received from Government/ other income and other related records to be maintained Internal Control Procedures and Internal checks devised for the purpose of accounting function Procedures to be followed with regard to execution of a transaction, and accounting thereof. 2

3 2.2.5 Duties and functions of the Accounts Department Duties and functions of Executives and Officers of the Accounts Department Adherence to time Requirements for integration of Budgetary Control and Management Information System. 2.3 Accounting function shall be discharged by the Accounts Department as per the directions, guidance and procedures contained in this Manual. 3. LAY-OUT OF THE MANUAL 3.1 Primarily, the Commission would have the following types of transactions: Cash receipts and Payments; Bank Deposit and Withdrawals; Sanction of Loans & Advances; Income by way of fees & sale of price publications. 3.2 For the purpose of accounting, the primary transactions have been further classified into: Cash receipts and Payments (including all payments for expenses or creating an asset and all receipts whether on income account or liability account); Bank Deposits and Payments (including all types of transactions as classified for Cash Receipts and Payments); Accounting for Investments; Purchases and Expenses; Fixed Assets & Other Assets. 3.3 Each chapter deals with: Scope and Nature of Transactions; Briefly, the prescribed procedure for executing a transaction reflecting operational controls exercised; Documentation and Accounting and other Records; Internal Accounting Controls; Peculiar requirements of transactions relevant in the Commission s case; List of Books of Accounts, Vouchers and other documents to be maintained; Forms of the Vouchers, Books etc; 3

4 3.3.8 Records and other details, if any, maintained by other departments relevant for accounting or cross checks or obtaining information, etc. 3.4 Other Chapters deal with:, Requirements as to Finalization of Accounts; Management Information Reports; Procedures to be followed for Implementation and Amendments to this Manual. 4. REVIEW: Periodic objective review of this Manual would be essential for the purpose of improvisation in working methods, avoidance of duplicate effort, adoption of modern practices, compliance with changing Statutory and commercial requirements, and above all practicing good management principles as well as for exercising effective accounting and related operational controls. To that extent Secretary should encourage innovative ideas and implement them within the overall framework of the Commission policies, procedures and this Manual. 5. DEFINITIONS AND ABBREVIATIONS: 1) The Commission means the Gujarat Information Commission. 2) The Chief Information Commissioner/Information Commissioner means the State Chief Information Commissioner/ Information Commissioner of Gujarat Information Commission 3) The Secretary means the Secretary to The Gujarat Information Commission. 4) All references to officers and branches are to be understood as officers and branches of the Commission unless otherwise meant in the context. 5) Abbreviation list is as under: 5.1 A/c Payee : Account Payee 5.2 Accounting standard refers to the Accounting Standards of Indian Institute of Chartered Accountants. 5.3 GRN : Goods receipt note 4

5 CHAPTER-2 INTERNAL CONTROL AND INTERNAL CHECKS 1. NEED: Internal Control for the Commission ensures that 1.1 The functions are carried on in an orderly manner; 1.2 The assets are secured and safeguarded; and 1.3 Accurate and reliable records exist. 2. MEANING AND SCOPE: 2.1 Internal Control has been defined as: The whole system of control, financial and otherwise, established by the Management in order to carry on the functions of the Organization in an orderly manner. 2.2 Generally, internal controls could be classified as: Internal Accounting Controls, and; Operational Controls. 2.3 The methods of Internal Control: Formal- Expressed in resolutions or manuals or written instructions; Informal-Operating within the formal controls and would generally consist of oral directions; Implicit- Which would be operated within the formal and informal types, need not be stated categorically, it means something implied when a formal or informal type is operational. (To give a very simple illustration, when a Cashier is supposed to tally cash balance, it is implied that he has to take an inventory of different types of currency notes and coins and tally with the records). 5

6 3. OBJECTIVES OF INTERNAL ACCOUNTING CONTROLS: 3.1 Recognizing a business transaction, compiling accounting data relating thereto and process it; 3.2 Checks over frauds or errors; 3.3 Maintenance of records to establish existence of assets. 4. CONTRIBUTING FACTORS: Principal factors which contribute in establishing internal control are: 4.1 Overall organizational structure; 4.2 Authority levels; 4.3 Fixing cost or responsibility centers, budgeting and monitoring thereof; 4.4 Accounting process, which records the transactions and provides the basis for information; 4.5 Management information system which provides the base for evaluation of the performance; 4.6 Internal check, which is normally built into operating procedures; 4.7 Appraisal through internal audit, management audit or operational audit. 5. THE CONTROLS HAVE TO ENSURE THAT: 5.1 The Commission receives, and enters in its accounting records, all the income or revenue to which it is entitled; 5.2 All expenditure is properly authorized; 5.3 All assets are properly recorded and safeguarded; 5.4 All liabilities are properly recorded and provision is made for known or expected losses; 5.5 The accounting records provide a reliable basis for the preparation of accounts; 5.6 Errors and irregularities in processing accounting information are detected. 6. INTERNAL ACCOUNTING CONTROLS COULD BE CLASSIFIED AS: 6.1 Basic controls; 6.2 Disciplines over basic controls. 6

7 6.1 Basic Controls: It would include, inter alias the following techniques: Pre numbering of originating documents; Maintenance of total accounts to provide an independent check of subsidiary ledger; Detailed checking of one document or accounting record against another; Authorization of documents; Verifying compliance with the laid down procedures; Verifying accounting records with independent records maintained by the Commission or outside sources; Taking physical inventory and cross check the same with the records Overall scrutiny and review; Periodic reconciliation, extracting list, but illustrates some of the techniques employed while formulating the basic controls. 6.2 Disciplines over basic controls: This could be ensured by: Supervisory controls exercised through final approval of documents or review thereof by a responsible officer; Separation of duties, ensured through: Well defined division of responsibility yet inter linked so that a function is over seen by the other; Rotation of duties The division or distribution of responsibility in respect of transaction could be achieved by having three different functionaries for: Initiating or authorization of a transaction; Physical control of assets related to the transactions, and Recording the transaction in the accounting records. 6.3 Custodian control (implying arrangements for safeguarding assets). 7

8 7. INTERNAL CHECK: 7.1 Internal check implies, conceptually, design of a transaction flow in a manner, which protects inaccuracy, inefficiency or fraud; 7.2 The internal check operates while the transaction is being carried out and it does not contemplate post transaction checking. In other words, internal check has to operate while the transaction or the operation is being effected, accounted and recorded. 7.3 It requires distribution of various activities relating to the transaction among different individuals; 7.4 A prescribed operating procedure for concluding a transaction; 7.5 Cross checking or cross control interwoven in the procedure so that an individual s or a department s activities are cross checked or cross tallied through another individual or another group. 8. IMPLEMENATION: While allocating and delegating duties, and also prescribing or devising procedures or reviewing them the Secretary may take care of above aspects for practical implementation of Internal Controls and checks. 8

9 CHAPTER-3 CHART OF ACCOUNTS STRUCTURE: The charts of accounts are drawn out according to subject wise. The broad structure shall be as under: 1. Liabilities; 2. Assets; 3. Income; 4. Expenses; Based on the above broad classification, the account head in details group wise are given as under. 1. LIABILITIES: 1.1 GRANTS Non -Plan (Charged); Non-Plan (Voted); Balance in Income & Expenditure account. 1.2 LOAN FUNDS: Cash Credit Limits from Bank; Temporary Loans from Government. 1.3 CURRENT LIABILITIES: Interest accrued; Interest accrued on Govt. loans; Salary payable; Provident fund Payable; 9

10 1.3.5 Unpaid Bonus; Unpaid salary; Staff Income Tax deducted payable; Life Insurance Premium recovered payable; Vehicle Advance recovered payable; Group Insurance Payable; Income Tax deducted at source u/s. 194-C; Income Tax deducted at source u/s. 194-J; Income Tax deducted at source u/s. 194-I; Outstanding Expenses Payable. 1.4 DEPRECIATION FUND ACCOUNTS Depreciation Fund on Office Buildings (Location wise); Depreciation Fund on Computer Equipments; Depreciation Fund on Water Coolers; Depreciation Fund on Other Equipments; Depreciation Fund on Electric Fans & Fittings; Depreciation Fund on Furniture & Fixtures (Location wise); Depreciation Fund on Vehicles Depreciation Fund on Plant & Machinery. 2 ASSETS: 2.1 FIXED ASSETS Land- Lease Hold; Land Free Hold; Office Building (Location wise); Computer Equipments; Air- Conditioners; Office Equipments; Water Coolers; Other Equipments; 10

11 2.1.9 Electric Fans & Fittings; Furniture & Fixtures- (Location wise); Vehicles; Plant & machinery. 2.2 CURRENT ASSETS Cash Accounts Cash on Hand; Imprest with (Department/Employee); Postage Stamp Imprest; Revenue Stamp Imprest Bank Accounts Balance with Bank; In fixed Deposit Account(Control Accounts); Balance with Bank Current Assets Interest Receivable-Bank Deposits; Interest Receivable- Other Advance Sundry Debtor(Control Account) 2.3 LOANS & ADVANCES Advances against Expenses; Other Advances Recoverable; Advance to Staff (Control Account); Advances to Suppliers (Control Account); Deposit; Expenses Recoverable; Prepaid Expenses. 11

12 3 INCOME: 3.1 INCOME FROM OPERATIONS Supply of annual reports, copy of Judgment and books/journal of Judgment; Tender Fees Received. 3.2 OTHER INCOME Interest received-other; Interest received-bank Deposit; Interest received-house Bldg. Advance; Interest received-vehicle advance; Interest received-consumer loan; Misc. Income; Profit on Sale of Assets; Provision no longer required written Back. 4 EXPENSES: 4.1 DIRECT EXPENSES 4.2 ESTABLISHMENT CHARGES Salary & Allowance to Chief Information Commissioner / Information Commissioner Salary & Allowance to Officers Salary & Allowance to Staff Pay of Officers / Establishment Dearness Pay-Gazetted; Dearness Pay-Non-Gazetted; 12

13 Dearness Allowances; House Rent Allowance Compensatory Local Allowances Transport Allowance Sumptuary Allowance Peon Allowance Leave Encashment Other Allowances Bonus Leave Travel Concession to Chief Information Commissioner/ Information Commissioner Leave Travel Concession to Officer/staff ; Reimbursement of Medical Charges to Chief Information Commissioner/ Information Commissioner ; Reimbursement of Medical Charges to Officer/staff; Traveling Expenses to Chief Information Commissioner/ Information Commissioner; Traveling Expenses to Officers/ Staff; Leave Salary Contribution; Contribution to Provident Fund Contribution to Gratuity Fund Wages; Stipend Expenses; Staff Welfare Expenses. 4.3 ADMINISTRATIVE AND OTHER EXPENSES Bank Charges & Commission; Domestic Travel Expenses; Office expenses; Rent,Rate and Taxes; Publication; 13

14 4.3.6 Other Administrative Expenses; Professional Services; Other Contractual Services; Advertisement & Publicity; Internal Audit Fees; Statutory Audit Fees; Statutory Auditors Out-of-pocket Expenses; Payment to Statutory Auditors in other capacity; Professional Fees; Donation; Insurance Premium; Legal Expenses; Postage & Telegram Expenses; Repairs to Assets; Stationery & Printing; Telephone Expenses; Books & Periodicals; Computer Expenses; Conveyance Expenses; Electricity Expenses; Entertainment Expenses; Miscellaneous Expenses; Professional Tax; Security Expenses; Training, Seminar & Conference Expenses; Vehicle Expenses; Hiring of Vehicles; Service Providing Agency/ Security Agency; Fuel / Petrol Exp; Telephone Expenses of Chief Information Commission; Electricity Expenses of Chief Information Commission; Fuel / Petrol Exp of Chief Information Commission; Vehicle Expenses of Chief Information Commission. 14

15 4.4 FINANCE EXPENSES Interest paid- Govt. loans; Interest paid- Public Deposits/ Other Deposit; Interest paid- Bank Over Draft/ Cash Credit; Interest paid- Security deposits. 4.5 OTHER EXPENSES Loss on sale of assets; Depreciation. 5. PROCEDURE FOR MODIFICATION / ADDITION TO ACCOUNT CODES: (1) Whenever the need arises to modify exiting account head or to add new account Head, the same shall be dealt with in the manner prescribed in Para (2) hereunder. (2) On receipt of note from Concerned Officer in Accounts Department, Accounts officer, looking to the nature of account, shall confirm whether the same head is existing or not. And if the same does not exist he shall send a note along with approval of The Secretary to Computer In charge for modification / addition of account code. (3) After opening of Account Code Accounts Officer shall update all the master files Containing Account Codes. 15

16 CHAPTER-4 CASH TRANSACTIONS 1. SCOPE: 1.1 It covers all receipts and cash payment transactions in cash; 1.2 Scope is restricted to accounting and related aspects of cash transactions. 2. CUSTODY AND HANDLING: 2.1 Adequacy of safe keeping arrangements shall be made in consultation with the Secretary. The access to these facilities must be restricted; 2.2 Fire prevention measures, insurance for cash in transit and Fidelity Insurance shall be ensured by the concerned Officer in case of Head Office and the Concerned Officer in case of Regional Offices; 2.3 During operational periods the entry in the area used by the Cashier shall be restricted to authorized persons only; 2.4 When cash is transferred, there must be suitable protection depending on the extent of exposure; 2.5 At the time of cash withdrawal/ deposit from/ into bank the following persons shall be assigned the duty of handling physical cash; Cashier; Senior Accounts Personal; Peon (to accompany aforesaid persons if necessary). 16

17 2.6 The Cashier shall not leave the Cashier s cabin without locking the Cash Box / Safe and Cashier s cabin; 2.7 In cash of theft, pilferage and/or serious discrepancy it shall be the duty of the Cashier/persons handling cash at other locations to immediately inform the Secretary and Administrative head of the location. Necessary formalities may be initiated for lodging claim with Insurance Company with policy. 3. VERIFICATION: 3.1 Daily cash count shall be evidenced by a cash scroll (See Form No.1). It shall be serially numbered and signed by the cashier; 3.2 The Concerned Officer shall conduct physical verification of cash periodically. Independent surprise verification shall be conduct by the Secretary. At the time of each verification, the verifier shall sign the cash scroll sheet. 4. GENERAL PROCEDURE: 4.1 Secretary shall in consultation with Chief Information Commissioner shall designate persons who shall be responsible for looking after day to day cash related functions, like allocation of duties among subordinates, authorization of transaction, maintenance of relevant accounting and Memorandum record, etc., for head office and each of the offices; 4.2 Cash disbursement shall be restricted on each working day as under: Time: AM to 3.30 PM unless otherwise directed by the Secretary. 4.3 When Cashier is on leave the designated Accounts personnel shall be responsible for all cash related functions; 4.4 Duties of the Cashier may be rotated quarterly; 17

18 4.5 For each of the major type of transaction of Cash Receipts and Payments the nature of supporting documentation and the authorization shall be obtained before the receipt/ disbursement and/or recording of the transaction; 4.6 Cash payments are authorized in terms of delegation of powers. The details relating to such limits, list of authorized persons along with their specimen signatures and initials shall be made available to the Cashier/ Persons handling cash; 4.7 The concerned Officer shall check the voucher for: Completeness; Supporting documentary evidences; Evidence of checking carried out; Authorization. 4.8 A Computerized receipt in form 2 shall be issued for payments received in cash. The receipt shall be issued under signature of A.O./ cashier; 4.9 Requests for cash withdrawal shall be made in Form 3 In cash of withdrawal of overtime/allowances payment, the amount shall tally with the Net Amount payable as reflected in the relevant summaries furnished by the personnel/salary section. Any kind of payments shall be made only on the basis of authorized payment voucher (see form No.4); 4.10 No payment in excess of limits decided from time to time by the Secretary shall be made without the prior approval of the Secretary. In case, any such payment is to be made, a declaration shall be obtained from the payee in form 5.All approvals in this respect shall be in writing; 4.11 The Accounts Department shall maintain an employee wise register to reflect all entries relating to the following transactions: Loans taken; Reimbursement of medical expenses; Advances taken against traveling/ other Expenses. 18

19 4.12 In respect of every payment for expenditure effected by the Commission proper receipt shall be obtained from the person to whom payment is made (on a Re 1 revenue stamp, if payment exceeds Rs.5000 ); 4.13 The cashier shall maintain a Rough Cash book in Form 6 evidencing all Receipts and Payments on a daily basis; 4.14 Payments in excess of exceptional situations only shall be made up to limits specified from time to time after obtaining the approval of the Secretary; 4.15 All supporting attached to a cash payment voucher shall be marked paid before disbursing cash. 5. IMPREST: 5.1 Imprest payments (up to such amounts as may be approved by the Secretary) in consultation with Chief Information Commissioner shall be made on the basis of written authorization of the Secretary; 5.2 Amounts spent shall be settled at least once in a month; 5.3 Imprest amounts shall be handed back at least once in six months. The amount shall be redrawn after approval by the Secretary; 5.4 Year end confirmations shall be obtained in respect of Imprest balances. 6. ACCOUNTING ASPECTS: 6.1 All particulars relating to the transactions shall be entered on the voucher viz Date of Receipt/ Payment; Number of the voucher; Account Head ; Narration explaining the nature of transaction; Amount in figures and in words. 19

20 6.2 The vouchers shall be signed by the person: Preparing the voucher; Checking the voucher; Authorizing the transaction. 6.3 All relevant supporting documentary evidences shall be attached to the voucher to ensure completeness; 6.4 After coding, the vouchers shall be handed over to the Data Entry Operator for feeding the data to the Computer on a daily basis; 6.5 The following data field shall be fed into the Computer: Date and Voucher Number; Account code and amount (Both Debit and Credit); Narration. 6.6 On completion of a batch of vouchers for every day, a check list of transactions shall be obtained. The entries in the checklist shall be checked independently with the vouchers by Concerned Officer (Finance); 6.7 For each batch of transactions fed into the computer the following Input / output controls shall be ensured: Batch totals; Total transactions in numbers. 6.8 On completion of checking, a formal day book of Cash Receipts, Cash Payments, and Cash Details shall be obtained; 6.9 The balance obtained from daybook shall be tallied with rough Cashbook maintained by cashier (see Form No.7); 20

21 6.10 The Concerned Officers shall ensure that all contra entries for cash withdrawal from cash/ deposits in Bank are verified on a regular basis with: Withdrawals cheque particulars/ cash deposit slip; Cash requisition cum withdrawal particulars form; Entry in bank book; Entry in cash Day Book; Entry in Rough Cash book maintained by the Cashier. 21

22 CHAPTER-5 BANK TRANSACTIONS 1. SCOPE: It covers all deposits in and transfers/ withdrawals affected through Current Accounts, Collection Accounts and Cash Credit Accounts operated by the Commission. 2. GENERAL PROCEDURE: 2.1The Chief Information Commissioner will authorize officers of the Commission to operate Bank Accounts. Such authority shall be evidenced by a Resolution of the Commission. Such Authority is conferred to two or more Officers. They shall also be authorized to issue specific instructions to the Bankers. The concerned Officer shall maintain a list of authorized signatories and supporting resolutions. The Secretary shall ensure that whenever an Authorized signatory leaves employment or is transferred from accounts department, the Authority conferred is immediately revoked and appropriate instructions are given to all bankers; 2.2 A Chart of Operating Bank Accounts together with the details as mentioned hereunder shall be maintained by the Accounts department and submitted to the Secretary for the purpose of quick review: Nature and type of Account; Facilities granted; Authorized Persons who can operate; Limits, If any; Nature of Deposits and withdrawals made therein. 3. RECEIPTS AND DEPOSITS: 3.1 All receipts shall be deposited in the Commission s Bank Account at Gandhinagar. 3.2 Only account payee Demand Draft/Pay order should be accepted in addition to cash from parties other than Government. 22

23 3.3 All cheques, Demand Draft/Pay order received after banking hours shall be kept in the custody of the concerned Accounts officer with a list thereof or pay-in-slips. Similarly, all post dated cheques, received shall also be in the custody of the concerned Accounts officer. The entry of such shall be made in register Form No. 8. Accounts officer shall ensure that such cheques, Demand Draft/Pay order are deposited on due dates. 3.4 Accounts Officer shall get prepared pay-in- slips and attach Cheques, Demand Draft/Pay order to them; 3.5 Accounts Officer shall arrange for receipt of bank statement of the Commission, monthly or earlier if directed by the Secretary, for latest realization of cheques and balance of bank; 3.6 Accounts Officer shall get prepared Bank Receipt-cum-Voucher in Form 9. It shall be ensured by Concerned Officer that receipt of cheques, Demand Draft/Pay order is issued to party only after intimation from bank for realization of cheques, Demand Draft/Pay order is received. The original receipt is issued to the party and the copy is issued for Receipt accounting; 4. WITHDRAWALS AND PAYMENTS: 4.1 Chequebooks shall be obtained for all current/savings and Cash credit Accounts by the Accounts Officer. 4.2 Custody of Chequebooks (including pre-printed computerized stationery) shall vest with the Accounts officer. 4.3 Cheques shall be get prepared by the Accounts Officer. Whenever cheques are cancelled, the cheque number is torn and affixed to the counter foil/ page recording the cheque particulars; 4.4 All cheques shall be marked A/c Payee except cash withdrawal for Commission s work. 4.5 To safeguard against alterations, theft, etc. the cheque writing may be done on machines or with inverted carbons or by affixing cello tape on amount shown in figures. Alternatively limit of cheque shall be specified having regard to the amount of cheque; 23

24 4.6 Cheques shall be prepared for effecting payments to suppliers/ others only under instructions of the Secretary. While preparing cheques, it shall be ensured that: Party s ledger account is scrutinized; Advances and Debit/ Credit notes are adjusted; Correct account Head and Narration. 4.7 The Accounts Officer shall be responsible to get checked the payment voucher for: Completeness; Supporting Documentary Evidences and; Correct account Head and Narration. 4.8 In respect of every payment to a party, proper receipt shall be obtained from the person to whom the payment is made or to authorized person on giving letter of authority. Where cheques are sent to parties by post, the cheques shall be sent by Registered Post with Acknowledgment Due/ through courier; 4.9 All supporting documents shall be marked paid and cheque number, date and Bank name shall be entered thereon before handling over the cheque. 5. ACCOUNTING ASPECTS: 5.1 All vouchers evidencing Deposits in and Withdrawals from bank accounts shall be in Forms 10 & 11 respectively. Separate vouchers shall be prepared for different Cash Credit / Current Accounts/saving Account; 5.2 These vouchers shall be prepared by the concerned Accounts staff and he shall also write appropriate account head and relevant account code at the time of preparation of pay-inslip/ cheque or on receipt of bank advice on a regular basis; 5.3 All the relevant particulars shall be entered to ensure completeness of the voucher; 5.4 The vouchers shall be signed by the person: Preparing the voucher; Checking the same; Authorizing the same. 24

25 5.5 The Bank Payment voucher completes in all respects shall be presented to the Authorized cheque signatories along with the cheque. The authorized Signatories while signing the cheque shall ensure that: Supporting documentary evidences have been appropriately checked Paid stamp along with cheque particulars are mentioned on the supporting documents Voucher mentions all the relevant details of the transaction including the correct Account Head and Account code having regard to nature of transaction, and is complete in all respects. They shall initial the supporting documents and the voucher for having authorized the payment. 5.6 All the relevant supporting documents shall be attached to the voucher and the complete set thereafter shall be handed over to the concerned accounts staff for coding and entering the transaction. 5.7 The following data fields shall be fed into the Computer: Transaction Code, Bank Code, Account Head Code; Date; Amount; Cheque number; Narration. 5.8 On completion of data entry for a batch of transactions entered daily, a checklist of transactions shall be obtained. 5.9 The checklist shall be independently verified with the vouchers by Accounts officer For each batch of transactions fed into the computer, the following Input / output shall be ensured: Batch Total; No. of transactions. 25

26 5.11 On completion of check, a separate Registers are obtained for Bank Payments and Bank Receipts maintained as a Memorandum Record; 5.12 Accounts Officer/ Secretary shall review the daily position of balance with bank and shall ensure that no idle fund lying with the Bank on one hand and on other hand, The Commission is making payment of interest. 6. RECONCILIATIONS: 6.1 Receipts and Cash Credit Accounts regularly operated by the Commission shall be reconciled on a Monthly basis; 6.2 Receipts Account reconciliation shall be got carried out by the Accounts Officer; 6.3 Bank Reconciliation shall be carried out by persons independent of those handling deposits/ withdrawals or those responsible for data entry /obtaining final outputs; 6.4 Every Bank Reconciliation Statement shall be checked independently. After checking, the same shall be reviewed and authorized by the Accounts officer and the Secretary; 6.5 Bank Reconciliation s shall be prepared in Form 14; 6.6 Necessary adjustments/entries pursuant to reconciliation shall be made immediately under the authority of Accounts officer and the Secretary. 7. YEAR END CONFIRMATIONS: 7.1 It shall be the responsibility of the Accounts Officer to obtain confirmation of year-end balances from the Bankers for all Current / Savings and Cash Credit Accounts; 7.2 For this purpose, a request letter shall be sent to the Bankers in the Form

27 CHAPTER-6 EXPENSES JOURNAL 1. SCOPE: 1.1 Procedure for accounting and other related aspects of all type of administrative and miscellaneous expenses are covered in this chapter. It also includes the following: Stationary & Printing; Rent ; Rates & Taxes; Vehicle Maintenance & Repairing; Books & Periodicals; Advertisements & Publicity; Postage & Telephone; Professional & Consultants fees; Traveling & Conveyance; Technical Consultants fees; Other periodical payments. 1.2 Accounts officer shall got maintained columnar journal to be called Expense Journal for recording this type of expenditure. A Performa is given in Form No PROCEDURE: 2.1 Administration department of the Commission shall make assessment of requirements/ estimation of expenditure on annual basis for various items by keeping the following points in consideration: On the basis of future plans about activities of the Commission; On the basis of trend of expenses of past years and inflation factor; 27

28 2.1.3 On the available information such as agreement with third party for payment of rent. 2.2 For the purpose of identifying the supplier of various items, Administrative Officer may prepare and maintain records showing details of suppliers. For this purpose he may collect information of suppliers from: Advertisement in local newspapers; or Inviting tenders; or Collecting information from various trade journals, electronic media such as Internet and any other source. 2.3 On the basis information gathered, the Commission may prepare the list of approved suppliers with the following details: Name and address of the suppliers; Number of years standing in the business; Turn over for last three to five years; Special achievement if any; Particulars about dealing with the Commission in the past; Items being dealt with brand if any. 2.4 After the information is received, the same shall be verified by the Administrative Officer, who shall tabulate the same. Considering the reputation and standing of the supplier shall propose the names for inclusion in the list of approved suppliers. The list shall be submitted to the Secretary for approval. It may be ensured that the list is kept broad based so that the Commission is not dependent only on one source of supply. The Information shall be entered in computer and it may be updated at regular intervals. 2.5 For the purpose of finalizing suppliers of various items, Administrative Officer shall follow following procedure: In order to facilitate procurement of various items, the procurement method is tabulated hereunder considering the value of items: 28

29 Value of Item / Items to be Procured Not Exceeding Rs.10,000/- Exceeding Rs.10,000/- but not exceeding Rs.500,000/- Exceeding Rs. 5,00,000/- How to procure from suppliers. Approved supplier or from open market. By inviting quotations from approved supplier or from open market. By inviting tenders through advertisement. 2.6 In terms of procured to be followed referred to in Para 5) above if the material is to be procured from approved supplier, an inquiry shall be sent to such supplier in form No.17. If the material is to be procedure by giving advertisement, text of advertisement shall be approved by the Secretary. 2.7 The quotations shall be received in sealed covers addressed to the Secretary. Reasonable time as decided by the Commission may be given to the parties to submit their quotations. The Secretary shall ensure that all the sealed covers are kept in joint custody. On the day fixed for opening of the quotations, the sealed covers shall be opened by the Secretary in the presence of Accounts officer and Administrative Officer of the Commission. All the quotations shall be numbered and thereafter shall be initialed by the members present. After opening of the quotations from various parties, Administrative Officer shall prepare a chart showing comparison of the rates quoted by the parties. In this chart the basic rate and taxes as well as transportation charges shall be shown separately. The charts shall be prepared in Form No.18. The chart shall be verified by Accounts officer and Administrative Officer to ensure the arithmetic accuracy and thereafter shall be presented to the Secretary. The Secretary shall verify the chart and as far as possible approve the purchase from the party who has quoted the lowest price. In addition to the rates, he shall also consider the delivery period, reputation and capacity of the supplier, as well as past experience of the Commission and having regard to these factors may authorize after obtaining approved of Commission in cases where the purchase exceeds his financial powers, the purchase of the items from a supplier who may not be the lowest after recoding reasons in writing. Administrative Officer shall prepare purchase order in Form No.19. The purchase order shall be issued under the signature of the Secretary. The copies of the purchase order shall be distributed as under: 29

30 2.7.1 First copy to the supplier; Second copy to the Accounts Department, and Third copy shall be retained in the Administrative Department. 2.8 Detailed procedure relating to acquisition, safe custody, physical verification and accounting aspects thereof for various items are given hereunder in following paragraphs Stationery & Printing: The Administrative Officer shall prepare an estimate of the annual requirement of various items of stationery and printing on the basis of consumption in the past years. Thereafter he shall proceed with the formalities of procurement of the same. On receipt of stationery, Concern Officer in Administration Department shall ensure that the quantity ordered has been received as specified in the purchase order. He shall make an entry in stationery Register (See Form No.20) for receipt of stationery. Simultaneously, Concerned Officer in Administration Department shall prepare GRN (See Form No. 21) in two copies, one of which shall be sent to Accounts Department along with a copy of the bill. Second copy of GRN shall be retained by the Administration Department. The stationery shall be issued by Administration Department only after requisite issue slips (See Form No.22) are received from concerned department. Such issue shall be authorized by department head. An entry shall also be made in Stationery Register for the issue of stationery (See Form No.20). The Administrative Officer shall make necessary arrangement for maintaining proper records of stock of various items of stationery and printing. The item shall be kept in a separate place and the same shall have access only with the authority of Administrative Officer. The physical verification of the items in the stock shall be carried out once in a year under the supervision of Administrative Officer. 30

31 The same shall also be verified once in a year by the Accounts officer. At the time of stock taking the items which are not in use for last one year shall be identified and the assessment will be made about its use in future. The Administrative Officer in consultation with The Secretary shall decide about the items which are identified as obsolete i.e. not requiring use in future and delete the same from the stock. The list shall be got approved by the Secretary. The items so identified shall be stored in a separate place and steps shall be taken for its disposal so as the Commission gets the maximum possible gain from waste. On receipt of bill from party and GRN from Administration Department Concerned Officer in Accounts department shall scrutinize the bill with reference to terms of payments, rates at which purchase order is issued and quantity received as shown in GRN and shall issue instructions for recording the same entry in Expense Journal (See form No.16) and also for preparing payment voucher/ cheque for payment of the bill. Printing: Similar procedure shall be followed for awarding the work of Printing Rent for Premises: The payments on account of rent shall not be made unless the contract of hire of premises has been entered into with parties. Payment of rent shall be authorized by the Administration Department. Concern Officer in administration department on the basis of agreement entered into with the parties shall prepare a note monthly or as per terms of agreement for payment of rent. After making necessary entries in Rent Register (See Form No. 23) Concerned Officer in Administration Department shall send such note to Accounts Department for Payment. On receipt of note and bill from Administrative Officer, in accounts department Concern Officer shall scrutinize the note and the bill. He shall adjust the amounts for TDS and other amounts to be deducted. Concerned Officer in accounts department then shall give instruction for recording the same in expense journal and for preparation of payment voucher/cheque thereof. 31

32 2.8.3 Rates & Taxes: The payments for rates and taxes pertaining to properties and vehicle of the Commission shall be authorized by Administration Department whereas those for other taxes shall be authorized by concerned department. On receipt of the bill Concerned Officer in Administration Department shall scrutinize the bill with necessary records, and shall prepare a note confirming the liability of payment for rates or taxes. In cash of rented property, liability to pay taxes shall be defined and as per terms of agreement if it is to be borne by owner of the property, the bill for the amount of taxes payable shall be forwarded to the owner of the property for payment of the same. Payments for rates and taxes pertaining to properties, vehicles and other assets of the Commission shall be authorized by Administration Department. On receipt of the bill from Concerned Officer in Administration Department, Concerned Officer in Accounts department shall verify the same and thereafter he shall issue instruction for recording of the same in expense journal and for payment of the bill, and ensure that such payments are made before due dates Vehicle Maintenance & Repairs: The Administrative Officer shall ensure that in respect of newly purchased vehicle, the benefit of free service is taken. The maintenance and repairs of vehicle shall be carried out only at the workshop of authorized dealers of the companies or approved garage. All the payments for bills in respect of maintenance and repairs shall be authorized by Administration Department. A logbook shall be kept with every vehicle owned by the Commission (See Form NO.24). Every person using the vehicle shall make an entry in logbook on completion of use. Concerned Officer in Administration Department shall review logbooks of all the vehicles at regular interval. Every time when fuel is filled in the vehicle, entry for quantity of fuel shall be made in logbook. A comparative statement of average fuel consumption shall be prepared by Concerned Officer and shall be reviewed by the Secretary. For fuel of the cars if the Commission has made arrangements for maintenance of account with petrol pumps, on presentation of fuel requisition slip, fuel will be made available to the vehicle. Unused requisition slip shall be kept in the custody of Administrative Officer. 32

33 Authority of Administrative Officer shall be taken for recurring type of repairing and any major repairing shall be authorized as per delegation of powers. An entry shall also be made for repairing made in vehicle in logbook. Administrative Officer shall ensure that the claim for reimbursement of expenses has been made in all the eligible cases to the Insurance Company. For this purpose Administrative Officer shall on receipt of the bill for payment, simultaneously verify the expenditure with the eligibility criteria s prescribed by the Insurance Company for claim. If the expenses incurred are eligible for claim under the policy(s), he shall complete the formalities with the Insurance Company. On receipt of amount of claim (s), he shall forward the same to Accounts department for realization. All the payments for bills in respect of maintenance and repairs shall be authorized by Administration Department. Officer in accounts department shall check up the bills and if it is passed as per delegation of powers he shall issue instruction for recording the same in expense journal and preparation of voucher/cheque thereof Books & periodicals: Various departments as well as employees of the Commission purchase books as well as newspapers. Books are purchased by The Commission as per requirements of various operating departments or for staff training. For this purpose concerned staff member shall send his proposal along with sanction of Departmental Head to Administrative Officer. The Administrative Officer on receipt of the proposal, shall consult the Library- in-charge about the availability of the book /material and if not readily available, shall obtain approval of The Secretary for purchasing the books required. As far as possible books shall be purchased directly from the publishers or leading booksellers and it shall be ensured that maximum discount is availed. After the books are received the same shall be sent to librarian who shall make an entry in the Register maintained for this purpose and librarian thereafter shall send the same to the staff member who had requisitioned. The Administrative Officer after obtaining confirmation of librarian shall send the bill along with approval of The Secretary to Accounts department for payment. Departmental Head and Administrative Officer in Administration Department shall authorize payment for the bills of newspapers at home. 33

34 On receipt of the bill from the employee-concerned department, concerned officer shall check up the bill with respect to accuracy and eligibility of the employee and shall send the bill along with note authorizing payment to Administration Department. The Administrative Officer in Administration Department on receiving the bill shall make entry in books and periodicals at home register (See Form No.25) and shall also check up the same for accuracy as well as eligibility of concerned employee of the bill and after approving the same it shall be Accounts Department for payment. Payment for bills of books & Periodicals shall be authorized by Administration Department. On receipt of note for payment of such bills, from Administration Department, Concerned Officer in accounts department shall check up the bill and shall issue instructions for recording the same in expenses journal and payment. Sale proceed of old books shall be forwarded to Concern Officer (A/c) Advertisement & Publicity: All the payments on account of advertisement shall be approved by Administration Department. The Commission gives advertisement through advertising agency. Generally advertisement shall be on account of following: Tender for purchase of stationery, assets or disposal of scraps etc Appointment of consultants; Recruitment; Publicity. Any department which intends to give advertisements shall prepare note stating the purpose and content of advertisement along with draft of advertisement to be published under signature of Departmental Head to Administrative Officer. Administrative Officer shall contract advertising agent who shall arrange for publishing the advertisement as per the instructions of The Secretary. On receipt of the bill, Administrative Officer shall check up the same with the publication and shall forward the bill along with cuttings of advertisement and note authorizing payment to Accounts Department. 34

35 On receipt of bill and note from Concerned Officer in Administration Department, Concern Officer in accounts department shall issue instruction for checking up accuracy of bill, recording of the same in expense journal and for payment of bill., Postage & Telephone: The payments for bills of telephone and postage charges shall be approved by Administration Department. STD phones allotted to executives shall be in the custody of concerned staff members. For all outstation calls an entry in the register (See Form No. 26) shall be made by Personal Assistant to concerned officer. Administration Department shall check up such registers before authorizing such payments. For postage charges a requisition from concerned department shall be received and Administrative Officer in Administration Department shall after reviewing previous balance and consumption of stamps shall prepare a note, which shall be sent to Accounts Department. Accounts Department shall make payment thereof on the basis of note from Administration Department. All the bills of telephone received by the Commission offices shall be forwarded to Administration Department. In the same way bills of the telephone at the residence of the officers shall also be forwarded to Administration Department. A list of staff members who are entitled as per the orders of the Commission for telephone facility at residence shall be prepared and updated by the Administrative Officer. Administration Department after receiving the bill from offices/officers shall scrutinize them as to whether the amount is reasonable having regard to the prescribed limit of calls. On receipt of bill from respective Department an entry shall also be made in the register (See Form No.27) for such payment. Upon all the formalities being completed Administrative Officer in Administration Department shall prepare a note authorizing the payment of telephone bill, which shall be sent to Accounts Department. When private calls are made by the employees from office for urgent work, they are required to inform the administration department in writing which the administration department shall forward to Accounts Department which shall arrange to recover the same from the concerned employee. 35

36 Payments for bills of telephone and postage charges shall be approved by Administration Department. Accounts Department shall make payment thereof on the basis of note from Administration Department. Concerned Officer in Accounts Department shall issue instructions to make entry in Expense Journal and for make payments to concerned employee/telecom department Professional and Consultation Fees: The services of Professionals shall be obtained after taking prior approval of the Commission. For the services of professionals either a formal agreement shall be entered or a letter engaging professional services shall be communicated issued in favour of consultant stating the nature of services required, time limit, consulting charges etc. The copy of the same shall be sent to the Secretary. Bills may be prepared by concerned consultant or branch and shall be verified by the Administration to check services rendered by the consultants in accordance with the terms agreed, and whether, documents or the opinion as the case may be received. Thereafter he shall prepare a note authorizing the payment of professional fees and send to Accounts Department. Accounts Department shall scrutinize bill with terms of appointment and shall adjust the amounts if necessary, such as TDS from professional bills. If there is any major change, the same shall be reverted back to originating department for rectification. After rectification the same shall be sent to Accounts Department. Concerned Officer in Accounts Department shall issue instructions for recording the same in expense journal and for preparation of payment vouchers/ cheques thereof Traveling & Conveyance: All the payments for traveling and conveyance expenses shall be authorized by the Secretary. Every person who has to travel shall take prior approval of the Secretary about his tour program. He may obtain traveling advance on approval of Accounts officer. Accounts department shall make entry in Traveling advance Register (See Form No.28), and shall issue instruction for payment of bill, after recovering amount of traveling advance if outstanding. After completion of traveling he shall submit the bill along with the authorization of the branch head to Accounts branch not later than 15 days of journey. 36